- Lagos State government allocates ₦1 billion in seed funding for startups through LASRIC
- Governor Sanwo-Olu highlights Lagos as a hub for successful startups and emphasizes innovation in THEMES Agenda
- LASRIC, comprising industry, academia, and public sector experts, has created jobs and boosted innovation in Lagos
- FIRS drops tax evasion charges against individuals at Binance, with Binance as the sole defendant
- MultiChoice reports revenue losses and subscriber decline, focusing on cost savings and digital expansion
Lagos State Startup Ecosystem: A Boost with ₦1 Billion Seed Funding
Hey there, let’s dive into the exciting news from Lagos State regarding the allocation of ₦1 billion in seed funding for startup innovation. The Lagos State government recently made a significant move by setting aside this substantial amount to support startups through the Lagos State Science, Research, and Innovation Council (LASRIC).
LASRIC’s Impact on Lagos’s Startup Landscape
During the inauguration of the newly reconstituted LASRIC members, Governor Babajide Sanwo-Olu highlighted Lagos’s emergence as a hub for early-stage and unicorn startups. He emphasized the city’s rapid growth in success metrics, foreign direct investment, and the development of innovative solutions and patents, surpassing many other African cities in these aspects.
LASRIC, a council established to drive science and tech initiatives, comprises experts from industry, academia, and the public sector. The council’s primary focus is to foster innovation and technological advancement in Lagos State. Over the past four years, LASRIC has played a crucial role in creating over 500 jobs by supporting startups in various sectors such as AgriTech, the circular economy, climate change, and construction tech.
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Introducing the “POEM” Assessment System for Tech Startups
Olatunbosun Alake, the Commissioner for Innovation, Science, and Technology, introduced a new assessment system called “POEM” to evaluate tech companies seeking seed funding from LASRIC. This system aims to streamline the evaluation process and ensure that the funding reaches deserving and innovative tech startups in Lagos.
In addition to the funding support, LASRIC has backed over 70 research and development initiatives, significantly boosting innovation in Lagos by more than 250%. The commitment of the Lagos State government to nurturing the startup ecosystem and promoting technological advancement is evident through initiatives like LASRIC and the generous seed funding allocation.
Binance’s Tax Evasion Case and Resolution with FIRS
Shifting gears, let’s discuss the recent developments involving Binance and the Federal Inland Revenue Service (FIRS) regarding tax evasion charges. In a notable turn of events, FIRS has dropped the tax evasion charges against two individuals associated with Binance — Tigran Gambaryan and Nadeem Anjarwalla. Binance now stands as the sole defendant in the case, represented by Ayodele Omotilewa.
Earlier this year, FIRS accused Binance of tax evasion, citing violations of four tax laws and failure to register for tax purposes. While Gambaryan and Anjarwalla were initially named as defendants, Binance asserted that Gambaryan was not a decision-maker and should not be held liable in the case. Binance expressed gratitude towards FIRS for their handling of the situation, emphasizing their commitment to a transparent resolution.
Although the tax evasion charges against the two individuals have been dropped, the conflict between Binance and the Nigerian government is ongoing. Binance remains dedicated to working with the authorities to address the matter, showcasing a willingness to cooperate and resolve any outstanding issues.
MultiChoice’s Financial Strategy Amid Revenue Losses
Lastly, let’s explore the recent financial challenges faced by MultiChoice, a leading entertainment company, and their strategic response to mitigate the impact of revenue losses. Despite a 5% decline in revenue and increased after-tax losses reaching R4.1 billion, MultiChoice CEO Calvo Mawela outlined the company’s approach to stabilizing its finances without resorting to layoffs.
To achieve cost savings and improve financial resilience, MultiChoice aims to save R2 billion by 2025 by renegotiating significant contracts such as satellite leases. The company is also focusing on expanding its digital offerings to drive revenue growth, with positive results seen in sectors like insurance, which experienced a notable increase in active policies and revenue.
Showmax, a key focus area for MultiChoice, aims to achieve $1 billion in revenue within the next five years, signaling the company’s commitment to diversifying its revenue streams and embracing digital platforms. Despite challenges such as subscriber losses in key markets due to external factors like load-shedding and economic conditions, MultiChoice remains resilient in its pursuit of financial sustainability.
The dynamic landscape of startups, tax compliance, and financial management in Lagos State and the broader Nigerian business environment reflects a mix of challenges and opportunities. With initiatives like LASRIC supporting innovation, companies like Binance navigating regulatory issues, and established firms like MultiChoice adapting to changing market dynamics, the Nigerian business ecosystem continues to evolve and adapt to new realities. Stay tuned for more updates on the ever-evolving business landscape in Nigeria. Cheers!
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