He therefore stressed the need for the state to adopt the same model in creating a tech innovation one-stop shop to enable tech venture funds from being domiciled abroad to becoming local, even as regulation is made less complex.

The ambition of the bill was made clear: To position Lagos as a globally recognised innovation capital driven by research, home-grown ideas, smart policy, and inclusive economic growth.

The bill draws inspiration from Delaware in the United States, an international business hub praised for its pro-innovation regulatory framework as it affords founders the opportunity to start up their tech businesses easily.

The bill seeks to institutionalise innovation within the state’s legal and policy architecture to drive technology adoption, local investment, R&D, regulation, and eliminate structural barriers to innovation; while embedding sustainable mechanisms for growth, talent development, and global competitiveness.

Key officials from Lagos state were represented such as Engr. Ibilola Kasunmu, permanent secretary, Min. of Science and Technology, Gbemisola Bolarinwa, head, strategy and governance department, Min. of Science and Technology, Olusegun Sanwo-Olu, executive assistant to the Governor on Project Implementation and Monitoring, and other Lagos state officials.

Speaking further in exemplifying best practices on the ecosystem of innovation in Fraunhofer Institute which Lagos can adopt, Alake stated,

“The Fraunhofer Institute pays and files the patents. The patents is jointly owned. The VC provides funding to quickly incorporate and build the company, as that product is now the new primary product that they will ship into”.

“And then the Fraunhofer Institute also provides contracting to governments….in fact, the Fraunhofer Institute is run by municipal governments”.

“So when new ideas and products come on, they are also giving these companies contracts. So there is a whole ecosystem of innovation”.

Sustained R&D investment- Lessons from global best practices

In providing a historical and global context, Alake cited the evolution of Silicon Valley, driven by the cold-war eras contracts to Fairchild Semiconductor, and the R&D breakthroughs of institutions like Oak Ridge in the United States.

Alake underscored that countries such as South Korea, Israel, and Germany have demonstrated the strategic economic value of sustained R&D investment. He noted that South Korea currently spends 4.8 percent of its GDP on R&D, compared to Nigeria’s 0.13 percent.

“There is a pipeline of development that must be embedded into our national agenda. Research and development is a fundamental pillar of every developed economy,” he argued.

Speaking during the event, Joel Ogunsola, founder of Tech4Dev, reiterated the urgent need for cross-border collaboration, accountability, and skills development.

“To every young dreamer in Nigeria, to every parent hoping for their child’s breakthrough, this bill is the answer,” he said.

Ogunsola emphasised that the proposed bill is not just about startups, but also about enabling policies that creates access to capital, skills, and regulatory support. He pointed to the potential of local sandboxes, diaspora investment channels, and intellectual property rights as critical enablers of Nigeria’s innovation potential.

During the stakeholder engagement, participants representing organisations such as Google, Huawei, Semicolon, ENC Legal, Corporate BC Innovation Lab, BusinessDay, Beyond the Brief Council, among others, shared more insights and recommendations for the bill.

Encourage ease of doing business

A consistent theme was the difficulty early-stage businesses face in navigating Lagos’ fragmented incentive and regulatory landscape.

It was noted that startups face challenges with ease of doing business; foreign models are often used without localisation. Hence, it was decided that the law must help contextualise our realities as Africans to create the right enabling environment.

Create a dedicated Lagos innovation portal (Innovation one-stop shop)

The proposed law aims to streamline processes through a dedicated Lagos Innovation Portal, envisaged as a one-stop-shop for registration, funding access, and resource discovery.

This digital platform is expected to reduce bureaucratic hurdles in starting tech business and identify the incentives available to them, therefore increasing transparency.

It will enable participants register, get access, and find the opportunities.

Align research with industry needs

While some Nigerian universities such as the University of Lagos have made strides in research, the lack of coordination across institutions and industry remains a significant barrier.

The Innovation Bill, aims to close this gap by fostering structured collaboration, incentivising problem-solving in universities, and aligning curricula with industry needs.

This fund will be geared to support academic collaboration, tech transfer, and the commercialisation of local innovations.

The proposed law envisions stronger partnerships between academia, government, and industry, facilitated by joint grants and co-creation incentives.

Protect intellectual property and attract global capital

A critical element of the legislation is its emphasis on intellectual property (IP) protection. The bill acknowledges IP as a fundamental economic asset and proposes provisions to safeguard it, thereby boosting investor confidence.

Establish a governing commission

Central to the legislation is the creation of a Lagos State Science, Research and Innovation Commission, tasked with coordinating the innovation agenda.

Backed by law, the Commission will oversee grant administration, policy implementation, stakeholder engagement, and ecosystem monitoring.

Provide tax relief

The complexity of taxation for startups and innovators also emerged as a key challenge.

Participants pointed out the fragmented nature of tax regimes across federal, state, and local levels.

To drive participation, the bill proposes a suite of incentives for eligible stakeholders, ranging from fast-tracked patent support and tax relief to legal advisory services and IP waivers.

Create accountability and compliance

To maintain fiscal and operational transparency, registered entities will be subject to basic compliance requirements such as annual reporting and financial disclosure.

These will become checks and balances that are set in place.

Develop talent and infrastructure

The bill includes measures to expand the local talent pool through scholarships, innovation fellowships, boot camps, and access to state-supported labs and incubators.

As Lagos state moves closer to enacting the bill, the focus will now shift to legislative passage, institutional alignment, and continued public engagement.

Businessday.ng