Reality Show to Boost Nigerian Start-ups with N1bn

The Incubator Reality has created a lifeline to enhance Nigerian start-ups, increase their capacity and access to funding via a novelty incubation program.

A statement by the promoters of the initiative -ECSCORP, said the reality TV show seeks to change the start-up narrative by creating a start-up hub where best brains are incubated to encourage product exposure, partnership, and funding.

“Start-ups encounter many challenges especially during the formation stage. These challenges range from seed funding, partnership and investment, business resource and mentorship.

“Unfortunately, many brilliant individuals, teams, talents are out there hoping for a turnaround and better days to come where their thought-of innovation can become reality,” the statement said.

The Incubator Reality will admit 25 contestants who will work in five different teams for an incubation period of 12 weeks and graduate with the seed fund for the winning team and first runner-up totaling $1.7 million.

Start-ups, coined SMEs (Small Medium Enterprises) are confronted with challenges that cause their failure, sometimes before they even get started while some barely survive the first two years.

There is a critical need to pay attention in this direction. Nigeria, a hub of raw talents, has what it takes to compete globally, however, the specific challenges that start-ups face make it near impossible, the organisers stated.

“Our local talents are blessed with ideas and innovation that can compete with their peers in other nations of the world, but our banks have low appetites to support these talents, their ideas and innovations.

“Angel investors and seed funding, which are the first business drivers are almost nonexistent hence, the creation of The Incubator Reality. The show will focus on revolutionising the quondam challenges of start-ups,” the statement said.

The Incubator’s architect further disclosed that the winner and first runner-up of the program will receive $1 million and $0.7 million respectively.

“The Incubator Reality aims to address the most crucial challenges in Nigerian start-ups, which is - how to leverage on knowledge, creativity and innovation - to leapfrog ahead of or at the very least, be at par with many of the developed economies within the shortest possible time, creating mega companies, more jobs and opportunities.”

The Incubator Reality will minimise brain drain whilst fostering growth and development. Contestants will be able to showcase their brand and attract attention to their talent; their business is already a success before they graduate from the Incubator.

“The viewers will be inspired as well as the partner brand having maximum exposure with a projected 40 million views, and Nigeria benefits from growth in GDP and direct investment to business growth,” the Incubator architect explained.

To be eligible for the program, applicants must be between the ages of 25 and 40 years, and must have an entrepreneurial drive with originality, excellent communication skills (both oral and written), a good team player with sales and marketing skills, as well as good leadership and influencing skills.

new projects could be built.

Yusuf said: “It is, therefore, crucial that projects already underway be able to maintain the conditions under which they were designed and approved. Doing so will incentivise the launching of new projects; grow production and revenue for government and stakeholders and thereby guaranteeing long term sustainability of our oil and gas industry.

“While the PIB enables companies to elect to either convert to the PIB or remain on existing terms, it does not provide clear assurances that projects whose leases will be renewed in the coming years will be able to retain the rights and benefits they have earned since the start of their operations.

“In addition, the PIB provisions expect lease holders to relinquish (upon conversion or renewal) lease areas and zones, thereby potentially jeopardising future exploration/ development and long-term contractual gas supply obligations.”

He argued that the bill should clarify acreage relinquishment requirements upon conversion in order to ensure the stability of projects and enable operators to maintain the structure of gas contracts and pricing agreed between parties prior to the PIB becoming law.

The LCCI director general also pointed out that the deep-water provisions in the PIB did not provide favourable environment for future investments and initiation of new projects, and suggested that the PIB should grant new deep-water oil projects a full royalty relief during their first five years of production and should remove holding tax since companies will still be subject to Companies Income Tax Administration.

“The bill omitted the inclusion of a grandfathering framework to ensure that assets developed based on integrated economics complete their lifecycle. A provision for the specific exemption of associated taxes where assets are required to be segregated should also be considered,” Yusuf added.

LCCI therefore, recommended that the PIB should seek to harmonise tax practices and ensure capital allowance and allowable deductions are consistent with existing tax legislations.

It added that the PIB should include an exemption for existing export gas supply contracts and obligations to avoid breach of contracts that could be triggered by the prohibition of gas export in the new bill until Nigeria attains domestic gas sufficiency.

Although, there is no provision for total downstream deregulation, particularly petrol pricing, in the PIB, marketers are still looking forward to the passage and implementation of the PIB as a good step for the reformation of the entire industry.

They joined their colleagues in other value chains of the industry in the call for more fiscal clarity in the industry in order to boost investments in the sector.

“We are hoping that finally, we will see a PIB in place, but not just a PIB for the sake of it, but a PIB that will actually enhance and help the industry to grow and attract investment and all that,” Chairman of Major Oil Marketers Association of Nigeria (MOMAN) and Managing

Director of 11Plc (formerly Mobil Nigeria), Mr. Adetunji Oyebanji, said.

For the immediate-past Chairman of the Society of Petroleum Engineers (SPE) Nigeria Council, Mr. Joe Nwakwue, “We hope that most of the domestic uncertainties and challenges we face will be addressed by the passage and prompt implementation of the PIB. We need to pass and implement an investor-friendly PIB, and work on most of the ease of doing business challenges facing the sector”.

An Emeritus Professor of Petroleum Economics and Policy Research, Prof. Wumi Iledare, opined that passing the PIB was critical to the removal of political uncertainty.

He added that the energy transition dynamics called for Nigeria to rethink its oil development for revenue obsessions, noting that “the PIB 2020 must bring a new mentality anchored on fiscal designs for investments competitiveness, for economic output in the long run. So, the 2020 outlook is highly dependent on PIB 2020 becoming law and a low Covid-19 impact on global economic activity,” Iledare said.