Tech is booming in Nigeria, and for a smart corporate lawyer, tech startups are some of the most lucrative clients you can attract. Founders are constantly looking for lawyers to help them set up their companies properly to attract foreign investors.
However, many lawyers make a fatal mistake: they think registering the company at the Corporate Affairs Commission (CAC) is the end of the job.
If you just hand a tech founder a CAC certificate and walk away, you are leaving them exposed to regulatory fines, and you are leaving a lot of money on the table. Here is the ultimate evergreen compliance checklist you must offer every startup client.
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The Right CAC Share Capital (https://www.cac.gov.ng/) A tech startup cannot be registered with a 1 million Naira share capital if they plan to bring in foreign investors or directors. Under Nigerian law, any company with foreign participation must have a minimum share capital of 100 million Naira. Advise your clients to structure their share capital properly from day one to avoid expensive post-incorporation increases later.
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Data Protection Compliance (NDPR)(https://ndpc.gov.ng/) Does your client’s app collect user emails, phone numbers, or bank details? If yes, they are legally recognized as a Data Controller. You must draft a standard Privacy Policy for their app and register the startup with the Nigeria Data Protection Commission (NDPC). Failure to comply can lead to fines of up to 2% of the company's annual gross revenue.
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Intellectual Property (IP) Assignment Founders often build their software with the help of freelance developers. If there is no signed IP Assignment Agreement, the freelance developer actually owns the code, not the startup! As their lawyer, you must draft contracts transferring all intellectual property rights directly to the company.
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NOTAP Registration for Foreign Tech(https://notap.gov.ng/) If the startup is licensing foreign software to run their business, or paying a foreign entity for tech services, that agreement must be registered with the National Office for Technology Acquisition and Promotion (NOTAP). If you don't do this, the startup will not be able to legally repatriate funds through Nigerian banks.
How to Draft Tech Agreements Without Mistakes Tech law is highly specialized, and using an outdated precedent for a software agreement can ruin your client's business.
Don't guess the law—verify it. Whenever you have a tech brief, open JurisAid.ng. Our exclusively Nigerian-trained AI allows you to instantly pull up the latest data protection regulations, CAC guidelines, and statutory requirements. You can even use JurisAid to vet your drafted tech agreements for legal loopholes. Bookmark the site and become the tech lawyer every startup wants to hire!