How Lagos State innovation funding and Lagos Innovates support startups and researchers — and which proposals are still in draft. Always confirm the current position.

dgm is an independent integration partner for osFoundry — it is not affiliated with the maker of osFoundry (OS LLC) and has not yet completed any integration project for a client.

Lagos State has announced plans to commit a share of its capital budget to innovation — reported at around ₦31 billion — with proposed incentives including reimbursement of up to 70% of R&D costs, but the underlying Innovation Bill was in draft at last report, so treat it as proposed, not law. Lagos Innovates, run by the Lagos State Employment Trust Fund, is an existing programme offering loans, workspace vouchers and support to Lagos startups. Confirm current calls and terms before relying on them.

What public support actually funds

Government support in Nigeria funds a company’s own investment, research and development, exports or staff training, or grants a tax break — it does not buy an off-the-shelf AI subscription. The long-standing Pioneer Status Incentive closed to new applicants on 10 November 2025 and has been replaced, from 1 January 2026, by the Economic Development Tax Incentive (EDTI): a tax credit on qualifying capital expenditure rather than a tax holiday. The Nigeria Startup Act 2022 channels tax reliefs and investor incentives to companies that hold NITDA’s Startup Label. There is a statutory research-and-development deduction under the Nigeria Tax Act 2025 (reported as capped at 5% of turnover) for a company’s own R&D. The Bank of Industry lends to businesses; the Nigerian Export Promotion Council’s Export Expansion Grant rewards physical and processed exports; the 3MTT programme trains people; and the TETFund National Research Fund supports academic researchers at public institutions. dgm is not an accredited, registered or approved provider under any of these programmes; it can advise a beneficiary or act as a subcontractor.

How it connects to an AI project

A well-built AI project starts from a concrete use case, not from a grant. Incentives and tax reliefs can improve the business case, but they do not replace it: first choose the problem you are solving with osFoundry, then check what support fits your project and whether you are eligible.

Worth remembering

This article is general information and not legal, financial or tax advice. Incentives, tax rates and regulations change; always confirm the current position with an official source — the NDPC, NITDA, the Federal Inland Revenue Service (becoming the Nigeria Revenue Service), the Central Bank of Nigeria, the Securities and Exchange Commission, NAICOM, the Nigerian Investment Promotion Commission or the relevant authority — or a qualified adviser before acting.

Where dgm fits in

dgm is an independent integration partner that helps organisations in Nigeria adopt the osFoundry platform — from identifying the first practical use case, to configuration, to connecting AI to the systems you already run. dgm works separately from the maker of osFoundry (OS LLC) and has not yet completed an integration project for any client, so everything described above is a proposed service, not a delivered result. If you would like to weigh a practical first step, dgm is glad to look at it with you. Book an introductory call with dgm.