Charles Ohalete, a venture capitalist, has urged the government to review its grants, tax incentives, and partnerships to support startups without creating long-term dependency.

He said this against the backdrop of efforts to strengthen Nigeria’s innovation financing framework during an interview on Monday in Abuja.

Mr Ohalete said government grants should be milestone-based, tied to measurable research progress, prototype validation, or early market traction to ensure accountability.

According to him, phased disbursement will instil discipline, thereby helping startups to remain focused on results while building credibility with investors and regulators.

He cautioned against upfront lump-sum funding, noting it often weakens oversight, encourages inefficiency, and exposes public resources to misuse.

On tax incentives, he recommended targeted relief for startups investing in research infrastructure, intellectual property development, and the development of skilled local talent.

He said that incentives should be conditional on reinvestment and productivity rather than blanket exemptions that might not translate into real innovation outcomes.

He said a performance-linked tax framework would motivate startups to scale sustainably while aligning public support with measurable economic value.

Speaking on public-private partnerships, Mr Ohalete advocated co-investment models where the government shares early risks while private investors enforce market discipline.

He further said that such partnerships should include clear governance rules, defined timelines, and exit pathways to prevent prolonged dependence on state backing.

He stressed that well-structured partnerships could unlock capital, accelerate innovation, and strengthen Nigeria’s capacity to commercialise scientific research.

He warned that poorly designed interventions could distort markets, attract opportunistic actors, and undermine genuine innovators tackling national challenges.

The venture capitalist urged policymakers to institutionalise transparency, independent evaluation, and performance tracking to ensure support delivers measurable impact.

Mr Ohalete said Nigeria’s startups would thrive if policies promote resilience, accountability, and private-sector competitiveness rather than reliance on government funding.

(NAN)