Nigeria’s Bid to Boost Innovation via Patent Development
Patent filings directly reflect the intellectual capacity and innovation in a country; they also reflect a legal system that protects intellectual property (IP), which is important for fostering innovation and attracting investment. Moreover, IP can be a significant revenue generator for small and medium enterprises (SMEs), helping to transform natural resource-intensive economies into knowledge-based ones. In Nigeria’s case, SME’s make up about 99% of businesses and contribute as much as half of the country’s GDP, yet the country imports about 90% of the technologies it uses.
What was the challenge?
While Nigeria is considered to be a major hub for innovation and the creative economy in Africa, IP rights and utilization face a number of challenges.
Among the barriers are a high rate of informality in the economy, which limits IP awareness and literacy, as well as costly legal fees and the prevalence of piracy, resulting in low royalty rates. Moreover, Nigerian patent law lacks extraterritorial jurisdiction, meaning that Nigerian courts cannot enforce patent infringements that occur outside the country. To be actionable in Nigerian courts, patent infringements must have taken place within Nigeria’s borders.
Another significant obstacle to IP commercialization in Nigeria is the restriction within the Patent and Design Act that excludes patents for specific areas of inventions. These exclusions encompass inventions related to plants, animal varieties, and biological processes for plant or animal production, except for microbiological processes and their products. These limitations have hindered progress in critical economic sectors such as medicine and agriculture.
What action was taken?
In 2014, the Nigerian government introduced the country’s first Intellectual Property Automated System, or IPAS, to make patent registration easier, faster, and cost-effective. These digital platforms also promote transparency and encourage more inventors and businesses to protect their intellectual property, fostering innovation and economic growth. Nigerians can now conveniently file their trademarks, patents, and designs online, whether from their office or home. The automated system ensures swift processing, with instant acknowledgement letters and acceptance documents typically issued within two weeks, provided there are no issues.
Additionally, the National Office for Technology Acquisition and Promotion (NOTAP) an agency under the Federal Ministry of Science, Technology and Innovation (FMSTI), has promoted patent development through a number of initiatives, from hosting local for a to assisting researchers, inventors, and innovators in the patent process, as well collaborating with universities to establish establishment of 60 Intellectual Property and Technology Transfer Offices across tertiary education and research institutions in Nigeria.
What changed?
Through the government’s commitment to fostering a healthy environment for research and development, capital city Lagos has seen the average number of patents filed per capita grow by over 50% per annum between 2017 and 2022. See how Lagos performs on other metrics in the Dynamic Cities Dashboard.