The Nigerian government is set to establish a $40 million fund to support early-stage technology startups, providing much-needed investment for entrepreneurs who have traditionally relied on private funding.
Half of the fund will come from the Japan International Cooperation Agency (JICA), Japan’s overseas development assistance arm, while the Nigeria Sovereign Investment Authority (NSIA) will provide the rest. Kashifu Inuwa Abdullahi, head of the National Information Technology Development Agency (NITDA), confirmed that the final agreement will be signed next month, stating, “Everything has been agreed.”
This initiative is part of Nigeria’s broader effort to strengthen its startup ecosystem under the 2022 Nigeria Startup Act. The NSIA, which manages over $2 billion in sovereign wealth assets, will oversee the fund as mandated by the law.
Between 2015 and 2022, Nigeria’s startup sector attracted more than $2 billion in funding, leading Africa in tech investment. Companies like Flutterwave, Andela, and Opay reached billion-dollar valuations largely through their Nigerian operations. The startup law and its investment fund aim to build on this momentum by creating a structured framework for future growth.
So far, around 13,000 businesses have been registered as startups under NITDA’s criteria, granting them a three-year income tax exemption. Investors in these startups also qualify for tax credits, but a lack of awareness about these benefits remains a challenge. Abdullahi emphasized plans to engage all 36 states and Abuja before the year ends to promote the law’s advantages.
The new fund marks a significant step toward fully implementing the startup law, reinforcing the government’s commitment to fostering innovation and economic growth in Nigeria’s tech sector.
