The Nigeria Sovereign Investment Authority (NSIA) and the Japan International Cooperation Agency (JICA) have concluded agreements to launch a $50 million Impact Innovation Fund to boost Nigeria’s startup ecosystem.
The fund will provide patient capital to pre-seed, seed and early-stage startups tackling key social challenges in agriculture, healthcare, education, energy, as well as waste and water management.
Under the arrangement, JICA will provide $14 million in grant support, which will serve as first-loss capital, while NSIA will match with up to $20 million. Additional capital is expected to be mobilised to bring the total fund size to $50 million.
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Structured as an onshore public fund, the initiative combines financial support with technical assistance to help startups refine products, scale operations and expand into new markets. The capital will be deployed in local currency to reduce foreign exchange risks for beneficiaries.
Speaking at the signing ceremony held at the Ministry of Budget and Economic Planning, the Managing Director and Chief Executive Officer of NSIA, Aminu Umar-Sadiq, described the Fund as ‘a transformative step for Nigeria’s innovation ecosystem.’
Umar-Sadiq said; “the initiative would enable early-stage ventures in high-impact sectors to access the capital and support required to tackle pressing national challenges.
“The Fund represents a transformative step for Nigeria’s startup ecosystem. By providing early-stage ventures in high-impact sectors with the capital and support they need to grow, we are enabling innovators to tackle some of Nigeria’s most pressing challenges. Our collaboration with JICA underscores our commitment to entrepreneurship, inclusive growth, and sustainable development.”
“And it was always important to the Minister to find a way to channel long-term, patient, local currency- denominated capital to our youth, and on the other hand, protection. And I think this combination of NSIA and JICA under the leadership of the ministry offers that,” he said.
Umar-Sadiq said; “You have a grant capital, which serves as the first loss from JICA facilitated by the ministry. You have matching capital from NSIA, and off the back of that, you have our ability to raise significant additional capital so that we can disperse in local currency to the Nigerian youth. I think that is an exceptional idea. All that is left now is in our joint ability to execute accordingly.”
“So we have to keep going until we move the needle for an economy like Nigeria.”
He noted that the blended structure of grant capital from JICA and matching funds from NSIA would help mobilise additional investment, ensuring sustainable financing for young entrepreneurs.
Japan’s Ambassador to Nigeria, Suzuki Hideo, said; “the project represents Japan’s first-ever implementation globally of this development financing model involving a fund that incorporates private capital.”
Hideo explained that the initiative aligned with Japan’s strategy of co-creating social value through dialogue and collaboration with partner countries while mobilising private finance in combination with Official Development Assistance.
He said; “This project is part of our package for Nigeria that Japan proactively proposes a set of appealing cooperation programs in the areas that are strategically important for Japan based on its foreign policy priorities.
“Today’s project represents Japan’s first-ever implementation of this development model globally, specifically involving a fund that incorporates private capital. The Government of Japan hopes this new project will take root in Nigeria and bear fruit swiftly.”
The Minister of Budget and National Planning, Atiku Bagudu, welcomed the partnership, emphasising Nigeria’s commitment to collaboration over dependency.
Bagudu said; “We are excited for this project; we really want to do more. We don’t need only help, we want partnerships.”
According to him, the country seeks strategic partnerships that promote inclusive growth and sustainable development.
The Fund is expected to create jobs, improve livelihoods and contribute significantly to Nigeria’s socio-economic development.
Preparations are underway to operationalise the Fund and develop a pipeline of high-impact startups ready for investment.