Yin Founder Calls for Partnerships to Improve Startup funding

The Founder of Young Innovators of Nigeria (YIN), Mr. Andrew Abu, has called for closer partnerships with relevant agencies to improve funding access for startups in the country.

Abu, speaking in Abuja on Monday, emphasised that such collaborations would significantly boost Nigeria’s technology ecosystem.

He noted that while Nigeria’s tech sector boasts talent, ideas, and market potential, it requires strategic funding and policy backing to advance innovation and economic growth.

“Nigeria’s technology ecosystem is brimming with potential, yet access to funding remains a persistent challenge,” Abu said.

Despite existing funding instruments like the CBN intervention funds, the Development Bank of Nigeria (DBN) innovation financing, and the Bank of Industry (BOI), the disbursement of these funds has not been effectively structured to meet the needs of tech startups.

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Abu stressed the need for a strategic collaboration between the Ministry of Communications, Innovation and Digital Economy, CBN, and other stakeholders to create a structured funding model that provides accessible financing for Nigerian innovators.

He pointed out that the Startup Act (2022) provides the legal framework, but financial institutions and key agencies must operationalise it effectively to drive real impact.

“The Nigeria Startup Act was designed to stimulate innovation, encourage foreign investment, and provide structured incentives for startups. However, its impact can only be fully realised if financial institutions actively leverage its provisions to channel funding into the ecosystem,” he said.

Abu recommended that the CBN, in collaboration with DBN, BOI, and the Nigeria Sovereign Investment Authority (NSIA), establish a dedicated Startup Investment Fund to deploy financing to certified startups under the Startup Act framework.

This approach would reduce bureaucracy and ensure funds reach the right hands.

“Many startups struggle with access to credit due to a lack of collateral. Therefore, DBN and BOI can introduce low-interest loan facilities and credit guarantees to encourage banks to lend to early-stage tech businesses without excessive risk concerns,” Abu added.

He suggested that CBN and BOI could also structure equity-based funding schemes where startups receive direct capital injections in exchange for minority government stakes, ensuring long-term sustainability.

Additionally, NSIA should allocate resources for strategic investments in high-growth sectors like fintech, AI, and health tech.

Abu proposed the establishment of a smart Agriculture Innovation Fund to support startups using AI, Internet of Things (IoT), and blockchain to improve Nigeria’s agricultural value chain.

He also called for collaboration between BOI, NSIA, and DBN to fund innovation hubs across the country, especially in underrepresented regions.

“These hubs should serve as incubation centers where startups receive both funding and business development support. NITDA’s experience in digital innovation and startup incubation makes it a key facilitator of capacity-building programs for tech entrepreneurs,” Abu said.

He noted that the National Information Technology Development Agency (NITDA) and NSIA were at the forefront of digital transformation in the country.

Under the Startup Act, NITDA should play a coordinating role in ensuring policy implementation and provide technical support for digital enterprises, he added.

NAN