Nigeria, Japan launch $50m fund to back local startups

The Nigeria Sovereign Investment Authority and the Japan International Cooperation Agency have sealed a deal to establish a $50 million Impact Innovation Fund that will support young businesses tackling real-life challenges facing Nigerians.

The agreement was signed at the Federal Ministry of Budget and Economic Planning, where officials described the initiative as a practical step to help promising startups move from ideas to fully operating companies.

The fund is designed for businesses at very early stages, including those just starting out, and will target sectors that directly affect people’s lives such as farming, health services, education, clean energy, waste disposal, and water supply.

Under the arrangement, JICA is providing $14 million as grant funding, while NSIA will match the support with up to $20 million. The remaining capital is expected to come from partners and investment returns as the programme develops.

Beyond financing, the fund will also provide technical guidance to help startups refine their ideas, improve products, and expand into new markets.

Managing Director and Chief Executive Officer of NSIA, Aminu Umar-Sadiq, said the initiative is meant to change the story for entrepreneurs who often struggle to find investors willing to support them at the early stage.

He said, “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.”

He explained that the partnership shows confidence in Nigeria’s talent and business potential, adding that supporting innovation is one of the fastest ways to create jobs, raise incomes, and grow the economy. Preparations are already ongoing to launch the fund’s operations and identify startups ready to receive support.

Officials involved in the programme said the goal is not just to finance businesses but to build companies that can stand on their own, compete globally, and solve local problems. They noted that many small firms collapse early because they lack patient funding that gives them time to grow before profits begin.

With the new fund, both institutions believe more Nigerian founders will gain access to the capital and mentorship needed to turn ideas into successful enterprises that can improve livelihoods across the country.