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The Nigerian government has announced the creation of a $40 million fund to support early-stage technology startups, a move aimed at strengthening the country’s position as Africa’s leading tech hub.
The fund, which will provide much-needed capital for local entrepreneurs, is a joint effort between the Japan International Cooperation Agency (JICA) and the Nigeria Sovereign Investment Authority (NSIA), with each contributing $20 million.
This initiative is part of Nigeria’s broader strategy to develop its startup ecosystem under the 2022 Nigeria Startup Act. The NSIA, which manages over $2 billion in sovereign wealth assets, will oversee the fund, ensuring that investments align with the law’s objectives of fostering innovation, job creation, and economic growth.
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Nigeria has already attracted over $2 billion in tech investment between 2015 and 2022, making it the continent’s leading destination for startup funding. Companies such as Flutterwave, Andela, and Opay have reached billion-dollar valuations, largely fuelled by their Nigerian operations.
However, many startups still struggle with access to capital, particularly at the early stages.
So far, around 13,000 startups have been registered under NITDA’s criteria, qualifying them for three-year tax exemptions. Investors in these startups also receive tax credits, although awareness of these incentives remains low. The government plans to engage all 36 states and Abuja to promote the benefits of the Startup Act before the end of the year.
With this new fund, Nigeria aims to accelerate the growth of its tech industry, creating a more structured and supportive environment for innovation and entrepreneurship.
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