Nigeria has taken a major step to strengthen its startup ecosystem as the Nigeria Sovereign Investment Authority (NSIA) signed a landmark agreement with the Japan International Cooperation Agency (JICA) to establish a $50 million innovation fund for Nigerian startups.
The agreement was signed on Friday at the Ministry of Budget and Economic Planning in Abuja. Through this partnership, both institutions aim to unlock fresh capital for early-stage businesses addressing critical social and economic challenges.
Under the deal, JICA will provide $14 million in grant funding. Meanwhile, NSIA will contribute up to $20 million to match the grant as part of the $50 million impact-driven fund. Together, the partners plan to attract additional private capital to scale the initiative further.
Importantly, the fund will operate as an onshore public investment vehicle. It will not only provide financing but also deliver technical support to startups. As a result, beneficiaries can refine their products, scale operations, and expand into new markets faster.
Speaking at the ceremony, Aminu Umar-Sadiq, Managing Director and Chief Executive Officer of NSIA, described the initiative as transformative for Nigeria’s innovation landscape. He stressed that the fund would empower entrepreneurs in high-impact sectors with the capital and strategic backing required to solve pressing national challenges.
According to Umar-Sadiq, the collaboration reflects NSIA’s commitment to inclusive growth and sustainable development. He added that strong partnerships remain vital to building resilient businesses that can compete globally.
On his part, Suzuki Hideo, Japan’s Ambassador to Nigeria, welcomed the signing of the grant contract. He noted that the project forms part of a broader cooperation framework between Japan and Nigeria, aligned with Japan’s foreign policy priorities.
Furthermore, Hideo explained that the initiative promotes “co-creation” of social value. Through dialogue and collaboration, Japan aims to combine official development assistance with private finance to achieve long-term development goals.
Notably, this marks Japan’s first global rollout of a development model that integrates private capital within a structured innovation fund. Consequently, stakeholders expect the project to generate employment, strengthen livelihoods, and support sustainable economic expansion across Nigeria.
Discussions between JICA and NSIA intensified after the exchange of notes signed last April. Since then, both sides have refined the structure to ensure transparency, impact measurement, and long-term viability.
As Nigeria positions itself as Africa’s leading startup hub, the NSIA-JICA $50 million innovation fund signals renewed investor confidence. More importantly, it offers a strategic pathway for entrepreneurs to access funding, mentorship, and global networks needed to thrive in competitive markets.
With this bold move, Nigeria deepens its economic ties with Japan while accelerating innovation-led growth. Industry watchers believe the fund could reshape the future of Nigerian startups and attract further international partnerships into the country’s tech ecosystem.
