Nigeria and Japan have signed an agreement to establish a $50 million innovation fund aimed at supporting Nigerian startups in tackling critical social challenges.
The agreement was signed in Abuja by the Nigeria Sovereign Investment Authority (NSIA) and the Japan International Cooperation Agency (JICA), to structure public investment vehicles focused on sectors such as healthcare, education, food security, and financial inclusion.
Under the established arrangement, JICA will provide $14 million in grants, while NSIA is committing up to $20 million.
Selected startups will receive technical support, product development guidance, scaling expertise, and assistance in accessing new markets.
According to the Japanese Ambassador to Nigeria, Suzuki Hideo, the scheme marks Japan’s first-ever deployment of a development financing model that incorporates official development assistance with private capital. Nigeria is the first country where this “co-creation” approach is being tested.
The model is targeted at promoting collaboration between startups in Nigeria and Japanese partners, by combining development aid with market-driven investment to generate sustainable social impact.
NSIA Managing Director and CEO, Aminu Umar-Sadiq, described the fund as filling the current existing gap in the startup ecosystem of Nigeria by providing early-stage capital alongside strategic growth support.
The fund is currently in its preparatory phase, with NSIA identifying eligible startups aligned with its investment priorities. Investments are to begin once the selection process is completed.
