FG, JICA, NSIA plan six funds to finance Nigerian startups

The Federal Government, in collaboration with the Japan International Cooperation Agency (JICA) and the Nigeria Sovereign Investment Authority (NSIA), is working towards establishing six funds to provide financing for startups developing innovative solutions in Nigeria.

The initiative is expected to strengthen funding opportunities for technology entrepreneurs, deepen Nigeria’s innovation ecosystem and support the growth of indigenous technology companies.

The Director-General of the National Information Technology Development Agency (NITDA), Kashifu Inuwa Abdullahi, disclosed this at the Global Tech Africa event in Kano, themed “Connecting Africa, Accelerating Growth.

Inuwa said the proposed funds form part of the Federal Government’s broader digital economy reforms, which seek to stimulate innovation, develop local technology talent and position Nigeria as a leading digital hub in Africa.

BOI, others funding startups

He also identified the Bank of Industry (BOI) and other development finance institutions as important sources of funding for entrepreneurs, while calling for greater participation by private investors in financing startups.

According to him, government funding alone cannot sustain a growing entrepreneurial ecosystem, stressing the need for private capital to complement public-sector interventions.

• “Private investors can provide not only capital but also equity partnerships, corporate governance, business expertise and leadership to help startups grow,” he said.

The planned establishment of six funds represents part of the government’s efforts to address funding constraints facing Nigerian startups and support the development of homegrown technology solutions.

Beyond access to capital, Inuwa highlighted the importance of bringing private-sector expertise into the startup ecosystem, noting that equity partnerships, business knowledge and corporate governance are essential to helping young companies scale.

He said the government’s digital economy strategy is built around investments in human capital, innovation financing, broadband infrastructure and emerging technologies.

Among the initiatives is the Three Million Technical Talent (3MTT) programme, which aims to develop a skilled technology workforce, alongside the Digital Literacy for All (DL4ALL) initiative, designed to equip Nigerians with foundational digital skills.

He said the government is also integrating digital skills into formal education, from kindergarten to tertiary institutions, to prepare future generations to develop indigenous solutions and compete in the global technology market.

Through DL4ALL, the administration is targeting 95% digital literacy by 2030.

Broadband expansion, sovereign cloud drive digital infrastructure

Inuwa said the Federal Government is also pursuing plans to extend fibre-optic infrastructure across all 774 Local Government Areas, the 36 states and the Federal Capital Territory to expand broadband connectivity.

• However, he stressed that connectivity alone would not deliver the full benefits of digital transformation without adequate domestic computing capacity.
• This, he explained, informed NITDA’s National Sovereign Cloud Initiative, which seeks to strengthen Nigeria’s computing infrastructure, promote digital sovereignty and ensure that data generated within the country can be securely processed and stored locally.
• Describing data centres as the refineries of the digital economy, the NITDA DG said they provide the computing capacity required to transform raw data into valuable insights, products and services.

He argued that Nigeria must develop the capacity to own and control critical digital infrastructure to reduce dependence on foreign computing facilities and position the country as a computing hub for West and Central Africa.

NITDA raises concerns over Africa’s AI representation

On artificial intelligence, Inuwa noted that Africa accounts for less than 2% of the data used to train AI models, raising concerns about the continent’s representation in emerging technologies.

• He called for increased local participation in developing Large Language Models (LLMs) and other AI solutions that reflect Nigeria’s languages, cultures and socioeconomic realities.
• According to him, digital transformation must go beyond providing internet access and smartphones to creating a pathway from connectivity and digital literacy to technology adoption, productivity and economic prosperity.
• He said technology should enable citizens, businesses and traders to improve efficiency, reduce operational costs, expand markets and generate economic value.

Using Kano as an example, Inuwa called for renewed efforts to restore the state’s historic position as a major commercial centre for the Sahel region through digital technology, modern trade and the African Continental Free Trade Area (AfCFTA).

Nigeria startup funding falls

The move by the government to establish funds for startups and the push for more private investments come amid persistent decline in venture capital funding for Nigerian startups.

Nairametrics reported that Nigeria’s startup ecosystem recorded a sharp decline in funding in September 2026, with nine startups attracting a combined $11.3 million, compared with $364.1 million raised by 20 startups in August.

The September figure represents a 96.9% month-on-month decline, reflecting the unusually large transactions that boosted August’s funding total, particularly Moove’s $250 million Series C round, Jumia’s $50 million raise and Yellow Card’s $40 million funding round.