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NSIA, JICA Seal $50m Impact Innovation Fund
The Nigeria Sovereign Investment Authority (NSIA) and the Japan International Cooperation Agency (JICA) have finalised agreements to establish a $50 million impact innovation fund. It aimed at providing patient, local-currency financing to Nigerian startups addressing critical social and infrastructure gaps.
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The agreement was concluded at a signing ceremony in Abuja, marking a significant milestone in Nigeria–Japan development cooperation.
Fund Targets High-Impact Sectors
The fund will focus on pre-seed, seed, and early-stage ventures operating in agriculture, healthcare, education, energy, waste management, and water management. All of these are sectors widely regarded as central to productivity, job creation, and long-term economic resilience.
By prioritising early-stage businesses in these areas, the initiative seeks to strengthen Nigeria’s innovation pipeline while delivering measurable social impact.
Blended Finance Structure to De-Risk Investments
Under the agreed structure, JICA will provide $14 million in grant funding. NSIA will commit up to $20 million in matching capital. The vehicle is designed as a first-loss fund. It allows grant capital to absorb initial losses and reduce risk for private investors.
This blended finance approach is intended to crowd in additional private capital over time. It is designed to address a key constraint in Nigeria’s startup ecosystem: limited access to long-term, local-currency financing.
Addressing Structural Funding Gaps in Nigeria’s Startup Ecosystem
Nigeria’s startup ecosystem has grown rapidly over the past decade. But funding remains heavily skewed toward foreign-denominated venture rounds exposing startups to exchange-rate volatility.
Speaking at the signing, Umar Aminu-Sadiq, Managing Director and Chief Executive Officer of NSIA, said the fund was deliberately structured to address this weakness.
“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,” Aminu-Sadiq said.
Beyond Capital: Technical Support for Founders
In addition to equity financing, the fund will provide technical assistance to portfolio companies. It will help founders improve governance, refine products, and expand market reach. This reflects recognition that capital alone is often insufficient for early-stage startups operating in challenging environments.
Aminu-Sadiq explained that the blended structure enhances scalability: “You have grant capital serving as first loss from JICA, matching capital from NSIA, and on the back of that, our ability to raise significant additional capital.”
Scaling Ambition to $200 Million
While the fund launches at $50 million, NSIA indicated that scale remains a key objective.
“For an economy like Nigeria, the minimum has to be $200 million,” Aminu-Sadiq said.
He added that the fund would continue to grow to make a meaningful macroeconomic impact.
Nigeria Seeks Investment-Led Development Partnerships
Also speaking at the event, Abubakar Atiku Bagudu, Minister of Budget and Economic Planning, described the agreement as part of a broader reset in Nigeria’s engagement with development partners. He describes it as one that prioritises investment and private-sector participation over traditional aid.
“We don’t want help alone. We want partnership. We want more Japanese companies and more Japanese capital to come to Nigeria,” Bagudu said.
He expressed confidence in NSIA’s capacity to manage the fund and attract private investors.
Japan Deploys New Development Model in Nigeria
Japan’s Ambassador to Nigeria, Suzuki Hideo, described the initiative as the first global deployment of a Japanese development model that blends official development assistance (ODA) with private capital through a structured investment vehicle.
“This project represents Japan’s first-ever implementation of this development model globally,” Suzuki said.
He noted the strong interest from Tokyo and added that the initiative aligns with Japan’s foreign policy focus on co-creating social value with partner countries while mobilising private finance alongside ODA.
Strengthening Nigeria–Japan Innovation Collaboration
Suzuki praised the growing collaboration between JICA and NSIA since the initial agreement signed last April and expressed confidence that the impact innovation fund would quickly take root in Nigeria, supporting inclusive growth and sustainable development.
