Nigeria is gearing up to boost its tech scene with a new $40 million fund aimed at supporting early-stage startups. According to a recent report from Tribune Online, this initiative is a collaboration between the Japan International Cooperation Agency (JICA) and the Nigeria Sovereign Investment Authority (NSIA), with each pitching in half the funding. The goal? To give young tech companies a leg up, reducing their dependence on private investors and strengthening the country’s entrepreneurial landscape.
The fund ties into Nigeria’s Startup Act, passed in October 2022, which offers perks like tax breaks and financial aid to create a startup-friendly environment. Kashifu Inuwa Abdullahi, head of the National Information Technology Development Agency (NITDA), shared that the deal should be finalized within the next month. This comes on top of an existing 10 billion naira (about $8.6 million) annual fund set up under the Act to provide seed money, grants, or loans to certified startups.
Nigeria’s tech ecosystem has been a powerhouse in Africa, pulling in over $2 billion in investments between 2015 and 2022, as noted by Disrupt Africa. Big names like Flutterwave and Andela have soared to multi-billion-dollar valuations. But fundraising has taken a hit lately, dropping to $224 million in 2023 from over $1 billion in 2021, signaling a need for government support as private investors grow cautious.
With nearly 13,000 registered startups already enjoying a three-year tax holiday, this new fund could spark more innovation and growth. The government’s also planning a boost awareness about the Startup Act’s benefits, hoping to get more startups on board. It’s a bold move to keep Nigeria at the forefront of Africa’s digital innovation wave.
For more details, check out the full story on Tribune Online Newspaper’s website.
