Nigeria and Japan have unveiled a venture capital initiative aimed at fostering high-growth startups through Naira-denominated investments.
The initiative, which shields startups from currency risks and offers access to long-term concessional financing, represents a strategic collaboration between the two nations.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, hosted officials from the Nigeria Sovereign Investment Authority (NSIA) and the Japan International Cooperation Agency (JICA) in Abuja to finalize the framework for the initiative.
Formal approval from the Japanese government has now paved the way for its implementation.
Addressing FX Volatility and Unlocking Private Investment
According to a statement from the Director of Information and Public Relations at the Ministry of Finance, Mohammed Manga, the fund is designed to protect investments from foreign exchange volatility while creating pathways for long-term financing, particularly in Nigeria’s startup ecosystem.
“In a major boost to youth entrepreneurship, Nigeria and Japan have launched a strategic venture capital initiative that will channel Naira-denominated investments into high-growth startups, shielding them from currency risks while unlocking access to long-term concessional financing,” the statement noted.
CEO of NSIA, Aminu Umar-Sadiq, explained that the initiative addresses two critical objectives: mitigating foreign exchange volatility by focusing on Naira investments, and providing “first-loss or grant capital” to de-risk private investments.
He stated, “With JICA’s support, this is not just a proposed solution—it’s a fully approved, ready-to-launch initiative.”
- Takao Shimokawa, JICA Director-General, noted that diplomatic agreements will be signed in the coming weeks, with the full rollout expected shortly after.
- The initiative reflects the strengthening ties between Nigeria and Japan as both countries focus on fostering innovation and entrepreneurship.
Wale Edun described the initiative as a timely response to Nigeria’s dynamic and youthful population. The minister highlighted how the fund supports critical financial needs across the capital structure, from equity to debt. “This initiative is in line with President Bola Tinubu’s renewed hope agenda for inclusive economic growth,” he added.
What you should know
- This new fund builds on existing cooperation between Nigeria and Japan. In October 2024, the Japanese government donated a ¥1.75 billion grant to the Nigeria Centre for Disease Control (NCDC) to enhance diagnostic capacity.
- This partnership emphasizes Japan’s continued commitment to supporting Nigeria in areas such as health, food security, infrastructural development, and trade.
- Stanley Nkwocha, Senior Special Assistant to the President on Media & Communications, emphasized Nigeria’s intent to deepen its ties with Japan to explore further opportunities. As part of this broader collaboration, the two nations are poised to unlock more strategic investments that foster sustainable development and economic growth.
The Nigerian government’s focus on partnerships like this reflects its broader agenda to diversify the economy and build a resilient foundation for long-term growth.
With diplomatic and investment frameworks now aligning, this initiative sets a new standard for international collaboration in driving innovation and economic transformation.
