Nigeria and Japan have come together to launch a new venture capital fund designed to support high-growth startups.
This initiative aims to channel Naira-denominated investments into Nigerian businesses, protecting them from currency fluctuations and offering access to long-term financing.
It marks a significant collaboration between the two nations, with formal approval now in place from the Japanese government to move forward.
The partnership was formalized in Abuja, where Nigeria’s 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).
The purpose was to finalize the framework for the fund, which will shield startups from the challenges of foreign exchange volatility and open doors to concessional financing.
“This is a major boost to youth entrepreneurship in Nigeria,” said a statement from Mohammed Manga, the Director of Information and Public Relations at the Ministry of Finance.
“The initiative will allow high-growth startups to access Naira-denominated investments, ensuring they are protected from currency risks while benefiting from long-term funding options.”
Aminu Umar-Sadiq, CEO of NSIA, emphasized that the initiative serves two key purposes: first, addressing foreign exchange risks by focusing on Naira investments; second, offering “first-loss or grant capital” to help reduce the risks associated with private investment.
“With JICA’s support, this is not just a proposed solution, it’s a fully approved, ready-to-launch initiative,” he said.
Takao Shimokawa, JICA Director-General, shared that diplomatic agreements will be signed soon, with the full rollout expected shortly thereafter.
This initiative underscores the growing relationship between Nigeria and Japan, both of which are focused on encouraging innovation and entrepreneurship.
Minister Wale Edun described the venture as a timely response to Nigeria’s youthful and dynamic population.
He explained that the fund will meet crucial 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 said.
This new partnership builds on previous collaboration between the two countries. In October 2024, Japan provided a ¥1.75 billion grant to the Nigeria Centre for Disease Control (NCDC) to strengthen diagnostic capacity.
This venture further reflects Japan’s ongoing commitment to supporting Nigeria in areas like health, food security, infrastructure, and trade.
Stanley Nkwocha, Senior Special Assistant to the President on Media & Communications, highlighted Nigeria’s ambition to deepen ties with Japan.
“We are looking to explore more opportunities for strategic investments that will drive sustainable growth and development,” he said.
This initiative is part of Nigeria’s broader strategy to diversify its economy and create a solid foundation for long-term growth.
As both nations align their diplomatic and investment frameworks, this partnership sets a new benchmark for international collaboration in driving innovation and economic progress.
