The Federal Government of Nigeria has officially announced the establishment of a $50 million Impact Innovation Fund aimed at bolstering local startups that are focused on solving significant social issues. This initiative follows the signing of agreements between the Nigeria Sovereign Investment Authority (NSIA) and the Japan International Cooperation Agency (JICA). During a ceremony in Abuja, officials outlined the objectives of the fund, which include providing startups with the necessary financial resources and technical support to thrive in their respective sectors.

JICA will contribute a significant portion of the funding, amounting to $14 million in grants, while the NSIA will supplement this with a matching contribution of up to $20 million. The total fund of $50 million is designed to function as an onshore public vehicle that not only delivers financial support but also offers technical assistance to help startups refine their products, improve their operational capabilities, and broaden their market reach. This strategic partnership underscores the commitment of both Nigeria and Japan to foster innovation and entrepreneurship within the Nigerian ecosystem.

At the signing event, Aminu Umar-Sadiq, the Managing Director and CEO of NSIA, emphasized the importance of supporting innovative solutions to social challenges, highlighting that startups play a crucial role in national development and economic diversification. This funding initiative is expected to empower numerous startups and potentially lead to significant advancements in addressing pressing societal issues, thereby contributing to overall economic growth in Nigeria.