Nigeria, Japan Launch Naira-Denominated Venture Capital Initiative for Startups
By Patience Ikpeme
Nigeria and Japan have initiated a strategic venture capital fund that will channel investments denominated in Naira into high-growth startups.
This approach aims to protect these nascent businesses from currency fluctuations while providing access to long-term concessional financing.
The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, on Wednesday convened with officials from the Nigeria Sovereign Investment Authority (NSIA) and the Japan International Cooperation Agency (JICA) in Abuja to finalize the framework for this fund, which has now received formal approval from the Japanese government.
The Coordinating Minister of the Economy welcomed this development, describing it as a timely intervention for Nigeria’s young population. “This fund provides critical financial backing across the capital structure—from equity to debt—and is aligned with President Bola Tinubu’s Renewed Hope Agenda for inclusive economic growth,” he stated.
NSIA CEO Aminu Umar-Sadiq confirmed that the initiative meets two key conditions set by the Minister: addressing foreign exchange volatility through Naira-based investments and securing first-loss or grant capital to reduce risk for private investment.
“With JICA’s support, this is not just a proposed solution—it’s a fully approved, ready-to-launch initiative,” Umar-Sadiq said.
JICA Director General Takao Shimokawa announced that diplomatic agreements are expected to be signed within the coming weeks, with full implementation of the fund to follow.
By combining international concessional financing with domestic currency stability, this fund establishes a new model for venture capital in Africa, specifically designed to empower the next generation of Nigerian innovators.
