By Valentine Alexander 
Nigeria’s startup ecosystem is about to get a significant capital injection. The federal government has confirmed plans to establish a $40 million seed fund aimed at supporting early-stage tech startups. A strategic move to give local entrepreneurs better access to funding without relying solely on private investors. Half of the fund will be provided by Japan’s overseas development agency, while the rest will be matched by Nigeria’s sovereign wealth authority. According to government officials, the final agreement is expected to be signed next month, marking a key step in implementing the Nigeria Startup Act, which was passed to create a structured, supportive environment for tech-driven ventures.
A Structured Push for Startup Growth
The seed fund is part of a broader initiative to boost innovation, drive economic growth, and provide a clear framework for startups to thrive. Under the startup law, eligible businesses are entitled to incentives such as tax exemptions and investor benefits — including tax credits on capital deployed into the ecosystem. So far, around 13,000 businesses have registered under the law’s criteria, qualifying them for support. However, officials have acknowledged that low awareness remains a barrier, particularly outside major cities. There are plans to scale sensitization efforts across all 36 states and the capital to ensure wider participation.
Building Long-Term Impact Through Local Investment
The management of the fund by the national wealth authority ensures a locally anchored approach, with oversight aimed at maximizing impact and ensuring accountability. The focus is not just on providing capital but on nurturing sustainable, homegrown innovation that can drive long-term growth. This development signals a commitment to building a resilient tech economy — one where emerging businesses have the tools, funding, and policy support needed to scale, create jobs, and contribute meaningfully to the national economy.
Susan Olalere
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