Nigeria says it is working with Japan’s aid agency and its sovereign wealth fund to set up six new funds for startups. No fund has been named yet, and no amount or start date has been given.
The plan was announced by Kashifu Inuwa Abdullahi, Director-General of the National Information Technology Development Agency (NITDA), at the Global Tech Africa event in Kano. The partners are the Federal Government, the Japan International Cooperation Agency (JICA) and the Nigeria Sovereign Investment Authority (NSIA). The news comes as startup funding has dropped sharply: Nigerian startups raised $11.3 million in September, down from $364.1 million in August. The one fund with real detail so far is a $50 million NSIA and JICA vehicle for early-stage startups, which still has no fund manager.
Start with what was said. Abdullahi described the funds as part of the government’s wider digital economy reforms. They are meant to back startups that build solutions in Nigeria and to support local technology companies. Reports of the speech do not list the six funds, their sectors, their size or their timeline. One report adds a note of caution: startups should not assume applications are open. It is also not clear whether the $50 million NSIA and JICA fund counts as one of the six.
Abdullahi also said the state cannot carry the load alone. He pointed to the Bank of Industry and other development finance institutions as sources of money. He called for more private investors, who can bring “not only capital but also equity partnerships, corporate governance” and business expertise.
The best guide to what these funds may look like is the NSIA and JICA fund. Here is what is known about it.
| Detail | What has been reported |
|---|---|
| Name and size. | NSIA-JICA Impact Innovation Fund, $50 million. |
| Announced. | 20 February 2026 in Abuja, with agreements signed at the Ministry of Budget and Economic Planning. |
| JICA. | $14 million in grant funding. |
| NSIA. | Up to $20 million, matching the grant. |
| Stage. | Pre-seed to pre-Series A startups. |
| Sectors. | Agriculture, healthcare, education, energy, and waste and water management. |
| Tools. | Equity and near-equity, including SAFEs, convertible notes and venture debt. |
| Life of the fund. | 10 years, extendable by two, with a five-year investing period. |
| Status. | NSIA is still looking for a fund manager. |
Look at the sums. JICA’s $14 million and NSIA’s $20 million add up to $34 million, not $50 million. By our sums, that leaves about $16 million. NSIA’s own announcement does not say where that money will come from. LaunchBase Africa reported that the fund manager is expected to raise it from co-investors. That matters, because the manager must have a track record to do so. NSIA’s call asks for at least seven years in venture or private equity, experience running at least one fund, and investments in at least 10 early-stage startups.
There is also Japanese support for hubs. On 26 October, NITDA said JICA had committed $10.4 million at the foundation-laying of the Renewed Hope Startup Hub in Abuja. NITDA wants at least two working innovation hubs in every state. The sources do not say how the $10.4 million will be split. It also differs from the 1.6 billion yen, about $12.1 million, grant that NITDA announced for the same hub in April 2025, and no report explains the gap.
Now the reason the funds are needed. Nigerian startups raised $364.1 million across 20 deals in August. Moove’s $250 million Series C, Jumia’s $50 million and Yellow Card’s $40 million drove that total. September fell by 96.9% to $11.3 million across nine deals. A year earlier, in September 2025, startups raised $40.5 million across seven deals, so the fall on last year is 72.1%. Debt also made up much of September’s money. Nomba’s $3 million and Drive45’s $3 million were both debt, which is about 53% of the month’s total by our sums. The smallest rounds were closer to the early stage the new funds target. Aeon raised a $1 million pre-seed, and Ororo Waste raised $1 million.
Why it matters: Early-stage money is the hardest to find in Nigeria. The big rounds in August went to firms that were already large, and September showed how thin the field is without them. Six funds could help fill the gap between a first cheque and a growth round. But a fund only helps when it is open for applications. Until the six are named, sized and given a start date, they are a promise and not capital. Abdullahi’s own point also matters here. Public money works best when private investors come in alongside it.
What to watch next: whether NITDA, NSIA or JICA name the six funds and say how big each one is. Watch whether the NSIA and JICA fund is among them. Watch for the appointment of its fund manager and the source of the missing $16 million. Watch for a date when applications open, and for the rules on who can apply. Watch the October funding figures to see whether startup deals recover. And watch whether private investors join these funds, since that is the test Abdullahi set.
Sources: Nairametrics on the six funds announced in Kano; Techclout Africa on the six new funds; NSIA on the US$50 million Impact Innovation Fund; LaunchBase Africa on the search for a fund manager; Nairametrics on Japan’s $10.4 million commitment; Nairametrics on September 2026 startup funding.
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