From Adanna Nnamani, Abuja
As part of efforts to advance youth entrepreneurship, Nigeria and Japan have unveiled a strategic venture capital initiative designed to channel Naira-denominated investments into high-growth startups.
The initiative aims to protect these businesses from currency risks while providing access to long-term concessional financing.
The Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, on Wednesday met with officials from the Nigeria Sovereign Investment Authority (NSIA) and the Japan International Cooperation Agency (JICA) to finalise the fund’s framework.
The initiative, according to a statement from the Spokesperson for the Ministry, Mohammed Manga, has now received formal approval from the Japanese government.
Aminu Umar-Sadiq, CEO of NSIA, affirmed that the initiative addresses two crucial conditions outlined by the Minister: it mitigates foreign exchange volatility by investing in Naira and secures first-loss or grant capital to de-risk private investment. “With JICA’s support, this is not just a proposed solution—it’s a fully approved, ready-to-launch initiative,” Umar-Sadiq stated.
JICA Director General Takao Shimokawa disclosed that diplomatic agreements are expected to be signed within weeks, paving the way for full implementation thereafter.
The Coordinating Minister of the Economy welcomed this initiative, describing it as a timely response to Nigeria’s youthful 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 remarked.
“By merging international concessional financing with domestic currency stability, the fund represents a new model for venture capital in Africa, aimed at empowering the next generation of Nigerian innovators,” the statement added.