From Adanna Nnamani, Abuja
To bolster youth entrepreneurship, Nigeria and Japan have officially launched a strategic venture capital fund designed to fuel high-growth startups while shielding them from currency fluctuations. The initiative, which channels investments in naira, ensures long-term concessional financing, mitigating foreign exchange risks and fostering a stable economic environment for emerging enterprises.
The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, convened a high-level meeting at his Abuja office with officials from the Nigeria Sovereign Investment Authority (NSIA) and the Japan International Cooperation Agency (JICA) to finalize the operational framework of the fund. The collaborative effort has now secured formal approval from the Japanese government, marking a significant milestone in economic diplomacy and financial innovation.
Aminu Umar-Sadiq, the Chief Executive Officer of NSIA, emphasized that the fund adheres to two key conditions stipulated by the Minister: ensuring foreign exchange stability through Naira-based investments and incorporating first-loss or grant capital to de-risk private sector participation.
“With JICA’s unwavering support, this is not merely a conceptual framework but a fully sanctioned and implementation-ready initiative,” Umar-Sadiq affirmed.
JICA Director General Takao Shimokawa announced that diplomatic agreements between the two nations are set to be formalized within weeks, paving the way for the fund’s full-scale deployment.
Welcoming the initiative, Mr. Edun highlighted its strategic significance in addressing Nigeria’s youthful demographic and fostering inclusive economic growth. “This fund provides essential financial backing across multiple tiers of the capital structure—from equity to debt—aligning seamlessly with President Bola Tinubu’s Renewed Hope Agenda,” he stated.
He added that by integrating international concessional financing with domestic currency stability, this pioneering venture fund sets a new precedent for venture capital investment in Africa. It is poised to serve as a catalyst for the next generation of Nigerian entrepreneurs, unlocking innovation, creating jobs, and driving sustainable economic transformation.