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From Adanna Nnamani, Abuja
The Nigeria Sovereign Investment Authority (NSIA) has backed seven innovative firms with a $275,000 grant to support business expansion, boost productivity and create jobs as Nigeria pursues its ambition of building a $1 trillion economy.
The awards were announced at the Demo Day of the fourth edition of the NSIA Prize for Innovation, themed “Building for Impact,” held in Abuja at the weekend.
Speaking at the event, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said the growth of small businesses into medium-sized and large enterprises would be critical to achieving Nigeria’s economic ambition.
He said, “The ability of small businesses to grow into medium-sized enterprises, medium-sized businesses to become large companies, and Nigerian firms to emerge as competitive players across Africa and the global economy will be critical to achieving the $1 trillion economy target.”
Oyedele said the government had a responsibility to create an enabling business environment, while entrepreneurs must convert available opportunities into sustainable businesses, employment and lasting prosperity.
He noted that many promising businesses struggled to expand due to inadequate access to financing, skills and institutional support.
To address these challenges, the minister highlighted government interventions, including the Development Bank of Nigeria, the National Credit Guarantee Company and the Nigerian Consumer Credit Corporation, which are designed to improve access to finance, reduce lending risks and strengthen domestic demand. He also disclosed that the NSIA was developing an impact innovation fund in partnership with the Japan International Cooperation Agency, with British International Investment expressing interest in participating.
According to him, businesses with significant growth potential often require more than conventional loans, stressing that patient capital, experienced investment partners and access to networks were necessary to help them enter new markets and achieve sustainable expansion.
Oyedele described the NSIA Prize for Innovation as an important platform for preparing businesses for growth, urging entrepreneurs to remain ambitious, disciplined and committed to building commercially viable enterprises.
Earlier, the NSIA Managing Director, Aminu Umar-Sadique, said supporting entrepreneurs remained a key component of the authority’s investment strategy, alongside its primary focus on infrastructure investment.
He said, “Supporting entrepreneurs remains a fundamental component of our investment strategy. SMEs are indispensable to employment generation and economic growth, making it necessary to provide promising entrepreneurs with the resources and support required to build sustainable businesses.”
Umar-Sadique identified education, equity and exposure as the three pillars underpinning the innovation prize, explaining that the programme was designed to help entrepreneurs strengthen their business models, attract investment and expand their reach.
He said the initiative had recorded progress over its four-year journey, reflected in the growth of the prize money and the increasing number and quality of strategic partners participating in the programme.
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According to him, the programme went beyond providing equity investment, incorporating accelerator programmes and educational opportunities to prepare entrepreneurs for the challenges of running and expanding businesses.
He explained that the top 200 applicants were provided with accelerator opportunities to refine their ideas and strengthen their business propositions before the selection process produced 12 finalists.
The 12 finalists will also participate in a six-week learning programme at Lagos Business School following the Demo Day.
The programme has attracted strategic partners, including Wema Bank, Kula, Cascadeo and Pula, which are providing additional support and prizes to selected participants.
Umar-Sadique said the NSIA was committed to working with entrepreneurs and their management teams to strengthen their value propositions, improve corporate governance and expand demand for their products following equity investments.
He added that value creation was essential to producing businesses capable of achieving significant scale and potentially attaining unicorn status.
The managing director cited Money Africa and Sycamore as examples of previous beneficiaries that had continued to make progress, adding that startup performance should be assessed from a medium- to long-term perspective.
Meanwhile, the National Coordinator of the Presidential Initiative for Unlocking the Healthcare Value Chain (PVAC), Dr Abdu Muhtar, said Nigeria’s healthcare sector offered substantial opportunities for entrepreneurs to build profitable businesses while addressing critical development challenges.
He said, “The addressable market across the healthcare value chain is worth about $20 billion, with opportunities spanning hospitals, pharmacies, clinical research, medical devices, telemedicine, digital health and logistics.”
Muhtar said about 250,000 SMEs were already operating in the healthcare sector, citing figures attributed to the International Finance Corporation, with more businesses expected to emerge.
He urged entrepreneurs to view the sector’s challenges as opportunities for innovation, particularly as technological developments, including artificial intelligence, continued to transform healthcare delivery.
According to him, businesses could generate financial returns while expanding access to affordable and quality healthcare and creating employment.
This year’s NSIA Prize for Innovation focuses on healthcare, manufacturing, and climate and food security, sectors the authority considers capable of generating scalable business ideas and employment opportunities.
The programme seeks to bridge the gap between promising business ideas and sustainable enterprises through equity investment, business acceleration, education and strategic partnerships.
