Nigeria, Japan partner on Naira-denominated venture capital fund to boost startups.
Nigeria and Japan have unveiled a venture capital initiative aimed at fostering high-growth startups through Naira-denominated investments.
The initiative, which shields startups from currency risks and offers access to long-term concessional financing, represents a strategic collaboration between the two nations.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, hosted officials from the Nigeria Sovereign Investment Authority (NSIA) and the Japan International Cooperation Agency (JICA) in Abuja to finalize the framework for the initiative.
CEO of NSIA, Aminu Umar-Sadiq, explained that the initiative addresses two critical objectives: mitigating foreign exchange volatility by focusing on Naira investments, and providing “first-loss or grant capital” to de-risk private investments.
He stated, “With JICA’s support, this is not just a proposed solution—it’s a fully approved, ready-to-launch initiative.”
- Takao Shimokawa, JICA Director-General, noted that diplomatic agreements will be signed in the coming weeks, with the full rollout expected shortly after.
- The initiative reflects the strengthening ties between Nigeria and Japan as both countries focus on fostering innovation and entrepreneurship.
Wale Edun described the initiative as a timely response to Nigeria’s dynamic and youthful population. The minister highlighted how the fund supports critical financial needs across the capital structure, from equity to debt. “This initiative is in line with President Bola Tinubu’s renewed hope agenda for inclusive economic growth,” he added.
Source: Nairametrics