The Nigeria Sovereign Investment Authority (NSIA) and the Japanese government have agreed to set up a $50 million Impact Innovation Fund to empower the Nigerian start-up ecosystem.
The finalised agreement establishing the Fund was signed on Friday in Abuja between NSIA and the Japan International Cooperation Agency (JICA).
The NSIA is Nigeria’s investment institution established under the Nigeria Sovereign Wealth Act (2011) to manage and invest in a diversified portfolio of medium and long-term funds with a mission to driving sustained economic development for the benefit of all Nigerians by building a savings base for the Nigerian people, enhancing the development of Nigeria’s infrastructure, and providing stabilization support in times of economic stress.
NSIA operates three distinct funds: the Stabilization Fund, the Future Generations Fund, and the Nigeria Infrastructure Fund.
JICA is a government-owned agency under the Ministry of Foreign Affairs of Japan, responsible for implementing Japan’s Official Development Assistance (ODA) to support the socio-economic advancement of developing countries.
Through a combination of technical cooperation, grant aid, and concessional loans, JICA addresses global development challenges and promotes inclusive and sustainable growth.
The agency is committed to building resilient societies, strengthening institutional capacities, and enhancing bilateral cooperation through impactful, long-term
development initiatives.
The NSIA said in a statement that the Fund would provide patient capital to pre-seed, and early-stage startups addressing critical social challenges in key sectors like agriculture, healthcare, education, energy, waste & water management.
Under the agreement, JICA would provide $14m in grant support, while NSIA would contribute up to $20m to match the grant.
Structured as an onshore public fund, the NSIA said the initiative combines financial support with technical assistance to help startups refine products, scale operations, and expand into new markets.
The Fund is expected to help beneficiaries create jobs, improve livelihoods, and contribute to sustainable economic development across Nigeria.
Speaking at the agreement signing ceremony between NSIA and JICA at the Ministry of Budget and Economic Planning, Managing Director/CEO of NSIA, Aminu Umar-Sadiq, said the Fund represents a transformative step for Nigeria’s startup ecosystem.
“By providing early-stage ventures in high-impact sectors with the capital and support they need to grow, we are enabling innovators to tackle some of Nigeria’s most pressing challenges. Our collaboration with JICA underscores our commitment to entrepreneurship, inclusive growth, and sustainable development,” Umar-Sadiq said.
He said preparations were underway to operationalize the Fund and develop a pipeline of high-impact startups ready for investment.
NSIA, he added, remains committed to advancing socio-economic development through strategic partnerships that scale impact, expand innovative solutions, and unlock access to capital.
The Japanese Ambassador to Nigeria, Suzuki Hideo, who witnessed the agreement signing ceremony, expressed delight that the pact between NSIA and JICA setting up the Fund would allow grants for the development of a supporting environment for startups in Nigeria to address social challenges.
He said this initiative was part of the Japanese government package for Nigeria to proactively propose a set of appealing cooperation programmes in the areas considered strategically important for Japan based on its foreign policy priorities.
This initiative, he said, was aimed at achieving development goals by the “co-creation” of social value through dialogue and collaboration with Japan’s partner countries, while mobilizing private finance in combination with ODA.
“This project represents Japan’s first-ever implementation of the development model globally, specifically involving a fund that incorporates private capital. Interest in Tokyo is very high, and the Embassy has been eagerly awaiting the launch of this project,” he said.
Since the signing of the concept note last April, he said detailed discussions continued between JICA and NSIA, adding he happy with the deep trust among both institutions.
He expressed the hope of the Japanese government that the new initiative would take root in Nigeria and bear fruit swiftly.
