The Nigerian government has formalised a $50 million Impact Innovation Fund to support early-stage startups addressing critical social challenges, following agreements signed between the Nigeria Sovereign Investment Authority (NSIA) and the Japan International Cooperation Agency (JICA).
The grant contract, signed in Abuja on Friday, establishes the “Project for the Development of Supporting Environment for Startups Addressing Social Challenges.” Under the arrangement, JICA will provide a $14 million grant, while the NSIA will contribute up to $20 million in matching funds to complete the $50 million pool. The fund is structured as an onshore public vehicle and will offer a combination of financial investment and technical assistance to help startups refine products, scale operations, and enter new markets.
NSIA Managing Director Aminu Umar-Sadiq described the initiative as 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,” he said. He noted the collaboration with JICA underscores a commitment to entrepreneurship, inclusive growth, and sustainable development.
Japan’s Ambassador to Nigeria, Suzuki Hideo, stated the project is part of a broader cooperation package aligned with Japan’s foreign policy priorities. He explained that the model aims to achieve development goals through “co-creation” of social value with partner countries, while mobilising private finance alongside Official Development Assistance (ODA). “Today’s project represents Japan’s first-ever implementation of this development model globally, specifically involving a fund that incorporates private capital,” the ambassador said. He added that interest in Tokyo is high, and the embassy has awaited the launch eagerly.
The initiative is expected to generate jobs, improve livelihoods, and contribute to sustainable economic development. The ambassador expressed gratitude for the continuous efforts and trust between JICA and the NSIA since the Exchange of Notes was signed last April, hoping the project will “take root in Nigeria and bear fruit swiftly.”
Preparations are now underway to operationalise the fund and develop a pipeline of high-impact startups for investment. The structure positions the NSIA as a key domestic partner in leveraging international grant funding to de-risk and scale ventures targeting social challenges, from healthcare access to agricultural efficiency. The collaboration signals a strategic push to channel blended finance into Nigeria’s entrepreneurial ecosystem, with JICA’s involvement highlighting an international endorsement of the market’s potential for impact-driven growth.
