Nigeria and Japan have launched a strategic venture capital initiative that will channel Naira-denominated investments into high-growth startups for young entrepreneurs.
The initiative was tailored to protect them from currency risks while unlocking access to long-term concessional financing.
Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, on Wednesday in his office in Abuja met with officials from the Nigeria Sovereign Investment Authority (NSIA) and the Japan International Cooperation Agency (JICA) to finalise the framework of the fund, which has now received formal approval from the Japanese government.
The Director, Information and Public Relations of the Ministry of Finance, Mohammed Manga, in a statement said while speaking during the meeting, the NSIA CEO, Aminu Umar-Sadiq confirmed that the initiative satisfies two key conditions set by the Minister: mitigating foreign exchange volatility by investing in Naira and securing first-loss or grant capital to de-risk private investment.
“With JICA’s support, this is not just a proposed solution—it’s a fully approved, ready-to-launch initiative,” Umar-Sadiq said.
JICA Director General Takao Shimokawa announced that diplomatic agreements would be signed within weeks, with full implementation expected thereafter.
The statement noted that the Coordinating Minister of the Economy welcomed the development, calling it a timely response to Nigeria’s youthful demography.
“This fund provides critical financial backing across the capital structure—from equity to debt—and is aligned with President Bola Tinubu’s Renewed Hope Agenda for inclusive economic growth,” he stated.
