Nigeria Launches New Investment Funds for Startups

The Federal Government of Nigeria has announced the launch of two new investment funds aimed at supporting early-stage startups in the technology and creative industries. This initiative, which is set to commence in 2026, is part of the larger iDICE programme designed to foster job creation and drive economic transformation in Nigeria.

Targeting Early-Stage Startups

The newly introduced investment funds focus primarily on early-stage startups, with a strategic emphasis on the technology and creative sectors. This focus is intended to address the persistent financing challenges faced by startups in Nigeria, particularly those in the nascent stages of development. By providing structured financing, the funds aim to bridge the gap that has long hindered the growth of innovative enterprises in the country.

Specifically, the funds will target startups in the music, film, and creative technology sectors, areas that are pivotal to Nigeria's creative economy. The sector is projected to reach a valuation of $15 billion by 2025, underscoring its potential for substantial economic impact.

Focus on Creative and Technology Sectors

The investment initiative is structured into two distinct funds: the Creative Sector Fund and the Fund of Funds. The Creative Sector Fund is tailored for startups within the creative industry, offering financial backing to entrepreneurs in sectors such as music and film. Meanwhile, the Fund of Funds is designed to support smaller tech and creative funds, further extending its reach to a larger pool of startups.

This dual approach aims to not only address the immediate financial needs of startups but also to foster a supportive ecosystem for innovation and creativity. By focusing on enterprise funding and digital skills training, the funds seek to empower young entrepreneurs and innovators, providing them with the necessary tools and resources to succeed.

Partnerships and Operational Guidance

To ensure the effective implementation and management of these investment funds, the initiative includes strategic partnerships with key organizations. Notably, Co-Creation Hub (CcHUB) will oversee the application process and manage the portfolio of supported startups. This collaboration ensures that operational guidance and sustainable practices are embedded within the funding framework.

Additionally, the partnership with Chocolate City, a prominent player in Nigeria's creative industry, is expected to offer specialized support to startups in the sector. The collaboration aims to leverage Chocolate City's expertise and networks to provide enhanced support to emerging entrepreneurs.

Empowering Nigeria's Youth

The overarching goal of the investment funds is to unlock the potential of Nigeria's youth by empowering them to become active contributors to the economy. Through job creation and the empowerment of entrepreneurs, the funds seek to transform Nigeria's economic landscape, driving growth and innovation across multiple sectors.

Co-founders of the initiative, Audu Maikori and Paul Okeugo, emphasize the importance of addressing financing inefficiencies and providing young entrepreneurs with access to the resources they need to thrive. By supporting early-stage startups, the funds aim to cultivate a vibrant ecosystem of innovation and creativity, positioning Nigeria as a hub for technological and creative excellence.

"Access to structured financing remains limited for many startups in Nigeria. These new investment funds are crucial in addressing this gap and supporting the next generation of entrepreneurs," said Audu Maikori, co-founder of the initiative.

As the launch of the investment funds draws nearer, stakeholders remain optimistic about the potential impact on Nigeria's economy. By fostering a culture of innovation and entrepreneurship, the initiative seeks to pave the way for a more prosperous and dynamic future for the nation's young innovators.