Startups in both countries are set to benefit as Nigeria and Japan launch venture capital initiatives to support high-growth startups through Naira-denominated investments, providing a safeguard against currency risks and facilitating access to long-term concessional financing.
The initiative was finalized during a meeting in Abuja, where 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). With formal approval from the Japanese government, the project is now set for implementation.
Nigeria and Japan Launch Venture Capital to Tackle FX Volatility and Attract Private Investment
According to a statement from the Ministry of Finance’s Director of Information and Public Relations, Mohammed Manga, the fund is designed to mitigate foreign exchange volatility and provide long-term financial support for Nigeria’s startup ecosystem.
“In a significant boost to youth entrepreneurship, Nigeria and Japan have launched a venture capital initiative that will channel Naira-denominated investments into high-growth startups, shielding them from currency risks while unlocking access to long-term concessional financing,” the statement read.
Aminu Umar-Sadiq, CEO of NSIA, emphasized that the initiative tackles two key challenges: reducing exposure to foreign exchange fluctuations through Naira-based investments and offering “first-loss or grant capital” to de-risk private investments.
“With JICA’s support, this is not just a proposed solution—it’s a fully approved, ready-to-launch initiative,” he stated.
JICA Director-General, Takao Shimokawa, confirmed that diplomatic agreements will be signed in the coming weeks, with a full rollout expected soon after. The initiative further strengthens Nigeria-Japan relations, underscoring their shared commitment to fostering innovation and entrepreneurship.
Expanding Nigeria-Japan Cooperation
The venture capital fund builds on previous collaborations between Nigeria and Japan. In October 2024, the Japanese government provided a ¥1.75 billion grant to the Nigeria Centre for Disease Control (NCDC) to enhance diagnostic capacity. Japan has also supported Nigeria in areas such as health, food security, infrastructure development, and trade.
Stanley Nkwocha, Senior Special Assistant to the President on Media & Communications, reaffirmed Nigeria’s commitment to deepening ties with Japan to unlock more investment opportunities. This initiative represents a model for international partnerships focused on sustainable development and economic transformation.
With diplomatic and investment frameworks now aligned, the fund is set to drive innovation, entrepreneurship, and long-term economic resilience in Nigeria.
