Wale Edun, Nigeria’s minister of finance, in a group photograph with officials from the Nigeria Sovereign Investment Authority (NSIA) and the Japan International Cooperation Agency (JICA) in his office in Abuja on April 2, 2025
The federal government says Nigeria and Japan have launched a strategic venture capital initiative which will channel naira-denominated investments into high-growth startups.
In a statement on Wednesday, Mohammed Manga, director of information and public relations at the ministry of finance, said the initiative would protect the investments from currency risks while opening up access to long-term concessional financing.
“In a major boost to youth entrepreneurship, Nigeria and Japan have launched a strategic 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 reads.
“The Honourable Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, today 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.”
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Commenting on the development, Aminu Umar-Sadiq, NSIA chief executive officer (CEO), said the initiative satisfies two key conditions set by the minister, including mitigating foreign exchange (FX) volatility by investing in naira and obtaining “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.
On his part, Takao Shimokawa, JICA director-general, said diplomatic agreements would be signed in the coming weeks, with full implementation expected thereafter.
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On his part, Edun was said to have welcomed the development, describing it as a timely response to Nigeria’s youthful population.
The minister said the fund provides critical financial support across the capital structure — from equity to debt — and is in “line with President Bola Tinubu’s renewed hope agenda for inclusive economic growth”.
