Nigeria, Japan Sign $30.9m Deal to Empower Start-ups and Boost Innovation

The federal government has signed a memorandum of understanding (MoU) with the Japanese Government to create an enabling environment for business start-ups to boost their innovative ideas and impact the country.

The groundbreaking projects valued at a total sum of $30.9 million, included instruments for the “Development of the Start-up Hub” which is being implemented by the National Information Technology Development Agency (NITDA) and valued at $9.9 million.

The hub, which would be established in Abuja, would serve as a central node in the country’s innovation ecosystem, providing entrepreneurs with access to essential resources, mentorship, networking opportunities, and technical support.

The second intervention involved a project for the “Development of Supporting Environment for Social Start-ups in Nigeria,” implemented by the Nigeria Sovereign Investment Authority (NSIA) and valued at $21 million.

This was designed to support startups and complements the establishment of the start-up hub, and aims to create a robust support structure for Nigerian entrepreneurs who are developing innovative solutions to pressing social challenges.

The Minister of Budget and Economic Planning, Senator Abubakar Bagudu, endorsed the partnership on behalf of the federal government, while the Deputy Head of Mission, Embassy of Japan, Mr. Kozaki Hitoshi, signed for the Japanese Government.

The minister expressed gratitude to the Japanese Government for the series of interventions being carried through the Japan International Cooperation Agency (JICA) and the Embassy of Japan towards improving the quality of lives of Nigerians.

He said both interventions which are multi-sectoral are clearly aligned with the current administration’s Renewed Hope Agenda which implies that there is visible synergy between both countries.

Bagudu further reaffirmed the federal government’s unflinching support to JICA and the Embassy of Japan, and extension to the Japanese Government, towards ensuring successful implementation of these projects.

In his remarks, Hitoshi noted that both countries have enjoyed decades of fruitful partnership across many sectors, adding “our relationship continues to deepen and evolve, reflecting our shared commitment to sustainable development and mutual prosperity.”

He said the ceremony marked another significant milestone in the partnership between Nigeria and Japan.

He said, “I am excited to announce that the first project we are signing today focuses on establishing a start-up hub in Abuja. This hub will serve as a central node in Nigeria’s innovation ecosystem, providing entrepreneurs with access to essential resources, mentorship, networking opportunities, and technical support.

“We invest in this physical and institutional infrastructure to empower Nigerian innovators to transform their ideas into viable businesses that can create jobs, generate economic value, and contribute to Nigeria’s national development priorities.

“This also marks a historic undertaking by the Government of Japan to launch this type of fund project for the first time.

“What makes this project unique is that the Nigerian Government itself will set up the fund with the aim of investing in start-up companies that solve social problems, co-funded equally by the Japanese and Nigerian Governments.”

Hitoshi added, “And given the time needed to foster start-ups working in social development, the fund will run for 13 years and NSIA will manage its operation.

“It is worth highlighting that Japan’s Ministry of Foreign Affairs selected Nigeria as the first country to pioneer this innovative project, underscoring the strategic importance Japan places on Nigeria’s entrepreneurial ecosystem and our bilateral relationship.

“This unprecedented initiative is attracting significant attention in Tokyo.

These two projects reflect Japan’s commitment to supporting Nigeria’s efforts to diversify its economy and harness the power of technology and innovation.

“We believe that by investing in Nigeria’s entrepreneurial talent, we are investing in the future of Africa’s largest economy and most populous nation.

“The signing of these Exchange of Notes today represents not just an agreement between governments, but a shared vision for a more innovative, inclusive, and prosperous Nigeria.

“Let us continue to strengthen our partnership and work hand in hand toward realising this vision. Together, we can create opportunities for Nigeria’s talented youth and contribute to building a more resilient society.”