The Federal Government has officially launched a $50 million Impact Innovation Fund aimed at supporting Nigerian startups tackling critical social challenges, following the signing of agreements between the Nigeria Sovereign Investment Authority and the Japan International Cooperation Agency.

The agreements were signed on Friday at the Federal Ministry of Budget and Economic Planning in Abuja and included the grant contract for the “Project for the Development of Supporting Environment for Startups Addressing Social Challenges.”

Under the arrangement, the Japan International Cooperation Agency will provide $14 million in grant funding, while the Nigeria Sovereign Investment Authority will commit up to $20 million in counterpart financing toward the $50 million Impact Innovation Fund.

Designed as an onshore public investment vehicle, the fund will pair capital with technical support to enable startups to improve their products, scale operations, and enter new markets.

Speaking at the event, the Managing Director and Chief Executive Officer of the Nigeria Sovereign Investment Authority, Aminu Umar-Sadiq, described the fund as a major milestone for Nigeria’s startup ecosystem.

The Fund represents a transformative step for Nigeria’s startup ecosystem. By providing early-stage ventures in high-impact sectors with the capital and support they need to grow, we are enabling innovators to tackle some of Nigeria’s most pressing challenges. Our collaboration with JICA underscores our commitment to entrepreneurship, inclusive growth, and sustainable development,” he said.

Also speaking, Japan’s Ambassador to Nigeria, Suzuki Hideo, expressed satisfaction that the grant agreement for the “Project for the Development of Supporting Environment for Startups Addressing Social Challenges” was being signed between the ministry and the Japan International Cooperation Agency.

He noted that the project is part of a broader cooperation package being proposed by Japan to Nigeria, aligned with its foreign policy priorities.

“This initiative aims to achieve development goals by the ‘co-creation’ of social value through dialogue and collaboration with Japan’s partner countries, while mobilising private finance in combination with ODA,” he said.

He stressed that the initiative represents Japan’s first global rollout of this development approach, built around a fund structure that blends public resources with private capital.

“Today’s project represents Japan’s first-ever implementation of this development model globally, specifically involving a fund that incorporates private capital. Interest in Tokyo is very high, and the Embassy has been eagerly awaiting the launch of this project,” he stated.

The initiative is expected to generate employment, enhance livelihoods, and support sustainable economic growth across Nigeria.

The Ambassador added that since the Exchange of Notes was signed last April, engagements had continued between the Japan International Cooperation Agency and the Nigeria Sovereign Investment Authority.