The Founder of Young Innovators of Nigeria (YIN), Mr Andrew Abu, has urged closer partnership with relevant agencies to open up access to funds by startups in the country.
Abu said in Abuja on Monday that doing so would boost the nation’s technology ecosystem.
He said the Nigeria’s technology ecosystem had the talent, ideas and market potential but needed strategic funding and policy-backed to propel it into a new era of innovation and economic growth.
“Nigeria’s technology ecosystem is brimming with potential, yet access to funding remains a persistent challenge.
“This is spite of the existence of funding instruments like the CBN intervention funds, the Development Bank of Nigeria (DBN) innovation financing and Bank of Industry (BOI).
“The disbursement of these funds has not been effectively structured to support the real needs of tech startups.
“The time is ripe for a strategic collaboration between the Ministry of Communications, Innovation and Digital Economy, CBN, and others to establish a structured funding model that provides accessible financing for Nigerian innovators.
Abu said the Startup Act (2022) provides the legal framework, but financial institutions and key agencies should operationalise it effectively to drive real impact.
“The Nigeria Startup Act was designed to stimulate innovation, encourage foreign investment, and provide structured incentives for startups.
“However, its impact can only be fully realised if financial institutions actively leverage its provisions to channel funding into the ecosystem,” he said.
Abu said the CBN, in collaboration with DBN, BOI and Nigeria Sovereign Investment Authority (NSIA), should establish a dedicated Startup Investment Fund that deploys financing to certified startups under the Startup Act framework.
He said it would reduce bureaucracy and ensure that funds reached the right hands.
“Many startups struggle with access to credit due to a lack of collateral.
“Therefore, DBN and BOI can introduce low-interest loan facilities and credit guarantees to encourage banks to lend to early-stage tech businesses without excessive risk concerns.
“CBN and BOI can structure equity-based funding schemes where startups receive direct capital injections in exchange for minority government stakes, ensuring long-term sustainability.
“NSIA, as Nigeria’s sovereign wealth fund manager, should allocate resources for strategic investment in promising startups, especially in high-growth sectors like fintech, AI and health tech,” Abu said.
He said there were sector- specific funding for High-Growth Tech Verticals, some of them are Fintech, HealthTech, EdTech, AgriTech, adding that AI-driven startups should enjoy a similar corridor.
Abu said a smart Agriculture Innovation Fund could support startups using AI, Internet of Things (IoT) and blockchain to improve Nigeria’s agricultural value chain.
He said BOI, NSIA, and DBN should work with NITDA to fund innovation hubs across the country, particularly in underrepresented regions.
“These hubs should serve as incubation centers where startups receive both funding and business development support.
“NITDA’s experience in digital innovation and startup incubation makes it a key facilitator of capacity-building programs for tech entrepreneurs,” Abu said.
He said the National Information Technology Development Agency (NITDA) and NSIA were at the forefront of digital transformation in the country.
Abu said under the Startup Act, NITDA should play a coordinating role in ensuring policy implementation and provide technical support for digital enterprises.
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