Fed govt.’s $170.6m boost for tech, creative startups

The federal government has launched a new $170.6 million investment fund aimed at expanding access to finance for technology and creative businesses across Nigeria.

To this end, the federal government through the Bank of Industry (BoI) has appointed Kuramo Capital Management as the manager of the DICE Fund of Funds under the Federal Government’s Investment in Digital and Creative Enterprises (iDICE) Programme.

The fund, considered one of the largest government-backed investment vehicles for technology and creative startups in Africa, is expected to combine public and private sector financing to support innovative businesses across all 36 states and the Federal Capital Territory.

Under the arrangement, the Federal Government is providing an initial commitment of $85.3 million through the iDICE Programme, while Kuramo Capital has been given the responsibility of raising an equal amount from private investors, bringing the total fund size to at least $170.6 million.

The agreement was signed in Abuja by the Managing Director of the Bank of Industry and the Chief Executive Officer of Kuramo Capital, this activating the implementation of the iDICE Programme.

The iDICE Programme is a Federal Government initiative jointly financed by the African Development Bank (AfDB), Agence Française de Développement (AFD) and the Islamic Development Bank (IsDB). It is designed to encourage entrepreneurship, promote innovation, create jobs and strengthen Nigeria’s digital economy and creative industries.

The programme has already recorded some progress. In November 2025, it made Nigeria’s first direct government investment in a private venture capital fund through Ventures Platform’s VP Pan-African Fund II, which closed at $64 million with support from international investors.

Beyond venture capital investments, the programme is also implementing projects across the country under its three major areas of focus: skills and enterprise development, access to finance and ecosystem development.

Its Startup Bridge initiative currently has 185 entrepreneurs undergoing training, while applications have opened for a second cohort. The programme is also preparing to launch a Growth Lab expected to provide eligible growth-stage technology startups with equity funding of up to $100,000.

In addition, iDICE is establishing and upgrading digital and creative innovation hubs in 66 higher institutions, comprising 36 universities and 30 polytechnics, in partnership with the National Universities Commission and the National Board for Technical Education.

To improve access to finance, the Bank of Industry has also introduced the BOI/iDICE Debt Fund and the IsDB Murabaha Debt Fund, which together provide $110 million in financing for startups operating in the technology and creative sectors.

According to the organisers, the DICE Fund of Funds will invest through selected venture capital and micro-venture capital funds, making it possible for entrepreneurs from every part of Nigeria to benefit instead of concentrating investments in only a few major cities.

The fund is structured to attract more private investment by allowing the government’s contribution to serve as first-loss capital, reducing investment risks for private investors while encouraging greater participation.

Speaking on the initiative, the Managing Director and Chief Executive Officer of the Bank of Industry, Dr. Olasupo Olusi, said, “By investing in Ventures Platform’s Fund II, and now by establishing the DICE Fund of Funds with Kuramo Capital, we are deepening the Federal Government’s objective of upscaling Nigeria’s technology and creative sectors by catalysing strategic investments in high-growth, technology-enabled enterprises. The Bank of Industry is proud to be the executing agency driving this historic investment into the hands of Nigeria’s innovators.”

The Chief Executive Officer of Kuramo Capital Management, Wale Adeosun, described the initiative as a major development for Africa’s venture capital industry.

He said, “The DICE Fund of Funds represents a landmark moment for Africa’s venture capital ecosystem. Nigeria is demonstrating that a government can be both a serious anchor investor and a credible market-builder. We are honoured to be entrusted with this mandate and committed to deploying every resource at our disposal to raise the matching capital, invest wisely, and deliver returns that justify this historic confidence.”

Also speaking, Vice President Kashim Shettima said the commencement of investments under the iDICE Programme represents another step in the Federal Government’s drive to unlock opportunities for young Nigerians.

According to him, “The commencement of investing by iDICE is an exciting milestone and a leap forward in the determined efforts of the Government of Nigeria, under the leadership of His Excellency President Bola Ahmed Tinubu, to deliver on our vision of unleashing the full potential of Nigeria’s young people, in line with the Renewed Hope agenda.”

The organisers said the new fund is expected to improve access to early-stage financing for startups, reduce dependence on foreign venture capital and create more opportunities for Nigerian innovators to secure funding from domestic institutional investors.