Why Japan is investing in Nigeria’s startup future
Nigeria and Japan have signed a $51.2 million agreement to establish a major startup development project aimed at accelerating digital innovation and entrepreneurship in Africa’s most populous nation.
The project, spearheaded by Nigeria’s National Information Technology Development Agency (NITDA) and funded through the Japan International Cooperation Agency (JICA), involves a Japanese consortium comprising Oriental Consultants Global, Intem Consulting, and Yachiyo Engineering.
The partnership follows an MoU signed on April 10, 2025, between Nigeria’s Minister of Budget and Economic Planning, Senator Atiku Bagudu, and JICA’s Nigeria representative, Yuzurio Susumu. It sets the foundation for long-term collaboration to support Nigeria’s growing tech ecosystem.
The initiative features two components:
- A $11.2 million Startup Hub in Abuja, managed by NITDA, will offer co-working spaces, innovation labs, and digital infrastructure for tech entrepreneurs.
- A $40 million program for social startups, led by the Nigeria Sovereign Investment Authority (NSIA), will fund ventures tackling key development issues in health, education, agriculture, and financial inclusion.
NITDA Director General Kashifu Inuwa Abdullahi said the project aligns with President Bola Tinubu’s “renewed hope agenda” and supports Nigeria’s ambitions to diversify the economy and become a regional tech leader. He also cited the success of earlier Nigeria-Japan collaborations, such as the iHatch incubation program, which created over 117 direct and 370 indirect jobs.
He described the collaboration as a “strategic alignment of innovation ecosystems,” and praised the Japanese government for choosing to invest in Nigeria’s digital future. He indicated that with Japan’s renowned experience in technological excellence and Nigeria’s growing youth-driven innovation landscape, this partnership sets a foundation for mutual prosperity.
Spanning nearly six years (2025–2030), the initiative also aims to bridge Nigerian and Japanese tech ecosystems through exchange programs and startup participation in global accelerator events.
With Nigeria targeting a $1 trillion economy by 2030, the project is expected to boost job creation, attract foreign investment, and position Nigeria as a leading hub for innovation in Africa.
Japan is strengthening its involvement in Africa’s tech sector through a range of startup-driven initiatives spearheaded by the Japan International Cooperation Agency (JICA). Through its flagship program, Project NINJA (Next Innovation with Japan), JICA has launched and funded accelerator programs and pitch competitions in countries such as Uganda, Kenya, and Ghana. Working in partnership with local startup hubs, the agency aims to build sustainable innovation ecosystems and scale locally driven solutions to key development challenges across the continent.
This story is written and edited by the Global South World team, you can contact us here.
