The Federal Government of Nigeria has announced a significant expansion of its support for the nation’s thriving technology and creative sectors, revealing plans to launch two additional investment funds in 2026. This move, which solidifies the government’s transition from a regulator to a direct investor in the startup ecosystem, is part of the comprehensive Investment in Digital and Creative Enterprises (iDICE) programme.
The upcoming schemes include a dedicated creative sector fund, specifically designed to invest in emerging businesses within Nigeria’s globally recognised creative industries, and a ‘fund of funds’, which will strategically back smaller investment vehicles that focus on both technology and creative start-ups. This initiative is designed to broaden access to risk capital and nurture a sustainable, homegrown innovation economy.
The announcement was made as the iDICE programme celebrated a critical milestone: its first anchor investment in the new Ventures Platform Pan-African Fund II. This fund, managed by the well-known pan-African seed-stage firm Ventures Platform, has just achieved a successful first close, raising an impressive $64 million with a final target of $75 million. The Federal Government, through iDICE, now stands as a key institutional investor, partnering with international heavyweights such as the International Finance Corporation, Standard Bank of South Africa, and British International Investment.
Speaking on the formal kick-off of the investment phase, Vice President Kashim Shettima, who serves as the Chairman of the iDICE Steering Committee, described the development as a momentous step. He emphasised that the government views the programme as essential to national progress, calling the commencement of investing an “exciting milestone and a leap forward in the determined efforts of the Government of Nigeria… to deliver on our vision of unleashing the full potential of Nigeria’s young people, in line with the Renewed Hope agenda.”
The economic rationale behind this unprecedented government intervention is substantial. Nigeria’s technology sector is a vital component of the national economy, with the Information and Communications Technology (ICT) sector, largely driven by startups, already contributing an estimated fifteen per cent to the country’s Gross Domestic Product. These new funds are intended to address the persistent challenge of limited local risk capital that high-growth businesses often face, particularly as they scale beyond the initial seed-funding stage.
The overall iDICE programme is $617 million initiative backed by multilateral partners including the African Development Bank Group, the Islamic Development Bank, and the French Development Agency. It is implemented locally with the state-owned Bank of Industry acting as a co-investor and implementing agency.
The government’s decision to become a venture capital fund limited partner marks a definitive shift in policy, signalling a commitment to de-risking the private investment space. Dr Olasupo Olusi, the Managing Director of the Bank of Industry, reiterated this point, stating that by investing in the Ventures Platform Fund II, the authorities are “deepening Government’s objective of upscaling the Nigerian technology and creative sectors by catalysing strategic investments in high-growth, technology-enabled enterprises.”
The move has also been welcomed by private investors, who see the government’s participation as a vote of confidence that will attract further international capital. Kola Aina, the Founding Partner of Ventures Platform, highlighted the dual benefit of the government’s involvement, noting that having iDICE as an anchor investor would “inspire and give confidence to foreign LPs” (Limited Partners, or investors) while also providing crucial “deep context into the local markets.” He added that the continent’s innovation opportunity is “boundless, the needs are immense,” reinforcing the huge potential that the funds aim to tap into.
The two forthcoming funds in 2026 the creative sector fund and the fund of funds are therefore more than just financial injections; they represent a strategic commitment to harnessing the country’s demographic dividend. By providing both direct and indirect funding pathways for young entrepreneurs aged fifteen to thirty-five, the government aims to significantly boost employability, drive widespread innovation, and solidify Nigeria’s position as Africa’s leading digital technology hub. This public-private partnership model is anticipated to set a new standard for how state capital supports the dynamic and rapidly growing digital economy.
