Nigeria has announced plans to expand funding for startups through the Investment in Digital and Creative Enterprises (iDICE) programme. The move follows the government’s recent investment in Ventures Platform’s latest fund.
Launched in 2023, the iDICE programme was created to support the growth of the country’s tech and creative industries. It is backed by the Bank of Industry (BOI), the African Development Bank (AfDB), Agence Française de Développement (AFD), and the Islamic Development Bank (IsDB).
Additional financing is expected from the private sector, though details of that participation have yet to be disclosed.
iDICE will introduce two new funds — one dedicated to the creative sector and a “fund of funds” that will invest in smaller funds supporting startups in both the technology and creative industries.
The Nigerian government’s announcement of these two new funds comes at a crucial moment. While Nigeria has historically led the continent in startup funding, it has recently faced increasing competition as other African countries accelerate the growth of their innovation ecosystems.
At the same time, the country has grappled with economic challenges, including rising inflation and regulatory uncertainty, which have raised concerns among investors.
Nigeria remains home to Africa’s largest startup ecosystem, with Lagos serving as a regional tech hub that has produced successful tech ventures including Flutterwave, Paystack, Moniepoint, and OPay.
Venture capital activity has grown steadily over the past decade, supported by local and international investors, incubators, and accelerators. However, early-stage startups often struggle to access sufficient capital, making government-backed initiatives like iDICE crucial.
In that sense, these new investments will not only provide much-needed capital to startups but also send a strong signal to investors that Nigeria is committed to fostering innovation. Furthermore, this move could serve as a catalyst for further investment, reinforcing the country’s position as a hub for technology and creative enterprises.
