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By Olasunkanmi Onifade
The Founder of Young Innovators of Nigeria (YIN), Mr Andrew Abu, has called for stronger partnerships with relevant agencies to improve access to funding for startups in the country.
Speaking to the News Agency of Nigeria (NAN) in Abuja on Monday, Abu said such collaboration would boost Nigeria’s technology ecosystem.
He noted that while the country’s tech sector has the talent, ideas, and market potential, it requires strategic funding and policy support to drive innovation and economic growth.
“Nigeria’s technology ecosystem is brimming with potential, yet access to funding remains a persistent challenge.
“This is in spite of the existence of funding instruments like the CBN intervention funds, the Development Bank of Nigeria (DBN) innovation financing, and the 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, the CBN, and others to establish a structured funding model that provides accessible financing for Nigerian innovators”.
Abu noted that the Startup Act (2022) provides a legal framework for supporting startups, but financial institutions and key agencies must implement 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.
He urged the CBN, in collaboration with the DBN, BOI, and the Nigeria Sovereign Investment Authority (NSIA), to establish a dedicated Startup Investment Fund to provide financing for certified startups under the Startup Act framework.
He said this would reduce bureaucracy and ensure that funds reach 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 also called for sector-specific funding for high-growth tech industries such as fintech, health tech, edtech, and agritech, adding that AI-driven startups should receive similar support.
Abu suggested that a Smart Agriculture Innovation Fund be established to support startups using AI, the Internet of Things (IoT), and blockchain to enhance Nigeria’s agricultural value chain.
He further recommended that BOI, NSIA, and DBN collaborate with the National Information Technology Development Agency (NITDA) to fund innovation hubs across the country, particularly in underrepresented regions.
“These hubs should serve as incubation centres 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 programmes for tech entrepreneurs,” Abu said.
He emphasised that NITDA and NSIA are at the forefront of Nigeria’s digital transformation and should play a crucial role in ensuring policy implementation and providing technical support for digital enterprises under the Startup Act. (NAN)
Edited by Uche Anunne
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