Young Nigerian Investors to Benefit from $672 Million Tech Fund Launched by Federal Government

Nigeria has announced the launch of a $672 million fund to support the country's tech and creative sectors, targeting young investors aged 15 to 35 who struggle to raise capital in the nation. 

The fund was launched under the Digital and Creative Enterprises Programme (DCEP) in Abuja by Vice President Yemi Osinbajo, who described it as a government initiative to promote innovation and entrepreneurship in the digital tech and creative industries, with a focus on job creation. 

The African Development Bank will contribute $170 million, while $116 million will come from Agence Francaise de Developpement and $70 million from the Islamic Development Bank. The Nigerian government, through the Bank of Industry Nigeria, will release $45 million, with the private sector pledging $271 million. 

Nigeria has the largest number of startups in Africa, but many struggle to attract funding due to the banks' demands for collateral. The new fund aims to address this problem and provide greater support to the Nigerian tech and creative sectors. 

The initiative comes at a time when there are concerns locally about the failure of U.S. startup-focused lender SVB Financial Group, which has supported startups in Nigeria. Only one startup, Chipper Cash, has so far confirmed it had $1 million in SVB, while other major startups, such as Jumia and Flutterwave, have said they had no exposure to the bank.