Nigeria and Japan have formalised two grant agreements totaling approximately $30.9 million.
The deals were sealed at the signing ceremony for the Exchange of Notes and Draft Agreement in Abuja, where senior officials from both countries pledged to collaborate on projects aimed at accelerating startup development and addressing pressing social issues through entrepreneurship.
The first initiative, The Project for the Development of the Start-up Hub in Abuja, will be implemented by the National Information Technology Development Agency (NITDA) with a Japanese grant of $9.9 million.
The second, The Project for the Development of Supporting Environment for Startups Addressing Social Challenges, will be executed by the Nigeria Sovereign Investment Authority (NSIA) and funded with a $21 million grant from Japan.
In a show of ownership and commitment, the NSIA will make a substantial financial contribution to this project.
Speaking at the ceremony, the Minister of Budget and Economic Planning, Senator Abubakar Bagudu, confirmed the Federal Government’s partnership with the Japan International Cooperation Agency (JICA), the Embassy of Japan, and by extension, the Japanese government.
He said the collaboration aligns with President Bola Ahmed Tinubu’s Renewed Hope Agenda, which seeks to position Nigeria as a hub for innovation, enterprise, and inclusive development.
Bagudu expressed Nigeria’s appreciation for Japan’s long-standing support through JICA and the Embassy, describing the latest intervention as a continuation of impactful efforts to improve living standards across the country.
“These two interventions are not only cross-cutting in their impact but also consistent with our government’s vision for job creation, youth empowerment, and a diversified economy. There is a clear alignment of purpose between Nigeria and Japan,” the Minister said.
Representing the Embassy of Japan, the Deputy Head of Mission, Mr. Kozaki Hitoshi, provided insight into the historic nature of the projects.
He described the initiative as a pioneering co-funded venture, jointly established and managed over a 13-year period by the NSIA.
“This marks the first time the Government of Japan is co-launching a fund of this nature,” Mr. Hitoshi noted. “Nigeria is also the first country selected by Japan’s Ministry of Foreign Affairs to pilot this innovative model. This speaks to Nigeria’s strategic importance in Japan’s foreign and development policy” he said.
According to him, the projects aim to create a fertile environment for startups solving societal problems, foster sustainable economic development, and lay the groundwork for long-term partnerships that benefit both nations.
The Permanent Secretary of the Federal Ministry of Budget and Economic Planning, Dr. Emeka Vitalis Obi, commended the vision and cooperation that brought the projects to fruition. He stated that the agreement represents a critical step in driving inclusive growth and transforming Nigeria’s entrepreneurial landscape.
“Today’s event is a testament to what can be achieved through mutual trust and strategic vision. This agreement sets the stage for practical solutions to development challenges and will further strengthen ties between our countries,” Dr. Obi said.
The $30.9 million in grants and counterpart funding will be directed at developing infrastructure and capacity for startups, particularly those addressing social needs such as health, education, and environmental sustainability.
While NITDA will focus on establishing a central hub in Abuja to serve as a springboard for startups, the NSIA-led project will create an enabling environment for investment and long-term scalability.
An official of the ministry of Budget and Economic Planning told The Nation that “by putting in place a coordinated strategy for startup support, the Nigerian and Japanese governments hope to drive job creation, attract private sector participation, and foster economic resilience.”
