What a Nigeria Innovation Fund should look like

Many promising Nigerian startups fail in the early stage, when they are too risky for most investors and too small for structured venture capital. Commercial bank loans usually need collateral that young companies do not have, and grants are often too small or too inflexible for technology ventures. This brief, prepared after the policy dialogue in Uyo and sponsored by the GIZ Digital Transformation Center and the Innovation Support Network, proposes a Nigeria Innovation Fund to close that gap.

Its central idea is a public-private collaboration rather than a conventional public-private partnership. Government provides policy backing, co-investment incentives and tools to reduce risk. Venture capital firms, angel investors and corporate stakeholders lead fund management and investment decisions.

The fund would match its money to a company's stage: grants for early research and development, equity for scalable high-growth ventures, and debt for bridging finance or expansion. Sector-specific pools would direct investment to areas such as fintech, agritech, creative technology, healthcare and renewable energy.

Money alone is not enough, so the brief calls for the fund to work with existing innovation hubs, including the Innovation Support Network, to provide mentorship and training. It also recommends tax incentives and legislative support to encourage structured contributions from the private sector.

For accountability, it proposes five governing bodies: a Board of Trustees, a professional Fund Management Team, an Investment Committee, an Advisory Council, and an independent Audit and Compliance Committee.

The expected results are wider access to capital, jobs in emerging industries, intellectual property that stays in Nigeria, more sustainable innovation hubs, and a stronger pipeline of companies for the country's capital market.