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In a strategic move to accelerate Nigeria’s digital transformation, the Japan International Cooperation Agency (JICA) has signed a $30 million grant agreement with the Federal Government of Nigeria to establish cutting-edge start-up hubs in the nation’s capital, Abuja.
This milestone initiative highlights Japan’s commitment to fostering innovation, entrepreneurship, and sustainable economic development in Africa, aligning with Nigeria’s regulatory technology goals and digital economy ambitions.
The project features two major components. The first is a $9.9 million investment for the creation of a state-of-the-art Start-Up Hub, spearheaded by the National Information Technology Development Agency (NITDA). The second, a $21 million initiative titled the Project for the Development of a Supporting Environment for Social Start-ups in Nigeria, will be executed by the Nigeria Sovereign Investment Authority (NSIA).
With a focus on compliance automation, job creation, and innovation-led development, the initiative is designed to provide robust infrastructure, collaborative workspaces, and digital technologies that empower emerging entrepreneurs and tech innovators. It also aims to enhance the startup ecosystem by bridging regulatory frameworks, supporting compliance analytics, and promoting social impact solutions.
Senator Atiku Abubakar Bagudu, Nigeria’s Minister of Budget and Economic Planning, signed the agreement on behalf of the Nigerian government. Mr. Yuzurio Susumu, Chief Representative of JICA Nigeria Office, signed on behalf of Japan.
“This collaboration represents a transformative chapter in Nigeria-Japan bilateral relations. It reinforces our shared vision for inclusive economic growth, regulatory innovation, and youth empowerment,” Bagudu stated.
The disbursement of the $30 million grant will be phased through 2030, covering infrastructure development, equipment procurement, and regulatory consulting services. While Japanese suppliers will be prioritized for primary contracts, local sourcing will also be incorporated to stimulate domestic value chains.
NITDA, the project’s lead agency, will handle core implementation activities including regulatory approvals, compliance management, and environmental and safety oversight. The initiative reflects the agency’s ongoing commitment to RegTech solutions, digital entrepreneurship, and scalable compliance frameworks.
NITDA Director General, Kashifu Inuwa, praised the longstanding partnership with JICA, particularly highlighting the success of the iHatch initiative—a six-month incubation program that has so far created over 117 direct jobs and 370 indirect ones. The program continues to support governance, risk, and compliance (GRC) within Nigeria’s tech startup ecosystem by equipping innovators with critical tools and mentorship.
“We are scaling iHatch across all 36 states and the FCT to foster innovation, regulatory compliance, and market readiness,” Inuwa noted. “JICA’s global expertise has been pivotal in shaping sustainable entrepreneurship frameworks and regulatory policy alignment.”
To deepen international collaboration, both agencies have introduced startup exchange programs and facilitated Nigerian entrepreneurs’ participation in global tech summits in Japan. Notably, the IgniteHer Entrepreneurship Bootcamp, launched recently in Abuja, is empowering women in tech through a gender-inclusive lens and advancing digital equality.
Upon completion, the Abuja Start-Up Hub will serve as a nucleus for compliance-driven innovation and fintech development, positioning the city as a regulatory technology hub in West Africa. The initiative is strategically aligned with President Bola Ahmed Tinubu’s Renewed Hope Agenda, which emphasizes economic diversification and leadership in Africa’s digital economy.
Implementation of the project begins in April 2025 and is scheduled to run until December 2030. Monthly progress updates and a final regulatory impact report will be submitted in accordance with JICA’s governance framework.
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