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Nasir El-Rufai, the former governor of Kaduna State, is set to initiate a $100 million venture capital fund, marking a significant move to diversify startup investments in Nigeria, extending beyond the prominent Lagos ecosystem.
Following his eight-year tenure, El-Rufai aims to establish this fund in the capital city of Abuja, injecting $2 million of his personal funds into the venture, with operations scheduled to commence in 2024. While assuming the role of part-time chairman of the board, El-Rufai will be joined by directors Jimi Lawal, Hafiz Bayero, Eyo Ekpo, and Kabir Yabo.
According to reports from Business Day, the fund is expected to attract international investors seeking exposure to Nigeria but lacking the time and local insights for hands-on investment. Adopting a sector-agnostic approach, the fund will support founders capable of “adding value to the world.”
Leveraging his extensive political network cultivated over nearly three decades, El-Rufai intends to assist startups in navigating regulatory challenges and accessing capital. He emphasized the significance of mentoring and financing for young entrepreneurs, providing them with essential support in developing and validating their ideas.
This announcement aligns with a broader push to drive development in northern Nigeria. In the previous month, Surrayah Ahmad and Sanusi Ismaila unveiled a $20 million fund dedicated to investing in founders within the region. While committing to invest up to $200,000 in startups across Africa, the fund prioritizes over 50% of its investments for the northern region.
The fund aims to bridge the investment gap in the area, offering mentorship and fundraising support to portfolio companies. Ahmad’s belief in initiating the fund is fueled by the region’s substantial population, expanding broadband connectivity, and her experience with YDS Africa. The success of startups like Sudo Africa, which secured $3.7 million in 2022, further contributes to the positive outlook.
Notably, Kaduna State recently achieved a milestone by becoming the first Nigerian state to domesticate the Nigerian Startup Act, signaling the government’s commitment to fostering the growth of tech-enabled businesses.
In a landscape where funding sources for African startups face challenges, the launch of such funds targeting a region historically impacted by insurgency represents encouraging news for northern Nigeria, the country, and the continent as a whole.
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