Nigeria Launches Africa’s Largest Government-Backed Tech Startup Fund

…Appoints Kuramo Capital to Manage $170m iDICE Investment

The Federal Government has unveiled what it described as Africa’s largest government-backed investment in technology and creative startups, appointing Kuramo Capital Management as the fund manager for the $170 million DICE Fund of Funds under the Investment in Digital and Creative Enterprises (iDICE) Programme.

The fund management agreement was signed in Abuja on June 30 between the Managing Director of the Bank of Industry (BOI) and the Chief Executive Officer of Kuramo Capital.

Under the arrangement, the Federal Government will provide an $85 million anchor investment through the iDICE Programme, while Kuramo Capital is expected to mobilise an equivalent $85 million from private investors, bringing the total fund size to $170 million.

Vice President Kashim Shettima, who chairs the iDICE Steering Committee, described the initiative as a major milestone in the Tinubu administration’s efforts to unlock the potential of Nigeria’s young people.

He said the commencement of investments under the programme marked significant progress towards delivering the administration’s Renewed Hope agenda by supporting innovation, entrepreneurship and youth development.

The iDICE Programme is jointly financed by the African Development Bank (AfDB), Agence Française de Développement (AFD), and the Islamic Development Bank (IsDB). It focuses on expanding access to finance, strengthening digital and creative skills, and creating an enabling environment for businesses led by Nigerians aged 15 to 35 across the 36 states and the Federal Capital Territory.

The announcement follows iDICE’s first direct venture capital investment in November 2025, when it invested in Ventures Platform’s VP Pan-African Fund II, marking the first time the Federal Government directly invested in a private venture capital fund. The investment attracted additional backing from global institutions including the International Finance Corporation (IFC), British International Investment (BII), Standard Bank of South Africa and Proparco.

Managing Director and Chief Executive Officer of the Bank of Industry, Dr. Olasupo Olusi, said the new fund would deepen government efforts to expand Nigeria’s technology and creative sectors by attracting strategic investments into high-growth, technology-driven enterprises.

According to him, BOI remains committed to ensuring the successful implementation of the initiative as the executing agency for the iDICE Programme.

Founder and Chief Executive Officer of Kuramo Capital, Wale Adeosun, described the DICE Fund of Funds as a landmark development for Africa’s venture capital ecosystem, saying Nigeria was demonstrating that governments could serve as credible anchor investors while helping to build sustainable investment markets.

He pledged that the firm would work to raise the required matching private capital, invest prudently and deliver strong returns.

The fund is designed to support startups across Nigeria’s six geopolitical zones, extending financing beyond Lagos and Abuja to cities such as Kano, Enugu, Port Harcourt, Maiduguri and Jos.

Structured with government capital serving as a 30 per cent first-loss junior tranche to reduce investment risk, the fund targets a net internal rate of return (IRR) of 20 per cent and a net money multiple of 2.4 times.

The Federal Government said the initiative represents a major shift in Nigeria’s venture capital ecosystem by positioning the country as an active investor in innovation and reducing the reliance of early-stage startups on foreign funding.