FG launches Africa's largest government-backed startup fund with...

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

The appointment was formalised in Abuja following the signing of a fund management agreement between the Bank of Industry (BOI) and Kuramo Capital, marking a major milestone in the government’s efforts to deepen financing for Nigeria’s innovation ecosystem.

Under the arrangement, the DICE Fund of Funds will have a target capitalisation of $170 million, with the Federal Government providing an $85 million anchor investment through the iDICE Programme, while Kuramo Capital is expected to mobilise an equivalent amount from private investors.

The Presidency said the initiative represents the largest government-anchored investment in technology and creative startups by any African country, signalling a strategic shift towards supporting innovation-driven enterprises with public capital.

Vice President Kashim Shettima, who chairs the iDICE Steering Committee, described the commencement of investments under the programme as a landmark in the administration’s drive to unlock opportunities for young Nigerians.

He said the initiative aligns with President Bola Tinubu’s Renewed Hope Agenda by supporting innovation, entrepreneurship and job creation across the country.

“The commencement of investing by iDICE is an exciting milestone and a leap forward in the determined efforts of the Government of Nigeria to unleash the full potential of Nigeria’s young people,” Shettima said.

The iDICE Programme is jointly financed by the African Development Bank (AfDB), the Agence Française de Développement (AFD) and the Islamic Development Bank (IsDB). It is designed to improve access to finance, develop skills and strengthen the innovation ecosystem for young entrepreneurs aged between 15 and 35 across the 36 states and the Federal Capital Territory.

The latest investment builds on the programme’s first venture capital commitment made in November 2025, when iDICE invested in Ventures Platform’s Pan-African Fund II. The investment attracted co-financing from 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 establishment of the DICE Fund of Funds would accelerate investments in high-growth technology-enabled businesses.

“By investing in Ventures Platform’s Fund II and now establishing the DICE Fund of Funds with Kuramo Capital, we are deepening the Federal Government’s objective of scaling Nigeria’s technology and creative sectors through strategic investments in innovative enterprises,” Olusi said.

Founder and Chief Executive Officer of Kuramo Capital, Wale Adeosun, described the mandate as a defining moment for Africa’s venture capital industry.

“The DICE Fund of Funds represents a landmark moment for Africa’s venture capital ecosystem. Nigeria is demonstrating that government can be both a credible anchor investor and an effective market builder,” he said.

According to the Presidency, the fund is structured to ensure investments are spread across Nigeria’s six geopolitical zones rather than being concentrated in Lagos and Abuja. It is also designed with government capital serving as a 30 per cent first-loss junior tranche, a structure intended to reduce investment risk and attract private capital into the fund.

Kuramo Capital, established in 2010 with offices in New York, Lagos and Nairobi, said it has helped catalyse more than $3.5 billion in investments into African businesses and fund managers, supporting over 350,000 jobs and investing directly or indirectly in more than 130 companies across the continent.

The Presidency said the combined investments through Ventures Platform and the DICE Fund of Funds mark a structural shift in Nigeria’s venture capital landscape by positioning the Federal Government as an active investor in technology and creative enterprises, to expand innovation, strengthening entrepreneurship and creating sustainable jobs.