FG Launches $170.6 Million Fund for Tech and Creative Startups — Here's Who Can Benefit

FG Launches $170.6 Million Fund for Tech and Creative Startups — Here's Who Can Benefit Nigeria's startup ecosystem has produced some of Africa's biggest technology success stories over the past decade. Companies that started with small teams and bold ideas have grown into businesses serving millions of customers, attracting billions of dollars in investment, and creating thousands of jobs. But over the last two years, raising funding has become much more difficult as investors around the world became more cautious. For many founders, especially those building early-stage companies, securing investment has shifted from being challenging to almost impossible. Venture capital firms have become more selective, global economic uncertainty has reduced risk appetite, and startups are now expected to show stronger revenue before investors are willing to commit. Against this backdrop, the Federal Government has unveiled one of its biggest interventions yet for the country's innovation ecosystem. Through the Bank of Industry (BoI), the government has appointed Kuramo Capital Management to manage the DICE Fund of Funds, a $170.6 million investment vehicle under the Investment in Digital and Creative Enterprises (iDICE) Programme. The initiative is designed to channel fresh capital into Nigeria's technology and creative industries while encouraging more private-sector participation in startup financing. For founders, investors, and entrepreneurs, the announcement could mark an important turning point—provided the fund delivers on its promises. A Major Push for Nigeria's Innovation Economy The DICE Fund of Funds is structured as a partnership between the Federal Government and private investors. Under the arrangement, the government will provide an initial $85.3 million through the iDICE Programme. Kuramo Capital Management has been tasked with attracting an equivalent amount from institutional and private investors, bringing the total investment pool to at least $170.6 million. Rather than investing directly into startups, the fund is expected to invest through venture capital fund managers and investment firms that already support promising businesses. This "fund of funds" approach is widely used in developed startup ecosystems because it allows experienced investment professionals to identify and support high-potential companies while reducing government involvement in individual investment decisions. Vice President Kashim Shettima described the initiative as a significant milestone in the administration's Renewed Hope agenda, saying it is aimed at creating opportunities for young Nigerians and strengthening innovation-driven economic growth. Kuramo Capital also described the initiative as an important step toward developing Africa's venture capital ecosystem, noting that government participation can encourage private investors to commit more funding to emerging businesses. Why the Timing Matters The announcement comes at a time when Nigerian startups are