Nigeria is ramping up its support for startups by expanding funding through the Investment in Digital and Creative Enterprises (iDICE) programme, building on momentum from the government’s recent investment in Ventures Platform’s latest fund.
Launched in 2023, the iDICE programme was established to fuel growth in Nigeria’s rapidly expanding tech and creative industries. The initiative is backed by a consortium of heavyweight development institutions including the Bank of Industry (BOI), the African Development Bank (AfDB), Agence Française de Développement (AFD), and the Islamic Development Bank (IsDB).
The programme is also expecting additional capital from private sector investors, though specific details about their participation haven’t been revealed yet.
As part of this expansion, iDICE will introduce two new investment vehicles designed to broaden access to capital across Nigeria’s innovation ecosystem. The first will be a dedicated fund focused exclusively on the creative sector, recognizing the significant economic potential of Nigeria’s entertainment, arts, and media industries.
The second vehicle will operate as a “fund of funds” an investment structure that channels capital into smaller funds that directly support startups in both technology and creative sectors. This approach allows iDICE to amplify its impact by backing multiple fund managers who have expertise and relationships across different industries and stages of business development.
The fund of funds model has gained traction globally as an effective way to diversify risk while supporting a broader range of startups. By investing in multiple specialized funds, iDICE can indirectly reach more entrepreneurs while leveraging the expertise of experienced fund managers who understand the unique challenges facing early-stage companies.
Nigeria’s tech ecosystem has grown significantly in recent years, attracting billions in venture capital and producing several unicorns including Flutterwave, Interswitch, and OPay. However, access to early-stage funding remains a critical challenge for many startups, particularly those outside Lagos and other major cities.
Similarly, Nigeria’s creative industry, encompassing Nollywood, music, fashion, and digital content creation, has emerged as a major economic force both domestically and internationally. Yet creative entrepreneurs often struggle to access the structured financing needed to scale their businesses.
The iDICE expansion signals the Nigerian government’s recognition that supporting innovation requires more than rhetoric it demands coordinated investment from both public and private sources. By partnering with established development finance institutions and creating specialized funding mechanisms, the programme aims to provide startups with the capital they need at crucial growth stages.
As Nigeria continues positioning itself as Africa’s leading startup hub, programmes like iDICE will play a vital role in ensuring that entrepreneurs across tech and creative sectors have the financial resources to turn innovative ideas into thriving businesses.
