FG secures $11.2m grant from Japan for Startup hub project

The Federal Government of Nigeria is moving forward with plans to establish a Startup Hub in Abuja, following the confirmation of an $11.2 million grant from the Japan International Cooperation Agency (JICA).

This was announced by the Director General of the National Information Technology Development Agency (NITDA), Kashifu Inuwa, who described the initiative as a major step towards transforming Nigeria’s innovation and technology landscape.

The Startup Hub Project is being delivered in partnership with the Chief Consultant, Consortium of Oriental Consultants Global Co. Ltd., along with Intem Consulting Inc. and Yachiyo Engineering Co. Ltd. The agreement formalising this collaboration was recently signed, paving the way for implementation.

Funded under a broader $30 million grant agreement between the Nigerian government and JICA, the Abuja hub is part of a two-pronged initiative. The first component, worth $9.9 million and led by NITDA, will focus on developing the Startup Hub itself. 

The second, valued at $21 million and managed by the Nigeria Sovereign Investment Authority (NSIA), aims to support social startups nationwide by fostering an enabling environment for innovation-led enterprises.

Inuwa said the project builds on previous initiatives such as iHatch, a startup incubation programme launched earlier with backing from JICA. He explained that the new hub will offer much-needed infrastructure for startups emerging from such programmes.

“To strengthen this relationship, JICA decided to support us further by funding the construction of an innovation hub. After training, startups will have access to a makerspace where they can transform their ideas into tangible products and services. This $11.2 million grant from JICA is a significant boost,” Inuwa said.

He praised the ongoing collaboration between Nigerian and Japanese stakeholders, noting that joint efforts such as exchange programmes are expanding opportunities for knowledge sharing and skills development across both countries’ tech sectors.

“These partnerships are laying the groundwork for a more robust ecosystem. We are not just training startups; we are providing the tools, the right environment, and the financial support they need to succeed,” he said.

The Director General confirmed that consultants from the partner organisations have already arrived in Nigeria and are set to begin the initial design phase, officially marking the start of the project’s implementation.

The innovation hub is not only intended to provide physical infrastructure but also to act as a driver of economic growth, with a strong emphasis on nurturing local talent and supporting entrepreneurship.

It will serve as a vital link between training and commercialisation, offering a space where startups can ideate, prototype, and scale. 

Through mentorship, incubation support, and access to funding, the hub aims to accelerate the growth of Nigeria’s tech sector and reinforce its position as a leading innovation centre in Africa.

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