…Seven Firms Get $277,000 To Boost Productivity
The Nigeria Sovereign Investment Authority (NSIA) is mobilising investors and strategic partners to support the growth of Nigerian startups, strengthen small and medium-sized enterprises (SMEs) and create jobs as the country pursues its ambition of building a $1tn economy.
The initiative is being driven through the NSIA Prize for Innovation, which provides promising entrepreneurs with access to equity investment, business acceleration, education and strategic partnerships to help them scale their operations and compete in larger markets.
The event showcased twelve Nigerian businesses developing scalable solutions with lasting impact across Healthcare, Manufacturing, and Climate & Food Security.
Speaking at the Demo Day of the fourth edition of the NSIA Prize for Innovation, themed “Building for Impact,” on Saturday in Abuja, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said the ability of small businesses to innovate, expand production and reach new markets would be critical to Nigeria’s long-term economic development.
He said achieving the $1tn economy target would depend significantly on the ability of small businesses to grow into medium-sized enterprises, medium-sized businesses to become large companies, and Nigerian firms to emerge as competitive players across Africa and the global economy.
According to him, while the government has a responsibility to create an enabling business environment, entrepreneurs must convert available opportunities into sustainable businesses, employment and lasting prosperity.
Oyedele noted that Nigeria’s growing workforce, particularly its young population, requires more than opportunities to seek employment, stressing the need to create an environment where people can establish businesses, develop new industries and employ others.
He, however, acknowledged that many promising businesses struggle to expand because of inadequate access to financing, skills and institutional support.
To address these constraints, the minister highlighted government interventions, including the Development Bank of Nigeria, the National Credit Guarantee Company and the Nigerian Consumer Credit Corporation, which are designed to improve access to finance, reduce lending risks and strengthen domestic demand.
He also cited initiatives to provide funding for digital and creative enterprises, as well as efforts to attract institutional investors into venture capital funds supporting high-potential businesses.
Oyedele said the NSIA was also developing an impact innovation fund in partnership with the Japan International Cooperation Agency, with the British International Investment expressing interest in participating.
He explained that businesses with significant growth potential often require more than conventional loans, noting that patient capital, experienced investment partners and access to networks are necessary to help them enter new markets and achieve sustainable expansion.
The minister described the NSIA Prize for Innovation as an important platform for preparing businesses for growth by placing commercial viability and execution capacity at the centre of the selection process.
He commended the NSIA leadership, judges, mentors and strategic partners for supporting the initiative, adding that building successful businesses requires collaboration among government institutions, financial institutions, investors and the private sector.
Oyedele urged participating entrepreneurs to remain ambitious, disciplined and committed to developing their businesses, expressing hope that some of the participants would emerge as leading Nigerian companies over the next five to 10 years.
The NSIA Managing Director, Aminu Umar-Sadique, said supporting entrepreneurs remained a fundamental component of the authority’s investment strategy, alongside its primary focus on infrastructure investment.
He said the authority had supported entrepreneurship through initiatives including the Fund for Agricultural Finance in Nigeria, the Development Bank of Nigeria and the NSIA Prize for Innovation.
According to him, SMEs are indispensable to employment generation and economic growth, making it necessary to provide promising entrepreneurs with the resources and support required to build sustainable businesses.
Umar-Sadique identified education, equity and exposure as the three pillars underpinning the innovation prize, explaining that the programme was designed to help entrepreneurs strengthen their business models, attract investment and expand their reach.
He said the initiative had recorded progress over its four-year journey, reflected in the growth of the prize money and the increasing number and quality of strategic partners participating in the programme.
The managing director explained that the programme went beyond providing equity investment, incorporating accelerator programmes and educational opportunities to prepare entrepreneurs for the challenges of running and expanding businesses.
He said the top 200 applicants were provided with accelerator opportunities to refine their ideas and strengthen their business propositions as they progressed through the selection process towards the top 12 finalists.
Following Demo Day, the 12 finalists would participate in a six-week learning programme at Lagos Business School.
The programme has also attracted strategic partners, including Wema Bank, Kula, Cascadeo and Pula, which are providing additional support and prizes to selected participants.
Umar-Sadique said the NSIA was committed to working with entrepreneurs and their management teams to strengthen their value propositions, improve corporate governance and expand demand for their products following equity investments.
He added that value creation was essential to producing businesses capable of achieving significant scale and potentially attaining unicorn status.
The managing director also expressed optimism about previous beneficiaries, citing Money Africa and Sycamore as examples of businesses that had continued to make progress.
He, however, stressed that assessing startup performance required a medium- to long-term perspective, noting that the level of growth and market traction expected from the businesses could take about five years to become evident.
Meanwhile, the National Coordinator of the Presidential Initiative for Unlocking the Healthcare Value Chain (PVAC),, Dr Abdu Muhtar, said Nigeria’s healthcare sector offered substantial opportunities for entrepreneurs to build profitable businesses while addressing critical development challenges.
He estimated that the addressable market across the healthcare value chain was worth about $20bn, with opportunities spanning hospitals, pharmacies, clinical research, medical devices, telemedicine, digital health and logistics.
Muhtar said there were already about 250,000 SMEs operating in the healthcare sector, citing figures attributed to the International Finance Corporation, with more businesses expected to emerge.
He urged entrepreneurs to view the sector’s challenges as opportunities for innovation, particularly as technological developments, including artificial intelligence, continue to transform healthcare delivery.
According to him, businesses can generate financial returns while expanding access to affordable and quality healthcare and creating employment.
This year’s NSIA Prize for Innovation focuses on healthcare, manufacturing and food systems, sectors the authority considers capable of generating scalable business ideas and employment opportunities.
