Nigeria Launches $170.6M Public-Private Fund to Boost Startup Investment

For finance professionals tracking emerging market investments, Nigeria's $170.6 million DICE Fund represents a pivotal test of the public-private partnership model in venture capital. With the government providing a 50% anchor and Kuramo Capital tasked with raising the other half, the structure mirrors successful blended-finance initiatives in development markets, offering a de-risked entry point for institutional LPs eyeing Africa's digital economy.

Nigeria’s federal government has launched a $170.6 million fund-of-funds to inject capital into technology and creative startups across the country, marking one of the largest public-private venture vehicles ever created in Africa. The initiative, part of the Investment in Digital and Creative Enterprises (iDICE) Programme, appoints Kuramo Capital Management as the manager of the DICE Fund of Funds, with an initial government commitment of $85.3 million. Kuramo Capital is tasked with raising an equal $85.3 million from private investors, bringing the total fund size to at least $170.6 million. The agreement, signed in Abuja, activates a fund that aims to support innovative businesses in all 36 states and the Federal Capital Territory, signaling a deliberate push beyond the Lagos-centric startup ecosystem.

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Kuramo Capital is tasked with raising an equal $85.3 million from private investors, bringing the total fund size to at least $170.6 million.

The iDICE Programme is a multi-development-bank-backed effort, jointly financed by the African Development Bank, Agence Française de Développement, and the Islamic Development Bank. Its design targets three pillars: skills and enterprise development, access to finance, and ecosystem development. The DICE Fund directly addresses the second pillar, functioning as a fund-of-funds that will invest in local venture capital funds and, indirectly, in hundreds of startups. This mirrors successful blended-finance models used in India and Kenya, where government anchor capital helped de-risk investments and attracted private limited partners who would otherwise avoid early-stage emerging-market ventures.

Previous iDICE activity demonstrates the programme's ability to move markets: in November 2025, it made Nigeria’s first direct government investment in a private VC fund, backing Ventures Platform’s VP Pan-African Fund II, which closed at $64 million with support from international investors. That precedent established a template for state participation without political interference, with professional fund management insulating investment decisions. Kuramo Capital’s appointment continues this approach, bringing an institutional fund manager to vet underlying fund managers and ensure commercial discipline. The $170.6 million size, while modest next to global venture totals, is substantial in the African context. According to industry estimates, total venture funding on the continent in 2025 hovered around $4–5 billion, with Nigeria receiving roughly $1 billion. A dedicated government-backed vehicle of this scale could meaningfully increase deal flow, particularly for startups outside the dominant fintech sector, in areas like creative industries, agritech, and SaaS.

The fund’s structure offers both catalytic potential and risk. On the opportunity side, it could create a sustainable LP base for Nigerian VCs, reducing their dependence on fickle foreign capital. It also pushes ecosystem maturity by encouraging more institutional investors—pension funds, insurance companies, and family offices—to view venture as an asset class. The 50-50 matching model incentivizes Kuramo to rigorously source deals that can attract private coinvestment, potentially improving overall fund performance. For startups, more local VC dollars mean runway to scale regionally without immediately seeking Silicon Valley validation.