There has been a recurring complaint across Nigeria’s creative economy: good ideas exist, talented founders are building ambitious businesses, but access to growth capital remains painfully limited. The Federal Government’s latest intervention suggests it wants to change that.
Through the Bank of Industry (BoI), the government has launched a new $170.6 million investment vehicle under the Investment in Digital and Creative Enterprises (iDICE) Programme, appointing Kuramo Capital Management to manage the new DICE Fund of Funds.
A bigger ambition than grants
Unlike traditional government intervention programs that provide direct grants or loans to individual businesses, the DICE Fund of Funds adopts a venture capital model.
The Federal Government has committed $85.3 million through iDICE, while Kuramo Capital has been mandated to raise an equivalent amount from private investors, bringing the fund to at least $170.6 million.
Rather than investing directly in startups, the fund will channel capital through selected venture capital and micro-venture capital firms, which will then invest in promising businesses across Nigeria.
This approach mirrors funding models used in more mature startup ecosystems, where governments act as catalytic investors rather than primary business financiers.
Why the structure matters
Access to early-stage financing has remained one of the biggest barriers facing Nigerian creative entrepreneurs.
Many businesses struggle to secure institutional funding because commercial banks often require collateral or lending conditions that creative enterprises cannot easily meet. Venture capital, meanwhile, has historically concentrated on technology companies, leaving much of the broader creative economy underserved. The new fund attempts to bridge that gap.
By allowing government capital to serve as first-loss capital, the structure reduces investment risk for private investors while encouraging greater participation from institutional capital.
If successful, this could expand the pool of funding available to startups that previously struggled to attract investment.
A wider creative economy strategy
The investment also sits within a broader strategy to strengthen Nigeria’s digital and creative ecosystem beyond financing alone.
According to program details, iDICE is already supporting entrepreneurship training through its Startup Bridge initiative, preparing to launch a Growth Lab that will provide equity funding of up to $100,000 for selected technology startups, and establishing digital and creative innovation hubs across 66 higher institutions in partnership with the National Universities Commission and the National Board for Technical Education.
Why this is important for creative businesses
Recent industry research continues to identify limited access to capital as a major obstacle preventing creative businesses from expanding production, building sustainable intellectual property, entering export markets and scaling globally.
By mobilizing both public and private investment, the DICE Fund of Funds could help strengthen an area that has historically relied heavily on founder financing, personal networks and foreign investors.
The government’s decision to invest through venture capital funds also recognizes that creative businesses often require patient, risk-tolerant capital rather than conventional lending.
READ ALSO: AfCFTA’s 1.4 Billion-Person Market Means Little Without Investment in Africa’s Creative Businesses
Success will depend on execution
The announcement represents an important policy signal, but its long-term impact will depend on how effectively the capital reaches founders.
Questions remain around investment timelines, sector allocation, regional accessibility and whether creative businesses outside major urban centres will benefit from the programme.
There is also the broader challenge of ensuring funding is accompanied by improvements in infrastructure, regulation, intellectual property protection and market access. Capital alone hardly solves structural problems.
Still, the creation of a government-backed investment platform of this magnitude indicates growing recognition that Nigeria’s creative economy deserves to be financed as a productive economic sector.
If the DICE Fund succeeds in attracting private capital and backing businesses capable of scaling across African and global markets, it could become one of the more consequential financing interventions the sector has seen in recent years.
READ ALSO: 5 Findings That Explain Why Nigeria’s Creative Economy Still Struggles to Scale
