Nigeria’s finance minister says patient capital, experienced investors and institutional support are critical to turning small businesses into globally competitive companies, as seven startups receive $277,000 in prizes from the NSIA.
Nigeria’s ambition to build a $1 trillion economy will depend partly on its ability to help small businesses grow into larger, internationally competitive companies, Finance Minister Taiwo Oyedele has said, arguing that conventional bank loans alone cannot address the challenges facing entrepreneurs.
Oyedele made the remarks on Saturday in Abuja at the fourth edition of the Nigeria Sovereign Investment Authority (NSIA) Prize for Innovation, where seven startups received awards worth a combined $277,000.
Represented by his Special Adviser on Finance and Investment, Marie Ukpere, the minister said high-potential businesses needed patient capital, experienced investment partners and networks capable of helping them enter new markets and expand operations.
“Too many promising businesses struggle to grow because they cannot access financing, skills, or institutional support they need to succeed,” he said.
His comments highlight a broader challenge for Nigeria’s business sector, where access to funding is often accompanied by constraints involving technical expertise, corporate governance, market access and the capacity to scale operations.
Beyond Bank Loans: Expanding Access to Business Capital
Oyedele identified the Development Bank of Nigeria and the National Credit Guarantee Company as institutions supporting financing access for businesses.
The National Credit Guarantee Company is designed to reduce lending risks and encourage financial institutions to extend credit to small and medium-sized enterprises and manufacturers.
He also highlighted the Nigerian Consumer Credit Corporation’s efforts to strengthen household purchasing power and domestic demand, alongside the $618 million Investment in Digital and Creative Enterprises programme, which supports young entrepreneurs through financing, skills development and business assistance.
The minister said the NSIA was anchoring venture capital funds to attract institutional investment into Nigerian enterprises. The authority is also developing an impact innovation fund with the Japan International Cooperation Agency, with British International Investment expressing interest in participating.
The proposed fund is intended to support commercially viable businesses addressing economic and development challenges.
The approach reflects a distinction between conventional lending and equity investment. While loans require repayment, equity investors can provide capital alongside strategic guidance and accept risks associated with long-term business growth.
For businesses seeking to expand, access to appropriate financing must therefore be matched with management capabilities, viable products and the ability to reach larger markets.
NSIA Selects Seven Startup Award Winners
NSIA Managing Director and Chief Executive Officer Aminu Umar-Sadiq said the 12 finalists were selected from more than 6,000 applications through five stages of screening and business development activities.
He said this year’s competition focused on healthcare, manufacturing and food systems because of their potential to create jobs, develop skills and improve productivity.
All 12 finalists will participate in a six-week learning programme at Lagos Business School, while strategic partners are expected to provide additional opportunities for financing and business development.
Umar-Sadiq said the NSIA worked with companies receiving investment to strengthen governance, improve management and expand demand for their products.
He cited previous winners, including Money Africa and Sycamore, arguing that the impact of startup investment should be assessed over approximately five years rather than through expectations of immediate results.
“When the equity injection goes into these companies, we work very closely with the management teams to enhance their value proposition, strengthen their governance and broaden the demand for their products,” he said.
Healthcare Emerges as a Major Investment Opportunity
Dr Abdu Mukhtar, National Coordinator of the Presidential Unlocking Healthcare Value Chain Initiative, estimated Nigeria’s addressable healthcare market at $20 billion, identifying opportunities across pharmaceutical manufacturing, medical devices, clinical research, telemedicine and healthcare logistics.
He also cited an International Finance Corporation estimate of approximately 250,000 small and medium-sized enterprises operating in the healthcare sector.
The figures point to potential opportunities for entrepreneurs seeking to address gaps in healthcare delivery while developing commercially sustainable businesses.
However, translating market demand into scalable enterprises will require investment, technical expertise, dependable supply chains and stronger institutional support.
Entrepreneurs Urged to Build Investment-Ready Businesses
Affiong Williams, founder and chief executive of ReelFruit and lead judge of the competition, said her company had raised more than $7 million over 14 years.
She attributed its ability to attract investment to preparation, credibility and resilience, urging entrepreneurs to understand customer demand, develop strong networks and remain focused despite economic instability.
Dave DeLucia, founder and director of Cascador, similarly emphasised the importance of preparing businesses to attract investment.
“Capital readiness is just as important or more than the capital itself,” he said, adding that entrepreneurs operating outside Lagos often needed greater institutional support.
The comments underscore the importance of building businesses with credible financial records, clear growth strategies, sound governance and products that respond to identifiable market needs.
Come Again Foods Takes Top Prize
Come Again Foods emerged as the overall winner of the competition, receiving a combined $105,000 prize. Protein Kapital placed second with $70,000, while InstantRad finished third with $50,000.
Other beneficiaries were Eight Medical, Uwana Energy, Tryctor and Smartei Agri Tech.
The NSIA said the $277,000 award package comprised $220,000 from the authority, $45,000 from Cascador and $12,000 from Wema Bank. The finalists will also have access to further business development and investment support opportunities.
For Nigeria’s startup ecosystem, the central challenge extends beyond helping entrepreneurs secure their first round of funding. Sustained growth will depend on whether businesses can convert investment into stronger operations, expanding customer bases, job creation and long-term commercial viability.
As the government pursues its $1 trillion economic ambition, the ability to develop businesses that can grow beyond the small-enterprise stage will remain an important test of the country’s investment and enterprise-support initiatives.
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