Funding is no longer the primary hurdle for Nigerian startups. Instead, the main challenge is a shortage of investment-ready businesses. The Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) emphasizes that while venture funds are eager to deploy capital, most early-stage teams lack the structure, business models, and operational scale needed to attract investors.
The Core Bottleneck
Nigeria remains Africa’s primary tech hub, boasting five of the continent's eight unicorns. Yet a wide gap persists between institutional investors and early-stage founders. Many emerging ventures lack basic financial tracking, clear corporate governance, and the operational rigor required during investor due diligence.
Building Capacity Through the ACE Project
Rather than distributing direct grants, SMEDAN is focusing on foundational training. Supported by a $12 million commitment from the South Korean Government, the agency is establishing the Abuja Centre for Entrepreneurship (ACE) Project.
The initiative has already selected 30 certified trainers from over 1,100 applicants. These mentors will guide young entrepreneurs across high-growth sectors—including fintech, agritech, healthtech, logistics, and AI—helping them build scalable, globally competitive enterprises.
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