FG Launches $110 Million Debt Financing for Tech Startups, Opens Application for Nigerians
- Nigeria's Bank of Industry launches $110 million debt facilities for tech and creative startups
- New financing options aim to tackle startups' access to affordable capital and support growth
- Applications are now open for eligible businesses across all 36 states and the FCT
PAY ATTENTION: Find it fast with our new search feature at Legit.ng!
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
The Federal Government, through the Bank of Industry (BOI), has opened applications for two major debt-financing facilities worth a combined $110 million under the Investment in Digital and Creative Enterprises (iDICE) Programme, offering technology and creative startups access to affordable capital to grow their businesses.
The newly launched facilities, the BOI-iDICE $45 million Debt Fund and the IsDB-iDICE $65 million Debt Fund, are available to eligible businesses in all 36 states and the Federal Capital Territory.
Source: Facebook
The initiative is expected to ease one of the biggest challenges facing startups in Nigeria: limited access to affordable financing needed to expand operations, create jobs and develop innovative products.
Part of Africa's largest innovation programme
The debt facilities form part of the broader $617 million iDICE Programme, one of Africa's largest government-backed initiatives supporting the digital and creative economy.
The programme is financed by the Federal Government alongside leading international development institutions, including the African Development Bank (AfDB), Agence Française de Développement (AFD) and the Islamic Development Bank (IsDB), with the Bank of Industry serving as the implementing agency and co-financier.
According to BOI, the programme is designed to help transform innovative ideas into commercially viable businesses by improving access to skills, markets and financing.
BOI-iDICE fund offers loans up to ₦1 billion
The BOI-iDICE Debt Fund represents the Federal Government's $45 million counterpart contribution to the programme.
Under the facility, eligible startups can access financing ranging from ₦10 million to ₦1 billion at a maximum interest rate of 10 per cent per annum.
Beneficiaries can repay the loans over a period of up to five years, with a moratorium of as much as six months, providing growing businesses with additional flexibility before repayments begin.
The facility is aimed at technology and creative enterprises that have already demonstrated market traction and are seeking funding to scale operations, increase production capacity and expand into new markets.
IsDB facility supports asset financing
The second financing window is backed by the Islamic Development Bank's $65 million commitment to the iDICE Programme.
It operates under a Murabaha financing structure, a Sharia-compliant model in which the financier purchases assets on behalf of a business before reselling them at an agreed price with a disclosed profit margin.
BOI noted that although the facility follows Islamic finance principles, it is open to all qualified Nigerian businesses regardless of religion or background.
The fund is specifically designed to support the purchase of productive assets such as equipment, technology infrastructure, creative tools and other business assets needed for expansion.
Closing the startup financing gap
The Bank of Industry said the new debt windows were created to address the financing difficulties faced by many startups, especially as commercial bank lending often comes with interest rates and repayment terms that are difficult for young businesses to sustain.
The facilities complement other financing options available under the iDICE Programme, including equity and quasi-equity investments through the DICE Fund of Funds, DICE Technology Fund and DICE Creative Fund, providing support for startups at different stages of growth.
Applications now open
The Bank of Industry has invited eligible technology and creative enterprises across Nigeria to apply for the financing window that best matches their business needs.
Source: Getty Images
Interested applicants are encouraged to carefully review the eligibility requirements, funding objectives and application guidelines before submitting their applications through the official iDICE portals.
With affordable financing, longer repayment periods and nationwide availability, the programme presents a significant opportunity for innovative Nigerian startups looking to expand, invest in new assets and accelerate growth.
FG launches YOUTHCRED to give Nigerians N2m
Legit.ng earlier reported that the federal government has unveiled a credit scheme targeting young Nigerian entrepreneurs, with plans to reach more than 500,000 beneficiaries through loans of up to N2 million each.
Finance Minister and Coordinating Minister of the Economy, Taiwo Oyedele, announced the YOUTHCRED for Entrepreneurs initiative at a launch ceremony in Abuja on Wednesday, July 22, 2026.
The programme is being run by the Nigerian Consumer Credit Corporation, known as CREDICORP, according to a report by Daily Trust.
Source: Legit.ng
