The Former Kaduna State governor, Mallam Nasir El-Rufai announced that he is planning to launch a $100 million venture capital fund for startups in Nigeria.
He made this known in a discussion with BusinessDay newspapers while in Marrakech at the Africa Investment Forum in November. He mentioned his readiness to invest $2 million from his own funds to support the offtake of the fund. He said he would persuade investors to contribute the remaining funding. The investors will mostly be those “who believe in us but don’t have the capacity or the time to do the analysis and evaluation. But they trust our judgment and they will come with us.”
He expressed his desire to establish a venture capital fund or private equity initiative aimed at investing in young Nigerians with innovative ideas. He added that the industry segment didn’t matter – whether it was agriculture, ICT, or the creative sector – as long as the ideas had the potential to add value to the world.
During his tenure as the governor of Kaduna, El-Rufai said he encountered numerous students with exceptional ideas and innovations. However, many of them lacked mentors and support to nurture and grow their ideas. Recognizing this gap, he emphasized that what young people needed was mentoring and financial backing to bring their ideas to fruition.
El-Rufai envisions opening doors for these innovators, leveraging the fund’s network and resources, which they might not have access to. He acknowledged that young entrepreneurs often lacked connections with ministers, presidents, or regulatory agencies, and he intended to fill that void. The fund would provide startup funding in exchange for equity, aiming not to take over businesses but to foster their development.
In collaboration with private sector partners, including Eyo Ekpo, co-founder of Excredite Consulting Limited, the primary focus would be Nigeria, with a broader ambition for Africa. El-Rufai projected that by 2050, Africa would supply a significant portion of the world’s workforce, making it imperative to invest in the younger demographic.
He confirmed via his page on X, formerly known as Twitter, that the name of the firm is Afri-Venture Capital Company
The fund, set to launch, in January 2024, will begin operations initially in Abuja with Jimi Lawal, Hafiz Bayero, Eyo Ekpo and Kabir Yabo as founding directors and initial shareholders. Mallam Nasir El-Ruafi will be the part-time Chairman of the Board.
“Please pray for our success and the Nigerian (and in the near future African) innovators and entrepreneurs we hope to finance, nurture, and mentor to be the Dangote Group of the future,” he added.
The fund will have a three to four-year investment horizon and would engage new startups as well as established companies facing management challenges but which are still viable. El-Rufai emphasized the intention to catalyze growth in these startups rather than remaining in any business permanently.
Having attended the African Investment Conference, El-Rufai aimed to explore continental partnerships, attract investors, and tap into opportunities with climate-focused investors. He believed Nigeria had much to offer the world, citing its population, entrepreneurial capacity, and the innovation and courage of its young people.
The fund’s headquarters would be in Abuja, diverging from the concentration of funding interest in Lagos. This strategic move aimed to spur startup funding interest in ecosystems across Kaduna, Abuja, and other parts of the country, providing a more diversified approach to fostering innovation.
