Nasir El-Rufai, the former governor of Kaduna State, Nigeria, has announced his plans to set up a $100 million venture capital fund for startups in the country, especially those in the Kaduna tech ecosystem. El-Rufai, who missed a controversial ministerial appointment after his tenure as governor, said he was ready to invest $2 million of his own money into the fund and attract other investors who trust his judgment.
El-Rufai revealed his ambitious project at the Africa Investment Forum in Marrakech, Morocco, in November 2023, where he spoke to BusinessDay. He said he was inspired by the innovative ideas and talents of young Nigerians, especially those he met in Kaduna during his governorship. He said he wanted to provide them with mentoring, financing, and access to opportunities that would help them grow their businesses and create value for the world.
The fund, which will be called LK-99, will target startups in various sectors, such as agriculture, ICT, and the creative industry. It will also invest in established companies with management problems that are still viable. El-Rufai said he and his partners would take an equity position in the businesses they invest in, but they would not take over their ownership. They would also help them navigate the regulatory and political challenges that they may face.
El-Rufai is working with select private sector partners, including Eyo Ekpo, co-founder of Excredite Consulting Limited, a firm that provides advisory services to businesses and governments. Their primary focus is on Nigeria, but they also have an African vision, as they project that the continent will supply a significant portion of the world’s workforce by 2050. According to a report by the Guardian, Africa’s population is expected to reach 2.5 billion by 2050, which is about 25 percent of the world’s population.
El-Rufai said his fund would not just focus on Lagos, the commercial hub of Nigeria, where there is already a lot of interest in funding innovation. He said he wanted to diversify the funding to other parts of the country, such as Kaduna, Abuja, and other states. He said the fund would be headquartered in Abuja and would launch early next year.
El-Rufai’s fund is one of the latest initiatives to support the growth of the Nigerian startup ecosystem, which has been attracting more attention and investment from local and international players. According to a report by Techpoint Africa, Nigerian startups raised a total of $1.2 billion in funding in the first half of 2023, surpassing the $1 billion mark for the first time. Some of the notable deals include Flutterwave’s $170 million Series C round, Kuda Bank’s $110 million Series B round, and Paystack’s $200 million acquisition by Stripe.
El-Rufai said he was optimistic about the future of Nigeria and Africa, and he hoped that his fund would contribute to the development of the continent. He said he had a duty to encourage young people who have the potential to change the world with their ideas and innovations.
Source: BusinessDay
