Nigeria Unlocks $110 Million Debt Financing for Tech and Creative Startups Under iDICE Programme

The Federal Government of Nigeria, through the Bank of Industry (BOI), has launched two significant debt financing windows totalling $110 million, aimed at bolstering access to affordable growth capital for technology and creative enterprises. This initiative, operating under the Investment in Digital and Creative Enterprises (iDICE) Programme, represents a pivotal step in fostering innovation and commercialisation within Nigeria’s burgeoning digital and creative economy.

The two dedicated facilities, the BOI-iDICE $45 million Debt Fund and the IsDB-iDICE $65 million Debt Fund, are now accessible to eligible businesses across all 36 states and the Federal Capital Territory. This launch underscores the iDICE Programme’s ambition as Africa’s most substantial intervention in the digital and creative sectors, directly addressing the critical challenge of securing patient and affordable capital for innovative ventures at various stages of their growth trajectory.

The iDICE Programme itself is a substantial $617 million fund, positioning it as one of the continent’s largest government-backed innovation initiatives. It synergises the expertise and financial backing of three leading development finance institutions: the African Development Bank (AfDB), Agence Française de Développement (AFD), and the Islamic Development Bank (IsDB), with BOI serving as the executing agency and a co-financier. The programme is predicated on the recognition that Nigeria possesses abundant talent, ideas, and ambition, requiring enhanced skills, market access, and capital to achieve full commercial potential.

The BOI-iDICE Debt Fund, representing $45 million in counterpart funding from BOI on behalf of the Federal Government, offers financing ranging from ₦10 million to ₦1 billion. This facility carries a maximum annual interest rate of 10%, with repayment terms extending up to five years and a moratorium of up to six months. It is specifically designed to support Tech and Creative enterprises that have demonstrated market traction, enabling them to scale operations and expand their market reach.

Complementing this is the IsDB-iDICE Debt Fund, backed by the Islamic Development Bank’s $65 million commitment. Structured as a Murabaha, a Sharia-compliant cost-plus-markup model, this facility involves the financier purchasing an asset for the business and reselling it at an agreed price, including a disclosed profit margin. While adhering strictly to Islamic finance principles, it is open to all Nigerian entrepreneurs, irrespective of their background or beliefs. This fund is primarily geared towards asset financing, providing capital for essential equipment, technology, creative infrastructure, and other productive assets for Tech and Creative startups.

These debt financing windows are strategically designed to bridge the gap left by commercial lending, which often proves inaccessible or unsustainable for early-stage enterprises. The terms, including interest rates, tenors, and structures, have been calibrated to align with the cash-flow realities of technology and creative startups. These products form an integral part of iDICE’s comprehensive financing architecture, which also includes equity and quasi-equity capital provisions through the DICE Fund of Funds, DICE Technology Fund, and DICE Creative Fund, ensuring support for startups at every stage of their lifecycle.

Startups are encouraged to thoroughly review the eligibility criteria and objectives for each window to identify the facility best suited to their specific profile and financial needs. Detailed eligibility information and application procedures are available on the official iDICE portal at idice.ng. Applications for both the BOI-iDICE Debt Fund and the IsDB-iDICE Debt Fund can be submitted via idice.boi.ng. For inquiries, interested parties can contact the Bank of Industry through its customer support channels at 0700 225 5264 or [email protected].

… Nigeria Unlocks $110 Million Debt Financing for Tech and Creative Startups Under iDICE Programme … Naijaonpoint.