Nigeria’s start-up ecosystem attracted $364.1 million in investment in August 2026, with the Federal Government urging businesses to channel the funds into productive activities that can create jobs, expand exports and strengthen industrial growth.

The Minister of State for Industry, Trade and Investment, Senator John Enoh, made this known as the Economic Community of West African States (ECOWAS) advanced its second Start-up Awards, selecting 60 businesses from 1,499 qualifying applications.

Enoh, who was represented by the ministry’s Permanent Secretary, Dr Chris Isokpunwu, said the investment figure reflected growing confidence in Nigerian entrepreneurs and their ability to build businesses with regional and international potential.

He, however, said raising capital should not be the end goal, stressing that start-ups must convert funding into productive capacity, quality employment, market expansion and sustainable businesses.

“In August 2026 alone, Nigerian start-ups reportedly raised $364.1 million USD. This represents an encouraging indication of the growing interest and capacity of Nigerian entrepreneurs to develop enterprises with regional and global potential,” he said.

The minister said the Federal Government was particularly interested in businesses that could contribute to manufacturing, value addition, exports and broader economic activity.

He added that the government’s Nigeria Industrial Policy 2025 seeks to increase manufacturing’s contribution to Gross Domestic Product from 8.9 per cent to 15 per cent by 2030.

According to Enoh, the Ministry of Industry, Trade and Investment would support national finalists in sectors such as agritech and food systems, cleantech and green innovation, and industrial skills development.

He said the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), alongside the new ECOWAS Academy for Trade and Competitiveness, would provide practical industrial coaching for businesses emerging from the programme.

At the regional level, ECOWAS Commissioner for Economic Affairs and Agriculture, Dehpue Yenpea Zuo, said the competition received 6,679 registrations from 12 member states, with 1,499 applications eventually qualifying.

Following an assessment supported by the International Trade Centre, 60 start-ups were shortlisted across six sectors: EdTech and skills development, FinTech, HealthTech, AgriTech and food systems, CleanTech and green innovation, and Tourism, hospitality and TravelTech.

Zuo said the selected businesses would participate in a six-month acceleration programme featuring mentorship, investor access, regional exposure and post-event support.

The beneficiaries would also join the ECOWAS Start-up Network and access the ECOWAS Private Sector Development Academy, where they would receive training in enterprise development, digital transformation, export readiness and competitiveness.

The programme will eventually produce three winners who will share $65,000 in prize money.

Acting Director of the Directorate of Private Sector and Industry at the ECOWAS Commission, Peter Oluonye, said the 60 start-ups would first participate in a masterclass before being reduced to 20 finalists.

He said the initiative was designed to address challenges such as limited market access, weak financial models and policy constraints affecting technology-driven businesses.

“We want to facilitate digital adoption among micro, small and medium-scale enterprises. We want to connect start-ups to venture capitalists, impact investors, development partners, and financial institutions,” Oluonye said.

Enoh said regional trade frameworks, including the ECOWAS Trade Liberalisation Scheme and the African Continental Free Trade Area, offered businesses access to a combined market of about 1.3 billion people.

He said Nigerian start-ups needed to take advantage of these opportunities by expanding beyond the domestic market and developing sustainable regional operations.

The minister also highlighted the importance of the country’s micro, small and medium-sized enterprises, saying more than 39 million MSMEs account for about 84 per cent of national employment.

He said government interventions included de-risked lending schemes, more than N1.3 trillion in MSME financing through the Bank of Industry and the establishment of solar-powered innovation centres across the country.

The ECOWAS initiative is also focused on inclusion, with Zuo noting that a significant number of the shortlisted businesses are led by women.

While the $65,000 prize is one of the immediate incentives under the programme, organisers said the broader objective was to build businesses capable of attracting investment, expanding across West Africa and competing in international markets.

For Nigeria, the $364.1 million raised by start-ups in August highlights the growing flow of capital into the sector, while the Federal Government is seeking to ensure that such funding translates into scalable businesses, employment opportunities, exports and greater participation in regional and global value chains.