Economy
Nigerian Startups to Benefit from IFC $225m Venture Capital Funding
By Adedapo Adesanya
Nigerian tech startups will be among the many eligible parties that can get funding from the International Finance Corporation (IFC), a subsidiary of the World Bank, new $225 million platform.
In a release seen by Business Post, IFC has launched a new $225 million platform to strengthen venture capital ecosystems and invest in early-stage companies addressing development challenges through technological innovations in climate, health care, education, agriculture, e-commerce, and other sectors.
The platform will strengthen digital economies in Africa, the Middle East, Central Asia, and Pakistan.
According to the IFC, in 2021, these regions collectively received less than 2 per cent of $643 billion of global venture capital funding. Access to capital has been exacerbated by a slowdown in global venture capital investment, the COVID-19 pandemic, the rise in food and supply chain costs, higher interest rates, and currency depreciation.
The growth potential, however, is enormous across these regions. In Africa, for example, the digital economy has the potential to contribute $712 billion to the continent’s gross domestic product (GDP) by 2050.
Meanwhile, in the Middle East and North Africa (MENA), technology could boost GDP by 40 per cent, or $1.6 trillion, and create 1.5 million manufacturing jobs in the next 30 years. In Pakistan, the digital transformation can unlock up to $59.7 billion in annual economic value by 2030, equivalent to about 19% of the country’s GDP.
According to Mr Makhtar Diop, IFC’s Managing Director, the platform aims to strengthen these regions’ nascent venture capital markets, which have demonstrated early growth potential but face challenging global economic conditions.
“Support for entrepreneurship and digital transformation is essential to economic growth, job creation, and resilience. IFC’s Venture Capital Platform will help tech companies and entrepreneurs expand during a time of capital shortage, creating scalable investment opportunities and backing countries’ efforts to build transformative tech ecosystems.
“We want to help develop homegrown innovative solutions that are not only relevant to emerging countries but can also be exported to the rest of the world.”
IFC will make equity or equity-like investments in tech startups and help them grow into scalable ventures that can attract mainstream equity and debt financing.
The financer will also use the platform to collaborate with other teams in the World Bank Group to create and bolster venture capital ecosystems through regulatory reforms, sector analyses, and other tools. The platform will also focus on investments in low-income and fragile countries and help generate a pipeline of credible early-stage companies.
The platform will be backed by an additional $50 million from the Blended Finance Facility of the International Development Association’s Private Sector Window, which helps de-risk investments in low-income countries.
IFC will also mobilize capital from other development institutions and the private sector to support entrepreneurs and tech companies in those countries.
By Aduragbemi Omiyale
The sale of FGN savings bond for May 2026 will close today, Friday, May 8, Business Post reports.
The exercise commenced on Monday, with the Debt Management Office (DMO) offering the debt instrument in two maturities of two years and three years.
According to the circular from the DMO, the shorter paper is being offered at a coupon of 13.525 per cent, while the longer note is 14.525 per cent. The interest on the investment is paid to investors every quarter.
The retail bond is sold at a unit price of N1,000, subject to a minimum subscription of N5,000 and in multiples of N1,000 thereafter, subject to a maximum subscription of N50 million.
The FGN savings bond is backed by the full faith and credit of the Federal Government of Nigeria and charged upon the general assets of the country.
It qualifies as securities in which trustees can invest under the Trustee Investment Act, and is tax-free as it also qualifies as government securities within the meaning of the Company Income Tax Act (CITA) and Personal Income Tax Act (PITA) for tax exemption for pension funds.
After the exercise, the bonds are taken to the Nigerian Exchange (NGX) Limited for listing, allowing investors who want to liquidate the paper before maturity to sell to others at the secondary market.
By Dipo Olowookere
The Nigerian Exchange (NGX) Limited again succumbed to profit-taking on Thursday, shedding 1.23 per cent at the close of transactions.
The plummeting of the bourse happened despite strong investor sentiment, as there were 40 price advancers and 32 price laggards, indicating a positive market breadth index.
The loss was driven by the poor performance put up by the industrial goods and banking sectors, which closed lower by 5.45 per cent and 1.11 per cent, respectively.
They overpowered the gains recorded by the three other key sectors of Customs Street. The insurance appreciated by 1.51 per cent, the energy industry improved by 0.39 per cent, and the consumer goods counter advanced by 0.10 per cent.
At the close of business, the All-Share Index (ASI) contracted by 2,994.90 points to 239,734.61 points from 242,729.51 points, and the market capitalisation retreated by N1.922 trillion to N153.859 trillion from N155.781 trillion.
University Press crashed by 10.00 per cent to N4.50, Red Star Express slipped by 9.59 per cent to N25.45, SAHCO depreciated by 8.63 per cent to N130.75, C&I Leasing dropped 8.50 per cent to trade at N7.00, and Consolidated Hallmark shed 7.54 per cent to quote at N6.01.
Conversely, CAP appreciated by 9.99 per cent to N212.50, FTN Cocoa grew by 9.99 per cent to N8.04, Zichis gained 9.97 per cent to close at N30.33, Meyer soared by 9.97 per cent to N17.10, and Berger Paints increased by 9.97 per cent to N98.75.
Market participants bought and sold 1.8 billion stocks for N72.2 billion in 81,131 deals yesterday compared with the 1.4 billion stocks worth N59.4 billion traded in 85,804 deals on Wednesday, showing a drop in the number of deals by 5.45 per cent, and a surge in the trading volume and value by 28.57 per cent and 21.55 per cent, respectively.
NEM Insurance was the busiest equity on Thursday with a turnover of 360.6 million units valued at N7.9 billion, Fortis Global Insurance exchanged 214.7 million units worth N229.8 million, VFD Group traded 141.5 million units for N1.5 billion, Access Holdings sold 140.4 million units worth N3.4 billion, and FCMB transacted 119.6 million units valued at N1.4 billion.
By Adedapo Adesanya
Oil prices further went down on Thursday after a report said Saudi Arabia and Kuwait lifted restrictions on the United States’ use of their airspace and military bases, allowing America to restart operations to escort commercial ships through the Strait of Hormuz as early as this week.
Brent crude futures gave up 1.2 per cent or $1.21 to trade at $100.06 a barrel, while the US West Texas Intermediate (WTI) crude futures depreciated by 0.28 per cent or 27 cents to $94.81 per barrel.
The Wall Street Journal reported that Saudi Arabia and Kuwait had lifted restrictions on the US military’s use of their airspace and military bases, citing American and Saudi officials, and that the Donald Trump administration was looking to restart ‘Project Freedom’, its operation to guide vessels through the vital Strait of Hormuz waterway this week.
The US and Iran are edging toward a limited, temporary agreement to halt their war, with a draft framework that would stop the fighting but leave the most contentious issues unresolved and centre on a short-term memorandum rather than a comprehensive peace deal.
The US has sent a proposal for a one-page memorandum that could lead to a gradual re-opening of the Strait of Hormuz and the lifting of the US blockade on access to Iranian ports. Iran has yet to review and respond to the proposal.
No agreement has been reached on fresh mediated talks, including on Iran’s nuclear programme.
Market analysts noted that a confirmed deal would probably take Brent back into the $80-$90 price range quickly, but a breakdown in talks or if strikes resumed, it would immediately push prices north of $120 a barrel.
On the supply front, the US government said Iran appears to have cut back oil production by 400,000 barrels per day and is likely to reduce it further as its storage units fill.
Meanwhile, a Chinese-owned oil products tanker was attacked near the Strait of Hormuz on Monday, marking the first time a Chinese oil vessel has been attacked.
US Treasury Secretary Scott Bessent had earlier urged China to intensify its diplomatic efforts to persuade Iran to open the Strait of Hormuz to international shipping, adding that President Trump and his Chinese counterpart, Mr Xi Jinping, will discuss the subject when they meet next week.
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