Their role is both significant and indispensable. Yet, despite this considerable contribution, many continue to operate below their full potential, constrained not by ambition or capability, but by structural barriers that limit their ability to scale.

This tension between potential and constraint was at the heart of discussions I participated in last month in London, at the “Leveraging Youth Development, Innovation and Entrepreneurship” event on the sidelines of President Tinubu’s UK–Nigeria State Visit.

Convened in partnership with Nigeria’s Ministry of Youth Development, the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), and the UK Department for Business and Trade, the gathering brought together policymakers, investors, and operators from both countries.

The message was clear: Nigeria’s SMEs and youth-led businesses represent one of the country’s most powerful levers for economic transformation, but unlocking that potential will require more deliberate and coordinated support.

As things stand, SMEs in Nigeria continue to face a set of well-defined and persistent constraints. Access to financing is still uneven, particularly for businesses without the collateral or operating history traditional institutions require.

Market access remains fragmented, making it difficult for many to reach customers beyond their immediate environment.

Infrastructure challenges, from inconsistent power supply to limited logistics networks, continue to drive up the cost of doing business, while uneven access to digital tools leaves many operating without the systems needed to scale effectively.

There is, however, a strong and concentrated effort to address these issues. SMEDAN is increasingly focused on providing practical support, connecting businesses to mentorship, improving access to funding, and working to close some of these structural gaps.

In parallel, the Ministry of Youth Development is investing in long-term capacity building through initiatives like the Nigerian Youth Academy, which has already enrolled over 400,000 young people across digital and physical platforms.

This domestic effort is also being reinforced by growing international engagement, particularly from the United Kingdom.

As a global financial hub, the UK plays a huge role as a supporting partner by bringing depth in capital markets, regulatory clarity, and access to global networks that Nigerian businesses can leverage as they scale.

This corridor has clearly been successful, with London now hosting more Africa-headquartered companies on its Stock Exchange than New York, and UK investors accounting for a significant share of capital inflows into Nigeria, supporting an ecosystem that has produced 75% of Africa’s unicorns.

Importantly, this engagement is evolving beyond capital into more structured forms of collaboration. Initiatives such as the UK–Nigeria Tech Hub continue to build talent and support founders, while digital access programmes are expanding connectivity and enabling participation in the digital economy.

The planned UK-supported startup sandbox in Nigeria is particularly noteworthy, as it reflects a shift toward creating environments where innovation can be tested and scaled within a supportive regulatory framework.

However, while the alignment between local and international governments and their agencies is encouraging and clearly underscores and validates the strength and potential of Nigerian startups, it cannot carry the full weight of what is required.

Government initiatives and international partnerships can lay the groundwork, but sustained growth will depend on how actively the private sector builds on that foundation.

What is needed is a broader, ecosystem-wide commitment by the private sector to build the structures and services that enable growth, particularly for SMEs. Without this, many SMEs will remain constrained, isolated, and unable to compete at scale.

For example, take financial services, particularly cross-border payments, which is an area where progress has been made, but not yet at the pace required. For many SMEs, the ability to move money efficiently across borders remains a significant constraint.

Traditional banking systems are often not designed with smaller businesses in mind, requiring extensive documentation, limiting access to foreign exchange, and introducing delays that can stretch transactions over several days or even weeks.

In response, fintech providers like Verto, are building more tailored alternatives, solutions that remain secure and compliant, while simplifying onboarding for SMEs and enabling access to faster, more cost-effective payment rails.

Reducing this friction is critical, as it allows businesses to operate more efficiently and engage more confidently in international trade.

The same approach needs to be applied more broadly. Access to funding cannot continue to depend on collateral-heavy models that exclude otherwise viable businesses; more practical indicators like cash flow and transaction history need to be taken seriously.

At the same time, technology should work for SMEs, not overwhelm them, tools need to be simple, affordable, and built around how these businesses actually operate day to day.

Market access also has to become more deliberate, with clearer and more reliable routes into supply chains, export markets, and procurement opportunities, rather than leaving businesses to navigate these paths alone.

Alongside this, addressing everyday infrastructure constraints, whether through shared logistics, embedded services, or practical partnerships, can significantly reduce the operational burden that slows growth.

At the end of the day, supporting SMEs is not an act of charity; it is a mutually beneficial business opportunity with wide-reaching economic outcomes.

These businesses are already creating value at scale, driving employment, expanding markets, and building solutions to real challenges. The opportunity now is to ensure the environment around them evolves just as deliberately, to ensure sustained growth and scale.

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The fund will support the development of local digital production capacity, encourage the adoption of modern creative technologies, and promote the responsible use of Artificial Intelligence (AI), to strengthen Nigeria’s creative value chain.

The initiative directly supports the priorities of the UK‑Nigeria Economic Transformation and Investment Partnership (ETIP) Creatives Working Group launched in March 2025 and the delivers on commitments made during President Tinubu’s State visit to the UK in March 2026.

It is designed to ensure that high potential creative projects can access the technical talent, tools, and resources required to produce, scale and complete their work locally.

Funded by the UK-Nigeria Tech Hub, under the UK Government’s Digital Access Programme and implemented by Tech4Dev, the Creative Fund responds directly evidence gathered through the State of the Creative Innovation Ecosystem in Nigeria, study in 2024.

Drawing on over 1,700 survey responses, and fieldwork across seven states, the research showed that Nigeria’s creative economy employs approximately 4.2 million people and contributes around US$3 billion to GDP annually.

Despite this scale, the sector continues to face structural constraints – over 80% of practitioners are self-taught, fewer than 10% have access to formal financing, and high-value technical work is routinely outsourced outside the country. The Creative Fund is a direct response to these gaps, and central to the work of the ETIP Creative working Group.

Oyinkansola Akintola‑Bello, director of the UK‑Nigeria Tech Hub, said:

“Nigeria’s creative sector already delivers real economic value, and both governments have committed under the UK‑Nigeria Economic Transformation and Investment Partnership to supporting its growth. Through the ETIP Creatives Working Group, we are moving from ambition to action. The Creative Fund is a practical first‑phase intervention that addresses critical gaps in skills, infrastructure, and access to advanced tools, enabling Nigerian creatives to produce and scale high‑quality work locally.”

The Fund will support high-potential creative projects covering three industries; Film, Fashion, Music and will focus on initiatives that demonstrate strong potential for impact, scalability, and job creation. It will subsidise projects that need to close technical gaps including critical specialists like VFX artists, sound engineers, post-production editors, and design professionals, or the digital tools and resources that make professional-quality work possible locally, for example digital asset management systems, content delivery tools, Digital Rights Management solutions, and AI-driven production technologies. The aim is straightforward; Nigeria’s best creative work should be made in Nigeria.

Abraham Akpan, Tech4Dev’s country manager for Nigeria and Sub-Saharan Africa said:

“The Creative industries are a core part of the digital economy, bringing together technology, culture and entrepreneurship. This Fund is about ensuring that Nigeria’s creative success is underpinned by sustainable local talent and capacity, while deliberately expanding access to tools, skills and finance for those who have been historically excluded. By prioritising women-led enterprises, youth-led ventures, and underrepresented groups, the fund embeds inclusion into every stage of delivery.”

The Fund is open to creative companies, studios, production houses, fashion enterprises, and music labels leading projects with clear technical needs.

Applications will be assessed on project quality, its potential for local and international impact, and the applicant’s level of commitment to co-investment.

The initiative also encourages the responsible use of emerging technologies, including artificial intelligence with selected projects expected to explore its application in production, storytelling, and innovation.

How to apply:

Applications are open now and will be accepted on a rolling basis throughout the programme period.

Application link is here.

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As part of this collaboration, the two entities will award $3 million in Google Cloud credits to women founders in Nigeria.

This support will subsidise cloud technology-related costs for startups, allowing them to focus on innovation, customer acquisition, and growth.

The joint effort by UK-Nigeria Tech Hub and Google for Startups Africa will help promote digital inclusion and jointly support technology businesses run by women founders.

To commemorate International Women’s Day in March, the two organisations co-hosted an event in Lagos, today, bringing together women founders, investors, and ecosystem stakeholders.

The event aims to help women founders understand the technology funding landscape and position themselves to secure funding for their startups.

Justina Oha, Country Director, UK-Nigeria Tech Hub, said, “We are thrilled to announce our collaboration with Google for Startups, which comes at a time when the world is celebrating International Women’s Day. This partnership is a testament to our commitment to supporting women founders and helping them reach their full potential. Partnerships like this are one of the great ways that stakeholders can come together to advance Nigeria’s tech ecosystem at an accelerated pace.”

Folarin Aiyegbusi, Head of Startup Ecosystem Google Africa, speaking on the collaboration, said: “We are excited to partner with the UK-Nigeria Tech Hub to empower women entrepreneurs in Nigeria. This collaboration is a unique opportunity to provide women founders with the support and resources they need to scale their businesses and contribute to the growth of Nigeria’s tech ecosystem.

“At Google for Startups, we are committed to supporting startups and entrepreneurs around the world, and we believe that empowering women founders is key to building a more diverse and inclusive tech industry.”

UK-Nigeria Tech Hub

The UK- Nigeria Tech Hub is an initiative by the UK government’s Department for Digital, Culture, Media, and Sports (DCMS) to support the growth of the Technology ecosystem in Nigeria by promoting sustainable and inclusive economic growth in the tech sector, leading to more trade and investment in the longer term. ​

The UK-Nigeria Tech Hub works to stimulate local digital economies, support inclusive and sustainable economic growth and jobs, build high-end digital skills, and forge innovation partnerships between Nigerian tech sectors and international businesses.

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