Nigeria’s technology regulator has said that a partnership with Japan’s aid agency is accelerating the expansion of the country’s startup sector, as Africa’s most populous nation seeks to position itself as a hub for digital innovation.

The National Information Technology Development Agency has worked with the Japan International Cooperation Agency to run iHatch, a joint incubation scheme offering mentorship, training and seed funding to early-stage companies. Among its beneficiaries is AGROVESTO, an agritech venture digitising supply chains for smallholder farmers.

NITDA’s Director-General, Kashifu Inuwa, said the collaboration was helping Nigerian entrepreneurs turn local challenges into scalable business models.

“Nigeria is home to over 200 fintech startups revolutionising financial services, fostering inclusion and empowering millions,” he said in a statement following remarks delivered by a senior official in Abuja.

He cited Paystack, Flutterwave and Paga as examples of Nigerian companies with continental reach.

The initiative comes as the government implements the Nigeria Startup Act, which provides tax incentives, simplified registration processes and regulatory sandboxes aimed at lowering barriers for innovators and attracting investment.

Japan’s JICA has stepped up engagement in Nigeria’s digital economy, in contrast to the more high-profile involvement of Chinese and American investors.

JICA’s country representative, Ishigame Kenji, called on AGROVESTO to expand its technology to more farmers, underscoring Tokyo’s interest in agritech as part of a broader development agenda.

Nigeria, where nearly half the population is under 18, has seen a surge in venture-backed startups despite currency volatility and high inflation.

Officials hope that a mix of foreign partnerships and policy reforms can sustain momentum in an ecosystem still grappling with patchy infrastructure and regulatory uncertainty.