The venture capital fund being set up for the ICT industry is to be anchored by the Nigeria Information Technology Development Agency (NITDA), which is expected to commit $3.6 million (N500 million) to the project. The Minister said that the private sector, globally and locally would raise an additional $11.4 million.
She added that "The $15 million will be managed by independent fund managers who would work with the ICT incubation team to identify projects or initiatives that we believe are great ideas that will be commercially successful. We will use those venture capital funds to fund them because there is no collateral. We are taking a risk."
"We use the capital development fund to fund the development of those ideas until they get commercial viability and basically the reward is when they get commercial viable and you sell them off or you do an initial public offer (IPO) like they do with Facebook and all those companies where the returns go to the investors"