Venture Capital Seen as Key to Driving Nigeria’s Economic Transformation, says expert

By Tosin Clegg

As the world grapples with economic uncertainties and shifting investment priorities, Nigeria is increasingly turning to venture capital as a catalyst for innovation, job creation, and sustainable growth.
With a young population and a rising number of technology-driven enterprises, experts believe that strategic capital deployment into high-potential startups could redefine the country’s economic future.
Among those championing this shift is Abiola Olatoye, a CFA charterholder and an investment professional with experience across venture capital, private equity, and investment management. Drawing on his work with Michigan Capital Network Ventures in the United States and his earlier roles in Nigeria’s financial sector, Olatoye advocates for using venture capital as a bridge between innovative ideas and large-scale economic impact.
According to Olatoye, venture capital holds the power to unlock value in sectors often overlooked by traditional financing institutions. At Michigan CapitalNetwork Ventures, he has conducted due diligence on several early-stage companies spanning life sciences, software, and advanced manufacturing. His work has contributed to investments worth millions of dollars, leading to value creation for investors.
He explains that beyond financial returns, venture capital investment is about building resilient economic ecosystems. “When you provide capital to visionary founders with scalable ideas,” Olatoye noted, “you are not just funding a business, you are funding the next generation of economic drivers.” This approach, he adds, is essential to transform Nigeria from a consumption-based economy to one driven by innovation and production.
Olatoye’s career trajectory reflects a deep understanding of both the private and public investment landscapes. At the Nigeria Sovereign Investment Authority, he played a crucial role in developing investment cases that aligned national priorities with financial sustainability. One of his notable contributions was developing the financing structure for the healthcare expansion program to establish diagnostic centers and oncology centers across Nigeria, a project that combined healthcare access with long-term economic value.
He also played a pivotal role at the Nigeria Sovereign Investment Authority in managing the Presidential Infrastructure Development Fund, a fund established by His Excellency, former President Muhammadu Buhari (GCFR), to accelerate the execution of strategic infrastructure projects like the Lagos – Ibadan Expressway, the Second Niger Bridge, and other critical projects essential to Nigeria’s rapid growth and modernization. These experiences, he says, reinforced the importance of disciplined investment strategy and accountability, lessons that are now shaping his approach to venture capital.
While at Africa Plus Partners, Olatoye helped execute capital deployment into a midstream gas platform, leveraging energy sector insights to attract additional funding. His expertise in structuring sustainable deals and reengineering capital frameworks proved critical in enhancing returns and improving investor confidence. “Sustainability and profitability are not opposing goals,” he observed. “They are complementary forces in long-term value creation.”
His background in private equity and advisory services also underscores the importance of strategic partnerships. At Wizer Advisory Group, he developed the financing structures for the development of a world-class cancer treatment center, which is the first of its kind in Nigeria and indeed West Africa — a project that became a model for future healthcare ventures. The success of that project highlighted how private capital, when guided by sound governance, can address pressing social needs while yielding commercial benefits.
As venture capital continues to gain traction in Africa, Olatoye believes that Nigeria’s demographic advantage and entrepreneurial energy present a unique opportunity. The country’s tech ecosystem, driven by fintech, agritech, and clean energy startups, has already attracted global attention. He argues that sustained support through venture capital can help these startups scale, formalize their operations, and make a significant contribution to GDP growth.
Education has also played a central role in shaping Olatoye’s investment philosophy. A graduate of Babson College, where he earned a Master of Science in Finance with Summa Cum Laude honors, and currently pursuing a dual MBA/MS degree at the University of Michigan’s Ross School of Business and School for Environment and Sustainability, he combines financial expertise with an understanding of sustainable business practices.
For Nigeria to fully harness the potential of venture capital, experts like Olatoye emphasize the need for supportive policies, robust legal frameworks, and access to local funding sources. He calls for increased collaboration between government institutions, development finance agencies, and private investors to create a pipeline of investable businesses capable of driving inclusive growth.
As global capital flows shift toward impact-driven investments, Nigeria’s ability to attract venture funding will depend on transparency, innovation, and consistent policy direction.