The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has said Nigerian businesses need patient capital, experienced investors and institutional support to overcome growth barriers and compete internationally.

Oyedele spoke on Saturday in Abuja at the fourth edition of the Nigeria Sovereign Investment Authority (NSIA) Prize for Innovation, where seven startups received awards worth a combined $277,000.

Represented by his Special Adviser on Finance and Investment, Marie Ukpere, the minister said conventional loans alone could not address the structural challenges facing entrepreneurs.

“High-potential businesses often require more than conventional credit. They need patient capital, experienced investment partners, and networks that can help them enter new markets and achieve scale,” he said.

He noted that small and medium-sized enterprises supported millions of livelihoods and provided jobs across Nigeria but continued to struggle with inadequate financing, technical expertise and institutional backing.

According to him, achieving Nigeria’s ambition of building a $1tn economy would require helping small businesses grow into medium-sized enterprises and eventually large companies capable of competing in global markets.

Oyedele identified the Development Bank of Nigeria and the National Credit Guarantee Company as key institutions supporting access to business financing. He said the credit guarantee company was designed to reduce lending risks and encourage banks to provide more credit to small businesses and manufacturers.

He also highlighted the Nigerian Consumer Credit Corporation’s efforts to strengthen household purchasing power and domestic demand.

The minister cited the $618m Investment in Digital and Creative Enterprises programme as another intervention providing young entrepreneurs with financing, skills development and business support.

He further disclosed that the NSIA was anchoring venture capital funds to attract institutional investment into Nigerian businesses. The authority was also developing an impact innovation fund with the Japan International Cooperation Agency, with British International Investment expressing interest in participating.

The proposed fund, he said, would support commercially viable businesses addressing economic and developmental challenges.

“The real measure of your success will not be the prize you receive today. It will be the businesses you go on to build afterwards,” Oyedele told the finalists.

Earlier, the Managing Director and Chief Executive Officer of the NSIA, Aminu Umar-Sadiq, said the 12 finalists were selected from more than 6,000 applications after five stages of screening and business development activities.

He explained that the competition formed part of the authority’s investment strategy to support entrepreneurs alongside its infrastructure financing operations.

Umar-Sadiq said healthcare, manufacturing and food systems were selected as focus areas this year because of their potential to generate employment, build skills and improve productivity.

He added that all 12 finalists would participate in a six-week learning programme at Lagos Business School, while strategic partners would provide further opportunities for financing and business development.

According to him, the NSIA works closely with companies receiving equity investments to improve corporate governance, strengthen management and expand demand for their products.

Citing previous winners, including Money Africa and Sycamore, he said the impact of startup investments should be assessed over about five years rather than expecting immediate results.

Also speaking, the National Coordinator of the Presidential Unlocking Healthcare Value Chain Initiative, Dr Abdu Mukhtar, described healthcare as a major investment opportunity, estimating Nigeria’s addressable healthcare market at $20bn.

He said the sector already had about 250,000 small and medium-sized enterprises, according to the International Finance Corporation, while identifying pharmaceutical manufacturing, medical devices, clinical research, telemedicine and healthcare logistics as promising areas for investment.

The founder and Chief Executive Officer of ReelFruit and lead judge of the competition, Affiong Williams, said her company had raised more than $7m over 14 years.

She attributed its ability to attract investment to preparation, credibility and resilience, urging entrepreneurs to understand customer demand, build strong networks and remain focused despite economic instability.

Similarly, the founder and director of Cascador, Dave DeLucia, stressed that preparing businesses to attract investors was as important as providing capital.

“Capital readiness is just as important or more than the capital itself,” he said, adding that entrepreneurs outside Lagos often needed greater institutional support.

At the competition, Come Again Foods emerged as the overall winner, receiving a combined prize of $105,000. Protein Kapital came second with $70,000, while InstantRad placed third with $50,000.

Other beneficiaries were Eight Medical, Uwana Energy, Tryctor and Smartei Agri Tech.

The NSIA said the $277,000 prize pool comprised $220,000 from the authority, $45,000 from Cascador and $12,000 from Wema Bank. The winners and finalists would also have access to additional business development and investment support.