Federal Government Plans $500m Annual Research Fund to Boost Economy, Innovation

Abuja, Nigeria , The Federal Government has approved the establishment of the National Research and Innovation Development Fund (NRIDF), with an annual funding target of $500 million. Education Minister Dr. Tunji Alausa announced the decision Wednesday at the State House in Abuja, detailing resolutions from last week’s Federal Executive Council (FEC) meeting.

Speaking alongside Minister of State for Education Prof. Suwaiba Ahmed, Alausa described the fund as a major milestone to unlock Nigeria’s research potential and support President Bola Tinubu’s goal of building a $1 trillion economy, alongside other key reforms like power sector initiatives.

Key Features of the Fund

The NRIDF will provide sustainable financing for research activities, innovation, and the commercialization of discoveries across universities, research institutes, and industries. President Tinubu has directed that the agency not rely solely on regular budgetary allocations, instead pursuing top-line funding mechanisms estimated to generate about $500 million annually.

“The President has directed that this agency will not rely solely on regular budgetary allocations. We are looking at top-line funding mechanisms that, by our estimates, could generate about $500 million annually for research and innovation in Nigeria.”

The initiative aims to address fragmentation in Nigeria’s research ecosystem by promoting collaboration among academia, government institutions, and the private sector. Alausa cited examples from South Korea and Singapore, where coordinated national research funding systems drove rapid economic transformation.

The fund will support competitive research grants, strengthen laboratories and research infrastructure, promote commercialization of findings, and build scientific talent pipelines. It will also enhance Nigeria’s global research partnerships and evidence-based policymaking through improved science and innovation data systems, helping Nigeria compete amid international business challenges.

Governance and Next Steps

The NRIDF will operate under the Federal Ministry of Science, Innovation and Technology with a structure designed to minimize bureaucracy. Its governing council will be chaired by Vice President Kashim Shettima, with members from relevant ministries, academia, research institutions, and the private sector.

The Attorney-General of the Federation and Minister of Justice has been directed to prepare an executive bill for transmission to the National Assembly to provide legal backing.

Alausa praised Special Adviser to the President on Policy Coordination Hadiza Bala Usman for her collaboration over the past two years in developing the framework. He noted the fund addresses long-standing concerns from academic unions over inadequate research funding and will support outcomes tackling national development challenges, fostering entrepreneurial innovation like emerging business strategies.

“Research and innovation are what drive development in every serious nation. Nigeria cannot continue to depend on fragmented and underfunded research systems if we want to compete globally.”

Source: Federal Executive Council resolutions, as announced by Education Minister Dr. Tunji Alausa.