BusinessDay
NigeriaDecides2023

Nigeria start-ups investment deals hit record high

Nigeria’s entrepreneurship ecosystem has attracted $1.37 billion investment deals in 2021 amid the Covid-19 pandemic, according to a data compilation by thebigdeal.gumroad.com – an African startups deals database.

The data shows that Nigeria startups attracted the most investment deals for the period in the continent, followed by South Africa’s $838 million deals with Egypt and Kenya coming third and fourth with $588million and 375million deals respectively.

Experts in the country’s start-up ecosystem say the record-breaking investment deals attracted by start-ups in Africa’s most populous country are an indication that entrepreneurship is gaining lots of momentum.

Tech and fin-tech start-ups in Africa’s biggest economy have continued to attract massive funding from investors including angel, seed, as well as, early-stage and later-stage venture capitalists across the globe.

This has made investments in the ecosystem grow steadily over the past years, pointing to a relative improvement in the landscape, experts say.

Read Also: Nigeria start-ups attract $126m investment deals in 9months despite virus outbreak

“Start-ups in Nigeria have created thousands of jobs and activities within the ecosystem and this is striving to consolidate the nation’s status as a top-notch international hub by attracting investors and stimulating entrepreneurship in the country,” Oo Nwoye, executive director, Tech Circle says.

Nwoye says that Nigeria is transitioning into a dynamic ecosystem offering start-ups a platform to potentially grow into million-dollar businesses.

Similarly, Uche Aniche, the convener of StartupSouth, believes that the Nigerian ecosystem has transformed in recent years.

“Thanks to the wave of fresh young talents. Lots of start-ups and small businesses have taken off, creating a surge of co-working spaces and a collaborative spirit that is vital for the success of innovation hubs,” Aniche says.

Currently, three Nigerian start-ups have hit the $1 billion valuation mark this year, making them become unicorns. They are Flutterwave, Opay, and Andela all playing in the fintech industry.