Nigeria has retained its 64th position on the global startup index, despite declining investments in the African ecosystem.
Funding in the country fell from about $800 million in 2022 to $200 million in 2023. Despite this, Lagos jumped 12 spots to solidify its position among the world’s top 100 startup cities. According to StartupBlink, a global startup map and research centre that covers 1,000 cities in 100 countries, Lagos leads other West African cities and is one of only two African cities in the global top 100.
In 2023, Nigeria fell two spots to 64th and ranked fourth in Africa. It reversed last year’s negative momentum and maintained its position in the index as the 64th ecosystem globally and 4th in Africa. The country now has six cities in the global top 1,000, with Kano joining the index this year.
All six cities improved in the rankings. “Lagos is the strongest startup ecosystem in Nigeria, with a total score more than 15 times greater than Abuja, the 2nd ranked city, showing strong centralisation. Lagos excels in the Consumer Goods industry, ranking 1st in Africa for this industry,” said StartupBlink.
According to the global research centre, Lagos is the country’s leading startup hub. Nigeria now tops Africa’s unicorn charts, with companies such as Flutterwave and OPay rapidly expanding regionally.
StartupBlink highlighted that the country’s public sector is gradually recognising startups’ potential. The Nigerian Startup Act aims to empower entrepreneurship through a legal and institutional framework for the development and operations of startups.
“Other initiatives, such as the Startup Nigeria incubator or the Co-Creation Hub, will hopefully continue to foster the entrepreneurial spirit in the country. Moreover, there are other support organisations such as Lagos Angel Network, Growth Capital Fund, Ventures Platform, and Greenhouse Capital that provide funding for local startups,” it said.
However, despite the success stories of its tech ecosystem, the country still faces infrastructure deficits and limited governmental support, which must be addressed to help unlock the ecosystem’s full potential.
In 2023, Startup Genome revealed that Lagos’s technology ecosystem was worth about $8.4bn in 2022. The ecosystem developmental organisation highlighted that despite being impressive for the region, it was still below the global average of $34.6bn.
“It (Lagos) is also an established and fast-growing tech hub, home to more than 400 startups, 88 per cent of Nigeria’s total,” it added.
