With a population of approximately 218.5 million, Nigeria has one of Africa’s most prominent startup ecosystems, often referred to as part of the “big four” alongside Egypt, Kenya, and South Africa. According to the 2023 Global Startup Ecosystem Index, the country’s startup scene is a leader in West Africa and ranks 64th globally, with a notable emphasis on the fintech sector.
Statista reported that the number of startups in Nigeria surpassed 3,360 in 2022, with the majority of these established in 2019, constituting around 15% of the 481 ventures counted in 2022. Overall, the concentration of startups is particularly strong in Nigeria’s largest city, Lagos.
Furthermore, the Nigerian Startup Ecosystem Report 2022 reveals that approximately 481 operational tech startups in the country have collectively provided employment for about 19,344 individuals as of August 2022. Between 2015 and 2022, a total of 383 Nigerian tech startups, especially in the fintech domain, successfully secured over $2 billion in funding, marking a record high for any country.
Nigeria’s dynamic entrepreneurial ecosystem ensures that young talents are consistently innovating, however, entrepreneurs often contend with challenges such as a lack of funding. In fact, the average funding amount for startups in Nigeria hovers around $5,451,944. Up until August 2022, 107 Nigerian startups managed to secure funding, contributing to nearly one-third of funded startups across the continent.
Other challenges facing startups include the need for mentorship, market access, and technical skills. And this is where incubators and accelerators play a key role, especially during the formative stages.
This story is from the October - November 2023 edition of Forbes Africa.
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This story is from the October - November 2023 edition of Forbes Africa.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
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