In a recent analysis, the research portal Disrupt Africa, which covers news on African tech companies, revealed that 238 tech startups in Nigeria had collectively raised $2.068 billion over the previous seven years.
According to reports, Nigeria is the most preferred investment destination on the continent, surpassing all other African nations’ achievements during the same time period.
As of September 2022, there were at least 481 tech startups operating in Nigeria, employing over 19,000 people. The most populous industry was fintech, which accounts for more than one-third of all currently operating tech startups in Nigeria.
A minimum of 383 different Nigerian digital firms raised a total of US$2,068,709,445 in funding between January 2015 and August 2022, more than any other nation during that time period, according to the research.
The Nigerian Startup Ecosystem Report 2022 states that $747.9 million has been raised so far this year by Nigerian businesses.
Co-founder of Disrupt Africa Gabriella Mulligan commented on the research, stating that Nigeria has long been a leader in the African startup environment, which has attracted a large number of investors.
Nigeria has long been a pioneering startup ecosystem on the African continent, leading the way in various sectors and increasingly becoming a focus for investment. It is high time we dug deeper into its growth, and this report does just that.
“We hope it serves as a valuable resource for both those already active in Nigeria and those looking to start doing business there soon.”
There is no denying that the startup ecosystem in Nigeria, where Fintechs predominate, is behind some of the most intriguing developments on the African continent.
Due to the early stages of the digitalization and transformation of African financial services, investors from around the world continue to invest in Nigerian fintech businesses.
Nigeria’s startup ecosystem has continued to expand within the African continent, and the nation is home to five unicorns: Flutterwave, OPay, Andela, Interswitch, and Jumia.
On the other hand, over the past five years, the African tech industry has continued to experience exponential growth. In 2021, when they hit a turning point and raised over $4 billion, more than they had in 2019, the region’s tech firms came to the fore.
The majority of the money raised in Western Africa since 2019 has gone to Nigeria. 32.8% of the funds raised in the nation were raised by IT startups.