Nigeria has dropped to 66th place globally in the 2025 Global Startup Ecosystem Index by StartupBlink, slipping two spots from its 2024 position of 64th. The country also fell to 4th place in Africa, recording the slowest growth rate among the continent’s top seven startup ecosystems, with a growth rate of under 6%.
Despite the setback, Nigeria continues to dominate West Africa’s startup scene, with six cities in the regional top 10 and also making it into the global top 1,000. However, most of these cities declined in the rankings — a worrying trend for Africa’s most populous nation.
Lagos Slides, While Abuja and Ilorin Gain Ground
Lagos, long considered Nigeria’s startup capital, remains the country’s top startup ecosystem, but its global ranking fell six places to 76th. This drop pushed Lagos out of the global top 70 it had entered just last year, though it remains Africa’s largest tech hub, with an ecosystem size 11.8 times larger than Abuja’s.
Abuja, however, was the standout performer. The capital city rose significantly, jumping over 50% in the global rankings to reach 399th, making it the only Nigerian city to climb this year.
Meanwhile, Ilorin made its first appearance in the global top 1,000, reflecting a gradual diversification of Nigeria’s startup landscape beyond traditional tech hotspots.
Nigeria’s Startup Strengths: Market Size, Fintech, and Unicorns
Nigeria’s internal market remains a major draw. With a population of over 200 million people, expected to double by 2050, the country remains a prime destination for startup activity in Africa.
Nigeria also leads the continent in the number of tech unicorns, with companies like Flutterwave, OPay, and Jumia Group gaining international recognition.
Fintech continues to dominate Nigeria’s startup scene, accounting for the lion’s share of investor interest and innovation. However, structural issues — including limited financing, infrastructure gaps, and low consumer purchasing power — continue to pose significant challenges.
Government and Private Sector Interventions
The Nigerian government has taken steps to strengthen the startup ecosystem, notably through the Nigerian Startup Act, which provides a structured legal framework for tech growth.
Initiatives such as the Startup Investment Seed Fund and the National Council for Digital Innovation and Entrepreneurship are also designed to unlock funding and support innovation across the country.
International cooperation is on the rise, including a recent public-private partnership with the Japan International Cooperation Agency (JICA) to co-fund startups in Nigeria.
Key local players like the Lagos Angel Network, Ventures Platform, and Greenhouse Capital continue to provide critical capital and mentorship. Non-profit institutions such as the FATE Foundation are also helping to build grassroots entrepreneurship through enterprise training and advisory programs.
A Temporary Setback or Long-Term Shift?
While the drop in the global rankings is concerning, the rising profiles of Abuja and Ilorin suggest the ecosystem is evolving and becoming more geographically diverse.
In fact, another recent report by Dealroom.co ranked Lagos as the fastest-growing startup ecosystem globally, placing it in its “Rising Stars” category — signaling strong long-term potential despite current challenges.
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