As of September 2022, there were 481 technology startups operating throughout Nigeria, employing a total of over 19,000 employees.
With more than one-third of the nation’s IT companies engaged there, Fintech is the most populated of these sectors.
Nearly 50% of Nigerian tech startups have undergone some type of acceleration or incubation, according to the Nigerian Startup Ecosystem Report 2022 from Disrupt Africa, which made these revelations. Diversity, however, is still a problem, as less than 15.6% of these startups have a female co-founder.
In addition, these startups are supported by a robust investment ecosystem, according to Disrupt Africa, which emphasized that more than any other nation between January 2015 and August 2022, at least 383 different Nigerian digital startups raised a total of $2,068,709,445 in funding.
According to it, funding has usually increased year over year, with total investment more than quadrupling between 2020 and 2021 and on track for another significant growth in 2022. This is true both in terms of the number of firms funded and the overall amount obtained.
However, the survey stated that with only 15 businesses purchased since 2015, Nigerian entrepreneurs are only the third most successful when it comes to successful exits, trailing only South Africa and Egypt. The report states that this year, Nigerian entrepreneurs have raised a total of $747.9 million.
Out of the 481 companies the survey tracked, 88.4% were situated in Lagos, making it the country’s top tech hotspot. Fintech was also identified as the top sub-sector, with 173 (36% of the businesses) working in this field.
Only 75 (15.6%) of Nigerian digital businesses include at least one female founder, and only slightly more than half have used an accelerator program.
Gabriella Mulligan, co-founder of Disrupt Africa, stated in the report that “Nigeria has long been a prominent startup ecosystem on the African continent, setting the standard in a number of areas and drawing attention from investors. It is past time that we looked more closely at its expansion, and this paper accomplishes just that. We hope it proves to be a useful tool for those already conducting business in Nigeria as well as those who intend to do so soon.”
Tom Jackson, a co-founder of Disrupt Africa, added the following: “It is core to our identity as a company that we offer entrepreneurs – both active and aspiring – access to pivotal information, resources and opportunities with which to take their businesses to scale. The democratisation of data, and the release of detailed industry reports free of charge, is central to that, and with that in mind we highly appreciate the assistance of all our partners, who are doing their bit to ensure this report reaches as many people as possible.”
According to Kofoworola Agbaje, senior investment associate at Quona Capital in Lagos, “Quona is pleased to support Disrupt Africa’s endeavor to make this informative report freely available to the broader ecosystem.” Quona is a venture capital firm firmly invested in the success of African startups.
Agbaje continued, “Nigeria’s financial startup industry is behind some of the most fascinating developments on the continent, and we’re thrilled to help put a light on its development.”
The company’s third geographically specific publication, The Nigerian Startup Ecosystem Report 2022, was made possible thanks to funding from Quona Capital, Sabi, MAX, Talking Drum Communications, Newtown Partners, Kwik, and LipaLater.
