According to a 2023 global startup ecosystem report by Startup Genome, Lagos, has achieved significant growth, becoming the regional leader in ecosystem values and early-stage funding. The comprehensive report examined over 1,000 startup ecosystems worldwide and highlighted Lagos as a standout performer with a total ecosystem value of $8.43 billion in 2022, a substantial increase from $7 billion in 2021. This accomplishment solidifies Lagos as the most valuable startup ecosystem in sub-Saharan Africa.
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The report attributes this rise in value to several key deals, notably OPay’s $400 million Series C funding in August 2021, the largest deal in the region, and Flutterwave’s $250 million Series D funding in February 2022.
The report credits Lagos’ success to several factors, including its sizable and expanding population, a vibrant tech scene, and supportive government policies.
It highlights that Lagos hosts over 400 startups, each addressing a diverse range of challenges. For example, Flutterwave, a payments company, is revolutionizing business payments across Africa, while OPay, a mobile money platform, is extending financial services to millions of people previously excluded from traditional banking systems.
These findings underscore the growing strength of Lagos’s startup ecosystem and point towards its potential to become an even more influential hub for innovation and entrepreneurship in the future.
Tech experts have warmly received the report’s findings and are urging the Nigerian government to enact policies that replicate Lagos’s success in other regions of the country. One vital policy proposal is the Nigeria Startup Act, which received Senate approval in October 2022. This proposed bill offers numerous benefits to startups, such as tax incentives, access to government contracts, and simplified regulations.
With these findings and the mounting calls for policy changes, it is evident that the Nigerian government is taking the growth of the tech sector seriously. By implementing the right policies, Nigeria stands a chance to emerge as a major player in the global tech scene in the coming years.
