Lagos leads Africa in startup growth yet innovation struggles persist
Lagos has been recognized by the Financial Times as Africa’s fastest-growing tech hub, hosting 23 of Nigeria’s 28 fastest-growing firms—predominantly in fintech, including PiggyVest, Moniepoint, PalmPay, Paystack, and Flutterwave . Its massive population provides an immediate market scale that few hubs can rival.
However, the city’s startup ecosystem faces key structural challenges. Poor transport infrastructure and inadequate facilities undermine large-scale knowledge work, while a broader economic slowdown contributed to a 7% decline in venture capital deals across the continent in 2024 . This has prompted a talent exodus, particularly among young professionals seeking stability abroad.
In response, entrepreneurs like Iyin Aboyeji are seeking to close the gap—plans are underway for a 72,000 m² tech park to support firm scalability and retain talent . The formation of this infrastructure is critical if Lagos is to transition from startup hotbed to sustainable innovation powerhouse.
While the FT title confirms Lagos’s leadership in Africa’s tech narrative, the next challenge lies in building depth—resilient systems, funding diversity, and local capacity that can weather economic shocks.
I'm Adedayo Obadina
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