The Vice President of Nigeria, Senator Kashim Shettima, has said that Nigerian startups founded by migrants attracted over $800 million in investments in 2022.
The Vice President disclosed this on Monday during the 10th Annual National Migration Dialogue with the theme, “Beyond Borders: Celebrating Migrants’ Legacy, Protecting Their Rights,” at the Banquet Hall of the Presidential Villa in Abuja.
Shettima added that Nigeria accounts for the highest share of diaspora remittances in West Africa, highlighting the invaluable contributions of Nigerian immigrants to the global economy.
Global Ambassadors
According to Shettima, apart from diaspora remittances, Nigerian migrants have become global ambassadors who excel in technology, medicine, sports, creative arts, and other human endeavors.
He said, “Migration is not just a crossover from one geography to another. It is a critical driver of global and national development. In 2022 alone, Nigeria accounted for $21.9 billion in diaspora remittances, representing 64% of all remittances in West Africa. This is a testament to the invaluable economic contributions of Nigerian migrants.”
“Beyond financial remittances, our migrants have become global ambassadors, excelling in fields such as technology, medicine, sports, and the creative arts. Nigerian startups founded by migrants attracted over $800 million in investments in 2022, underscoring the transformative potential of our people across the globe.”
- The VP noted that Nigeria is both a country of origin and a destination for migrants, with over 1.3 million international migrants residing within the country.
- He warned against the persistent challenges of irregular migration, highlighting that 10,000 Nigerians were detained for various migration offences in 2024 alone and deported.
“However, we must acknowledge that irregular migration remains a persistent challenge. In 2024, we have already returned and reintegrated no fewer than 10,000 Nigerians who had been detained for immigration offenses in African and European countries.”
“These figures highlight the vulnerabilities that come with migration and emphasize the need for coordinated efforts to address these challenges while harnessing migration’s potential for economic growth and resilience,” the VP said.
The VP assured that the Federal Government of Nigeria remains resolute in addressing migration challenges.
What You Should Know
Nigeria lost the top position in terms of startup funding in Africa to Kenya in 2023, as startups in the East African country attracted the largest amount of funding in the year, topping the table with about $800 million, according to the research outfit, Africa: The Big Deal.
- The analysis of the ‘Big Four’ in Africa—comprising Nigeria, Kenya, Egypt, and South Africa—showed that Nigeria slipped from the 1st position it had occupied in 2021 and 2022 to 4th place, as startups in the country raised the least amount compared with the other three.
- Nairametrics had reported earlier that startups across Africa raised a total of $2.9 billion in 2023, representing a 39% year-on-year decline in funding. Of this amount, *Africa: The Big Deal* said the ‘Big Four’ attracted 87% of all the startup funding in Africa, their largest share since 2019.
- According to the report, Nigeria, Kenya, South Africa, and Egypt were home to 71% (357 out of 500) of the startups that raised $100k or more on the continent last year.
- It added that Kenya attracted the most funding, accounting for 28% of the continent’s total.
“While Kenya suffered a decline (-25% YoY), its share of Eastern Africa’s funding grew from 86% in 2022 to 91% in 2023. 93 startups raised $100k or more during the period (19% of Africa’s total).”
In Egypt, 48 startups were recorded to have raised $100k+ in 2023, the lowest number among the Big Four.
“But thanks to a year-on-year decline (-20%) more moderate than Kenya’s and, most importantly, Nigeria’s, it was enough for the country to claim the second spot. Egypt’s share of North African funding grew substantially from 72% in 2022 to 95% in 2023 (+23pp, by far the strongest progression), due both to the magnitude of MNT-Halan’s fundraising and Algeria and Tunisia’s inability to repeat their strong 2022 performance,” the report stated.
The report further disclosed that South Africa’s share of regional funding remains the highest at 97%. The 70 startups that raised $100k or more in the country accumulated $600 million in funding, which is 21% of the continent’s total. South Africa was the only one of the Big Four not to see its total funding shrink between 2022 and 2023 (+8% YoY).
