Nigeria has slipped to 66th position in the 2025 Global Startup Ecosystem Index by StartupBlink, falling two spots from its previous rank of 64th in 2024.
Regionally, Nigeria also dropped to fourth place in Africa, recording the lowest growth rate among the top seven African countries at under 6%.
According to StartupBlinks, countries’ startup ecosystem are scored based on the activity level of the ecosystem; the impact and success of the activity in the ecosystem; and how supportive the overall conditions are for startup growth.
Despite this overall dip, Nigeria continues to dominate West Africa’s startup landscape, maintaining its leading position in the region since 2021.
Six Nigerian cities made it into the top 10 startup cities in West Africa, and six also ranked in the global top 1,000. However, most of these cities experienced a decline in rank, raising concerns about the country’s ability to sustain startup momentum.
Lagos under pressure, Abuja rising
Lagos, long hailed as Nigeria’s startup capital, remains the country’s top-ranked ecosystem. However, it slid six places to 76th globally, exiting the global top 70 it had broken into just last year.
- According to the report, Lagos’ startup ecosystem remains the largest in Africa and is 11.8 times bigger than Abuja’s, its nearest national competitor.
- Abuja, on the other hand, showed impressive growth, becoming the only Nigerian city to climb in the global rankings.
- It jumped over 50% to rank 399th globally, signaling its emergence as a fast-growing tech hub.
- Ilorin also made a debut in the global top 1,000, indicating a gradual diversification of Nigeria’s startup activity beyond Lagos.
The ecosystem
The StartupBlink report shows that Nigeria continues to stand out in Africa for its vibrant internal market of over 200 million people, projected to double by 2050.
The country leads Africa’s unicorn list, with fast-growing companies such as Flutterwave and OPay, and is home to Jumia Group, a pan-African e-commerce and fintech giant.
Fintech remains the dominant sector in Nigeria’s startup scene, accounting for a significant share of innovation and investor interest.
Despite persistent challenges, including limited financing, low consumer purchasing power, and infrastructure gaps, the country’s startup ecosystem is backed by a mix of public and private support.
Government and private sector interventions
The report also noted that the Nigerian government has taken steps to strengthen the ecosystem through the Nigerian Startup Act, which provides a legal and institutional framework for entrepreneurship.
Initiatives like the Startup Investment Seed Fund and the National Council for Digital Innovation and Entrepreneurship aim to unlock more opportunities for startups.
- Public-private partnerships are also gaining ground with notable development, such as the Nigerian government’s partnership with the Japan International Cooperation Agency (JICA) to launch a co-funded investment initiative.
- Meanwhile, support organizations such as the Lagos Angel Network, Ventures Platform, and Greenhouse Capital continue to fuel local innovation through capital and mentorship.
- Non-profit initiatives, including the FATE Foundation, are also playing a crucial role in developing grassroots entrepreneurship through enterprise training and advisory support.
What you should know
While Nigeria’s dip in the global rankings is a setback, the country’s strong local ecosystem and emerging hubs like Abuja suggest potential for a rebound.
It should also be noted that another report similar to StartupBlink’s, which was also released recently, ranked Lagos as the fastest-growing startup ecosystem in the world.
Netherlands-based research firm Dealroom.co ranked Lagos under the ‘Rising Stars’ category of global tech cities, and noted that the Nigerian commercial hub and other cities in the category are giving rise to a new generation of tech companies.
