Nigeria has dropped two places to rank 66th in the 2025 Global Startup Ecosystem Index by StartupBlink, down from 64th in 2024. This marks a continued slide for the country, which also fell to fourth place in Africa, recording the lowest growth rate among the continent’s top seven startup nations at under 6%.
Key Highlights from the Report
Regional Leadership: Despite the decline, Nigeria remains the leading startup ecosystem in West Africa, a position it has held since 2021.
City Rankings: Six Nigerian cities are in West Africa’s top 10 and the global top 1,000, but most experienced a drop in rank this year.
- Lagos: Still Nigeria’s top startup city and the largest ecosystem in Africa, Lagos fell six places globally to 76th, dropping out of the top 70 it entered last year. Lagos’ ecosystem is 11.8 times larger than Abuja’s.
- Abuja: The capital city was the only Nigerian city to improve its global position, jumping over 50% to rank 399th, highlighting its emergence as a fast-growing tech hub.
- Ilorin: Made its debut in the global top 1,000, signaling the gradual diversification of Nigeria’s startup activity beyond Lagos.
Challenges and Interventions
- Persistent Challenges: The Nigerian startup ecosystem faces hurdles such as limited access to financing, low consumer purchasing power, and infrastructure deficits.
- Government Efforts: The Nigerian Startup Act and initiatives like the Startup Investment Seed Fund and the National Council for Digital Innovation and Entrepreneurship are designed to foster a more supportive environment for startups.
- Public-Private Partnerships: Collaborations, such as the co-funded investment initiative with the Japan International Cooperation Agency (JICA), are helping to unlock more opportunities for local startups.
- Support Networks: Organizations like the Lagos Angel Network, Ventures Platform, Greenhouse Capital, and non-profits like FATE Foundation continue to provide vital funding, mentorship, and enterprise training.
While Nigeria’s slip in the global rankings is a setback, the country’s large internal market, vibrant local ecosystem, and the emergence of new hubs like Abuja suggest strong potential for a rebound. Notably, a separate report by Dealroom.co recently ranked Lagos among the world’s fastest-growing startup ecosystems, highlighting the city’s status as a ‘Rising Star’ in global tech.
