Nigeria
Lagos
"The startup ecosystem in Lagos is industrious, energetic, and resilient, establishing the city as a hub for innovative excellence. At the Tony Elumelu Foundation, we drive job creation and economic prosperity by empowering young African entrepreneurs in Lagos, Nigeria and across all 54 African countries.”
Highlights
With 24 million residents, Lagos is Africa’s biggest metropolitan area as well as one of its leading commercial cities. It’s also an established and fast-growing tech hub, home to more than 400 startups, 88% of Nigeria’s total. The Lagos State Development Plan (LSDP) 2052 aims to maximize the potential of the ecosystem. The Lagos State Government’s Knowledge, Innovation, Technology and Entrepreneurship (KITE) project positions Lagos as Nigeria’s innovation hub. At Global Tech Africa 2023, United States Consulate General in Lagos, Will Stevens, said the U.S. is committed to fostering continuous collaboration with Nigeria to promote its digital transformation agenda.
Lagos Startup Week is one of Nigeria’s most influential startup events,and Art of Technology Lagos is the largest tech conference in Nigeria. Lagos Tech Fest brings together entrepreneurs, investors, and tech enthusiasts. The Nigeria Cybersecurity Summit gathers cybersecurity experts and ethical hackers. VC fundraising event EkoVention is an opportunity for promising startups to raise pre-seed or seed funding, and Honeywell Group has partnered with the Lagos State Government and Lagos Innovates to help young entrepreneurs develop successful startups. Incubation program Lagos Innovates’ Idea Hub supports early-stage tech ventures, and iHatch is a five-month free intensive business incubation program.
Notable recent funding rounds include digital commerce infrastructure startup Sabi’s $38 million Series B round in May 2023, financial software startup Nomba’s $30 million Series B round in May 2023, and healthcare software company Helium Health’s $30 million Series B round in June 2023.
Ecosystem by the Numbers
Sub-Sector Strengths
Fintech
Nigeria introduced a cashless policy in 2012, spurring the development of Fintech startups. Over 90% are based in Lagos, with most focused on lending and payments. In October 2023, Lagos hosted Nigeria Fintech Week with a focus on resilience, innovation, and diversification. Vehicle financing platform Moove has raised $334 million over 14 rounds, most recently in August 2023. Import and export Fintech servicer FrontEdge has raised $10 million over two rounds. Fintech app Bujeti raised $2 million in a December 2023 seed round.
Proptech
Future City, a pilot city in Epe, Isimi Lagos, incorporates TechValley (Orbit 1), a campus with tech and innovation laboratories, a research center, and incubation labs. ARM Labs Techstars Accelerator Program invests in early-stage Proptech companies. The West African Proptech Summit was held in Lagos in November 2023 to fast-track Proptech adoption in West African real estate.
Edtech
Lagos is Nigeria’s Edtech hub. Prepclass offers customized learning programs and connects tutors and students through an online platform. Edves provides digital infrastructure for schools across Africa, automating both learning and administration. It raised a total of $2.6 million over six rounds, most recently in November 2023. Miva, Nigeria’s first fully accredited private open university, launched in October 2023.
Reasons to Move Your Startup to Lagos
Tax Incentives
The Nigeria Startup Act provides startups with a four-year exemption from income tax, additional tax relief equal to 5% of taxable profits for up to five years for qualifying startups, an investment tax credit equal to 30% of investments made in qualifying startups, a 35% individual income tax exemption for startup employees for two years, and more.
Dedicated Support
The Lagos State Employment Trust Fund (LSETF) fosters entrepreneurship by improving access to finance and markets and formulating policies designed to improve the business environment in Lagos. LSETF also offers programs to support founders and startups. Lagos State Development Plan (LSDP 2052) promotes Lagos as a top investment destination in Africa. Andela co-founder Iyinoluwa Aboyeji is developing Talent City to create an ideal work environment and community for startups.
Young, Tech-savvy Talent
The median age in Nigeria is 17.2 years and the nation is home to 82% of the continent’s telecom subscribers. In October 2023, Nigeria launched the 3MTT program designed to train three million young technical professionals within the next four years. Tech talent flocks to Lagos for career opportunities and global firms are increasingly looking to the city to fill their talent gaps.
Explore more ecosystems
Get connected
Are you interested in diving deeper into this ecosystem? Drop us a message. Our Ambassadors and Partners can plug you in.