Lagos ranks as the world’s fastest-growing tech ecosystem in Dealroom.co’s Global Tech Ecosystem Index 2025. With a population of 21.3 million, the Nigerian city has recorded an 11.6-fold increase in startup enterprise value since 2017, despite persistent issues like unstable infrastructure and difficulties retaining talent.

The index evaluates 288 global tech hubs on metrics like investment, innovation, talent, and outcomes. Lagos tops the list, followed by Istanbul (#2), Pune (#3), Belo Horizonte (#4), and Mumbai (#5), highlighting the growing influence of emerging markets across Africa, India, Türkiye, and Brazil.

Lagos has generated five unicorns, starting with Jumia Group, followed by fintech leaders Flutterwave, OPay, Moniepoint, and Interswitch. The city’s tech ecosystem is now valued at $15.3 billion, with unicorn creation tripling since 2019.

Key drivers of Lagos’ growth include:

Localized innovation: Startups addressing hyper-local challenges, especially in fintech and logistics.

Cost efficiency: Living expenses are only 22% of those in New York City, appealing to early-stage startups.

Talent pipelines: Universities such as the University of Lagos and Covenant University supply a steady flow of skilled graduates.

Despite its swift rise, Lagos still contends with challenges. According to Etemore Glover of the Impact Investors Foundation:

“Infrastructure remains a significant challenge—frequent power outages, steep data costs, and unstable internet hinder business operations. Talent retention is another issue, as skilled professionals often leave due to subpar working conditions and compensation.”

The report identifies Johannesburg, Cape Town, Nairobi, Dakar, Kampala, and Accra as Africa’s leading “density hubs”—ecosystems that outperform in innovation per capita. These cities stand out for vibrant startup activity, strong research contributions, and effective collaboration between universities and industry, demonstrating that high-impact tech ecosystems can thrive beyond conventional centers.

Dealroom’s index factors in GDP per capita and cost of living, highlighting cities where growth stems from more than just economic scale. Kyiv (#11), Mexico City (#12), and Vilnius (#13) also rank highly, signaling a shift toward more decentralized global tech innovation.

Though Lagos’ rise is remarkable, experts warn that sustaining this momentum will require significant infrastructure upgrades and policy reforms. Still, the city exemplifies how nimble, locally anchored ecosystems can thrive despite broader economic challenges.