— By Naija247news Business Desk

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LAGOS, Nigeria – May 22, 2025 | Naija247news.com — In a bold defiance of Africa’s broader funding slowdown, startups based in Lagos have recorded a stunning 42% year-on-year rise in investor inflows, cementing the city’s reputation as the continent’s leading innovation hub.

Despite tightening capital markets and cautious investor sentiment across the continent, Lagos remains an outlier—drawing more than $110 million in early 2025 alone, outpacing key rivals like Nairobi and Cape Town.

Lagos: Africa’s Undisputed Tech Capital

Often referred to as “Africa’s Silicon Valley,” Lagos is home to five of the continent’s seven unicorns—Flutterwave, Opay, Interswitch, Andela, and Jumia—spanning sectors such as fintech, e-commerce, and digital infrastructure.

According to industry data, the city leads in tech hub density across Africa, fueling its attractiveness to both venture capital and international investors.

Nigeria’s Government Steps In With $40 Million Startup Boost

The sustained growth comes on the back of a $40 million startup intervention fund launched by the Nigerian government in partnership with the Japan International Cooperation Agency (JICA) and the Nigeria Sovereign Investment Authority (NSIA). This fund, unveiled in March 2025, targets early-stage innovators and seeks to reduce dependence on foreign capital while encouraging local investment.

“This is not just about funding; it’s about sovereignty and innovation,” said a senior official from the Federal Ministry of Industry, Trade and Investment.

Fintech Dominates Funding, Moniepoint Hits Unicorn Status

Fintech remains the poster child of Lagos’s startup success story. One of Nigeria’s newest unicorns, Moniepoint, recently raised $110 million, marking a major vote of confidence in the city’s fast-evolving digital finance space.

Other sub-sectors seeing investor interest include healthtech, edtech, and agri-digital platforms—each aligned with Nigeria’s core development goals and SDG targets.

Investor Sentiment and Future Outlook

While African tech startups experienced a general contraction in 2024—with total VC funding down 27%—Lagos has proven an exception. Industry analysts credit the city’s robust infrastructure, talent pipeline, and regulatory reforms as critical to maintaining momentum.

“There’s a clear message here—Lagos is open for business, and global investors are taking notice,” said Tunde Bakare, a fintech analyst based in Victoria Island.

Bottom Line

As capital flows become more selective across the continent, Lagos is rewriting the narrative, attracting record-breaking investments and reinforcing its status as Africa’s most dynamic startup ecosystem.

With a potent combination of public-private support, international backing, and market-ready innovation, Lagos startups are not just surviving—they are thriving.