In recent years, a notable migration has taken place within Africa’s startup ecosystem: Nigerian startups are increasingly relocating or expanding to countries like Rwanda and Kenya. While Nigeria remains Africa’s largest economy and its most active tech hub, mounting regulatory burdens, inconsistent policy enforcement, and difficulty accessing foreign capital are pushing innovators to seek friendlier environments.

Despite Nigeria’s energetic tech culture and youthful population, entrepreneurs continue to struggle with high taxation, unclear licensing policies, FX scarcity, and frequent government crackdowns on tech-enabled services. The 2022 ban on bike-hailing services in Lagos, the 2023 Central Bank’s freeze of fintech accounts, and recent controversies involving Flutterwave and other players have painted a picture of unpredictability.

“This isn’t about lack of talent,” said a startup founder who recently opened a branch in Kigali. “It’s about survival. If regulators don’t understand or support innovation, we have to move where we’re seen as partners — not targets.”

Both Rwanda and Kenya are fast emerging as startup havens. Rwanda offers streamlined business registration (as little as 6 hours), zero corporate income tax in Special Economic Zones, and an actively supportive government policy for ICT. Kenya, often called the “Silicon Savannah,” boasts a more mature VC network, easier access to funding, and favorable tax frameworks for new tech entrants.

According to the StartupBlink Ecosystem Index, Kenya and Rwanda are climbing global ranks for startup friendliness, while Nigeria has stagnated or dropped in performance indicators related to governance and infrastructure.

Data based on industry estimates from Disrupt Africa, Briter Bridges, and startup tracking platforms.

Tech founders cite practical examples: from Fintech apps experiencing weeks-long license delays in Nigeria, to e-commerce players battling payment bottlenecks. In contrast, founders operating in Kigali describe one-stop startup desks and regular roundtables with government tech officers.

“Rwanda is 20 years behind Nigeria in market size but 10 years ahead in ease of doing business,” one Lagos-based entrepreneur commented. “It’s not about leaving Nigeria behind — it’s about securing a future for your company.”

The brain drain from Nigeria’s tech scene isn’t just about founders relocating — it’s about potential jobs, investor dollars, and product innovation going with them. If reforms aren’t swiftly implemented, Nigeria risks losing its title as Africa’s startup capital.

“We’re not abandoning Nigeria,” another founder clarified, “we’re diversifying our risk.”

As Nigerian startups look outward for survival and scalability, the message is clear: without structural reforms in business regulation, investment climate, and innovation policies, Afri