OPay, Flutterwave push Lagos startup ecosystem value to $8billion, biggest in Sub-Saharan Africa – Report 

A new report by policy and advisory research firm Startup Genome has placed Lagos as the regional leader in the Sub-Saharan startup ecosystem in terms of the value of the ecosystem and the amount raised in funding.  

According to the report, the Lagos startup ecosystem calculated using the value of exits and startup valuation from the second quarter of 2020 to 2022 was valued at $8.4 billion.

The city was closely followed by Nairobi and Cape Town with total startups valuation of $7bn and $3bn respectively.

Also, startups in Lagos raised around $820 million in early-stage funding which was the highest in the region.  

The report also revealed that Lagos held its place in the range of 51 and 60 in the global emerging startup ecosystem ranking.

In terms of the amount raised in funding, the report states

  • “OPay’s $400 million Series C in August 2021 was the region’s biggest deal, while Flutterwave’s $250 million Series D in February 2022 saw its valuation increase to over $3 billion.” 

Findings from the report also show that Venture Capital (VC) funding in the region declined by 6% from 2021 to 2022. Fintech was the region’s top-performing technology sector comprising 41% of total startup deals between 2018 and 2022. Nairobi was reported to be the region’s biggest fintech hub.  

Lagos dominates Nigeria’s tech sector 

Abuja- Nigeria’s capital city also registered its name in the report as it made it to the top five emerging tech startup ecosystems together with Kampala, Dar es Salaam, Dakar and Abidjan.

Although, its emergence didn’t threaten Lagos position as the dominant tech ecosystem in Nigeria.  

According to the report, 88% of tech startups in Nigeria are in Lagos amounting to over 400 startups.

The Lagos tech ecosystem is dominated by fintechs which constitute 49% of tech companies in the city.

Property tech (proptech) and educational tech (edtech) are also making notable strides in the tech industry in not just Lagos but Nigeria in general.  


In October 2022, former President Buhari signed the startup act into law providing a regulatory framework in terms of finance, intellectual property etc for startups across the country.

The act provides startups with a four-year exemption from income tax, and additional tax relief equal to 5% of taxable profits for up to five years for qualifying startups.  

However, beyond the startup act, initiatives such as the Lagos state KITE program contribute to the dominance of the Lagos tech hub.  


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