Lagos among 100 global cities with vibrant startup ecosystems—Report

The 2024 Startup Index has ranked Lagos as 70th in the world placing it among the top 100 cities with vibrant startup ecosystems.

According to the report by StartupBlink, a global startup research centre that covers over 100 countries, Lagos is one of only two African cities in the global top 100.

The second African city on the list is the Egyptian Capital, Cairo, which ranks 97th.

The report indicated that more Nigerian cities are coming up in terms of startup activities and that helped Nigeria to retain its 64th position in countries ranking seeing a decline in startup funding in 2023.The report shows that Nigeria has 6 cities in the global top 1,000, with Kano joining the Index this year. The cities include Lagos, Abuja, Ibadan, Enugu, Port-Harcourt, and Kano.

“Lagos is the strongest startup ecosystem in Nigeria, with a total score of more than 15 times greater than Abuja, the 2nd ranked city, showing strong centralization. ­ Lagos excels in the Consumer Goods industry, ranking 1st in Africa for this industry,” the report stated.

The report noted that though Nigeria ranked 4th in Africa in 2023, the country tops the continent’s unicorn charts with companies such as Flutterwave and OPay rapidly expanding regionally.

It added that the country’s public sector is gradually catching on to the massive potential of startups to transform Nigeria’s economy.

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The report acknowledged the several initiatives in the country aimed at boosting the startup ecosystem, including the Nigeria Startup Act.

“The Nigerian Startup Act aims to empower entrepreneurship in the country through a legal and institutional framework for the development and operations of Nigerian startups. Other initiatives, such as the Startup Nigeria incubator or the Co-Creation Hub, will hopefully continue to foster the entrepreneurial spirit in the country.

“Moreover, other support organizations such as Lagos Angel Network, Growth Capital Fund, Ventures Platform, and Greenhouse Capital provide funding for local startups. Similarly, FATE Foundation, a non-profit organization, offers aspiring and emerging entrepreneurs a platform to launch, develop, and expand their businesses with enterprise training, mentoring, and advisory support,” it added.

StartupBlink also cited the presence of Starlink’s satellite broadband service, as a factor that will greatly improve the country’s internet speed and boost the startup ecosystem.

Despite several ecosystem initiatives, the Nigerian startup ecosystem is currently experiencing a funding drought. Last year, Nigeria lost the top position in terms of startup funding in Africa to Kenya as startups in the East African country attracted the largest amount of funding in the year, topping the table with about $800 million.

An analysis of the ‘Big Four’ in Africa comprising Nigeria, Kenya, Egypt, and South Africa, shows that Nigeria slipped from the 1st  position it had occupied in 2021 and 2022 to 4th position as startups in the country raised the least amount compared with the other three.

Nigerian startups raised a total of $410 million, less than half of what they raised in 2022 and 2021.