Nigerian Startups Dominate West African Funding, Cornering 80% of Investments

Nigeria remains the undisputed leader in West Africa’s startup ecosystem, securing a dominant 80% of the region’s total $5.8 billion in funding since 2019. This translates to about $4.6 billion, cementing Nigeria’s status as the most active fundraising market in Africa. Despite the region’s significance, accounting for 36% of Africa’s startup funding, West Africa has seen a decline in its share since mid-2022, now holding 25% compared to East Africa’s 30%.

Between 2020 and mid-2022, West Africa had a more significant influence, attracting 41% of Africa’s total startup investments. However, the shift in funding patterns has left Nigeria’s neighbors, such as Ghana and Senegal, making notable strides, with both countries nearing half a billion dollars in investments. Despite this, Nigeria continues to dominate the funding landscape, attracting about 70% of West Africa’s total funding in 2023 and 2024.

Nigerian startups, particularly in the fintech sector, remain the primary beneficiaries of this funding surge. Out of over 700 startups in the region, 15 companies alone account for 55% of the total investment, with 13 of those based in Nigeria. Companies such as Opay, Flutterwave, Interswitch, and Moniepoint lead the charge, contributing to Nigeria’s prominence in the African unicorn club, with valuations exceeding $1 billion for many.

The trend is shifting as other West African countries begin to see more attention from investors, although Nigeria continues to lead. Ghana and Senegal have shown promising growth, while other nations like Benin and Côte d’Ivoire are also making progress. As the funding ecosystem diversifies, experts predict that 2025 will present both challenges and opportunities for African startups, signaling an evolving landscape with potential beyond Nigeria’s borders.

source: business day