Despite facing one of the toughest economic periods in recent Nigerian history, seven tech companies have recorded a remarkable 621.53% increase in revenue between 2020 and 2023, surging from $76.14 million to $549.37 million. These firms—Omniretail, PalmPay, Moniepoint, Chams, Paga, Remedial Health, and Termii—also expanded their workforce by nearly 260%, collectively growing from 1,088 to 3,916 employees. Their success earned them a spot on the Financial Times’ “Africa’s Fastest-Growing Companies 2025” list.
This growth occurred despite major macroeconomic setbacks, including a steep rise in inflation (from 12.13% in 2020 to 28.92% in 2023) and a dramatic currency devaluation, with the naira falling nearly 40% against the dollar after the Central Bank of Nigeria floated the currency. These challenges drove up operational costs and led to mass layoffs across the startup ecosystem. For example, 54gene and several other startups had to downsize significantly during this period.
Funding for Nigerian startups also suffered a sharp decline. After raising $3.6 billion from 2019 to mid-2022, funding plummeted to $410 million in 2023 and only slightly recovered to $417 million in 2024. Despite this, Nigeria still had the second-highest representation on the FT’s list, with 28 companies—seven of them startups—demonstrating the country’s tenacity and innovation.
The startups employed strategic expansions and innovations to stay ahead. Moniepoint transitioned from agent banking to retail banking and reached over 10 million users with monthly transactions exceeding $22 billion. PalmPay leveraged Nigeria’s mobile boom to process 300 million monthly transactions. Paga and Omniretail similarly scaled through agency banking and fintech integration, while maintaining profitability and reaching underserved SMEs and consumers.
Experts like Norfund’s Ylva Lindberg and Future Africa’s Iyin Aboyeji highlighted that much of this growth has been locally driven, reflecting Nigeria’s deep entrepreneurial spirit. While global investment sentiment has cooled, local resilience, adaptability, and a growing market need continue to fuel innovation. Despite uncertainties ahead, these companies’ ability to thrive amid adversity paints a hopeful picture for Nigeria’s digital economy.