Lagos Startup Ecosystem Now Valued at Over $12 Billion is Africa’s Best
Lagos has emerged as Africa’s most valuable startup ecosystem, with a reported valuation exceeding US $12 billion, according to recent industry analyses and statements from government officials.
The city’s thriving tech and innovation landscape is now recognized as the continent’s leading hub for entrepreneurship, investment, and technological development.
Officials from the Lagos State Ministry of Innovation, Science, and Technology highlighted that the city hosts over 2,000 startups, spanning fintech, logistics, e-commerce, health tech, and other digital sectors.
The ecosystem’s growth has been fueled by a combination of a large consumer base, a pool of young, tech-savvy talent, and an increasing flow of domestic and international venture capital.
Governor Babajide Sanwo-Olu emphasized the strategic importance of Lagos’s startup ecosystem, noting that foreign and local investors have injected billions of dollars into the city’s tech landscape in recent years.
Between 2019 and 2024, Lagos reportedly attracted over US $6 billion in funding, further cementing its position as the continental leader.
Several homegrown startups have achieved “unicorn” status, valued at over US $1 billion, contributing significantly to the overall valuation of Lagos’s ecosystem. Notable examples include fintech firms, payment platforms, and logistics companies that have expanded operations across Africa and beyond.
Analysts say Lagos’s rise is not only a reflection of robust entrepreneurial activity but also of strategic government support for innovation hubs, incubators, and tech clusters.
The city has also gained recognition on global startup indexes, including Dealroom.co’s 2025 “Rising Stars” list, which ranked Lagos as one of the world’s fastest-growing emerging tech ecosystems.
While the growth is promising, experts caution that sustaining this trajectory will require addressing challenges such as inconsistent power supply, regulatory bottlenecks, and talent retention.
They also note that startup valuations, while impressive, need to be matched with long-term business sustainability and profitability.
For Lagos, however, the achievement signals a major milestone. The city is not only positioning itself as a regional technology powerhouse but also as a magnet for investment, innovation, and talent across Africa, reinforcing Nigeria’s status as the continent’s leading economy.
With its ecosystem now valued at over US $12 billion, Lagos is firmly on the map as Africa’s premier startup hub, offering a blueprint for other African cities aspiring to achieve similar innovation-driven growth.
