Nigerian startups raised over US$520 million in equity funding in 2024, reinforcing the country’s position as one of Africa’s leading startup and innovation hubs despite a tougher global funding climate. The figure forms part of a broader continental picture in which total African startup funding stood at about US$2.2 billion in 2024, according to the Central Bank of Nigeria Fintech Report.
The report shows that while investment levels in Nigeria remain strong, they reflect a shift from earlier peak years. In 2019, Nigerian startups raised about US$747 million, accounting for roughly 37 percent of all startup funding on the African continent at the time. That period marked one of the high points of venture capital inflows into Nigeria’s tech ecosystem.
According to the Central Bank, the 2024 funding outcome highlights both resilience and adjustment. Nigeria continues to attract a significant share of investment relative to peers, even as global macroeconomic pressures, rising interest rates in advanced economies, and tighter capital conditions have reduced overall venture flows into emerging markets.
“Nigeria hosts one of Africa’s largest and most dynamic fintech ecosystems,” the report stated, noting that the country has consistently ranked among the continent’s leaders by both capital raised and deal activity. The Central Bank added that this performance underscores Nigeria’s strategic importance as a hub for financial innovation, even amid shifting global investment trends.
The comparison between 2019 and 2024 illustrates how funding patterns have evolved. While the US$520 million raised in 2024 is below the 2019 level, the report explained that the earlier period coincided with a global surge in venture capital and lower borrowing costs. In contrast, the more recent funding reflects a cautious investment environment shaped by global inflation, monetary tightening, and increased risk aversion.
Despite these headwinds, Nigeria’s ability to attract more than half a billion dollars in startup funding in 2024 places it among the continent’s top destinations for venture capital. With Africa’s total startup funding at US$2.2 billion that year, Nigeria accounted for a substantial portion of overall investment flows, reinforcing its continued relevance in the regional innovation landscape.
The Central Bank said Nigeria’s historical share of African funding remains an important reference point. In 2019, when the country captured about 37 percent of total African startup investment, it demonstrated the scale and depth of its ecosystem. That legacy, the report noted, continues to shape investor perceptions, even as funding cycles fluctuate.
“Nigeria’s experience reflects both the opportunities and vulnerabilities of an ecosystem that has relied heavily on foreign capital,” the report stated. It explained that dependence on external funding sources makes startup investment sensitive to global financial conditions, currency movements, and shifts in investor sentiment.
The report also highlighted that the decline from 2019 levels should not be interpreted as a loss of relevance. Instead, it described the 2024 outcome as evidence of resilience, showing that Nigeria remains competitive even during periods of global capital contraction. This resilience, the Central Bank said, is supported by the scale of the domestic market, the maturity of leading startups, and the country’s role as a gateway to wider African markets.
At the continental level, the US$2.2 billion raised by African startups in 2024 reflects a more selective investment climate. Within this context, Nigeria’s ability to secure over US$520 million signals sustained investor interest, particularly in sectors linked to financial services, digital payments, and technology-enabled solutions.
Looking back to 2019, the Central Bank noted that Nigeria’s dominance during that period was driven by strong global liquidity and growing confidence in African tech. While conditions have changed, the report stressed that Nigeria’s long-term fundamentals continue to support its status as a leading destination for startup investment across Africa.
