Nigeria has maintained its position as the foremost destination for startup funding in West Africa, securing 80 percent of the region’s $5.8 billion in investments since 2019, according to Africa: The Big Deal.
This translates to approximately $4.6 billion, making Nigeria the most active market for fundraising across the continent. West Africa as a whole has played a dominant role in Africa’s startup ecosystem, accounting for 36 percent of all startup funding on the continent within this period.
However, the landscape has shifted since the peak of the funding boom in mid-2022. The data insight firm that tracks startup deals of 100,000 and above noted that between 2020 and mid-2022, the region attracted 41 percent of Africa’s total startup funding, nearly double that of East Africa (22 percent). But since mid-2022, West Africa’s share has declined to 25 percent, with East Africa now leading at 30 percent.
Despite this shift, Nigeria continues to attract the lion’s share of investments in the region. In 2024 and 2023, Nigeria accounted for about 70 percent of West Africa’s funding, in line with other leading ecosystems, such as Egypt (84 percent), Kenya (88 percent), and South Africa (99 percent).
Meanwhile, other West African countries are also catching up. Ghana ($460 million) and Senegal ($410 million) are approaching the half-billion mark, while Benin ($133 million) and Côte d’Ivoire ($107 million) round out the top five. However, other countries in the region collectively account for just 1 percent of total startup funding since 2019.
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A significant portion of these funds has gone to a select group of companies. Over 700 startups in the region have secured funding of at least $100,000, but 15 of them account for 55 percent of the total investment. 13 out of these 15 are based in Nigeria, with fintechs leading the way. Seven of Nigeria’s top-funded startups, Opay, Flutterwave, Interswitch, PalmPay, Moniepoint, Kuda, and Yellow Card, are fintech companies.
Nigeria also dominates Africa’s unicorn club, with startups such as Interswitch, Flutterwave, OPay, Moniepoint, and Andela all boasting valuations of $1 billion or more.
Outside Nigeria, only two startups, Wave Mobile Money in Senegal (nearly $300 million raised) and Spiro in Benin ($100 million+), have made a significant impact, accounting for the majority of their respective countries’ funding shares (71 percent and 85 percent, respectively).
While Nigeria remains West Africa’s startup powerhouse, the gradual diversification of funding across the region signals a broader evolution of the ecosystem, setting the stage for future growth beyond its traditional strongholds.
Davidson Oturu, general partner at Nubia Capital, highlighted, “The funding landscape for African startups is evolving, and 2025 will likely see a mix of challenges and opportunities.”