A recent report from Startup Genome, a policy and advisory research firm, has unveiled Lagos as the frontrunner in the Sub-Saharan African startup landscape, both in terms of ecosystem value and funding raised.

The report evaluated the Lagos startup ecosystem's value, considering the worth of exits and startup valuations between the second quarter of 2020 and 2022, revealing an impressive valuation of $8.4 billion. Following closely behind were Nairobi and Cape Town, with total startup valuations of $7 billion and $3 billion, respectively.

Furthermore, startups in Lagos garnered approximately $820 million in early-stage funding, marking the highest amount raised in the region. This feat has bolstered Lagos' position as a major player in the global emerging startup ecosystem ranking, securing a spot between 51 and 60.

Notably, the report highlighted significant funding deals within the region. OPay's Series C round secured a staggering $400 million in August 2021, standing as the largest deal in the region, while Flutterwave's Series D funding in February 2022 resulted in a valuation exceeding $3 billion.

Venture Capital (VC) funding in the Sub-Saharan region experienced a 6% decline from 2021 to 2022. However, the fintech sector proved to be the top-performing technology sector in the region, constituting 41% of all startup deals between 2018 and 2022, with Nairobi emerging as the leading fintech hub.

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Lagos continues to dominate Nigeria's tech sector, with the report indicating that 88% of tech startups in Nigeria are concentrated in the city, totalling over 400 startups. Fintechs take the lead in Lagos' tech ecosystem, accounting for 49% of tech companies in the city. Additionally, proptech and edtech are making significant strides not only in Lagos but also across Nigeria.

The report also sheds light on the emergence of other tech startup ecosystems in Nigeria, including Abuja, Kampala, Dar es Salaam, Dakar, and Abidjan. While these cities have made notable progress, Lagos remains the undisputed leader in Nigeria's tech landscape.

The Nigerian government's efforts to support startups have played a role in the country's burgeoning tech sector. The startup act, signed into law by former President Buhari in October 2022, provides a regulatory framework for startups, offering tax exemptions and relief to qualifying startups. Initiatives such as the Lagos state KITE program have further contributed to Lagos' dominance as a tech hub in the region.

With its thriving ecosystem and significant funding achievements, Lagos stands at the forefront of Africa's dynamic and rapidly evolving startup scene, paving the way for continued growth and innovation in the region.