Nigerian startups raised $410.1 million in venture capital funding during 2025, according to data from Launch Base Africa. While this represents a significant sum, Nigeria dropped from its traditional first-place position to fourth in Africa, behind Egypt, Kenya, and South Africa.
2025 Funding Landscape
Nigeria Funding Stats
Total Raised: $410.1 million
African Ranking: 4th (down from 1st)
H1 2025: $176 million
Continental Total: $3.1 billion across Africa
Key Trends Shaping 2026
1. Consolidation and M&A
Expect more acquisitions like Flutterwave-Mono as larger players absorb specialized infrastructure companies. This creates exit opportunities for early-stage investors.
2. Profitability Over Growth
Fintechs are pivoting from growth-at-all-costs to sustainable unit economics. Investors should look for companies with clear paths to profitability.
3. AI and Data Infrastructure
Investment in AI data centers and machine learning infrastructure is accelerating. Nigeria's large population provides valuable training data for AI applications.
Sector Performance
Fintech continues to dominate, accounting for approximately 60% of total funding. However, healthtech, agritech, and logistics are gaining traction. Lagos remains the primary hub, hosting five of Africa's seven unicorn startups.
I-STRATA Advisory
I-STRATA provides deal sourcing, due diligence, and local partnership facilitation for international investors interested in Nigerian startups.