By RARZACK OLAEGBE
Nigeria is on the global map scene again for the right reason. Last week, Lagos was in the news as it led other cities of the world. The city emerged as the leader of the fastest-growing tech city ahead of Istanbul in Turkey, and Pune in India. Dealroom.co – a foremost data provider on startups, growth companies, and tech ecosystems around the world – said Lagos is the fastest-growing tech ecosystem in the world for the year 2025.
On the one hand
Lagos has earned the accolade. Why not? The city has produced five unicorns in nine years. These unicorns have continued to push the economic frontiers and create more opportunities. These companies are valued at 10 billion dollars. They have a combined valuation of N50 billion. It is a positive development. Last week, this writer asked if Lagos could produce more unicorns in the next five years.
On the other hand
To get that done, however, more work is required. Unlike in the past, accessing venture capital is a herculean task. Not saying it is impossible. It is difficult. Many venture capitalists have been scorched. Loads of funds flushed down the drain. But you cannot predict the number of ants that will pursue a cube of sugar. An attractive fintech start-up could pull humongous funding. And become a unicorn. Or a decacorn.
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In the long term
While Lagos is still recovering from the accolade of being the fastest-growing tech city, the Financial Times’ 2025 list of Africa’s fastest-growing companies emerged. The list highlights 130 firms that have recorded the most significant revenue growth between 2020 and 2023.
Among these firms are three fintech companies from Nigeria. These fintech companies have continued to expand despite the economic pressures and reduced venture capital across the continent. According to the Financial Times, these companies have shown resilience in navigating currency fluctuations, inflation, and a more cautious investment landscape.
The three fastest-growing fintech from Nigeria featured in the year’s Financial Times ranking are Moniepoint, PalmPay, and Paga. These companies have stood out for having strong revenue growth amid challenging conditions. These firms work with banks and telecommunications firms to support payments and financial access across Nigeria. They are private companies. They have reached profitability. Among these companies is one unicorn. This development is a reflection that Nigeria’s fintech ecosystem is developing. The development may not be at a desired speed, but the system is active despite wider regional challenges.
The Financial Times ranking has shown the sustained growth and operational adaptability of these fintech firms, especially during a period of economic uncertainty. These gifts from Nigeria are driving the continent’s fintech revolution.
Research has shown that Nigeria accounts for 28% of all African fintech companies and is a leading hub for venture capital funding. It captures the highest share of fintech funding in African fintech companies between 2020 and the first half of 2024 at roughly 36%. This rapidly growing fintech ecosystem now comprises more than 430 companies. It hosts some of the continent’s most prominent and influential players in the industry.
In the short term
If this is not enough to place Nigeria on the global map, then what do you call it?
*Olaegbe ([email protected])
