Chris Okpoko
Last month, Netherlands-based research firm Dealroom.co named Lagos as the fastest-growing tech ecosystem in the world for 2025. The organization disclosed this in its Global Tech Ecosystem Index 2025 report, which was recently released. According to the report, Lagos, home to five unicorns namely Interswitch, Flutterwave, Jumia, OPay, and Moniepoint, stands out as an appealing hub for new enterprises. Ranked under the ‘Rising Stars’ category of tech cities, Dealroom.co said Lagos and other cities in the category are giving rise to a new generation of tech companies.
Coming behind Lagos as the number two fastest-growing tech city is Istanbul in Turkey’, followed by Pune in India, which came third. Also on the list are cities such as Belo Horizonte in Brazil, Mumbai in India, Curitiba, also in Brazil, and Riyadh in Saudi Arabia.
Dealroom.co noted that the Rising Star lens showcases the fastest-growing, emerging tech ecosystems by emphasizing growth in enterprise value and unicorns, adjusted for local GDP per capita and cost of living. The list highlighted a wide range of ecosystems from emerging markets notably Africa, India, Turkey, and Brazil.
At GITEX Global 2024 in Dubai, Lagos State Commissioner for Innovation, Science, and Technology, Mr. Tunbosun Alake, highlighted the state’s large population and business-friendly environment as elements driving the tech ecosystem in Lagos. The Commissioner explained that Lagos has taken deliberate steps to assist businesses in underserved areas. He cited an example of an artificial intelligence and robotics company that the state actively supported, saying, “We have a specific policy of helping businesses in areas we believe need development, like AI and robotics.”
Pitching to investors at the GITEX Global event, Alake declared that the tech startup ecosystem in the State was worth over $9 billion.
Describing Lagos as the largest startup ecosystem in Africa, the Commissioner stated that the State houses over 2,000 technology startups contributing to the vibrant business landscape and has also played a key role in connecting businesses with government agencies. Alake noted that the state has a dedicated team that facilitates partnerships between companies and relevant government agencies, particularly in sectors such as transportation.
Furthermore, the Lagos State Government has promised to offer tax incentives and other benefits to startups operating in the State through its Innovation Bill, a key legislative initiative aimed at accelerating the growth of startups and improving the ease of doing business in the state.
Meanwhile, the State is hoping to attract more investments in startups as Nigeria prepares to host the world through GITEX Nigeria, a country-focused edition of the GITEX Global organized by the Dubai World Trade Centre (DWTC). The event being hosted by the Nigerian government in Lagos and Abuja is scheduled from September 1 to 4, 2025.
The Lagos tech ecosystem has emerged as a vibrant hub of innovation, entrepreneurship, and technological advancement over the past decade. With its unique blend of talent, resources, and creativity, it stands as a testament to the potential that exists within emerging markets. Hence, the need to explore the key lessons derived from the Lagos tech ecosystem, while offering insights into how other regions or states in Nigeria can learn from its successes and challenges in fostering a sustainable technology-driven economy.
- Harnessing Local Talent
One of the most significant lessons from the Lagos tech ecosystem is the importance of harnessing local talent. Lagos boasts a large population of young individuals eager to innovate and create. The educational institutions in the region have also begun adapting their curricula to meet industry demands, prioritizing science, technology, engineering, and mathematics (STEM).
This focus on local talent cultivation demonstrates that regions can leverage homegrown skills to drive technological development. Initiatives such as coding boot camps, hackathons, and technology incubators have sprung up, providing aspiring tech entrepreneurs with the tools they need to succeed. These platforms not only equip individuals with necessary technical skills but also foster a sense of community and collaboration, which are essential for an ecosystem’s growth.
- The Role of Collaboration
Collaboration between various stakeholders is another fundamental lesson from the Lagos tech scene. The ecosystem comprises startups, established tech companies, investors, universities, and non-governmental organizations—all working together to promote growth. Public-private partnerships have emerged, permitting collective access, knowledge exchange, and joint ventures that bolster innovation.
This collaborative spirit is crucial; it enhances the sharing of ideas and accelerates problem-solving. For example, partnerships between universities and tech firms have led to research initiatives that address local issues, such as financial inclusion and healthcare delivery. When different entities collaborate, they can create comprehensive solutions that drive the community forward, demonstrating the power of synergy.
- Fostering an Entrepreneurial Mindset
The entrepreneurial mindset is pivotal to the Lagos tech ecosystem. A culture that encourages risk-taking, experimentation, and resilience is vital for innovation. The stories of successful startups in Lagos often highlight entrepreneurs who learned from their failures rather than being deterred by them. This resilience is central to the ecosystem’s growth, where perseverance leads to success.
To cultivate this mindset, mentorship programs have been established, connecting aspiring entrepreneurs with seasoned innovators. This relationship helps new entrepreneurs identify potential pitfalls and fosters a learning environment that values grit and determination. As a result, there is an increasing number of entrepreneurs who are willing to take calculated risks to pursue their ideas.
- Access to Funding
Access to funding is often cited as a pivotal factor for the tech ecosystem’s growth. In Lagos, the increasing interest of investors (both local and international)has played a crucial role in nurturing startups. Investment opportunities have expanded through venture capital firms, angel investors, and crowdfunding platforms.
Lagos has witnessed the rise of several successful tech startups that have secured significant funding. Companies like Paystack (acquired by Stripe) and Flutterwave have attracted millions in investments due to their innovative solutions addressing local problems. Such success stories attract further investment, reinforcing the importance of funding in sustaining the tech ecosystem.
Moreover, the emergence of fintech has lowered the barriers to funding through innovative models that enable startups to access capital. As more resources become available, the innovation potential grows, showcasing the critical role that financial support plays in an ecosystem’s sustainability.
- Addressing Societal Needs
Successful tech ecosystems often arise from the intersection of technology and societal needs. In Lagos, many startups focus on addressing local challenges, such as those in education, healthcare, and transportation. By identifying pressing issues and creating technology solutions tailored to these problems, entrepreneurs not only create viable businesses but also contribute to the overall welfare of the community.
For instance, health tech startups have emerged to bridge the healthcare gap, providing telemedicine solutions that connect patients with doctors remotely. Educational platforms are enhancing access to quality learning materials for students in underserved areas. This alignment of business objectives with social impact demonstrates how technology can be harnessed for the greater good, a lesson that resonates beyond Lagos.
- Regulatory Environment
While the Lagos tech ecosystem has thrived, navigating the regulatory landscape remains a challenge. A clear lesson is recognizing the necessity of an adaptable regulatory framework that supports innovation while ensuring consumer protection and fair competition. Policymakers must engage with tech stakeholders to develop regulations that stimulate growth and protect entrepreneurs and users.
Efforts to streamline business registration and reduce bureaucratic hurdles have been made, yet ongoing dialogue is essential to keep pace with the rapidly evolving tech landscape. As the ecosystem matures, it becomes increasingly important for regulations to balance fostering innovation with safeguarding public interest.
- Embracing Global Perspectives
Finally, a critical lesson from Lagos is the importance of embracing global perspectives. While local context is essential, looking beyond borders can provide valuable insights and practices that enhance innovation. Many startups in Lagos actively seek mentorship and collaboration with global tech leaders, adapting successful strategies to fit the local context.
Furthermore, globalization has enabled the Lagos tech ecosystem to connect with international markets, expanding growth opportunities. By participating in global competitions and tech conferences, local entrepreneurs can showcase their innovations, attract attention, and investment from around the world. Emphasizing an international perspective can propel the ecosystem to greater heights.
In conclusion, the Lagos tech ecosystem offers invaluable lessons for regions or states in Nigeria seeking to develop their technology-driven economies. By harnessing local talent, fostering collaboration, cultivating an entrepreneurial mindset, ensuring access to funding, addressing societal needs, navigating regulatory landscapes, and embracing global perspectives, other regions can replicate the successes witnessed in Lagos. The journey of transformation requires resilience, adaptability, and a commitment to innovation, but the potential rewards—for communities and economies alike—are profound. The Lagos experience serves as a beacon of hope for tech ecosystems worldwide, illustrating that with the right ingredients, extraordinary progress is possible.