Lagos, Nigeria’s commercial nerve center has earned the title of the world’s fastest-growing tech ecosystem in 2025, recording immense value creation and growth.
This recognition contained in a global index by Dealroom.co, a Netherlands-based research firm identifies the mega city as a hub for innovation despite a broader downturn in African venture capital activity.
The index, which evaluates global cities on metrics such as valuations, unicorn creation, ecosystem maturity, and growth relative to local GDP, ranked Lagos, Nigeria ahead of cities like Mumbai and Pune in India and Istanbul in Turkey in the “Rising Stars” category. Lagos’s startup ecosystem valuation has surged 11.6 times since 2017, now totaling $15.3 billion despite a smaller economy.
“Lagos is now a global benchmark for frontier-market innovation, thanks to a combination of young talent, resilient founders, and increasingly supportive local policies,” the Dealroom report noted.
Lagos is home to five unicorns which are Interswitch, Flutterwave, Jumia, OPay, and Moniepoint solidifying its reputation as West Africa’s fintech powerhouse. In a year marked by global funding contractions, startups based in Lagos raised $252 million in 2024, up 42% from the previous year, according to Bloomberg.
This surge showcases investor confidence in Lagos’s unique ability to generate scalable, high-return businesses in challenging conditions.
Behind this growth lies a combination of demographic advantage and grassroots innovation. With a youthful population exceeding 21 million, Lagos has become a fertile ground for digital products tailored to local needs from mobile payments to logistics and edtech solutions.
Public sector initiatives have also played a role. The Lagos State government has rolled out targeted programs to support startups, foster digital literacy, and invest in infrastructure in underserved areas. These include support for emerging sectors like AI, robotics, and blockchain, further broadening the ecosystem’s potential.
Lagos’s ascent signals a shifting center of gravity in the global tech landscape. Its recognition in the Dealroom Index will likely attract greater international funding and partnerships, positioning the city as a gateway to Sub-Saharan Africa’s digital economy.
