Declined investments in 2022 have accounted for why Nigeria has recently dropped three spots in the Global Startup Ecosystem Index 2023.
Currently, Nigeria is ranked 64 on the Global Startup Ecosystem Index but has fallen two spots in the African region, thereby bypassing Kenya and Mauritius. Consequently, the country is now ranked 4th in Africa.
According to the startup index curated by StartupBlink covering 1,000 cities out of 100 countries, Lagos maintained its place as the first and only African city in the global top 100.
Based on the index again, five cities out of Nigeria made it to the global top 1000 this year.
StartupBlink further stressed “Lagos maintains its place as the first and only African city in the global top 100.
“After years of massive increases in global rank, Lagos has registered a minor decrease of 1 spot to 82nd globally.
“As the top city in Western Africa, Lagos expanded its score gap with 2nd ranked Accra from 279.2 per cent to 386.1 per cent.
“Lagos has outstanding performance in fintech, where it ranks 38th globally.
“The second-ranked city, Abuja, showed a significant decrease of 114 spots globally.
“Two new cities joined the top 1,000 cities this year: Enugu, and Port Harcourt, increasing the number of ranked Nigerian cities from 3 to 5.”
It noted that the gap between the Lagos tech ecosystem and all other ranked Nigerian cities that were ranked below 500 was surprising and concerning.
According to StartupBlink, Nigeria’s large consumer market has made it a leading startup hub in Africa.
It stated that the country continues to top Africa’s unicorn charts with companies such as Flutterwave and OPay rapidly expanding regionally.
“As Nigeria is attracting international recognition with its success stories, it has the clear potential to secure Lagos’ leading status as the top regional hub.
“In the meantime, the government will have to do its part to address the infrastructure deficit and support smaller ecosystems to guide talented Nigerian entrepreneurs to success.”
Nigeria dropping three places in the global startup index can have several implications for the country's startup ecosystem and its overall position in the global market:
It is worth noting that rankings and indices should be viewed as one measure of a country's startup ecosystem, and they may not fully capture the potential and vibrancy of the entrepreneurial landscape.
Despite a drop in the index, Nigeria's startup scene may still exhibit significant innovation, talent, and potential.
Efforts to address the challenges and capitalize on existing strengths can help in improving the ecosystem's performance and attracting renewed investor interest.
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