Lagos State’s tech startup ecosystem has reached a new milestone, now valued at over $9 billion, according to Tunbosun Alake, the Lagos State Commissioner for Innovation, Science, and Technology. Speaking at the GITEX Global tech expo in Dubai, United Arab Emirates, Alake highlighted the city’s position as Africa’s largest tech hub and a leading driver of innovation across the continent.
With over 2,000 tech startups, Lagos is at the forefront of technological advancement in Nigeria and Africa. The commissioner emphasized that 80% to 90% of Nigeria’s entire startup ecosystem is concentrated in Lagos, making it a key player in shaping Africa’s digital future.
Economic Impact of Lagos’ Tech Hub
If Lagos were an independent country, it would rank among the top five or six economies in Africa, highlighting the city’s enormous economic influence. The growth of the tech ecosystem is attributed to the dynamic nature of Lagos, which has fostered an environment where startups can thrive, innovate, and attract significant investments.
Fintech companies such as Flutterwave and Opay have played a central role in driving this growth, while other sectors, such as agri-tech and construction technology, are also gaining momentum. Alake noted that 40% of the startups in Lagos focus on fintech, which dominates the ecosystem, though other sectors are contributing to the region’s diversification and growth.
Government Support and Global Partnerships
The Lagos State Government has been instrumental in fostering the tech ecosystem’s development. The government actively invests in startups and has made efforts to refine regulatory frameworks to create a more conducive business environment for innovation. This support is crucial as Lagos continues to attract both local and international attention.
Lagos is also positioning itself on the global tech stage through partnerships like the one with the Dubai World Trade Centre (DWTC), which organizes GITEX. Leveraging this relationship, Lagos is working to bring global awareness to its tech talent and innovative startups, further boosting international investment and collaboration.
The Role of AI and Emerging Technologies
Lagos is not just a leader in fintech; it is also home to Africa’s largest artificial intelligence (AI) market. Companies in the region are deploying AI across various sectors, and earlier this year, Lagos launched Nigeria’s first large language model, which was designed specifically to address local challenges. This innovation underscores Lagos’ ambition to lead not only on a continental level but also in the broader global tech landscape.
GITEX 2025: A Platform for Nigerian Startups
In a related development, Nigeria will host the GITEX conference in September 2025, a landmark event that will further integrate Nigerian startups into the global tech ecosystem. Trixie LohMirmand, executive vice president of DWTC, expressed excitement over this collaboration, stating that the event would provide Nigerian startups with greater access to capital and global insights.
LohMirmand also emphasized the importance of connecting Nigerian startups to global investors, as many of the country’s 6,000 startups had not previously been able to participate in global forums like GITEX.
Opportunities and Challenges Ahead
While the Lagos tech ecosystem continues to thrive, challenges remain, particularly in areas such as infrastructure and regulatory frameworks. Addressing these issues is crucial for ensuring the long-term success and sustainability of the city’s tech hub.
However, with its wealth of talent, innovative culture, and growing global partnerships, Lagos is well-positioned to remain a dominant force in African tech, providing opportunities for both startups and investors to drive the future of technology on the continent.
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