Lagos Crowned World’s Fastest-Growing Tech Ecosystem For 2025.
In a landmark achievement for Nigeria’s commercial capital, Lagos has been named the world’s fastest-growing tech ecosystem for 2025, according to the prestigious Global Tech Ecosystem Index 2025 report by Netherlands-based research firm Dealroom.co. Outpacing global contenders such as Istanbul, Turkey, and Pune, India, Lagos has solidified its position as Africa’s digital powerhouse, driven by its vibrant startup scene and a remarkable 11.6-fold increase in ecosystem valuation since 2017.
The Dealroom.co report, which benchmarks 288 tech ecosystems across 69 countries, highlights Lagos’s extraordinary growth, propelled by the emergence of five unicorns—Interswitch, Flutterwave, Jumia, OPay, and Moniepoint. These startups, each valued at over $1 billion, have positioned Lagos as a magnet for venture capital and innovation, despite Nigeria’s broader economic challenges. The report notes that Lagos’s tech ecosystem, now valued at over $9 billion, has seen a 42% growth in venture capital investment, underscoring its appeal as a hub for new enterprises.
“Lagos is topping the list, having created five unicorns and grown its ecosystem valuation 11.6x since 2017 despite a smaller economy,” the Dealroom.co report stated. Ranked under the ‘Rising Stars’ category, Lagos leads other emerging tech hubs like Istanbul and Pune, which placed second and third, respectively. The report’s methodology evaluates growth in enterprise value and unicorn creation, adjusted for local GDP per capita and cost of living, giving Lagos a competitive edge in the global tech landscape.
Lagos State Commissioner for Innovation, Science, and Technology, Mr Tunbosun Alake, attributed the city’s success to its large population, business-friendly environment, and deliberate government policies. “We have a specific policy of helping businesses in areas we believe need development, like AI and robotics,” Alake told Nairametrics, highlighting the state’s role in fostering partnerships between startups and government agencies, particularly in sectors like transportation. The Lagos State Government has also supported initiatives like the Knowledge, Innovation, Technology, and Entrepreneurship (KITE) project and the upcoming GITEX Nigeria 2025, set to connect local startups with global investors.
The city’s tech ecosystem is dominated by fintech, with approximately 40% of its over 2,000 startups operating in this sector, including industry giants like Flutterwave and OPay. However, innovation is also thriving in areas such as agri-tech, construction tech, and artificial intelligence, with Lagos launching Nigeria’s first large language model tailored to address local challenges. With a population of 21.3 million and an annual growth of 1 million, Lagos is a burgeoning hub for tech talent, attracting over $1.3 billion in funding and boasting a 31% compound annual growth rate in startup creation over the past five years.
Industry analysts have praised the resilience and ingenuity of Lagos’s tech sector. “What sets Lagos apart is its ability to adapt quickly, develop locally relevant innovations, and scale despite systemic obstacles,” the Dealroom.co report noted. The city’s 400+ startups account for 88% of Nigeria’s total, cementing its reputation as the “Silicon Valley of Africa.”
Despite its meteoric rise, Lagos faces challenges, including infrastructure deficits like frequent power outages, high data costs, and talent retention issues due to the “Japa syndrome”—the emigration of skilled professionals seeking better opportunities abroad. The state government is addressing these through initiatives like the National Broadband Plan 2020-2025, aiming to deliver high-speed internet access across urban and rural areas, and the Lagos State Development Plan (LSDP) 2052, which seeks to maximise the ecosystem’s potential.
The announcement has sparked widespread excitement on social media, with posts on X celebrating Lagos’s achievement. “Lagos is home to 5 unicorns and stands out as an appealing hub for new enterprises,” one user noted, echoing the Dealroom.co findings. The city’s recognition as the world’s fastest-growing tech ecosystem is expected to draw further international attention, particularly with GITEX Nigeria 2025 on the horizon, which aims to showcase Lagos’s innovations to global investors.
As Lagos continues to lead Africa’s tech revolution, its blend of entrepreneurial spirit, supportive policies, and a dynamic workforce positions it as a formidable player on the global stage, paving the way for a new era of innovation and economic growth.
