Lagos Tech Ecosystem Valued at Over $9 Billion, Driving Africa’s Innovation Hub

The Lagos State tech startup ecosystem has surged in value, now worth over $9 billion, according to Tunbosun Alake, the Lagos State Commissioner for Innovation, Science, and Technology. 

Alake shared this figure at a breakfast meeting in Dubai, United Arab Emirates, during the ongoing GITEX Global tech expo, where he highlighted the State’s position as Africa’s largest tech hub.

Lagos is home to more than 2,000 tech startups, with a concentration of innovation and business ventures that make the city a driver of technological advancement on the continent. 

He noted that if Lagos were a separate country, it would rank among the top five or six economies in Africa, pointing to the economic importance of the tech ecosystem.

The Commissioner attributed this growth to the dynamic nature of Lagos, pointing out that around 80% to 90% of Nigeria’s entire startup ecosystem is based in the State. This, he said, makes Lagos a key player in technology across Africa. 

Among the prominent companies shaping the industry are fintech giants like Flutterwave and Opay, while other sectors such as agri-tech and construction technology are also gaining ground.

Alake emphasised that fintech dominates the ecosystem, with approximately 40% of startups in Lagos focusing on financial technology. However, innovations in other sectors are also contributing significantly to the region’s growth. 

He added that the Lagos State Government is playing an active role in supporting these ventures, from investing in startups to refining regulations to create a more conducive business environment.

The Commissioner also pointed out Lagos’s evolving position in the global tech landscape. Leveraging Nigeria’s partnership with the Dubai World Trade Centre (DWTC), organisers of GITEX, Lagos aims to bring international attention to the local ecosystem.

Alake urged global investors to seize the opportunity to engage with Lagos’ talented and dynamic workforce, which is shaping the future of African tech.

Notably, Lagos has the largest artificial intelligence (AI) market in Africa, with companies deploying various AI use cases. Earlier this year, the State launched Nigeria’s first large language model, which Alake said was designed with a focus on solving Nigeria’s specific challenges.

In a related development, Nigeria is set to host the GITEX conference in September next year, in collaboration with the DWTC. According to Trixie LohMirmand, executive vice president of DWTC, the event will provide Nigerian startups with access to capital and global business insights. 

LohMirmand highlighted the need to bring the world’s attention to Nigeria, stating that only a small percentage of the country’s 6,000 startups had previously been able to connect with global investors during the Dubai event.

Lagos remains a rich tech hub, attracting both local and global interest, with startups benefiting from a supportive entrepreneurial culture and a wealth of talent. 

However, challenges remain, particularly in infrastructure and regulatory frameworks, which must be addressed to ensure long-term success.