The StartupBlink report was a run-through of the condition of several countries’ startup ecosystems and focusing on Nigeria, there is a great lack of decentralization in the states contributing to the country’s startup recognition.
With Lagos developing to become one of the largest startup hubs in the whole of Africa, and unicorns springing from the states, it’s high time more startup founders recognize the need to build in other states while the governments make it convenient enough for their growth.
“Nigeria’s climb is the result of Lagos’ success. Lagos has seen a massive jump of 41 places to 81st globally. It is the first African city to break into the global top 100, a milestone that should be celebrated (we should mention that Lagos already ranked 99th in 2019 but lost this position in 2020). This shows the immense potential of the ecosystem in Lagos.” StartupBlink report 2022.
According to the report, the only Nigerian cities that made it to the top 1000 were 3, including Lagos, Abuja and Ibadan. Among these 3, only Lagos had an acceleration, others had a deceleration, with the rest that were in the list for the previous years dropping out. “Several other Nigerian seed ecosystems dropped out of the rankings this year.”
“Consequently, the total number of Nigerian cities in the global top 1000 fell from 7 to 3, signaling some cities with seed ecosystems are losing momentum even as Lagos witnesses very high growth, and suggesting that Nigerian talent may be moving to Lagos at the expense of other cities,” the StartupBlink report further stated.
Out of 7 Nigerian cities on the list in previous years, the 3 that held fast but could go off if efforts are not heightened are described below:
Out of the 1000 cities, Lagos was ranked 81. The city went up 41 spots compared to last year, with total score of 8.378 and overperforming industry being foodtech.
Abuja had a global rank of 473, a 7 spot drop compared to the previous year and a total score of 0.807. Abuja now holds the second position which was initially held by Ibadan.
Ibadan dropped 308 spots, obtaining a global ranking of 661 and a total score of 0.424.
Some challenges mentioned in the report could be reasons why cities are not doing well in this aspect as the impact is higher in some than others. These challenges include:
- Shortage of financing options
- Poor broadband internet infrastructure
For investment levels to increase as the report suggested, and despite the government doing its part to address the infrastructure deficit to enable its talented entrepreneurs achieve success faster, there must be targeted and sustainable inclusion among the various cities, strengthening zeal among these startups.