The South-East has overtaken the South-South in startup growth activity, as the combined technology ecosystem across both regions grew to 304 startups employing 2,837 people.
This was revealed in the South-South and South-East Startup Ecosystem and State of Digital Jobs Report 2025 launched by #StartupSouth.
The report found that the South-East now accounts for 51.3% of startups in the region, up from 48.2% in 2023.
While Rivers is still the largest startup hub with 27.3% of all startups identified, its share has declined from two years ago as other states expanded their startup communities.
The study, which drew on data from 304 startups, 234 digital talents, 29 employers and 98 enterprise support organisations, found that startup activity in the region has expanded commendably since 2023.
The number of mapped startups rose by 54.3%, while disclosed funding increased from $7.89 million to $10.23 million.
More startups are also securing investment. The share of ventures that have received funding climbed to 52.6% in 2025 from 32.5% two years earlier, although funding is highly concentrated among a small group of companies.
Rivers accounted for 83 startups, representing 27.3% of the regional total. Enugu followed with 54 startups or 17.8%, while Abia and Anambra recorded 34 startups each, representing 11.2% apiece.
At the city level, Port Harcourt was the region’s leading startup hub with 77 startups. Enugu ranked second with 39 startups, while Aba and Awka recorded 22 startups each.
The report also showed that most ventures were still at an early stage of development. More than half of all startups mapped were still pre-revenue, revealing the need for stronger access to capital and market opportunities.
Funding is the biggest challenge facing founders across the region. About 82.5% of startups identified access to funding as their primary concern.
Lack of government support was mentioned by 30.7% of respondents, while 29% pointed to high operational costs.
Despite these challenges, startup activity has contributed to job creation. The 304 startups surveyed employ 2,837 people, comprising 1,528 full-time workers and 1,309 part-time staff.
The report found that there is still a gender imbalance within the ecosystem. Men account for 80.2% of lead founders, while women make up 19.1%, a figure the report described as only a marginal improvement on the 2023 baseline.
Among digital professionals surveyed, employment indicators showed signs of progress. Full-time employment increased, while unemployment declined compared with 2023.
However, many workers still rely on freelance and remote opportunities, usually serving employers outside the South-East and South-South regions.
According to the report, 69.5% of employed digital talents work remotely, with most providing services to Nigerian employers, particularly firms based in Lagos, although a growing number now work for organisations in Canada, the United Kingdom and the United States.
The report concluded that the South-East region’s startup ecosystem growth is commendable in size and attracting more funding, but there are still challenges limiting access to capital, weak support structures and a shortage of local opportunities capable of absorbing its expanding pool of digital talent.
