Startups are attracting more funding, digital infrastructure is growing, and recent tech developments show strong momentum in Nigeria’s tech sector.

This is a quick look at key tech news updates worth knowing as the year wraps up.

Funding and Investment: Africa’s Tech Funding Picks Up Again

African startups raised about $441.9 million from 59 deals in October 2025 alone. This is a 217% jump from the $139.4 million recorded in September.

Between January and October 2025, startups across the continent secured a total of $2.65 billion, up 56% from the $1.7 billion raised in the same period in 2024.

Around 76% of the October funding came as equity, meaning investors are buying ownership stakes again rather than offering short-term loans.

Unlike the hype-driven boom of 2021–2022, funding is now going to startups with clear business models, real revenue, and practical, infrastructure-focused solutions.

Nigeria is one of the top beneficiaries. In the first quarter of 2025 alone, Nigerian startups raised over $100 million, with fintech leading the way. LemFi, a cross-border payments company, raised $53 million to expand into Europe and Asia.

Moniepoint also secured an additional $90 million in Series C funding this year, keeping its position as one of Africa’s largest fintech players.

As the year ends, many analysts expect investment activity to improve further in 2026 based on this year’s trends.

Beyond fintech, sectors such as clean energy, logistics, and health tech are also attracting steady funding. This shows investors are backing solutions that address Africa’s core challenges, including power, transport, payments, and connectivity.

Growing Infrastructure: Nigeria’s Digital Backbone Gets Stronger

While funding usually gets the headlines, infrastructure goes in another direction. Nigeria’s data centre capacity is expected to grow from the current 65–86 MW to over 400 MW in the next three to five years, according to recent reports. That is almost a six-fold increase and could change Nigeria’s role in West Africa’s digital economy.

The impact could be far-reaching. A $10 million data centre can generate about $17 million in economic output during construction and more than $39 million by its tenth year of operation. Beyond direct returns, increased capacity allows businesses to host data locally. This reduces costs, improves speed, and supports services such as cloud computing, artificial intelligence, and real-time data processing.

Telecom companies are already investing heavily. MTN Nigeria has begun work on a 150 MW data centre, while Airtel is building a 38 MW Nxtra Data Centre in Eko Atlantic.

Other firms are also entering the space, increasing competition and capacity. These projects place Nigeria as a serious alternative to European data centres, many of which are facing capacity pressure.

For Nigerian startups, this transition could be transformational. Stronger infrastructure supports the growth of SaaS platforms, fintech, AI, and health tech, all of which depend on fast and reliable data access.

It also helps reduce the long-standing problem of high cloud costs, often priced in dollars, which eat into local companies’ margins.

Nigeria’s National ID Transition: A Big Move with Real Risks

Alongside infrastructure growth, Nigeria is undergoing one of its largest technology transitions. The country is moving its National Identity Management System to an open-source platform known as MOSIP. The National Identity Management Commission (NIMC) began this migration in July 2025 under an $83 million contract.

By October 2025, around 124 million National Identification Numbers had been issued. Migrating data of this scale, including biometric information, is one of the most sensitive tasks in digital government. Errors could disrupt access to banking, telecom services, and other systems that rely on NIN verification.

The transition has happened quietly. The old NIMC portal is no longer active, and its app has been removed from app stores.

This followed the launch of a new platform called NINAuth, but with limited public explanation. Banks, telecom operators, and fintech companies that depend on the old system are still unclear about integration timelines and requirements.

When a system this important is changing, poor communication creates uncertainty. Digital systems need stability, and institutions need clear guidance to adjust.

At the moment, Nigeria’s ID system sits in an unclear transition phase. Whether the change proves successful or disruptive depends largely on information that has yet to be shared.

Conclusion

The tech sector in Nigeria is not returning to the hype-driven peaks of 2021–2022, and that may be a positive shift. Instead, the focus is on building solid foundations through disciplined funding, improved infrastructure, and solutions to real problems.

The return of strong funding shows that investors still believe in African tech, but expectations are higher. At the same time, growing infrastructure, especially data centres, signals that Nigeria is preparing for a future where digital services are hosted locally, faster, and more reliably.

However, there are still challenges. The national ID transition carries real risks. Power supply issues continue to raise operating costs. Currency instability still makes long-term planning difficult. Even so, the direction is clear. Nigeria is investing in infrastructure, attracting capital, and building the support systems needed to compete across Africa and beyond.

The next phase is not about how much money is raised, but how effectively it is used, and whether today’s infrastructure can support tomorrow’s innovations.

This represents a 49% increase since January 2022, when the enrolment figure stood at 72.7 million.

Recall that NIMC had recorded 120 million NIN enrolment as at June 2025.

The announcement was made today by Engr. Abisoye Coker-Odusote, director general/CEO of NIMC, during a two-day workshop with Guild of corporate Online Editors (GOCOP) in Lagos.

Speaking through Engineer Lanre Yusuf, director of Software and Biometrics at NIMC, the DG credited the sharp rise to sustained reforms, improved service delivery, and extensive stakeholder collaboration across government, media, and civil society.

“Every enrolment is a step toward inclusion,” Coker-Odusote said. “Through automation, digital tools, and community outreach, we are ensuring that every Nigerian, regardless of background, can access critical services with a secure, verifiable ID.”

NIMC has expanded its footprint by revalidating and training over 7,100 front-end enrolment agents and rolling out self-service platforms to simplify the enrolment process.

The Commission’s partnerships with various government agencies have further boosted enrolment figures, especially among students, farmers, and vulnerable populations.

NIMC Cuts Extortion at NIN Registration Centres by Over 40%

Similarly, Engr. Coker-Odusote, reiterated the Commission has slashed extortion and unofficial charges at NIN enrolment centres nationwide by more than 40%, as part of a broader effort to promote transparency and rebuild public trust in Nigeria’s digital identity system.

she said that enforcement of a standard fee structure and increased monitoring of front-end agents have significantly improved the enrolment experience for millions of Nigerians.

“NIN enrolment is free, and we have taken deliberate steps to communicate this nationwide,” she said. “Any modification or authentication fees are standardised, publicly listed, and closely monitored.”

To complement these reforms, NIMC has deployed grievance redress officers in all 36 states and a 24/7 toll-free line to respond swiftly to complaints.

The Commission is also leveraging digital tools such as the NINAuth and contactless biometric systems to reduce waiting time and prevent bottlenecks that can encourage extortion.

These systemic changes, Coker-Odusote emphasized, are aligned with global best practices under the ID4D (Identification for Development) framework, and reflect NIMC’s commitment to inclusive, secure, and citizen-friendly identity management.

With NINAuth, individuals can securely verify their identity and access key government services, including:

1. Sim registration and replacement
2. Immigration applications and passport processing ⁠
3. Tax filings and financial transactions
4. Government Intervention Programs in various MDAs
5. Driver’s license renewals and other regulatory processes, etc,.

Key Features and Benefits include:

1. Enhanced Security—Protects personal data from unauthorized access.
2. User Control—Empowers individuals with the freedom to manage their data-sharing preferences.
3. Seamless Access—provides a secure single sign-on solution for convenient access to services.

This innovation reaffirms NIMC’s commitment to advancing secure and efficient digital identity management, ensuring a more accessible, transparent, and secure identity verification system in Nigeria.

The NINAuth application provides a secure, scalable, and interoperable interface for identity verification through API integration.

It is designed to facilitate real-time authentication of NIN records, thereby promoting effective service delivery, database harmonization, and compliance with the National Identity Policy of the Federal Government of Nigeria.

The NINAuth service has been designated as the exclusive platform for all NIN-based verification and authentication integration processes for optimal services.

Nigerians are required to download the NINAuth App on Google Play Store and Apple iOS App Store to use the NIN Authentication Service.

The implementation guide and process flow of the NIMC NIN Authentication are available for download on the playstore.