Nigeria recorded its lowest funding share since 2019 but the highest number of deals in 2025, according to Africa Investment Report 2025 published by Briter, a market intelligence platform focused on emerging markets.
According to the report, African companies disclosed a total of $3.8 billion in funding in 2025, representing a 32 per cent increase in deal volume and an 8 per cent rise in the number of announced transactions compared to the previous year ($2.8 billion in 2024).
However, Nigeria accounted for only 8 per cent of total funding, trailing behind South Africa (32 per cent), Kenya (29 per cent), and Egypt (15 per cent).
Despite the drop in funding share, Nigeria’s performance reflects a shift toward smaller, early- and growth-stage transactions, rather than mega-deals. The country recorded the highest number of deals on the continent, indicating strong entrepreneurial activity but limited access to large-ticket funding.
According to Briter, among the ‘Big Four’, Nigeria raised around $315 million alone last year from 205 estimated deals compared to South Africa which raised $1.2 billion from 130 deals, Kenya followed with $1.1 billion from around 16o deals, and Egypt came third with $595 million in 115 deals.
Nigeria which used to occupy the top two among this group has faced steep challenges including the 2023 currency devaluation which made it harder for startups to generate Dollar returns.
As a result, Briter explains that fewer mega-rounds happened in Nigeria, making the totals lower. However, it allowed for newer, upcoming startups to raise in 2025.
The report noted that fintech and digital financial services remained the most funded sector by both value and deal count, reinforcing Nigeria’s position as Africa’s fintech hub. However, climate-focused solutions recorded the fastest growth, raising more than three times their 2024 total, with solar energy emerging as the most funded category.
The surge in solar investment reflects growing investor appetite for infrastructure-like clean energy projects offering predictable returns, particularly in countries like Nigeria where power deficits remain a major economic constraint.
Briter noted that Artificial Intelligence (AI) attracted increased attention from investors in 2025, though funding remained largely concentrated in applied use cases such as financial services, logistics, and health tech rather than deep research and development.
In 2025, 63 acquisitions were announced, though only five disclosed transaction values. Notably, half of those involved startups acquiring other startups, pointing to early signs of consolidation within the ecosystem.
The report added that equity financing remained dominant, but debt funding surpassed $1 billion for the first time in a decade, signaling growing confidence in structured finance across African markets. It also noted a rise in capital from non-Western sources, particularly Japan and Gulf Cooperation Council (GCC) countries, as traditional Western investors scaled back.
Despite increased funding activity, Briter pointed out that the gender gap remains stark as less than 10 per cent of total funding went to companies with at least one female founder, highlighting ongoing challenges in inclusive capital access across Africa.