Nigerian startups are currently navigating significant hurdles, from funding constraints to talent shortage, amidst regulatory complexities.
This is according to a new report by TLP Advisory, which highlights the state of Nigeria’s tech-driven innovation landscape and offers actionable recommendations for building a resilient ecosystem.
The report titled, “A Decade of the Nigerian Venture Ecosystem: Numbers, Insights & Stories” noted that while 2021 marked a high point for Nigerian startups with $3 billion in venture capital investments, 51% of startups surveyed have been facing difficulties in securing funding due to currency devaluation and limited investor access.
It was, however, that Angel investors have emerged as a vital funding lifeline during this turbulent period, stepping in to fill gaps left by larger investment bodies.
The report further revealed that Nigerian startups are struggling to attract and retain top talent, an issue compounded by a highly competitive labour market.
The report outlines several strategies for fostering a robust startup ecosystem, which include:
Commenting on the report, co-founder of TLP Advisory, Odunoluwa Longe, expressed optimism for the Nigerian tech ecosystem despite the challenges, saying:
“This report reflects both the resilience and evolution of the Nigerian tech ecosystem. It’s not just about technology; it’s about building a future where founders, investors, and the public sector work together to make Nigeria a leader in innovation and digital solutions.”
Executive Director of FATE Foundation, Adenike Adeyemi, highlighted the impact of an unstable regulatory environment:
“Founders here often have to navigate unique complexities, and a supportive policy framework is essential for unlocking their full potential.”
Kola Aina of Ventures Platform emphasized the need for proactive policy engagement, stating:
“The ecosystem must become more deliberate and take the job of engaging in government policy design more seriously, ensuring we shape the policies that govern our industry.”
Launched in 2014, TLP Advisory has advised over 250 clients in the Nigerian technology and venture ecosystem on transactions ranging from institutional investments, M&A, intellectual property, international expansion strategies and more.
These narratives provide a closer look at the challenges and opportunities that define Nigeria’s innovation landscape.