Across Nigeria and much of Africa, a quiet revolution is underway. Local startups are changing the way people live, work, and do business. These startups, often led by young, tech-savvy entrepreneurs, are using technology to solve everyday problems and push the continent toward a more connected and digital future.
In Nigeria alone, the digital economy already contributes about 18.44 percent to the country’s GDP as of the second quarter of 2023, according to the National Bureau of Statistics. Much of this growth has been fueled by local startups. These firms are building apps, creating platforms, and offering services that fill critical gaps in finance, agriculture, education, health, logistics, and more. Many of them work around long-standing challenges like poor infrastructure, high unemployment, and limited access to essential services.
Fintech is one area where Nigerian startups have made a big mark. Flutterwave and Paystack, for instance, have made it easier for businesses and individuals to make payments online. In 2020, Paystack was acquired by U.S. firm Stripe for $200 million, one of Africa’s biggest tech deals. Flutterwave, which started in Lagos in 2016, is now valued at over $3 billion and operates in more than 30 African countries. These firms didn’t just bring in foreign investment — they also made it easier for thousands of small businesses to join the digital economy.
E-commerce is another area where local startups are driving change. Platforms like Jumia, often called the “Amazon of Africa,” have built systems that help customers order goods and get them delivered, even in areas with poor road networks. Although challenges like logistics and customer trust remain, the fact that millions now shop online shows how far things have come.
In health, startups like 54gene are using technology to improve research and access to care. Launched in Nigeria, 54gene focuses on African genomic data, aiming to close gaps in global health research. Others like LifeBank help hospitals find and move critical medical supplies. These firms are not just making money — they are saving lives.
In agriculture, startups are helping farmers get better prices, access loans, and learn new techniques. ThriveAgric, for example, connects farmers with sponsors who invest in crops and share in the harvest profit. The company reports that it has supported over 500,000 smallholder farmers across Nigeria. This has led to better incomes for farmers and more food on people’s tables.
Education tech is also growing fast. With many schools lacking resources, startups like uLesson are filling the gap by offering affordable video lessons for students. As of 2023, uLesson had over two million downloads across Nigeria and other West African countries. Its low-cost, mobile-first approach makes learning easier for many who would otherwise be left behind.
Logistics startups are also solving long-standing delivery problems. Gokada and Max.ng began by offering motorcycle ride services, but have shifted to delivery and logistics. These firms help online stores get goods to customers quickly, especially in busy cities like Lagos.
All of this is happening despite serious challenges. Many startups struggle with funding, poor infrastructure, and inconsistent policies. Electricity remains unreliable in many areas. Internet access, though improving, is still too expensive for many. And the business environment can be difficult, with taxes, multiple regulations, and security concerns. Yet, the number of startups keeps growing. As of 2024, Nigeria has more than 3,300 tech startups — more than any other African country.
Investors are paying attention. In 2021, African startups raised a record $5 billion, with Nigeria accounting for about 35 percent of that total. Though the numbers dipped in 2023 due to global economic shifts, local investors and development partners are stepping up to fill the gap. Lagos, Nairobi, Cape Town, and Cairo are now seen as the continent’s major tech hubs, but new cities like Kigali and Accra are also rising fast.
Governments are starting to notice the power of startups. Nigeria’s National Digital Economy Policy aims to make the country a global digital leader. Programmes like the Nigeria Startup Act, signed into law in 2022, were created to support young businesses with better policies and funding. Across the continent, the African Continental Free Trade Area (AfCFTA) promises to open new markets for digital goods and services.
Local startups do more than just create apps — they create jobs. With Africa’s youth population expected to double by 2050, the need for jobs is urgent. Startups are already helping. For example, Andela, which trains software developers, has helped thousands get remote tech jobs with global firms. Many other startups now train young people in coding, digital marketing, and other tech skills.
The impact of local startups goes far beyond the cities. In remote villages and small towns, people now use mobile apps to buy goods, get loans, and learn new skills. Women and young people, often left out of traditional businesses, are finding new opportunities through technology. A market woman in Ogun State can sell on WhatsApp. A young graduate in Kano City can learn Python and work for a firm in Germany — all without leaving home.
Africa’s digital future won’t come from outside. It will be built by local hands, solving local problems. Nigeria’s startups are showing that this is possible. Despite setbacks, they keep pushing forward, building a digital economy that works for everyone. And in doing so, they’re not just shaping Africa’s tech story — they are writing the world’s next chapter in innovation.