Economy
Nigerian Startups Account for 8% of Africa’s $3.8bn Raise in 2025
By Adedapo Adesanya
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.
By Adedapo Adesanya
The Naira again depreciated against the United States Dollar by N7.16 or 0.53 per cent in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Friday, June 19, to N1,370.46/$1 from the previous day’s N1,363.30/$1.
In the same vein, the Nigerian currency lost N9.07 against the Pound Sterling at the official market yesterday to trade at N1,814.76/£1 compared with Thursday’s closing price of N1,805.69/£1, and crashed against the Euro by N6.43 to settle at N1,571.50/€1 versus N1,565.07/€1.
Also, the Naira weakened against the greenback in the black market during the session by N5 to sell for N1,390/$1, in contrast to the preceding day’s N1,385/$1, and at the GTBank FX desk, it shed N3 to close at N1,376/$1 versus N1,373/$1.
The official market’s FX liquidity has been facing pressure over the last three trading sessions, contributing to a decline in the official exchange rate due to rising demand for foreign payments.
FX reserves rose to $51.03 billion, the highest level since January 20, 2009, according to data obtained from the Central Bank of Nigeria (CBN). The figure also represents the highest since the beginning of the year and under the administration of the current Governor of CBN, Mr Yemi Cardoso.
The latest figure underscores the steady strengthening of Nigeria’s external buffers, which continues to reinforce investor confidence in the Nigerian economy and support exchange rate stability.
Meanwhile, the cryptocurrency market was mixed, with Bitcoin (BTC) up by 0.8 per cent to $63,225.80 after trading activity was relatively subdued due to a US federal holiday, as the absence of stock and bond market activity led to quieter conditions across crypto markets, even though digital assets continue to trade around the clock.
Further, TRON (TRX) also gained 0.8 per cent to sell at $0.3230, Binance Coin (BNB) jumped 0.5 per cent to $579.84, and Ethereum (ETH) appreciated by 0.1 per cent to $1,704.23.
On the flip side, Ripple (XRP) declined by 0.9 per cent to $1.13, Cardano (ADA) shed 0.8 per cent to trade at $0.1611, Solana (SOL) fell by 0.1 per cent to $69.23, and Dogecoin (DOGE) slipped by 0.1 per cent to $0.0831, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 each.
By Adedapo Adesanya
Brent crude gained 66 cents or 0.53 per cent to sell for $80.38 per barrel on Friday after Israel and Hezbollah agreed on a ceasefire in Lebanon, though Iran set conditions for using the vital Strait of Hormuz.
Also, the US West Texas Intermediate (WTI) crude was up 94 cents or 1.23 per cent to $77.54 per barrel, amid light trading volumes due to the US Juneteenth holiday.
In spite of Friday’s gains, Brent was down about 8 per cent week-over-week, reflecting a significant easing of supply concerns in the wake of the US-Iran deal to end the war.
Gulf producers were preparing to raise exports after Israel and Hezbollah agreed to a ceasefire, which began on Friday.
Israel and Hezbollah agreed to halt fighting in southern Lebanon after days of escalating clashes threatened to derail the fragile US-Iran peace process, reducing the risk that the first major test of the agreement would turn into its first major failure.
At least four tankers carrying crude, oil products and liquefied petroleum gas (LNG) entered the Strait of Hormuz on Friday, heading for Iraqi Gulf ports. However, despite the uptick in activity, Iran signalled tighter control over shipping.
Iran’s Persian Gulf Strait Authority said “no vessel is permitted to pass through the Strait of Hormuz without a valid passage permit issued by the PGSA”.
Concerns also remain as a planned meeting between Iranian and American officials in Switzerland on Friday was postponed, with arrangements underway for talks in the coming days.
Iran’s Foreign Ministry said the meeting was no longer urgent because a memorandum of understanding on ending the war had already been signed digitally between the two sides.
Analysts expect the deal to release more than 85 million barrels of oil stranded in the Middle East Gulf into global markets. The agreement also includes the lifting of US sanctions on Iranian oil, which would add more supply.
However, recovery in flows of supply that transits Hormuz and production after the US-Iran deal could take several months.
On the demand front, the Organisation of the Petroleum Exporting Countries (OPEC) said in its 2026 World Oil Outlook that world demand will rise to 113.3 million barrels per day in 2030 from 105.1 million barrels per day in 2025.
By Aduragbemi Omiyale
The gross foreign reserves of Nigeria reached a 17-year high of $51.04 billion, data from the Central Bank of Nigeria (CBN) shows.
Business Post gathered from the apex bank’s website that this new feat was achieved on Thursday, June 18, 2026.
A day earlier, which was Wednesday, June 17, 2026, the amount in the country’s external reserves stood at $50.96 billion, indicating accretion of 0.16 per cent.
This latest development is expected to strengthen the value of the Nigerian Naira in the foreign exchange (FX) market.
It was observed that since the beginning of this month, the amount in the forex reserves has been building up gradually after an initial scare.
It is believed that inflows from crude oil sales have been boosting the reserves, though prices are expected to trend downward as a result of the ceasefire deals between the United States and Iran on Friday.
The price of crude oil has cooled to around $80 per barrel. It should further moderate to its level before February 28, 2026, when the bombardment of Iran started, which led to the death of the country’s 86-year-old Supreme Leader, Ayatollah Ali Khamenei.
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