Technology
10 Best Places to Create a Startup Hub in Nigeria
Recently, I wrote about the most critical factors to consider before creating a startup hub in Nigeria. While any state government can actually make this happen, there are particularly some cities that could get it done faster within just a couple of years.
As Paul Graham, the most respected authority on startups put it: For the price of a football stadium, any town that was decent to live in could make itself one of the biggest startup hubs in the world. What’s more, it wouldn’t take very long. You could probably do it in five years during the term of one mayor (or governor).
Granted, most of the state governors claim to have ICT development plans but have hardly harnessed the economic benefits and potentials of a technology & business startup culture in certain cities.
With so much attention on diversifying the Nigerian economy from over-dependence on oil, to tourism, agriculture, and other sectors, what better time to focus on developing the “knowledge economy” driven by massive ICT infrastructure development in any given state or city.
According to a post over at LaptopJudge, a “Knowledge Economy” will naturally give birth to a new generation of technology-savvy entrepreneurs with a rare business culture – one that can support the vision of creating a startup hub in any city in the world.
Today, Internet and technology companies such as Google, Yahoo and Microsoft have become some of the largest employers of labour in the United States and have generated huge streams of revenue that has successfully driven the U.S economy.
Can this success be replicated in Nigeria?
Yes. But it would require a lot of effort and investment from the government and the private sector. Interestingly, there are a few states or cities in Nigeria I’ve identified where a “technology” startup hub could easily be created.
I’ll be profiling and analyzing five of these states and cities in this post, so in no particular order, here are 5 best places to grow a startup industry in Nigeria.
1. Ogun State
Located in south-western Nigeria, Ogun State has a 2005 population estimate of over 4 million inhabitants, with Abeokuta as the capital and largest city.
The state has the largest number of universities in Nigeria such as Crescent University, Abeokuta, Covenant University, Ota, Babcock University, Ilisan Remo, Bell University of Technology, Ota, and polytechnics such as Abraham Adesanya ICT Polytechnic, Ijebu Igbo, Gateway ICT Polytechnic in Saapade and Igbesa.
With heavy investment in education, ICT development and infrastructure and an on-going solar power e-learning project, Ogun state looks like a great place for startups to thrive. It had a GDP of $10.47 billion in 2007 and per capita income of $2,740.
Besides, the cost of living and doing business in Ogun state is relatively low compared to Lagos state. For instance, you could get an affordable flat (for office space) in towns such as Mowe-Ofada, Ota or even Abeokuta.
Personally, I think that Ogun state is one of the best places to create a startup hub in Nigeria as it is gradually developing and investing in – infrastructure, ICT and education – some of the key factors needed to create a startup chain reaction.
2. Enugu State
With a population estimate of about 5.6 million people (2005), Enugu state is home to Nigeria’s first indigenous university, University of Nigeria Nsukka (UNN).
An inland state in south-eastern Nigeria, Enugu also hosts the Enugu State University of Science & Technology (ESUT), Institute of Management and Technology (IMT), Enugu State College of Education Technical, Caritas University, Amorji-Nike, Renaissance University, Ugbawka, Our Saviour’s Institute of Science and Technology amongst other learning institutions.
Enugu had a coal industry that use to be one of the biggest employers of labour. In fact, coal was first discovered in the Udi Ridge in the 1900s, led by a British mining engineer named Albert Ernest Kitson, after which Frederick Lugard took keen interest in the discovery and by 1914, the first shipment of coal was made to Britain. Little wonder, Enugu is described as the “Coal City”.
The energy needs of the state could be made a permanent solution with the development of the coal industry and the reactivation of the Oji River Power Station located in Enugu (which used to supply electricity to all of Eastern Nigeria). Even so much so that the proximity of the Enugu coal mines to the power station is only a driving distance of about 20 minutes.
With recent investments in ICT development, infrastructure and a WiFi Internet access project embarked on by the state government with support from Zinox Technologies, Enugu state could become a great startup hub in the future.
3. Lagos State
As the commercial capital city of Nigeria with a population estimated at 18 million inhabitants and the vision to transform into a mega city by 2015, Lagos state is certainly one of the best places to create a startup hub.
No doubt, Lagos has the people – entrepreneurs, investors, researchers, consultants, technology enthusiasts, etc – who could spark up a chain reaction for technology startups in the next few years. Again, the state’s GDP as of 2007 was $33.68 billion and a per capita income of $3,649 which makes it the largest economy in Nigeria.
The University of Lagos at Akoka, Yaba is well-renowned for research and development in technology and innovation and has produced some of the best talents in Nigeria such as Fola Adeola, Dele Olojede, Richard Mofe Damijo and Matilda Kerry.
Lagos also has a well-renowned Business School (LBS), ranked among the top 55 Business Schools in the world by the Financial Times of London (2009), as well as several other institutions around the metropolis, which naturally makes it a place with a business culture.
Even though Lagos is densely populated, cities and towns such as Lekki and Badagry, surrounded by the Lagos Lagoon, bay and beaches, are gradually experiencing property and infrastructural development with expansion plans for Transport, Airport, Free Trade Zone and Golf course, which could eventually make these cities a great startup hub in the future.
Personally, I’d love to see Internet companies headquartered in the Lekki Pennisula (Lekki Bay Area, as I call it) as well as Badagry, Victoria Island and Ikoyi within the next 10-15 years.
4. Cross River State
The state of Cross River with its capital city, Calabar has been acknowledged as the leading eco-friendly tourism spot in Nigeria. With a 2005 population estimate of over 3 million inhabitants and a 2007 GDP of $9.29 billion and per capita of $3, 150, this coastal state located in southeastern Nigeria is a wonderful place to live and build a startup.
The state is home to the University of Calabar and several other institutions and is gradually transforming itself into a world tourist attraction, especially with landmarks such as the Obudu Ranch Resort, Tinapa Business Resort, Calabar Free Trade Zone and the Calabar Sea and Airports which all present great opportunities for business and trade within the region.
Besides, the Cross River State Information Technology Village in collaboration with Microsoft offers the Microsoft Unlimited Potential Programme for the South-South geo-political zone which is delivering IT training to students and inhabitants to keep pace with the technology in today’s competitive business environment.
Tinapa, the first world-class integrated business and leisure resort in Nigeria, located in Calabar with world class facilities and Free Trade Zone could become one of the biggest technology startup hubs in Africa.
5. Rivers State
Rivers State is the second largest economy in Nigeria after Lagos state with GDP of over $21 billion and per capita of $3,965, according to the 2007 CGIDD figures, particularly due to the fact that it is the chief oil-producing and refining state.
The capital city, Port Harcourt which is the main hub of the oil and gas industry in Nigeria as well as the West African sub-region, has a population estimated at 2.7 million for the Urban Area, while the Greater Port Harcourt Area is estimated at about 3.7 million, according to a 2007 population estimate.
The city is home to the Rivers State University of Science and Technology, University of Port Harcourt, an international airport, two seaports (F.O.T Onne and Port Harcourt Wharf), two stadiums (Sharks Stadium and Liberation Stadium) and two refineries.
However, the activities of several armed militants in recent times have made life and commerce in the once peaceful town a dangerous place to live and operate a business. Again, the city has a very high standard of living that could make it difficult for startups to thrive and survive, especially in their first year.
But startups that decide to move there can take advantage of the oil-rich economy and wealthy individuals who reside there, as this could help create a Venture Capital industry.
Besides, with the development of the Greater Port Harcourt which would provide economic growth poles with strong lateral linkages and exerting a positive impact on the economy and leading to a sustained increase of incomes of the New Town regions, the city could grow to become a great startup hub.
My final thoughts
Creating a startup hub in any of these cities will definitely take some time. It would start with each state government recognising the future economic benefits of creating a startup hub and harnessing its early potentials and development.
However, any individual or group of individuals that could start or build an online venture, create auto title loans, secure funding from investors or sell a percentage stake to a global or local technology company, and move to any of these cities could very well cause a sustainable chain reaction for the development of a startup hub.
By the time more and more startups move into an ideal and decent city or town, it could attract a critical mass of people and investors, thereby creating a Venture Capital industry that could drive any startup hub in Nigeria.
Personally, I would love to wake up one morning in the year 2020, tune to CNBC Africa and listen to the news that a local Internet company has been listed on the New York Stock Exchange (NYSE) and the price of the company’s stock has eventually risen 30% to $467.23 per share.
If you find this post helpful, Read my next article – “how to buy a good laptop stand for desk” I’ll be discussing five more potential startup hubs in a future post.
By Aduragbemi Omiyale
The chief executive of a popular mobility platform in Angola, Anda, Mr Sergio Tati, has lamented the poor digital literacy in the country, noting that many residents of the Southern African nation do not have access to the internet.
Speaking with CNN’s Ms Zain Asher on her Marketplace Africa show, Mr Tati said “smartphone penetration in Angola is extremely low.”
On this episode of Marketplace Africa, CNN explored how a budding startup ecosystem is driving a digital revolution in the country.
“A really unique challenge to Angola is the lack of digital literacy. So, that’s quite specific to our context compared to let’s say in Nigeria, where you have many more people who have access to smartphones.
“Sadly, the smartphone penetration rate in Angola is extremely low. You don’t have a lot of internet cafes that people can go to and get access to the Internet, so that’s definitely something that has stifled innovation in Angola a little bit,” Mr Tati said on the show.
The company originally began as a ridesharing platform, but Mr Tati said, “The focus has entirely shifted towards the asset financing piece of the business because that’s what we realised was the biggest problem.
“Now, we’re going way deeper into the FinTech part of the business. And as well, really focusing on the microcredit, mobile money payments, and everything that we can now do, thanks to the fact that we’ve solved this broader and the bigger credit problem that was getting access to the assets in the first place.”
As startups like his continue to grow, Mr Tati disclosed that support from Angola’s National Institute INAPEM has been vital.
INAPEM was created to help sponsor and connect entrepreneurs with regulators and government ministries.
“The Angola startup ecosystem is emerging. In the last few years, we as a state have paid more attention for the needs to organise all the key players that are operating and contribute as well for the reinforcement of our ecosystem,” an Executive Director at INAPEM, Braulio Augusto, noted.
“We have a lot of opportunities across the continent, where we have a lot to learn from other top ecosystems in our continent, Nigeria, Kenya, Ghana, and others. And we need to be more open to speak with them, share our experience as well, local experience. But also getting from them and see how we can partner more intra-African.
African ecosystems need to be more integrated, need to cooperate more between them, and see in each other more complementary solutions rather than competitive solutions,” the executive director added.
INAPEM has registered approximately 345 tech startups in recent years, including food delivery company, Mamboo, which has Kae Carvalho as the Chief Operating Officer (COO).
“We are contributing to the ecosystem growth and so it’s more jobs that we are creating in the economy. But I think it will be easier and faster, the development, if we have initiatives that promote and support discussions. We can do a lot of things. We just need a little push sometimes,” Carvalho stated.
Another tech firm doing well in Angola is Appy Saúde, the largest online pharmacy network in the country, which is opening up health and medical access to an entirely new population.
The chief executive of the firm, Pedro Beirão, explained that the company started as a way for people to find information about medical services and products.
“We were worried about how information access was just so restrained. So, we really wanted to make it available for everyone. So, information is free for people,” Beirão disclosed.
“And now they’re able to purchase the product and get it delivered. So, the whole idea is really to empower people to use technology and to take a step further into having access to services that were 10, 15 years ago unavailable to them,” Beirão added.
Looking to the future, Beirão said, “We want to be the company in Angola that will be known for creating the highest impact in people’s lives. We would like to reach ten plus million people in health care, education.
“We want to be in different African countries. We want to be an Angolan company conquering the African region, not only Angola, and take that flag with us.”
By Modupe Gbadeyanka
Glovo, a leading technological platform connecting customers, businesses, and riders and offering multicategory on-demand services, has kept a slot for a lucky Nigerian start-up founder for its prestigious 2025 Glovo Startup Campus taking place in October in Barcelona, Spain.
The slot for Nigeria will be chosen by the organisers of GITEX Nigeria Tech Expo and Future Economy Summit.
This has been made possible through a strategic partnership arrangement between Glovo and GITEX Nigeria.
The Glovo Startup Campus is an annual programme by Glovo that brings tech startups from key markets to its headquarters in Barcelona for intensive mentoring, networking, and knowledge-sharing sessions focused on scaling their solutions for greater impact.
Every year, participants are selected through a local startup competition, and the winner gets to represent their country at the Glovo Startup Campus in Spain.
Last year, the programme hosted 21 people from 16 startups, representing 4 countries. Their participation allowed them to access 20 mentors, some of whom are Vice Presidents and board directors of blue-chip companies.
During the event, participants had a one-on-one session with Impact Hub to discuss individual check-in point and action plans. 3 Venture Capitalists were on ground to witness pitch ideas from techpreneurs, while 3 guest speakers also took part in a roundtable discussion.
For the first time, Glovo is extending the programme to Nigeria to enable a startup owner from Nigeria to participate.
The General Manager for Glovo Nigeria, Ms Lamide Akinola, explained that the decision to enlist a Nigerian participant for the programme reflects the company’s commitment to nurturing entrepreneurial ecosystems in the country.
The programme offers promising startups exposure to global best practices, mentorship from industry leaders, and the opportunity to plug into an international innovation network.
She also noted that the partnership with GITEX Nigeria underscores the organisation’s commitment to spotlighting the continent’s rapidly evolving tech ecosystem and positioning Africa not just as a growth market but as a driver of global innovation.
According to her, the 2025 Startup Festival offers the opportunity to exchange ideas on digital inclusion, sustainable urban logistics, and how platform businesses can fuel local economic development.
“It’s exciting to see many entrepreneurs, investors, and tech leaders come together to co-create solutions to uniquely African challenges. I’m particularly eager to explore partnerships and policy frameworks that can unlock the next wave of e-commerce potential in Nigeria and beyond,” she said.
By Adedapo Adesanya
Payment orchestration platform, HoneyCoin, has announced a $4.9 million funding round led by the global venture firm, Flourish Ventures, to boost its operations.
Flourish is joined by a dynamic mix of regional and global investors, including Visa Ventures, TLcom Capital, Stellar Development Foundation, Lava, Musha Ventures, 4DX Ventures, and Antler.
According to a statement, the new capital will accelerate the scale of operations, expand its product suite, and bring on new senior hires to strengthen its position as a prominent player in the payments industry.
Mr David Nandwa, who became one of Africa’s youngest fintech CEOs at the age of 19, launched HoneyCoin in 2020, during the pandemic.
With HoneyCoin, he and his team have set out to develop the financial operating system for a hybrid future, where fiat and blockchain infrastructure merge to enable faster, compliant, and cost-efficient cross-border money movement.
Since its launch, the platform claims it has scaled rapidly, processing hundreds of dollars in transactions to over $150 million in monthly transaction volume, serving more than 350 enterprise customers and hundreds of thousands of consumers through its flagship consumer app, Peer. Collectively, it powers payments for millions of end-users across four continents.
Mr Nandwa said, “Our mission is to build the operating system for money, how it’s moved, held, and collected, regardless of medium or geography.
“Just as Apple redefined computing and Visa transformed global commerce, we believe financial infrastructure is undergoing another once-in-a-generation shift.
“This raise enables us to lead that transformation, across Africa and other global markets, by building resilient, interoperable infrastructure for the future of finance.”
HoneyCoin says it addresses long-standing inefficiencies in global financial infrastructure, particularly for businesses in frontier markets, by providing a unified, stablecoin-compatible platform for collections, treasury management, settlements, and FX management.
By building a stablecoin-based liquidity engine and bypassing fragmented rails, HoneyCoin offers businesses instant or same-day settlements, compared to the traditional 4–7 business day timelines.
Flourish Ventures, which first backed HoneyCoin in 2021, co-led the latest fundraise as a follow-on investment, signaling strong confidence in the startup and underscoring its long-term commitment to building fairer financial systems across Africa.
Speaking on the investment, Flourish Ventures Principal, Mr Efayomi Carr, said, “We first backed HoneyCoin in 2021 based on David’s technical expertise and regulatory vision.
“Since then, he’s built a licensed, profitable, and high-growth infrastructure platform powering nearly 300 financial institutions and processing billions in transactions annually. This follow-on investment reflects our deep confidence in HoneyCoin’s results to date and potential to lead the next generation of compliant, blockchain-enabled finance across Africa.”
Operational in over 45 countries and PCI-DSS Level 1 certified, HoneyCoin allows businesses to collect and disburse mobile money, card, and bank payments across 15 African markets, as well as in the US, Canada, Europe, and the UK. Its FXHub enables customers to buy and sell up to 49 currencies at competitive rates, giving CFOs and finance teams the tools for seamless global treasury management backed by real-time data.
Licensed across key markets including the US, Canada, EU, and key African jurisdictions, HoneyCoin has built direct integrations with banks and telecom operators, including partnerships with MoneyGram, UBA Bank, and Stripe. Its platform is already being used by high-growth businesses and fintechs, including Cedar Money, TerraPay, and Jiji, underlining the platform’s increasing adoption across industries.
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