Lagos has emerged as the fastest-growing tech ecosystem in the world, according to Dealroom.co’s Global Tech Ecosystem Index 2025. The Nigerian megacity, home to 21.3 million people, has seen its startup enterprise value grow 11.6x since 2017 — despite systemic challenges such as unreliable infrastructure and talent retention issues.
The report benchmarks 288 global tech hubs based on investment, innovation, talent, and outcomes. Lagos leads the rankings ahead of Istanbul (#2), Pune (#3), Belo Horizonte (#4), and Mumbai (#5), underscoring the rise of emerging markets in Africa, India, Türkiye, and Brazil.
The city has produced five unicorns, including Jumia Group — its first — and fintech giants Flutterwave, OPay, Moniepoint, and Interswitch. Its tech ecosystem is now valued at $15.3 billion, with unicorn production growing 3x since 2019.
Key factors driving Lagos’ growth include:
- Localized innovation: Startups solving hyper-local problems, particularly in fintech and logistics.
- Cost advantages: Living costs are just 22% of New York City’s, making it attractive for early-stage ventures.
- University talent pipelines: Institutions like the University of Lagos and Covenant University feed the ecosystem with skilled graduates.
Despite its rapid ascent, Lagos faces hurdles. Etemore Glover of Impact Investors Foundation notes:
“Infrastructure remains a major concern — frequent power outages, high data costs, and unreliable internet slow operations. Talent retention is also an issue, with professionals relocating due to working conditions and remuneration.”
The report highlights Johannesburg, Cape Town, Nairobi, Dakar, Kampala, and Accra as Africa’s top “density leaders” — ecosystems punching above their weight in innovation per capita. These hubs excel in startup activity, research output, and university-industry collaboration, proving that scalable tech ecosystems can emerge outside traditional powerhouses.
Dealroom’s index adjusts for GDP per capita and cost of living, spotlighting cities where growth isn’t just fueled by sheer economic size. Kyiv (#11), Mexico City (#12), and Vilnius (#13) also made the list, reflecting the decentralization of tech innovation.
While Lagos’ trajectory is impressive, experts caution that infrastructure investment and policy reforms will be critical to maintaining momentum. For now, the city stands as a testament to how agile, locally rooted ecosystems can defy macroeconomic constraints.