According to a report from Disrupt Africa, Nigerian tech startups have so far employed about 19,344 people as of August 2022.
The publication finds that at least 481 tech startups were in operation across Nigeria as of September 2022, employing over 19,000 people between them. Fintech is the most populated sector, with more than one-third of the country’s tech startups active in that vertical. Almost 50 per cent of Nigerian tech startups have undergone some form of acceleration or incubation, though diversity is an issue as less than 15.6 per cent have a female co-founder.
These startups are also supported by a strong investment ecosystem. At least 383 individual Nigerian tech startups raised a combined US$2,068,709,445 in funding between January 2015 and August 2022, more than any other country in that period. Funding, both in terms of the number of startups backed and the total tally secured, has generally increased year-on-year, with total investment increasing more than four-fold between 2020 and 2021, and on course for a further big leap in 2022.
Nigerian startups are, however, only the third most successful when it comes to successful exits, with 15 ventures acquired since 2015, fewer than South Africa and Egypt.
The startups leading in terms of employment are Fintech companies, the likes of Cowrywise, Flutterwave, and Renmoney. These three fintech companies lead the pack amongst the 481 startups in Nigeria with the highest employment rate.
The top 3 fintech startups, according to a report by Disrupt Africa, have employed a total of 2,003 staff. It was reported that Renmoney was said to have employed 892 people, Cowrywise employed 570, and Flutterwave employed 541 people.
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The report reveals that Nigeria’s fintech space is by far the biggest employer within the country’s broader startup ecosystem, accounting for 8,653 jobs.
What the report says, “Nigerian startups employ a combined total of 19,334 people, dwarfing the 11,340 employed by their counterparts in South Africa.
“The average headcount per startup stands at 40. The fintech industry accounts for almost half of Nigerian startup employment, with 8,653 jobs, while between them the fintech, e-commerce, mobility and logistics, and e-health spaces account for 74.9% of all jobs.
“Fintech startups are by far the most common within the Nigerian startup ecosystem, as they are within most other established ecosystems on the continent.
“A total of 173 companies, 36%of the 481 ventures tracked in this report, fall into this category, a figure that is three times larger than the next most populated space, e-commerce, and retail-tech.”
“Fintech tends to draw the most attention in the majority of Africa’s startup communities, as well as the lion’s share of funding. In terms of sub-sectors, activity is diverse, though payments and remittances (46 startups, 26.6% of Nigerian fintech ventures) and lending and financing (34 startups, 19.7% of Nigerian fintech ventures) are clear leaders,”
With the frequent emergence of startups in the country, the Nigerian Tech Ecosystem will continue to have an impact on the Nation’s economy, contributing from 10% to over 30% in the next 3-5 years which will automatically create new employment opportunities for graduates.