Nigerian startups raised about $254 million in the first half of 2026, making Nigeria the second-largest funding destination in Africa behind Egypt, according to data from Africa: The Big Deal, which tracks deals of $100,000 and above.
How Nigeria compares
| Country | Funding, H1 2026 |
|---|---|
| Egypt | $327 million (equity and debt) |
| Nigeria | $254 million |
| Kenya | $126 million |
| South Africa | $83 million |
Across Africa, startups raised about $1.4 billion in the period, and the four biggest markets together took more than half of it.
One deal changes the picture
Egypt’s lead comes largely from a single large raise by electric-mobility company Spiro, reported at $270 million in equity plus $57 million in debt. Remove that deal and Nigeria’s equity funding looks considerably stronger than Egypt’s, which is why several analysts describe Nigeria as having “reclaimed” the lead for equity investment.
Kenya cools after a record year
Kenya, which briefly overtook every other African market in 2025, slipped to third place. Part of this is timing: large deals do not arrive every half-year, and a few big rounds can swing the rankings.
What it means for Nigerian founders
- Investors are back, but selective. Money is flowing again after the funding slowdown of 2023 and 2024, but investors want clear revenue and a path to profit.
- Fintech still dominates, but competition is intense, and cybersecurity, energy and business software are attracting more attention.
- Debt is growing as a funding option for companies with steady revenue, such as lenders and asset-heavy businesses.
With Uber’s exit from Nigeria this month, the lesson for startups is clear: raising money is only the first step. Building a business that covers its costs in naira, in a high-inflation economy, is what decides who survives.
Sources: Africa: The Big Deal data, as reported by African Business, Tech In Africa and Khusoko.
