Is Nigeria a Good Place to Launch a Startup?

Where you start your company still matters – but sticking too closely to one location might limit what you’re able to build. In today’s startup landscape, geography shapes your path – but it doesn’t have to define your potential.

Nigeria has emerged as a strong hub for entrepreneurship, offering access to funding, talent, and infrastructure. But with growing competition, rigid local programmes, and support often reserved for the most polished startups, relying solely on what’s nearby can slow you down – or hold you back.

In this article, we’ll explore what Nigeria gets right – and where founders often run into friction. We’ll also show how EWOR offers an alternative: a global, remote-first platform that gives you access to funding, mentorship, and community – no matter where you’re based.

1. Access to Funding in Nigeria

Funding is one of the most critical ingredients in building a successful startup – and Nigeria offers a growing ecosystem of support. From venture capital firms to government grants and angel investors, founders in this region have several pathways to raise capital and gain early traction.

Nigeria's early-stage startup funding scene is active, though navigating it presents challenges. Notable VC firms like Ventures Platform, Microtraction, and EchoVC Partners are key players, often providing crucial initial capital. Angel networks such as the Lagos Angel Network also support local founders with seed funding and mentorship. Government initiatives, including programs under the Nigeria Startup Act 2022 and funds like the Startup Investment Seed Fund, aim to provide support, alongside grants from bodies like the Bank of Industry and the Tony Elumelu Entrepreneurship Programme. However, startups face hurdles like limited access to finance, particularly a significant gap between seed and Series A funding. While Nigeria led in West African funding in 2023 and 2024, securing a large percentage of the total, the overall number of funded ventures in Africa saw a decline in 2024 compared to 2023, reflecting a tougher investment climate. Challenges also include an uncertain regulatory environment and difficulty accessing government funds.

A More Flexible Path Forward

In the wake of these challenges, founders don’t have to rely solely on local funding options. EWOR offers a more flexible path – providing up to €500,000 in early-stage capital But EWOR is more than a cheque. Our capital comes bundled with personalised support, investor-ready storytelling, and access to a network of over 400 active European investors – many of whom regularly participate in our Grand Pitch events. On average, EWOR fellows who complete the programme and pitch go on to raise €2 million in follow-on funding – over 10x more than founders from comparable European initiatives.

2. Innovation and Startup Culture  

Nigeria has become a centre of innovation, with numerous tech hubs, coworking spaces, and accelerators that foster creativity and new ideas. The local startup culture is vibrant, with a growing community of entrepreneurs working together to push the boundaries of what’s possible.

Nigeria, particularly Lagos, boasts a vibrant and rapidly evolving startup and innovation culture, often dubbed the "Silicon Valley of Africa". Entrepreneurial activity is high, fueled by a youthful, tech-savvy population and a large market. Coworking spaces are prevalent across major cities like Lagos and Abuja, providing flexible workspaces and networking opportunities for entrepreneurs and freelancers. The ecosystem is supported by numerous tech events, conferences, and meetups throughout the year, fostering collaboration and knowledge sharing. While the ecosystem is maturing and attracting significant international investment, there are dedicated programs like incubators and accelerators, such as iHatch and Startup Nigeria, that specifically target and provide training, mentorship, and sometimes funding for early-stage and idea-stage founders. However, competitive, standardized programs and support for more mature startups are also prominent features of the landscape.

For many entrepreneurs, the energy and resources available in Nigeria can provide the ideal environment to test new ideas and gain early traction. The collaborative atmosphere allows founders to connect with fellow innovators and build networks that can help their startups grow.

While the local startup culture is vibrant, the support founders actually receive can be hit or miss. VCs might offer funding but little time. Angel investors often give advice, but it’s scattered and inconsistent. What’s more, many accelerators rely on a one-size-fits-all model that doesn’t reflect the needs of exceptional founders. In fast-moving, competitive ecosystems like Nigeria, standing out is hard enough – getting the right kind of support shouldn’t be.

The Alternative to Cookie-Cutter Programmes

Finding a programme that truly adapts to your journey, not the other way around, is rare. However, EWOR offers the kind of depth and flexibility that many local programmes simply can’t match. Instead of following a fixed curriculum, our fellowships are modular and tailored – giving you the right support at the right time, based on where you are in your journey.

But the real strength of EWOR goes beyond structure. Fellows often describe the community as the most unexpected – and valuable – part of the experience. As some have put it: “The real magic lies in the community: the kind of conversations, insights, and connections that lead not only to breakthroughs – but to lasting friendships with some of the most fascinating people they’ve ever met”.

3. Talent and Workforce Availability

One of the greatest assets of launching a startup in Nigeria is access to a skilled and diverse talent pool. With universities producing top-tier graduates in technology, business, and other fields, startups can tap into a wealth of expertise to help grow their teams.

Nigeria has a large, young, and educated workforce, providing a significant talent pool for startups. Numerous universities and technical institutions, including leading ones like LAUTECH, FUTA, and UNILAG, are producing graduates with relevant skills, particularly in technology. There is a growing availability of industry-specific skills in areas like software development, data science, cloud computing, and cybersecurity, driven by the booming tech ecosystem. Local talent supports entrepreneurial growth by contributing to innovation and filling roles in various sectors like fintech, agritech, and healthtech. However, challenges exist in attracting and retaining senior-level talent due to competition from international companies and emigration. Startups often invest in training to bridge skill gaps.

Like funding, competition for talent can be fierce, especially for highly specialised roles in fields like software development or AI. For startups looking to scale quickly, hiring the right people at the right time can be a challenge, leading some founders to look outside the region for remote talent solutions.

Get Global While Local

While hiring locally in Nigeria can be competitive and slow, EWOR gives you instant access to a global network of exceptional talent. Built by founders for founders, the EWOR team has launched and exited companies worth over €12 billion – and they bring that experience directly into your venture. It's not just about funding or surface-level advice; it's akin to having a co-founder from day one. 

The team collaborates closely with you to refine your idea, challenge your thinking, and support you through real-world decisions – just like a hands-on partner would. Moreover, with EWOR’s exclusive co-founder pool, you can find the right person to build with, regardless of their location.

4. Infrastructure and Support Systems

Nigeria boasts a strong infrastructure that supports the growth of new businesses. From modern office spaces to high-speed internet, entrepreneurs have access to everything they need to run their startups smoothly. Government policies may also provide tax breaks, legal support, and other incentives that make starting a business more attractive in this region.

Nigeria's startup ecosystem is supported by a growing infrastructure including tech hubs, incubators, and accelerators, particularly in Lagos. These provide resources like mentorship, funding, office space, and networking opportunities, helping startups develop and scale. Government initiatives play a crucial role. The Nigeria Startup Act 2022 provides a legal framework, aiming to simplify regulations, offer tax incentives, and improve access to funding through initiatives like the Startup Investment Seed Fund. Programs like the 3MTT initiative also focus on talent development. Despite infrastructure challenges like power and internet, these combined efforts foster innovation and economic growth.

But what looks good on paper often proves more complicated in practice. Bureaucracy can be time-consuming and opaque, especially for first-time founders unfamiliar with local laws. Incorporation takes longer than expected. Accessing public funding often means navigating slow processes, strict requirements, or hard-to-reach advisors. And operational costs – from accounting to regulatory compliance – can quickly eat into early budgets. 

A System That Moves With You

With access to expert guidance, practical legal resources, and a network of experienced entrepreneurs who’ve built across a range of regulatory systems, EWOR is well positioned to help founders navigate the bureaucratic and legal complexities that often come with building in Nigeria. Instead of wasting time figuring things out alone, you’ll have the tools and support to stay focused on what matters most – growing your venture.

And while we’re remote-first, our support is anything but distant. Through in-person gatherings like the EWOR House, city-based meetups, and our twice-yearly Grand Pitch event, you’ll still build meaningful relationships with investors, peers, and mentors. It’s a system that helps you focus on building – not just dealing with paperwork.

Can Nigeria Be Considered the Best Place to Launch a Startup?

There’s no doubt that Nigeria provides a vibrant environment for startups, with access to funding, innovation, talent, and infrastructure that can help entrepreneurs build successful businesses. For many, it’s a strong contender for the best place to launch a startup, thanks to its growing entrepreneurial ecosystem and support systems.

Entrepreneurs launching startups in Nigeria face significant hurdles. Competition is intense, with many businesses vying for market share. The high cost of living and inflation impact operational expenses and can strain salary budgets, potentially leading to employee turnover. Regulatory issues are also a major challenge, characterized by complex and frequently changing policies, bureaucratic processes, and multiple tax burdens, creating uncertainty and increasing compliance costs. Additionally, inadequate infrastructure, particularly power supply and internet connectivity, adds to the cost and difficulty of doing business.

However, it’s important to remember that the location of a startup is no longer the be-all and end-all. In today’s digital age, location-independent options like EWOR allow entrepreneurs to access world-class mentorship, funding, and resources from anywhere in the world. Whether you’re based in Nigeria or elsewhere, EWOR’s remote programmes are designed to support founders no matter where they are located.

So, while Nigeria offers significant advantages, it’s worth considering options like EWOR that enable you to launch and scale your startup with global support – whether you’re in the heart of a bustling startup hub or working from a quiet corner of the world.

Image credits: by Andreas Brücker on Unsplash