Lagos State has been named the world’s fastest-growing tech ecosystem in 2025, overtaking cities like Istanbul, Mumbai, and São Paulo, according to the newly released 2025 Dealroom Global Tech Ecosystem Index. The index evaluates 288 technology hubs spanning 69 countries worldwide.
Lagos topped the report’s “Rising Stars” category, outperforming other emerging markets including Istanbul, Pune, Mumbai, and Belo Horizonte. The city continues to expand rapidly, adding approximately 2,000 new residents each day, with its metropolitan population now exceeding 22 million.
According to the report, Lagos’s evolution into what residents describe as a “factory of unicorns” signifies more than impressive company valuations—it marks a fundamental transformation in how African technology companies engage with the global market.
The report emphasized that what sets Lagos apart from established tech centers like Silicon Valley or London isn’t merely scale, but rather the distinctive approach to innovation that characterizes the city’s ecosystem.
Dealroom positioned Lagos within a wider African technology renaissance, identifying it alongside other “density leaders” such as Johannesburg, Cape Town, Nairobi, Dakar, Kampala, and Accra. These cities are recognized for their vibrant startup communities, strong innovation output relative to population size, and effective collaboration between universities and industry. Unlike certain African tech hubs that flourished despite limited government support, Lagos has actively cultivated its identity as a digital innovation center.
Responding to the ranking on Sunday, Lagos State Governor Babajide Sanwo-Olu attributed the achievement to seven years of sustained governmental focus and strategic investment.
Lagos has experienced an 11.6-fold surge in startup enterprise value since 2017, bringing the city’s tech ecosystem valuation to $15.3 billion, according to the governor.
The city has given rise to five unicorn companies—Interswitch, Flutterwave, Jumia, OPay, and Moniepoint—with the rate of unicorn creation tripling since 2019. From 2019 to 2024, Lagos secured over $6 billion in foreign direct investment in technology, representing more than 70% of Nigeria’s total tech investment during that period.
As of October 2024, Lagos hosts more than 2,000 startups, comprising 80–90% of Nigeria’s entire startup sector. The Financial Times has identified 23 of Nigeria’s 28 fastest-growing companies as being headquartered in Lagos.
The report reveals that 38% of Lagos residents make weekly online purchases, internet penetration has reached 72%, and mobile phone ownership stands at 94%. Notable innovations include an integrated transport payment card system, designed by engineers in their twenties, which now serves over 6.5 million Lagos residents across rail, waterways, buses, and taxis.
Governor Sanwo-Olu described Lagos’s recognition as the world’s fastest-growing tech ecosystem as more than a statistical milestone, calling it a fundamental shift in the global geography of innovation, the demographics of technology builders, and the focus of problem-solving efforts.
READ ALSO:
- Telecom Emerges as Key Infrastructure for Nigeria’s Economy
- Nigeria’s Aviation Market Ranks Fourth-Largest in Africa – FAAN
- CBN Cuts Interest Rate to 23% From 26.5%
- King Sunny Ade Celebrates 80th Birthday, Fans Pay Tribute to Jùjú Music Legend
- Governor Dauda Lawal Approves 95% Salary Increase for Health Workers
