By Omoruyi Edoigiawerie, Esq
Nigeria’s start-up ecosystem has grown significantly over the last decade, becoming a dynamic hotbed for innovation and entrepreneurship. Lagos, the country’s commercial nerve centre, has been at the forefront of this movement, attracting founders, investors, and global attention.
But this growth has yet to occur in isolation. Innovation hubs and accelerators are at the heart of this transformation—key drivers that help start-ups scale.
As an active player in this ecosystem, I’ve seen first-hand how these platforms are catalysing growth, providing much-needed support, and shaping the future of Nigerian entrepreneurship.
*A snapshot of Nigeria’s start-up ecosystem in 2024
As of 2024, Nigeria stands tall as one of Africa’s leading hubs for tech start-ups. According to data from Disrupt Africa, Nigerian start-ups secured $1.2bn in funding between 2021 and 2023, solidifying the country’s status as a critical player in Africa’s digital economy.
Fintech remains the dominant sector, with start-ups like Flutterwave, Paystack (acquired by Stripe for $200m in 2020), and Moniepoint driving innovation in financial inclusion.
However, sectors like agritech, healthtech, edtech, and logistics are also catching up, leveraging Nigeria’s unique challenges to create ground-breaking solutions.
Despite this, the challenges are real: access to capital, regulatory uncertainty, market fragmentation, and the need for infrastructure are ongoing barriers. This is where innovation hubs and accelerators come in, providing the framework for start-up founders to thrive in a highly competitive and often volatile environment.
*The power of innovation hubs in Nigeria
Innovation hubs are pivotal in fostering a culture of entrepreneurship. These hubs provide shared spaces where start-ups can collaborate, access resources, and build the networks they need to succeed. In Nigeria, hubs like Google for Start-ups, CcHub (Co-Creation Hub), Ventures platform, iDEA Hub, and ARM Labs, to mention but a few, have played a significant role in this journey.
1. Knowledge Sharing and Mentorship: Innovation hubs bring together tech experts, mentors, and investors in one space, facilitating the sharing of ideas, knowledge, and experience. For example, CcHub, located in Yaba—Nigeria’s tech hub—has mentored many start-ups and techpreneurs since its inception. This mentorship is invaluable in helping founders avoid common pitfalls and navigate challenges specific to the Nigerian market.
2. Access to Resources and Infrastructure: These hubs offer start-ups access to critical infrastructure, such as high-speed internet, co-working spaces, and software tools, which are often too expensive for early-stage start-ups to afford independently.
3. Community Building: Innovation hubs are central to building community within the tech ecosystem. They create environments where entrepreneurs can collaborate, form partnerships, and even hire talent from within the community. When founders engage with others facing similar challenges, the innovation cycle strengthens. For example, CcHub’s collaboration with Google and GitHub has led to hackathons promoting innovative solutions in response to real-world challenges.
4. Bridging the gap between start-ups and Policy: Nigeria’s tech ecosystem is growing faster than its regulatory framework. Innovation hubs act as intermediaries between start-ups and policymakers. In 2022, as we pushed for the enactment of the Nigeria Start-up Act, quite a number of accelerators and innovation hubs were involved in the advocacy and policy discussions that led to its enactment. Today, the Act is one of the most pivotal legislation to help start-ups grow and thrive.
*The accelerator advantage: Speed and scale
While innovation hubs offer community and shared resources, accelerators provide intense, short-term programs designed to speed up start-up growth. Nigerian accelerators such as Techstars Lagos, Founders Factory Africa, and Google for Start-ups Accelerator have become synonymous with start-up success.
1. Funding Access and Investor Relations: One of the most significant benefits accelerators offer is access to funding. Programs like Techstars and Google for start-ups Accelerator introduce start-ups to a network of investors. According to Partech Africa, start-ups that go through accelerators are 20% more likely to receive venture capital funding within the first year. In Nigeria, mono, a start-up that allows companies to access financial data, raised $15m in 2023 after participating in an accelerator programme. Accelerators offer initial funding and provide founders with the know-how to structure their businesses for long-term success and sustainability.
2. Business Development and Market Fit: Accelerators help start-ups develop their product-market fit by testing solutions in real-world conditions. Founders Factory Africa, for example, works closely with start-ups to refine their business models and expand into new markets. Start-ups participating in accelerators can refine their strategies, reduce operational inefficiencies, and improve customer acquisition.
3. International Exposure and Scaling Potential: Nigeria’s accelerators have increasingly built strong ties with global investors and markets, giving local start-ups access to international resources. 54gene, a healthtech start-up that leverages African genetic data for medical research, scaled its operations after participating in Y Combinator and receiving $45m in three funding rounds. The accelerator ecosystem equips start-ups with the tools and mentorship necessary to expand beyond the local market, contributing to the globalization of Nigerian start-ups.
4. Regulatory Navigation and Compliance: Regulatory challenges are a major stumbling block for many Nigerian start-ups. Accelerators provide support by helping founders understand how to navigate Nigeria’s regulatory landscape, whether in fintech, healthtech, or other industries. The Nigeria Start-up Act, which ecosystem leaders championed, has provided a more structured framework for compliance, and accelerators are pivotal in educating start-ups on how to align with these regulations.
*The road ahead: 2024 and beyond
As we look toward the future, the role of innovation hubs and accelerators in scaling Nigerian start-ups cannot be overstated. In 2024, we see an increased need for specialized hubs focusing on specific sectors such as agritech, climate tech, and blockchain. The decentralization of hubs beyond Lagos, with regions like Ilorin, Kano, Benin, Port Harcourt, and Ibadan building tech clusters, is a positive development that will drive inclusive growth, and this must be catalysed fast. Nigeria, and not just Lagos, must now become a super economic zone for the growth and development of start-ups.
Accelerators, too, will need to innovate, offering tailored programs that address emerging challenges such as access to global markets, cybersecurity, and cross-border compliance. With increasing collaboration between private investors, development agencies, and the Nigerian government, the start-up ecosystem is poised for unprecedented growth.
*Conclusion
Innovation hubs and accelerators are the pillars of Nigeria’s burgeoning start-up ecosystem. They offer the critical support, mentorship, funding, and infrastructure needed to navigate Nigeria’s unique challenges. As a thoughtful leader and expert in this ecosystem, I firmly believe that these platforms’ continuous evolution and support will shape the future of Nigerian entrepreneurship. With innovation hubs providing the groundwork and accelerators accelerating the growth trajectory, Nigerian start-ups are on the cusp of scaling to new heights—locally and globally.
In 2024 and beyond, the combined efforts of these platforms, coupled with a supportive regulatory environment, will be instrumental in ensuring that Nigerian start-ups survive and thrive, making lasting contributions to the economy and society at large.
*Omoruyi Edoigiawerie is the Founder and Lead Partner at Edoigiawerie & Company LP, a full-service law firm offering bespoke legal services focusing on start-ups, established businesses, and upscale private clients in Nigeria. The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances. His firm can be reached by email at hello@uyilaw.com.
