Nigerian Startups, According to Vice President Shettima, Nigerian migrants are not only contributing to the economy through diaspora remittances but also excelling as global ambassadors in various fields.
He stated, “Migration is not just a crossover from one geography to another. It is a critical driver of global and national development. In 2022 alone, Nigeria accounted for $21.9 billion in diaspora remittances, representing 64% of all remittances in West Africa. This is a testament to the invaluable economic contributions of Nigerian migrants.”
Beyond financial contributions, Nigerian migrants have demonstrated excellence in technology, medicine, sports, and the creative arts. Nigerian startups founded by migrants attracted over $800 million in investments in 2022, highlighting the transformative potential of the diaspora community.
Migration’s Dual Nature in Nigeria
Vice President Shettima noted that Nigeria serves as both a source and destination for migrants. Over 1.3 million international migrants currently reside in the country. However, he raised concerns about irregular migration, revealing that in 2024 alone, 10,000 Nigerians were detained for migration offenses and subsequently deported.
“Irregular migration remains a persistent challenge,” he said. “In 2024, we have already returned and reintegrated no fewer than 10,000 Nigerians who had been detained for immigration offenses in African and European countries.”
The Vice President emphasized the vulnerabilities associated with migration, calling for coordinated efforts to address these challenges while maximizing migration’s economic benefits.
Government Commitment to Migration Challenges
The Federal Government of Nigeria remains steadfast in tackling the challenges associated with migration. Efforts are being made to address irregular migration and enhance the country’s capacity to benefit from its citizens’ global contributions.
Nigeria’s Changing Position
Nigeria lost its leading position in African startup funding to Kenya in 2023. Kenyan startups attracted the largest amount of funding that year, totaling approximately $800 million, according to research by Africa: The Big Deal.
An analysis of the ‘Big Four’ African countries—Nigeria, Kenya, Egypt, and South Africa—showed that Nigeria slipped from first place in 2021 and 2022 to fourth place in 2023. Nigerian startups raised the least funding compared to the other three countries.
Africa’s Funding Decline
Startups across Africa raised a total of $2.9 billion in 2023, marking a 39% year-on-year decline. The ‘Big Four’ accounted for 87% of the total funding, their largest share since 2019. Kenya led the pack, attracting 28% of the continent’s total funding. Despite a 25% year-on-year decline, Kenya’s share of Eastern Africa’s funding grew from 86% in 2022 to 91% in 2023, with 93 startups raising $100k or more during the period.
Egypt and South Africa’s Contributions
Egypt claimed the second spot among the ‘Big Four,’ with 48 startups raising $100k or more in 2023. Despite its lowest number of funded startups among the Big Four, Egypt saw a substantial increase in its share of North African funding, rising from 72% in 2022 to 95% in 2023. This growth was driven by MNT-Halan’s significant fundraising efforts.
South Africa maintained the highest share of regional funding at 97%. The 70 startups raising $100k or more in the country secured $600 million in funding, accounting for 21% of Africa’s total. Notably, South Africa was the only member of the Big Four to experience growth in total funding, achieving an 8% year-on-year increase.
Key Takeaways
Nigerian migrants are playing pivotal roles as global ambassadors and economic contributors. However, challenges such as irregular migration persist and require focused efforts. Meanwhile, shifts in startup funding trends across Africa underscore the dynamic nature of the continent’s entrepreneurial landscape, with Kenya, Egypt, and South Africa leading the charge in 2023.
