Why Nigeria's newest startups are sprouting up outside the megacity of Lagos

A view of the Yaba district in Lagos, home to Nigeria’s dominant start-up scene (Reuters/Akintunde Akinleye)

Even though Nigeria is Africa’s largest economy, Lagos, its commercial capital, still has a disproportionately strong hold over all business sectors. That’s due to its status as a global megacity with over 20 million people, as well as its ready access to the traditional finance sector.

The country’s leading start-ups opened shop in Lagos over the last decade and some of them have gone on to become pan-African names like iRoko, Jumia, Konga, and MallforAfrica to name a few and key events like DEMO Africa will take place here this month. Lagos is also home to internationally recognized incubators including Co-Creation Hub, accelerators such as IDEA Hub in the Yaba area of Lagos, and numerous co-working spaces such as CapitalSquare and Lagos Garage. It is also has a strong network of angel investors, the Lagos Angel Network, which was formed by investors and influential businessmen.

Read more: Why Nigeria’s newest start-ups are sprouting outside the megacity of Lagos – Quartz