Nigerian startups need policy support – Report

A new report by TLP Advisory has highlighted the significant challenges faced by Nigerian startups, with 51 per cent of those surveyed reporting difficulties in securing funding, primarily due to currency volatility and limited access to investors.

The report, titled “A Decade of the Nigerian Venture Ecosystem: Numbers, Insights & Stories”, was launched recently and offers an in-depth look at the evolution of Nigeria’s startup ecosystem over the past decade.

The study noted that, while 2021 saw a record $3bn in venture capital investments, securing funding remains a critical issue for many startups.

The report emphasised the role of angel investors, who have become essential sources of funding during this difficult period.
“51 per cent of startups surveyed reported difficulties in securing funding, largely due to currency volatility and limited access to investors. Angel investors have proven essential during this period,” the survey highlighted.

TLP Advisory, which has worked on some of the continent’s largest deals in the technology sector, also noted that regulatory hurdles and talent retention remain major challenges for Nigerian startups.

The report called for deeper collaboration between startups and corporations, increased investment in talent development, and greater engagement with policymakers to create a more supportive business environment.
The document also acknowledged key figures in the ecosystem, including early investors like Olumide Soyombo’s Leadpath, as well as enablers such as CcHUB and Lagos Angel Network, who have been instrumental in the growth of Nigeria’s venture ecosystem.

The co-Founder of TLP Advisory, Odunoluwa Longe, commented, “Despite the current tough macroeconomic climes, engaging with participants in this project ignited in me renewed hope and optimism for our ecosystem.

“We embarked on this project as our way of celebrating the ecosystem that made us, and this report reflects both the resilience and the evolution of the Nigerian tech ecosystem. It’s not just about technology; it’s about building a future where founders, investors, and the public sector work together to make Nigeria a leader in innovation and digital solutions.

“Over the past decade, we’ve witnessed, and have been part of, incredible success stories born from collaboration and adaptability, and we believe the best is yet to come.”

The Executive Director of FATE Foundation, Adenike Adeyemi, stated, “The most unexpected challenge for entrepreneurs in Nigeria has been the unstable and inconsistent regulatory and business environment.

“Founders here often have to navigate unique complexities, and a supportive policy framework is essential for unlocking their full potential.”

Speaking to the need for proactive policy engagement, the Founder of Ventures Platform, Kola Aina, noted, “The ecosystem must become more deliberate and take the job of engaging in government policy design more seriously, ensuring we shape the policies that govern our industry.”