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Nigeria has regained its position as Africa’s leading destination for startup funding after raising $635 million in the first nine months of 2026, more than double the amount recorded during the same period last year.
Data from Africa: The Big Deal, a tracker of African startup investments, showed that Nigerian startups raised 2.6 times the $247 million they secured between January and September 2025. This is the country’s strongest performance for the period since 2022.
Nigeria’s strong performance came as startup funding declined sharply in Kenya and South Africa. Investment also shifted towards logistics and transport businesses across the continent.
The report showed that 77 Nigerian startups raised at least $100,000 during the period, up from 70 in the same period last year. Excluding pan-African businesses, Nigeria accounted for 37 per cent of startup funding raised by companies operating in individual African countries. This was its highest share since 2021.
Moove, Flutterwave lead major funding deals
A few major investments contributed significantly to Nigeria’s return to the top of Africa’s startup funding rankings.
Moove, a mobility financing company that announced plans to exit Nigeria earlier this month, raised $250 million. Fintech company Flutterwave secured $100 million, while e-commerce platform Jumia raised $50 million.
Yellow Card, a cryptocurrency infrastructure company, attracted another $40 million.
Together, the four companies raised $440 million, accounting for about 69 per cent of Nigeria’s total startup funding during the period.
Despite the large deals, Nigeria also recorded the highest number of startups raising at least $100,000 among African countries.
Logistics overtakes fintech in African startup funding
Across Africa, logistics and transport businesses attracted more startup funding than fintech companies for the first time in several years.
The report showed that logistics and transport startups raised $780 million between January and September 2026, representing 36 per cent of total funding. Fintech companies raised $760 million, accounting for 35 per cent.
The share of funding going to logistics and transport businesses reached a record high, rising from seven per cent in the same period of 2025. The previous record for the first nine months of a year was 17 per cent in 2019.
The increase was largely driven by Spiro, which raised $345 million, and Moove, which secured $250 million. Their combined $595 million represented about 76 per cent of the funding raised by the sector.
However, fintech remained ahead in the number of funded businesses, with 80 startups raising at least $100,000 during the period.
Egypt remains stable as Kenya and South Africa record declines
Nigeria’s recovery contrasted with weaker performances in other major African startup markets.
Egypt attracted $445 million in startup funding, representing a 10 per cent increase from the same period in 2025.
Kenya raised $201 million, down 73 per cent, while South Africa attracted $182 million, a decline of 58 per cent.
The report noted that Kenya’s figures were partly affected by the classification of Spiro as a pan-African business, although the company operates extensively in the country. Despite this adjustment, Kenya’s startup funding remained significantly below its 2025 level.
The number of startups raising at least $100,000 also declined in these markets. Kenya recorded 45 such businesses, down 32 per cent, while Egypt had 40, a 29 per cent decline. South Africa recorded 34, representing a 36 per cent drop.
The figures for Kenya and South Africa were their lowest for the first nine months of a year since Africa: The Big Deal began tracking deals of at least $100,000 in 2021.
Nigeria, Egypt, Kenya and South Africa together accounted for 85 per cent of funding raised by startups operating in individual African countries, excluding pan-African businesses. This was up from 83 per cent in the same period last year.
Nigeria lost its position as Africa’s leading startup funding destination to Kenya in 2023 and continued to trail other major markets in subsequent years.
In 2023, Nigerian startups raised $410 million for the year, less than half the amounts recorded in 2021 and 2022. Kenya led with $800 million.
Nigeria remained behind Kenya in 2024, raising about $400 million despite major funding deals secured by Moove and Moniepoint.
In 2025, Nigerian startups raised $442.8 million for the full year.
With $635 million already secured in the first nine months of 2026, Nigeria has surpassed its total for the whole of 2025 and is on course to finish the year as Africa’s leading destination for startup funding.
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