Lagos ranked world’s fastest-growing tech city in 2025

Lagos has emerged as the world’s fastest-growing tech city in 2025, according to a ‘Global Tech Ecosystem Index 2025’ report by dealroom.co, a Netherlands-based global provider of data and intelligence on startups and tech ecosystems. The report, which cuts across a global index of startup ecosystems in 288 cities across 69 countries, is designed to show which ecosystems lead, those that outperform their population size, and which are rising fastest. 

The 2025 report, which was released on Thursday, revealed that Lagos topped the Rising Stars lens list, having created 5 unicorns (Jumia, Flutterwave, Moniepoint, Opay, and Interswitch) and grown its ecosystem valuation almost 12 per cent since 2017 despite a smaller economy. The rising stars lens showcases the fastest-growing, emerging tech ecosystems by emphasising growth in enterprise value and unicorns, adjusted for local GDP per capita and cost of living. 

“What sets Lagos apart is its ability to adapt quickly, develop locally relevant innovations, and scale despite systemic obstacles. This agility continues to propel the ecosystem forward, reinforcing the city’s status as a leading hub for technology and entrepreneurship in Africa,” the report asserted.

With 5 Unicorns possessing 3x production growth, $15.3 billion enterprise value, and $1.6k GDP per capita, Lagos topped cities such as Istanbul in Turkey (#2), Pune in India (#3), Bro Horizonte in Brazil (#4), and Mumbai in India (#5). Although the index shows the performance of the top-growing ecosystems, they still deal with their respective challenges.

In the Sub-Saharan Africa list of top growing tech cities, Lagos leads, followed by Johannesburg (South Africa), Kampala (Uganda), Dakar (Senegal), and Accra (Ghana). 

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Aside from the fastest-growing lens, the report also ranked cities on the Global Champion List – the worldʼs biggest and most established startup ecosystems, ranked by absolute metrics such as venture capital, enterprise value creation, unicorns, and university linkages. In the Sub-Saharan Africa ranking, Lagos topped the list, followed by Johannesburg (South Africa), Cape Town (South Africa), Nairobi (Kenya), and Dakar (Senegal), placed in fifth position. 

Bay Area (U.S.) topped the global list, followed by New York City (U.S), Boston (U.S), Paris (France), and Austin (U.S). London (England) is placed sixth, Seoul (South Korea) is placed seventh, and Tel Aviv of Israel, is placed tenth.

“While the Bay Area (#1) is still the undisputed champion, newer hubs such as Austin (#5), Tel Aviv (#10) or Stockholm (#15) have started to build substantial ecosystems. Paris (#4) is the top hub in Europe, followed by London (#6).”

Lagos’ fast-growing tech ecosystem

Lagos, often referred to as the megacity, holds a population of about 21.3 million people and is estimated to grow by 1 million annually. Lagos has been an appealing tech talent hub with a growing tech sector that attracts over $1.3 billion in funding. Despite facing traffic and power difficulties, its ecosystem fosters innovation with the success story of startups like Moniepoint, Flutterwave, and others. The government’s tech initiatives and education programs further boost the city’s tech ecosystem.

Described as the Silicon Valley of Africa, the city is rapidly becoming the tech headquarters of Africa, which has seen a 31 per cent compound annual growth rate (CAGR) in tech startup founding over the past five years. The city has likewise surpassed Nairobi, Johannesburg, and other African cities in terms of influence and early-stage funding, with a record of over 400 startups that represent approximately 88 per cent of the total number in Nigeria.

While the scenario presents a picture of interdependence between the city and startups, the Lagos State Government has often noted that tech startups are leveraging the city’s massive consumer market to scale and innovate. Recently, the State Commissioner for Innovation, Science, Tunbosun Alake, also claimed that the state’s large population and business-friendly environment are factors driving the tech ecosystem in Lagos.

He explained that Lagos has taken deliberate steps to assist businesses in underserved areas, citing an example of an artificial intelligence and robotics company that the state actively supports. While the ecosystem has been instrumental in connecting businesses with government agencies, Alake explained that the state has a dedicated team that enhances partnerships between companies and relevant government bodies, especially in sectors like transportation.

“We have a specific policy of helping businesses in areas we believe need development, like AI and robotics,” he noted.

Amid Lagos’ impressive growth, it faces several challenges that threaten its sustained progress. The Global Index Report emphasised that infrastructure still remains a major concern, such as frequent power outages, high cost of data, and unreliable internet, which can slow operations and increase costs. Also, talent retention is becoming an issue with relocation driven by working conditions and remuneration. The Japa syndrome, which has been prominent in Nigeria, is largely affecting the city’s ability to keep its growing talents.

Amid the challenges, Lagos holds strong potential for the tech ecosystem, considering its government’s continued investment in broadband connectivity that creates a nurturing and enabling environment for tech innovations.