Lagos: Fintech Capital or Infrastructural Time Bomb?
Lagos, Nigeria, is rapidly evolving from a sprawling megacity into a leading contender for Africa’s fintech hub. According to a 2025 StartupList Africa survey, the city boasts an impressive 503 active fintech startups, significantly surpassing its closest competitor on the continent. This vibrant ecosystem has witnessed the emergence of 256 new fintech ventures since 2020, with 78 firms now employing 50 or more individuals, indicating a shift towards substantial scale. Furthermore, Lagos-based startups have attracted a staggering $6.03 billion in funding, a level of capital infusion that many cities can only dream of.
The Cracks Beneath the Surface
Despite the impressive growth and investment, the underlying infrastructure supporting Lagos’ fintech ambitions is facing significant challenges. Persistent power outages continue to disrupt daily operations, forcing fintech companies to rely heavily on generators to maintain uptime. The unreliable national grid remains a major concern. Moreover, internet connectivity, crucial for the functionality of apps, wallets, and payment portals, is inconsistent. Remote areas experience high latency and unstable broadband, hindering the seamless delivery of digital financial services.
In conclusion, while Lagos has undeniably established itself as a major fintech player in Africa, its infrastructural shortcomings threaten to undermine its long-term potential. Addressing these challenges is crucial to ensure that Lagos can truly cement its position as a sustainable and thriving fintech capital.
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