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Nigeria Startups Raise $2.5Bn in Funding in 5 Years

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Startups in Nigeria have raised about $2.5 billion in the last five years, representing aggregate funding, which startups received between 2017 and last year.

Nigeria Startups Raise $2.5Bn in Funding in 5 Years

For instance last year, startups operating across several sectors raised $1.37 billion, according to various data explored by The Nation.

This was out of about $4 billion funding that startups in Africa received.

One of the biggest success stories was Chipper Cash, which raised a total of $250 million. On the whole, Nigeria boasts of over 200 deals for the year.

According to analysts, financial technology services contributed 73.5 percent as Nigerian startups raised $1.09 billion. In 2020, Nigerian startups raise $117,481,508.

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The key companies, which benefited from funding included Flutterwave,54 Gene, Helium health,Kuda bank,TradeDepot,Field Intelligence, Medsaf, Autochek and Rensource.

In 2019, Nigerian tech startups got $663.24 million out of the  $1.34 billion raised in funding in Africa, according to the Decoding Venture Investments. Foremost among them were Interswitch, OPay, Andela and Palmpay, which accounted for most of the top venture deals on the continent.

In 2018, startups raised $ $178.3 million. That year,   Google gave out $2million in grants to 12 Nigerian companies in the inaugural African edition of the Google Impact Challenge.

In 2017, out of the $560 million technology startup investments that entered Africa, Nigeria earned $114.6 million. The country ranked third after South Africa and Kenya, which got $167.9 million and $147 million. The three countries accounted for 76 per cent of the total funding that came into the region last year.

According to Global System for Mobile Communications (GSMA), investment in the tech startup ecosystem has been growing. So far, Kenya, Nigeria and South Africa remained the most popular investment destinations.

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According to Disrupt Africa, the amount of funding raised on the continent has been on the rise since 2017.

In 2017, startups in Africa raised $195.06million; $334.52million in 2018; $491.62million in 2019; and $701.46million in 2020.

This year there is an indication more funding is coming for startups across the country. Multi-merchant rewards platform ThankUCash has raised US$5.3 million in seed funding as it plans expansion into new markets and further product launches.Co-founded in 2018 by Simeon Ononobi, Suraj Supekar, Madonna Ononobi and Harshal Gandole, ThankUCash offers cashback on purchases and deals from thousands of merchants, which in turn helps merchants retain customer loyalty, increase revenues, and grow.

The company operates in Lagos, Abuja and Port Harcourt, and plans to use the funds to scale operations to other cities across the country, and expand to Ghana and Kenya. It will also introduce two new products, a remittances service and a “buy now, pay later” (BNPL) infrastructure.

Also, credit management fintech startup, BFREE has raised a $1.7 million pre-Series A funding round and strengthened its management team ahead of global expansion.

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Founded in August 2020 by Chukwudi Enyi, Moses Nmor and Julian Flosbach, BFREE offers ethical digital-first credit collection solutions for financial institutions in emerging markets.  The  startup  manages collection processes for more than 30 digital lenders, microfinance banks, and commercial banks in Nigeria and Kenya.

This week, Silicon Valley-based accelerator, Y Combinator which played a role in companies  such as Flutterwave, Paystack, Kobo360, Cowrywise, Kudi,  among others said it  has increased its standard deal size to US$500,000.Until now, YC invested US$125,000 for seven per cent equity.

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Nigeria CommunicationsWeek believes that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. So since 2007, we have devoted our energy to independent reportage of technology and how they affect lives.

E-Business

HURIWA, CLO Protests Bill Asking Social Media Firms’ to Open Shops Nigeria

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Human Rights Writers Association of Nigeria (HURIWA) has opposed a bill seeking to compel major global social media companies to establish physical offices in Nigeria.

HURIWA, CLO Protests Bill Asking Social Media Firms’ to Open Shops Nigeria

The rights advocacy group urged the National Assembly to discard the proposed legislation, warning that it could become a tool for censorship and undermine citizens’ constitutional right to freedom of expression, despite being presented as a measure to strengthen Nigeria’s digital economy and improve corporate accountability.

The position was contained in a presentation submitted yesterday by Emmanuel Onwubiko, national coordinator, HURIWA, to the chairman of the Senate Committee on ICT and Cyber Security.

The bill, sponsored by Senator Ned Munir Nwoko, has already passed second reading in the Senate and is before the committee for further legislative consideration.

HURIWA said it carefully reviewed the proposed legislation and concluded that compelling global technology companies to establish offices in Nigeria was unnecessary and potentially counterproductive.

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The organisation argued that while the firms generate substantial revenue from Nigeria’s vast digital market, they already engage Nigerians through existing structures, including paying eligible content creators, working with local technology professionals and participating in legal proceedings whenever required.

According to the group, appointing local representatives where necessary would adequately address concerns about engagement with regulators and users without forcing the companies to maintain physical offices.

It also dismissed claims that mandatory country offices would significantly improve consumer complaint resolution, technology transfer or employment generation.

HURIWA maintained that the platforms already have effective feedback mechanisms for resolving users’ complaints and routinely appear before Nigerian courts through their representatives whenever litigation arises.

The group, however, said its greatest concern was the potential for the proposed law to be used as an instrument for restricting freedom of expression.

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It argued that establishing local offices could expose global social media companies to pressure from government authorities to remove online content considered critical of those in power.

According to the rights group, the presence of social media companies in Nigeria could become an avenue for authorities to pressure them into abandoning internationally recognised digital rights standards in favour of politically motivated content moderation.

It recalled previous attempts to regulate social media in Nigeria that generated widespread concerns over possible restrictions on free speech, stressing that any legislation affecting the digital space must contain clear safeguards against abuse.

The organisation warned that the proposed law should never become “a backdoor mechanism for government surveillance, arbitrary content removal or political censorship.

 

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Nigeria Leads Africa in Online Gambling Regulation – GCI

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Nigeria has emerged as one of Africa’s most regulated online gambling markets, even as illegal operators continue to dominate the continent, according to a new report by Gaming Compliance International (GCI).

Nigeria Leads Africa in Online Gambling Regulation - GCI

The report, the first comprehensive assessment of online gambling across all 54 African countries, showed that Africa’s online gambling Gross Gaming Revenue (GGR) reached $23 billion in 2025.

However, only $5.2 billion (23 per cent) was generated by licensed operators, while $17.8 billion (77 per cent) remained in the unregulated market.

In West Africa, total online gambling revenue rose to $4.8 billion in 2025 from $4.3 billion in 2024. Of the 2025 figure, regulated operators accounted for $1.5 billion (31 per cent), while $3.3 billion (69 per cent) flowed to unlicensed platforms, highlighting the region’s persistent enforcement challenges.

Nigeria stood out as the region’s strongest performer, recording the lowest unregulated market share at 56 per cent, compared with the West African average of 69 per cent and the African average of 77 per cent.

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The study also found that online gambling participation across Africa increased from 198 million people (13 per cent of the population) in 2024 to 215 million (14 per cent) in 2025.

Despite this growth, GCI estimated that illegal operators deprived African governments of about $3.55 billion in tax revenue in 2025. The number of unlicensed gambling platforms targeting African consumers also rose to 4,129, up from 3,644 in 2024.

Commenting on the findings, Matt Holt, chief executive officer, GCI, said the report provides regulators with the first continent-wide benchmark for strengthening oversight and consumer protection.

Ismail Vali, president, GCI, urged governments to develop competitive and well-regulated markets that encourage consumers to patronise licensed operators, boost public revenue and attract greater investment.

Online gambling in Nigeria is regulated by the Nation Lottery Regulatory Commission.

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Kaspersky Warns Mobile‑data Buyers about Scammers Posing as Telecoms Operators

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At the height of the Northern Hemisphere tourist season, demand for communications and mobile Internet services rises sharply. Kaspersky’s security experts have uncovered scams that target anyone purchasing mobile connections or SIM cards worldwide.

Fraudsters create counterfeit websites that look like the portals of major regional and international telecom providers to trick users into revealing their phone numbers, personal details or banking information.

Kaspersky is sharing several examples of these fake login pages that mimic legitimate telecom operator sites and giving recommendations on how not to be deceived.

In the first case, scammers exploit the brand name of an international telecommunications company operating services in Asia, Africa and Europe. Fake authentication pages encourage users to put in their phone number and credentials.

While the first example shows the different design, the second scam site closely mimics the original log in page, making it hard for users to tell the difference and spot a fake. Entering authentication or payment data on fraudulent web sites may result in money or data loss and become a reason for more frequent spam and fraudulent calls.

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Another example is a scam page which poses as another international communications company, working in North Africa, the Middle East and Southeast Asia. In this scheme scammers encourage users to top up their mobile data/Internet plans by entering their personal information and bank cards details.

Kaspersky experts have also identified a scam when cyber criminals suggest users enter their personal data to check and pay a bill inquiry. Such scam schemes are usually aimed at gaining victims’ personal data for further fraud or account hacking and stealing money.

“Because of the active use of AI, scammers can now create fake pages with ever increasing accuracy and speed, targeting the most popular user interest areas. We constantly see scams revolving around sports events, music concerts, seasonal sales and holidays. Unfortunately, the telecoms industry is no exception.

To keep your data and money safe, be vigilant when purchasing mobile or Internet plans online. Using an eSIM – purchased through an official app – is one way to avoid fake telecom sites, as it eliminates the need to enter personal details on questionable web pages.

If you’re unsure about a site’s legitimacy, search for the brand name directly in a search engine and enable a security solution that blocks phishing links for you,” comments Tatyana Kulikova, cybersecurity expert at Kaspersky.

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