Lagos, Nigeria’s commercial centre, is solidifying its position as Africa’s top startup hub, according to the Multipolitan Index 2026.
The Multipolitan, in its Startup Friendly Cities Index 2026, named Lagos as Africa’s most startup-friendly city, thanks to its high founder density, market size, and sector diversity, particularly in fintech.
The index noted that Lagos has evolved into a defining symbol of the continent’s tech narrative with thousands of early-stage companies, particularly in fintech, leveraging the city as a launchpad for scalable solutions.
The index revealed that Lagos excels in founder density, market depth, and sector diversity, and already behaves like a high-potential global city that is still in its early stages of scaling.
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“Lagos has a scale, urgency and ingenuity that are very hard to replicate. It has the raw entrepreneurial energy to be Africa’s start-up capital,” said Chee Okebalama, executive partner at Multipolitan.
“And that energy is increasingly being matched by ecosystem players who want to build around it,” she said.
Okebalama explained that the research shows that founders in Lagos are building world-class solutions in finance, e-commerce and digital infrastructure, often in resource-constrained environments.
Additionally, the index provided an empirical view of what makes an urban environment work for start-ups, linking founders’ everyday experiences to the deeper systems that sustain innovation.
It explained that the structural gaps in power, transport and broadband access mean entrepreneurs frequently have to design around fragility, she noted.
The index highlighted that with targeted upgrades to infrastructure, regulatory clarity and urban liveability, the city is well placed to convert its entrepreneurial momentum into a level of competitiveness on par with leading global hubs.
“The next phase is not about whether Lagos can produce more unicorns. It is about whether the city can match its entrepreneurial firepower with the infrastructure, regulatory confidence and quality of life needed for sustained innovation,” said Nicholas Michael, group head of market development at Multipolitan.
Investor confidence in African tech remains resilient. However, regulatory volatility in areas such as foreign exchange, fintech licensing and digital assets still shapes capital allocation between Lagos, other African and global hubs.
The report suggested that Lagos and Nigeria can tilt this balance in their favour through more transparent regulatory roadmaps, consistent sector rulebooks and wider use of time-bound sandboxes instead of abrupt policy shifts.
“Simplifying capital movement for local and global investors, alongside clearer and more predictable investment rules, will further support the city’s ambitions,” the index advised.
The Start-Up Friendly Cities Index 2026 also underlines the importance of liveability as a strategic advantage. Lagos can deepen its appeal by investing in developer-friendly live-work districts, strengthening mobility, healthcare and housing systems, and creating targeted visa and residency pathways for founders and tech workers across Africa and to come and build from Nigeria.
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“The ambition of Lagosian entrepreneurs is unparalleled. What matters now is how quickly the city can reduce friction for talent, investors and operators,” Okebalama said.
“Lagos already behaves like a start-up capital. Full global recognition will come as its infrastructure and governance catch up with its ambition,” she added.
The index noted that Lagos’s entrepreneurial gravity is too strong to ignore. Its eventual position in the global hierarchy of innovation hubs will depend less on a single breakout success and more on whether the city can create a coordinated environment where innovation, capital and policy move at the same pace as its entrepreneurial class.
