Global Index Tips Lagos as Africa’s Start-Up Capital

Iyke Bede

A new global study has identified Lagos as one of Africa’s most active start-up cities, pointing to its high concentration of founders, deep markets and growing sector range, while warning that infrastructure, regulation and quality of life will determine how far the city can compete globally.

The ‘Start-Up Friendly Cities Index 2026’, published on January 3, 2026 and curated by Multipolitan, compares cities around the world on how attractive they are to founders, investors and innovators. The report focuses on how start-ups experience a city day to day, and how well urban systems support innovation over time. In its findings, Lagos is described as one of Africa’s most dynamic centres of venture-backed innovation.

The Index notes that Lagos performs strongly on founder density, market depth and sector diversity. It says the city already behaves like a high-potential global hub, but one that is still early in its scaling journey. Thousands of early-stage companies, particularly in fintech, now use Lagos as a launchpad for building scalable products.

“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, and that energy is increasingly being matched by ecosystem players who want to build around it,” Executive Partner at Multipolitan, Chee Okebalama noted.

The report also points to the conditions under which many Lagos-based founders operate. According to the analysis, entrepreneurs are building world-class solutions in finance, e-commerce and digital infrastructure, often in resource-constrained environments. Gaps in power supply, transport and broadband access mean founders frequently have to design their businesses around fragility.

“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 Group Head of Market Development at Multipolitan, Nicholas Michael.

While the report says investor confidence in African technology remains resilient, it notes that regulatory volatility continues to influence how capital is allocated. Areas such as foreign exchange policy, fintech licensing and digital assets still affect decisions between Lagos, other African cities and global hubs.

The Index suggests that Lagos and Nigeria can improve their standing through clearer regulatory roadmaps, more consistent sector rulebooks and wider use of time-bound sandboxes instead of abrupt policy shifts. It also highlights the need to simplify capital movement for both local and international investors, alongside clearer and more predictable investment rules.

The report also identifies liveability as a strategic issue. It says Lagos can strengthen its appeal by investing in developer-friendly live-work districts, improving mobility, healthcare and housing, and creating targeted visa and residency pathways for founders and tech workers across Africa who want to build from Nigeria.

“The ambition of Lagosian entrepreneurs is unparalleled. What matters now is how quickly the city can reduce friction for talent, investors and operators. Lagos already behaves like a start-up capital. Full global recognition will come as its infrastructure and governance catch up with its ambition,” Okebalama added.

The Index concludes that Lagos’s entrepreneurial pull is strong and difficult to ignore. It says the city’s eventual place among global innovation hubs will depend less on a single breakout success and more on whether innovation, capital and policy can move at the same pace as its entrepreneurial class.