Seven technology companies defied tough economic conditions in Nigeria to grow their combined revenue by 621.53 per cent, rising from $76.14 million in 2020 to $549.37 million in 2023.
The companies, Omniretail ($120.15 million), PalmPay ($63.90 million), Moniepoint ($264.51 million), Chams ($15.18 million), Paga ($65.97 million), Remedial Health ($16.30 million), and Termii ($3.36 million) also increased their total staff strength by 259.93 per cent, growing from 1,088 employees in 2020 to 3,916 in 2023.
These companies, all featured in the Financial Times’ Africa’s Fastest-Growing Companies 2025 list, weathered pandemic-induced turmoil, currency instability, rising inflation, and soaring operational costs.
Nigeria’s inflation surged from 12.13 per cent in January 2020 to 28.92 per cent in December 2023, deepening economic hardship for consumers and businesses. Meanwhile, the naira was one of Africa’s worst-performing currencies in 2023, losing nearly 40 per cent of its value following the Central Bank of Nigeria (CBN)’s decision to float the currency in mid-2023.
The naira closed the year at ₦907.11/$, up from ₦450/$ at the start of 2023. This currency crash inflated the operating costs of many startups and triggered a wave of layoffs across the ecosystem.
Despite raising $25 million in 2021, 54gene laid off 95 employees in August 2022. Two months later, it laid off over 100 more. Other startups such as Kuda, Quidax, Moove, Nestcoin, Lazerpay, and Vendease also cut staff between 2021 and 2023.
Ylva Lindberg, executive vice-president at Norfund, observed that the investment climate for African startups became increasingly difficult post-COVID.
Between 2019 and mid-2022, Nigerian startups raised $3.6 billion, according to ‘Africa: The Big Deal.’ But funding dropped to $1.2 billion in 2022, then plummeted to just $410 million in 2023. By 2024, startups in the country raised only $417 million, according to the African Private Capital Association (AVCA).
Nigerian resilience on display
Despite macroeconomic struggles and declining investment, Nigeria still contributed 28 (of which seven were startups) out of 130 companies on FT’s 2025 list, the second-highest after South Africa (51).
“Nigeria, one of the continent’s three biggest economies, spent 2023 in an economic crisis as prices spiralled upwards and the naira went into freefall,” FT said.
Yet, for two years in a row, seven Nigerian startups have made the list, a testament to operational focus and market fit. In 2024, Afex, Moniepoint, Paga, Omniretail, ThriveAgric, Seamlesshr, and FairMoney were on the list.
BusinessDay
