TLP Advisory’s 10-year anniversary report reveals that Nigeria’s startup ecosystem is grappling with major structural challenges. Only 15% of startups make more than ₦250 million ($149,000) annually, while nearly half earn less than ₦10 million ($6,000). Over 51% of startups report being unprofitable, with funding constraints, high operational costs, and regulatory hurdles cited as major barriers. Currency devaluation has worsened financial strain, especially for startups earning in naira but raising in dollars.
Despite these issues, angel investors (mainly friends and family) fund 43% of startups, surpassing venture capital (24%) and grants (15%). The report also highlights talent shortages, infrastructure gaps, and the need for stronger intra-ecosystem collaboration. It calls for better implementation of the Nigerian Startup Act, targeted regulatory reforms, and deeper support systems to help local ventures scale and thrive.