Nigeria’s startup ecosystem is showing signs of renewed investor confidence after startups attracted $254 million in funding during the first half of 2026, according to data from Africa: The Big Deal.

The figure marks the first time Nigerian startups have surpassed the $250 million mark in a six-month period since 2022, signalling a recovery after two years of subdued venture capital activity.

Nigeria Leads Africa in Equity Funding

While Egypt recorded the highest overall startup funding on the continent at $327 million, Nigeria attracted $214 million in equity investment, ahead of Egypt’s $183 million.

Nigeria also recorded the highest number of startups raising at least $100,000 during the first six months of the year, pointing to a broader pipeline of companies attracting investor interest rather than funding being concentrated in a few large deals.

Kenya and South Africa, meanwhile, saw sharper declines. Kenyan startups raised $126 million, their weakest first-half performance since early 2021, while South Africa secured $83 million.

Early-Stage Funding Remains a Concern

Despite the recovery, the data highlights concerns over the growing concentration of funding in larger, more mature startups.

According to Africa: The Big Deal, early-stage companies continue to struggle to secure smaller seed investments, raising questions about the sustainability of Africa’s startup pipeline.

Nigeria’s return above the $250 million mark signals renewed momentum, but the next test will be whether this recovery can extend to younger startups that will drive the next generation of innovation across the country and the wider African tech ecosystem.