Nigeria’s technology industry is gradually evolving into a multi-city ecosystem, with Northern Nigeria emerging as one of the country’s fastest-growing innovation frontiers. While Lagos remains the dominant destination for startup funding and venture capital, cities such as Abuja, Kano, Kaduna and Jos are strengthening their technology ecosystems through public investment, innovation hubs, universities and a growing community of entrepreneurs.
The shift reflects a broader decentralisation of Nigeria’s digital economy as founders outside Lagos tap underserved markets and benefit from relatively lower operating costs.
Kano has become one of Northern Nigeria’s most active startup centres. According to the Northern Nigeria Tech Ecosystem Report 2023, which surveyed 188 startups, Kano accounted for about 25.8% of startups in the region, ahead of Abuja and Kaduna. The state’s ecosystem has expanded rapidly, supported by digital transformation initiatives, innovation hubs and entrepreneurship programmes, alongside federal efforts to promote digital skills and innovation.
Abuja remains Nigeria’s second-largest technology ecosystem after Lagos, benefiting from its proximity to policymakers, investors and development partners. The city’s growing profile received a boost after defence technology startup Terra Industries (formerly Terrahaptix) raised a total of $34 million in funding led by Silicon Valley venture capital firm Lux Capital, lifting its valuation above $100 million. Abuja has also strengthened access to early-stage capital through initiatives such as the Abuja Angel Network and international startup competitions.
Kaduna is positioning itself as a regional innovation and advanced manufacturing hub. Technology hubs including CoLab and Grey Hub continue to support startup incubation and digital entrepreneurship, while the National Agency for Science and Engineering Infrastructure (NASENI) is developing a drone assembly and manufacturing facility in the state to expand Nigeria’s capabilities in unmanned aerial vehicle technology. The Development Bank of Nigeria has also supported entrepreneurs across Northern Nigeria through its Innovation Hub Acceleration Programme.
Jos has established itself as an important talent development centre. NHub, one of Northern Nigeria’s pioneering innovation hubs, has trained hundreds of software developers and supported startups, with many graduates securing opportunities in Nigeria and abroad.
Despite the progress, challenges remain. Limited access to venture capital, unreliable electricity, inadequate broadband infrastructure and lower investor visibility continue to constrain startup growth across much of the region.
However, financing opportunities are gradually improving. The Federal Government’s Investment in Digital and Creative Enterprises (iDICE) programme, backed by the African Development Bank and development partners, aims to strengthen Nigeria’s innovation ecosystem by supporting startups, expanding digital skills and establishing innovation hubs nationwide.
As investment and entrepreneurial activity spread beyond Lagos, Northern Nigeria is becoming an increasingly important contributor to Nigeria’s digital economy, with the potential to produce the country’s next generation of high-growth technology companies.
