Nigeria Startup Survival; Post-Series A, 2024â€“2025

Nigeria startup failure rate has become a growing concern as the country’s tech ecosystem faces rising shutdowns, funding challenges, and workforce reductions. Despite attracting significant investment in recent years, several well-funded startups closed or downsized in 2024 and the first half of 2025.

Nigeria: the most startup shutdowns of any African country

2024 SHUTDOWNS:

African startups shut down/hibernated/entered administration: 11
Of those, Nigerian: 6 (ThePeer, HerRyde, Chopnownow, Cova, BuyCoins Pro, Quizac)

SOURCE: Startup Graveyard report, via Nairametrics

H1 2025 SHUTDOWNS, FUNDED STARTUPS:

Joovlin: raised $100,000 before shutting down
Bento Africa: raised $3.1 million
Edukoya: raised $3.5 million
Heroshe + Okra: raised $16.5 million combined

SOURCE: The Guardian Nigeria, via TechCabal Insight

H1 2025 LAYOFFS, BY COUNTRY:

Nigeria: 416 employees laid off, highest in Africa
Kenya: 328 employees laid off

SOURCE: The Guardian Nigeria, via TechCabal Insight

GLOBAL BENCHMARK, FOR CONTEXT:

Startups that fail to raise Series B after Series A: 30â€“40%

SOURCE: StartupCFO, funding-stage survival analysis

In conclusion, Nigeria startup failure rate highlights the pressures facing the country’s startup ecosystem. While funding remains available, increasing shutdowns and layoffs show that raising capital alone is not enough to guarantee long-term sustainability and growth