Nigerian start-ups have received a whopping 71.2 per cent of their investments to foreign investors, according to a report.
Majority of the funds do not come from the Diaspora community unfortunately as outsiders continue to scout and rip Nigeria off.
Techpoint Africa’s annual Nigerian start-up report revealed that foreign investors contributed $85.8m out of the approximately $120.6m that Nigerian start-ups raised throughout the year 2020.
The report however indicated that funding dropped last year and was only 22.73 per cent of the $377.4m recorded in 2019 figure and 48.12 per cent of the $178.3m recorded in 2018. The decline could be attributed to the economic challenges resulting from the COVID-19 pandemic.
The share of foreign deals in 2020 was 37, local number of deals was 14 and both foreign and local share of deals was nine.
Foreign deals share shows a 30.1 per cent decline from 53 deals recorded in the previous year, while local deals share in 2020 had 80.3 per cent decrease from 111 deals recorded in 2019.
The report revealed that African governments have been reluctant and lazy in taking advantage of the youthfulness of its population and their innovations as foreign investments made up the larger part of Africa’s start-up funding, as disclosed in its West Africa Decade Report.
A total of 81.3 per cent of investments in West African start-ups that had raised at least $1m in the last ten years came from outside the continent, according to the report.©Standard Gazette, 2021. Unauthorized use and/or duplication of this material without express and written permission from this site’s publisher is strictly prohibited. Excerpts and links may be used, provided that full and clear credit is given to Standard Gazette with appropriate and specific direction to the original content.