<h1>Secrets of Nigeria's Momentum&nbsp;</h1>Context for the country’s current state and startup potentialWow! Nigeria is a big surprise for me. We arrived on a holiday weekend for Eid-el-Kabir. We experienced very little of the chaos that most people rant about their visit to Lagos. We arrived at the old terminal and while it is dated, it is fine. The road into the city&nbsp;on the&nbsp;<a href="https://en.wikipedia.org/wiki/Third_Mainland_Bridge">Third Mainland Bridge</a>&nbsp;is in good shape (currently free from construction). We are here to meet founders (<a href="https://venturelab.renewcapital.com/">apply here for Renew Venture Lab)</a>, get time with our team and understand the startup ecosystem.&nbsp;<figure class="image"><img src="/uploads/IMG_1426_2_2f4faebe67.jpg" alt="Skyline of high-rise buildings in Lagos, Nigeria, showcasing the city's modern architecture and urban landscape."></figure>Though in a bit of a downturn, Nigeria continues to be a major player in the global startup ecosystem. With its market potential, impressive capital raises, supportive policies and a mature fintech sector, the country offers fertile ground for innovation and growth.1. Massive Market Potential -&nbsp;Nigeria's population, at 219 million in 2022, is expected to nearly double to 377 million by 2050, making it the 3rd or 4th largest country in the world. Despite a GDP slowdown and challenging economic times, the IMF expects improvement, signaling a positive economic trajectory.2. Leading in Startup Investments -&nbsp;Nigeria has raised the highest amount of capital among African startup ecosystems over the past five years, totaling $4.65B. The country has attracted 29% of Africa's total startup investment since 2019 and Nigeria remains a top destination for venture capital, despite a recent slowdown. Nigeria boasts the third-highest number of startup exits in Africa since 2019, following South Africa and Egypt.3. Supportive Regulatory Environment -&nbsp;Enacted on October 19, 2022, the Nigeria Startup Act fosters a conducive environment for startups with provisions like the National Council for Digital Innovation and Entrepreneurship, a special startup legal designation and various incentives. Nigeria boasts more than 90 accelerators, incubators, coding bootcamps and tech hubs, complemented by the highest number of active angel networks on the continent.4. Maturing Fintech Sector -&nbsp;<ul><li>Fintech Dominance: Nigeria’s fintech sector constitutes one-third of Africa’s fintech market, leading the "Big Four" countries (Nigeria, South Africa, Kenya, and Egypt) with a&nbsp;<a href="https://gfmag.com/features/african-fintech-untapped-potential/#:~:text=Between%202021%20and%202023%2C%20this%20quartet%20often%20called%20the%20%E2%80%9CBig%20Four%E2%80%9D%20was%20home%20to%2077%25%20of%20the%20continent%E2%80%99s%20fintech%20companies%20and%20swallowed%20over%2090%25%20of%20funding.%20Over%20the%20same%20period%2C%20Nigeria%20topped%20all%20the%20charts%20with%20a%2032%25%20market%20share%2C%20over%20%241%20billion%20raised%20in%20venture%20capital%20and%20217%20established%20fintechs">32% market share</a> and over $1B in venture capital raised between 2021 and 2023.</li><li>Success Stories: Notable Nigerian fintech successes include Jumia, Flutterwave, Paystack, Interswitch and OPay, setting a foundation for future growth.</li><li>Second Generation Companies: New businesses are building on the infrastructure established by early successes and failures, enabling quicker launches and broader service offerings.</li></ul>5. Final thoughts…<ul><li>&nbsp;The fear of Nigeria is outdated and overhyped.&nbsp;Don’t be swayed by how outside people talk about Nigeria. Lagos is great. Get on a plane and come see.&nbsp;&nbsp;</li><li>There’s value in maturity. Fintech and the startup ecosystem in Nigeria is maturing. Sectors such as healthcare, agriculture, entertainment, etc. show great potential in Africa’s most populated country.&nbsp;</li></ul>Nigeria’s combination of market potential, investment potential, regulatory support and fintech prowess makes it an exciting hub for startups and investors alike.Go Deeper on Nigeria?<ul><li><a href="https://www.linkedin.com/posts/renew-capital_nigeria-in-12-photos-activity-7209806106326429696-o6fl?utm_source=share&amp;utm_medium=member_desktop">Lagos in 12 photos</a></li><li><a href="https://latest-api.renewcapital.com/uploads/Final_edited_Nigeria_Fact_Sheet_39dc514cf5.pdf">Nigeria’s Startup Ecosystem Factsheet</a></li><li><a href="https://www.google.com/maps/@/data=!3m1!4b1!4m2!11m1!2slcGMqW-Ny-nSfEHk1wn_-0avUL9orA">Lagos Startup Ecosystem Google Map</a></li></ul>

Discover Nigeria’s growing startup scene, its market potential, investment trends and the thriving fintech sector shaping its future.


Ecosystems

Nigeria

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Secrets of Nigeria's Momentum 

Chukwudi Ofili, Renew Capital's Legal Director and West Africa Investment Manager shares how he returned to Nigeria after a successful career in the U.S. and U.K. to use his knowledge of international corporate and investment law and make an impact in his home country.&nbsp;<h1>Homecoming: My Journey to Renew Capital</h1>As an undergraduate law student in Nigeria, I had a keen interest in corporate law, commercial law and the law of contracts. I recognized very early on the important role of corporations and the private sector in growing and sustaining a nation’s economy. Within law, my particular interest was in the advancement of emerging economies. I knew first-hand the challenges of daily survival and I beat the odds to graduate with honors from Babcock University and later on received my first bar qualification to practice law in Nigeria.&nbsp;<img src="/uploads/image_4723b7654e_2d008e21bd.png">Leaving the continent&nbsp;After five years practicing law in Nigeria, where I did mostly local and cross-border finance and investment transactions with counterpart law firms in London, New York and Dubai, I moved to the U.S. on a full graduate assistant scholarship for a Masters of Law program at the University of Georgia School of Law, and subsequently qualified as an attorney in the state of New York. While in the U.S., I was selected by The Coca-Cola Company as an extern in its legal department at its headquarters in Atlanta, Georgia. At The Coca-Cola Company, I worked with the international trade team on export, import and sanctions as they related to the company’s global operations in over 250 countries. This was my first foray into working as an in-house legal counsel with a global corporation.To further broaden the scope of my legal experience in another jurisdiction, in 2018 I took part in the highly selective&nbsp;<a href="https://www.ilfaafrica.com/ifsp">International Lawyers for Africa (ILFA) International Secondment Programme</a> in the U.K. IFSP is an annual international secondment program where lawyers practicing in various African jurisdictions are sponsored on secondment at highly reputed international law firms and corporations in London, Dubai and Paris. During this period, I worked with the finance (corporate and project finance) and private equity team of Trinity International LLP in London doing deals across Africa. It was an enriching experience that included working on international transactions as well as participating in training programs on business development and technical legal skills. The networking events provided an opportunity to meet some of the brightest minds in the international legal market in diverse practice areas.&nbsp;Investing back into NigeriaI moved back to Nigeria with the goal of leveraging my international experience and the network I’d built in the U.S. and U.K. to grow a legal practice in Nigeria. Consistent with this goal, I made partner within a year of my return (a record seven years after being called to the Nigerian bar). I continued to work with financial institutions, investors and tech-enabled businesses (which were on the rise and continue to dominate the ecosystem) in relation to fundraising – debt and equity – transactions.Notwithstanding the remarkable personal milestone and the many awards and recognitions, I was still keen on contributing my quota by providing solutions to the issues challenging the advancement of emerging economies in Africa.&nbsp;I noticed that a shift was on the horizon and I needed to satisfy my desire to be part of an initiative or organization whose activities are geared towards accelerating the growth of small and growing businesses to drive sustainable development in Africa. During my research on the emerging impact investment firms that have the potential to curate bespoke and effective products suitable for Africa, Renew Capital shone through with its unique approach of blending impact investing, management training and ecosystem building to accelerate the growth of small and growing businesses and advance the emerging economies in Africa.My role as Renew Capital’s Legal Director and West Africa Investment Manager provides an exceptional platform to contribute to Renew Capital’s vision of changing the way the world engages Africa – from a place of giving to one of investing.&nbsp;Five key lessons that I have learned in my journey with Renew Capital to date that will continue to drive my efforts and contributions as we scale our investment work across the continent are: (i) hard work is indispensable, but you must always work smart and be flexible; (ii) always strive for excellence; (iii) people skills, cultural skills and emotional intelligence are vital for success in any endeavor; (iv) developing a good network over time is invaluable; and (v) always look to add value and be solution-driven in every endeavor.There is no doubt that these are exciting times for investments in Africa and the team at Renew Capital is well-placed to contribute significantly to developing the ecosystems and infrastructure needed to make the investments possible. I am here for all of it.

Chukwudi Ofili, Renew Capital's Legal Director and West Africa Investment Manager shares how he returned to Nigeria after a successful career in the U.S. and U.K. to use his knowledge of international corporate and investment law and make an impact in his home country.



Perspectives

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Homecoming: My Journey to Renew Capital

<h1 style="text-align:center;">A Dreamer from Nigeria&nbsp;</h1>"Dreams are extremely important. You can do it only if you can imagine it." This was said during a training, in a small lecture room at the University of Lagos, in Nigeria, which introduced me to the world of investments and finance. At the time, I was just an ambitious young student from the Obafemi Awolowo University, Ile-Ife, Nigeria, devoting a 6-month period to a 130-mile, biweekly interstate trip, to learn everything required to break into the world of finance. I had just returned from my first trip abroad, which doubled as my first ever work/volunteering experience, and I was extremely fired up to secure my next adventure. Over the next few years, I held roles in New Delhi, London, Lagos, and Accra, and my next stop was Addis Ababa! This was in no way a coincidence, and I'll tell you why!<figure class="image"><img src="/uploads/Screen_Shot_2021_09_08_at_10_55_19_AM_db24d3cc6f.png"></figure>I grew up in the small town of Ijede, Lagos State, Nigeria, and luckily, I was exposed early on to the importance of education, and its capacity to be the wings to fly to the topmost height and achieve the loftiest goals. Private equity had always been a dream for me, fueled by the infamous achievements of Wall Street and the role of FDIs in Africa’s development, but I was never oblivious to the difficulties in landing a PE role. I had taken up five different roles, in five different cities, over the course of five years in preparation: business analysis, sales, project finance, investment finance and management consulting. The business analysis and sales roles were to acquire client relationship management skills after which I moved on to the investment finance role to build core skills needed to thrive in finance, and finally a role in management consulting to understand the strategic and operational side of building a business. During these five years, I developed an uncanny level of strength, learned the ability to convert setbacks into learning opportunities and the cross-cultural experience allowed me to truly appreciate the value of diversity. In December 2020, I received an offer to join RENEW, and it was the perfect way to wrap up a year that tested every form of resilience in me.My time at RENEW has been nothing short of challenging and exciting. I have had the opportunity to meet truly talented and amazing individuals. The team’s diversity (a team of about 24 people from 10 different nationalities), exposes me to unique perspectives and contributions. I currently have the privilege of working closely with the investment team and the SGS team, supporting the investment process alongside Diana, Tamiru, Lincoln, Mary and Dagi, while learning from amazing coaches like JC and Pranay.At RENEW, every day is different, and this is what makes it so exciting to work here as there is always something to look forward to. The exemplary leadership style of Matt and Laura has made working here such a dream and the culture is simply sensational. Everyone is given an equal level of respect irrespective of their level or position and this creates a very healthy working environment as every team member knows that their views will always be respected and acknowledged.RENEW’s vision is to be the most successful SME investment firm in Africa, and we have assembled not just an army of dreamers, but dreamers with a track record of success, and this fuels my excitement for the future of the firm and the journey ahead. From my experience, I’m confident that if you can dream it, then you can do it!