Nigeria’s dynamic technology startup landscape is currently facing a significant downturn, with numerous well-funded, venture-backed companies shutting down despite securing substantial investment capital.
This development highlights the vulnerabilities within Africa’s largest startup hub, revealing that many business models, which flourished during periods of abundant funding, are now struggling to survive amid reduced investment flows and challenging economic conditions.
A recent example is Lidya, a fintech firm known for offering quick loans to small and medium enterprises, which has ceased operations, underscoring the difficulties faced by digital lenders in the current market environment.