Startups across Nigeria’s South-South and South-East regions raised $10.23 million in disclosed funding between 2023 and 2025, a 29.6% increase from $7.89 million recorded in the previous period. These figures are from the 2025 South-South & South-East Startup Ecosystem & State of Digital Jobs Report, published by #StartupSouth.
The report tracked startup activity, funding flows, digital jobs, and talent distribution across 11 states in both regions over the two-year period. Startup count across the ecosystem rose by 54.3% to 304 companies during the same period. The report also mapped 98 Enterprise Support Organisations, 234 digital talents, and 29 employers operating across the region.
Despite the headline growth, the funding picture is heavily distorted as only six startups account for 86.6% of all disclosed capital raised in the region. The median raise across the broader ecosystem sits at just $500, indicating that most founders are technically funded but remain severely undercapitalised in practice.
For the first time in the report’s dataset, the South-East overtook the South-South in overall startup share. Port Harcourt retains its position as the region’s largest hub by company count, while Enugu has emerged as the leader in disclosed capital raised.
Abia recorded the strongest startup share growth across the entire South-South and South-East, climbing 4.1 percentage points between 2023 and 2025. This growth was driven by improving governance sentiment, infrastructure developments, and renewed commercial momentum in Aba. Delta also emerged as a rising frontier ecosystem alongside Abia.
More than half of startups in the region now report some form of external funding. However, the concentration of capital at the top means the majority of the ecosystem is growing in headcount without a matching increase in financial firepower.
Nearly 70% of digital talents surveyed across the region are either unemployed or freelancing. Of those working remotely, roughly two-thirds are employed by companies outside the region, primarily in Lagos and international markets.
The region is, in effect, producing talent it cannot absorb. Sustained investment in digital skills development has not been matched by a corresponding growth in local employer density or hiring capacity.
Uche Aniche, Convener of #StartupSouth, stated that the data confirms that frontier innovation ecosystems in Southern Nigeria are no longer theoretical. He also warned that the structural gaps holding them back remain largely unaddressed.
