Nigerian Startups Founded by Migrants Attracted Over $800 Million in 2022, Says VP Shettima

 

Abuja, Nigeria – Nigeria's Vice President, Senator Kashim Shettima, revealed that Nigerian startups established by migrants raised more than $800 million in investments in 2022. This significant achievement was disclosed during the 10th Annual National Migration Dialogue, held at the Presidential Villa in Abuja, on Monday. The event, themed "Beyond Borders: Celebrating Migrants’ Legacy, Protecting Their Rights," underscored the essential role of Nigerian migrants in both national and global development.

Shettima highlighted that Nigerian migrants contribute substantially to the country's economy, not only through diaspora remittances but also through entrepreneurial ventures abroad. "In 2022 alone, Nigerian startups founded by migrants attracted over $800 million in investments," Shettima said, stressing the immense potential that these individuals bring to the global stage.

The Vice President also emphasized Nigeria's leadership in diaspora remittances, noting that the country accounted for 64% of all remittances in West Africa, with $21.9 billion sent home by Nigerians abroad in 2022. These remittances are crucial in supporting the Nigerian economy, contributing significantly to the nation's foreign exchange reserves and funding critical domestic needs.

Nigerian Migrants: More Than Just Financial Contributions

In addition to their financial support, Nigerian migrants have also excelled in various global sectors, from technology and medicine to sports and the creative arts. "Beyond financial remittances, our migrants have become global ambassadors," Shettima added, acknowledging the diverse accomplishments of Nigerians living abroad.

The Vice President also pointed out that migration is a two-way phenomenon for Nigeria, which serves as both a source and destination for migrants. Nigeria currently hosts over 1.3 million international migrants, underlining the nation's role as a regional migration hub.

Addressing Irregular Migration Challenges

Despite these contributions, Shettima also acknowledged the persistent challenges of irregular migration, which continue to affect many Nigerians. In 2024 alone, approximately 10,000 Nigerians were detained for migration offenses, many of whom have since been deported and reintegrated back into Nigeria. The Vice President stressed the vulnerabilities associated with irregular migration and the need for greater efforts to tackle this issue.

"These figures highlight the challenges and vulnerabilities that come with migration," Shettima said, calling for a coordinated approach to both manage these challenges and leverage migration for the country's economic growth and development.

Nigeria's Decline in Startup Funding

While the Vice President celebrated the success of Nigerian startups abroad, the country's position in terms of startup funding within Africa has faced some setbacks. According to recent reports, Kenya overtook Nigeria as the leading African country in startup funding in 2023. Kenyan startups raised about $800 million in 2023, surpassing Nigeria, which saw a decline in funding, dropping to 4th place among the continent's "Big Four" economies—Nigeria, Kenya, Egypt, and South Africa.

In 2023, Nigerian startups raised considerably less compared to their East African counterparts, with Kenya taking the lead. The overall funding for African startups in 2023 dropped by 39% year-on-year, highlighting the challenging economic conditions and a tighter investment environment across the continent.

What’s Next for Nigerian Startups?

Despite Nigeria’s slip in rankings, the country's startups, particularly those founded by migrants, continue to play a vital role in the global entrepreneurial ecosystem. With Nigeria's large diaspora community and the emerging potential of tech hubs in cities like Lagos, the future for Nigerian startups remains promising, especially as they attract international investment and contribute to the growth of the global economy.

While irregular migration remains a challenge, Shettima's remarks underscore the government's commitment to addressing migration issues and creating an environment that fosters economic growth both within Nigeria and for its citizens abroad. The contributions of Nigerian migrants, combined with ongoing efforts to create a more inclusive and sustainable migration policy, could help position Nigeria as a key player in both regional and global markets.

Key Insights:

• $800 million in investments was attracted by Nigerian migrant-founded startups in 2022.
• Nigeria accounts for 64% of diaspora remittances in West Africa, totaling $21.9 billion in 2022.
• Despite challenges, Nigerian migrants continue to excel globally in various fields.
• Irregular migration remains a persistent issue, with 10,000 Nigerians detained and deported in 2024 alone.
• Kenya overtook Nigeria in startup funding in 2023, with a notable decline in Nigeria's position in the funding rankings.

In conclusion, Nigeria’s relationship with migration is multifaceted—spanning economic contributions, innovation, and the challenges of managing irregular migration. While there are setbacks, the continued success of Nigerian migrants globally highlights the country’s resilience and potential for future growth.