Nigerian tech startup scene, once celebrated, now faces a harsh reckoning: funding alone cannot guarantee survival.
Over the past few years, several high-profile companies raised millions but collapsed, exposing cracks in business models and market strategies.
For example, a digital lending company, Lidya, offered instant credit to small businesses across Nigeria and Europe.
Despite raising $8.3 million, Lidya shut down in October 2025 because financial pressures overwhelmed the team.
Meanwhile, customers had complained for months about frozen accounts and failed transactions on Lidya Collect.
The situation worsened when co-founders Tunde Kehinde and Cristiano Machado, along with senior executives, left the company.
Challenges Persist In Nigerian Tech Market
Similarly, startups across fintech, edtech, and health-tech face macroeconomic instability, regulatory delays, and infrastructure gaps.
Earlier, an edtech startup, Edukoya, raised $3.5 million but closed after struggling to gain market traction.
Read Also; UBA Goes Solar, Boosting Sustainability At 25 Branches
Limited internet access, high device costs, and shrinking incomes prevented customers from paying for digital services.
In response, Edukoya returned remaining funds to investors, showing that demand does not always translate into sustainable revenue.
Likewise, a fintech platform that raised $16.5 million, Okra, quietly shut down in May 2025.
Slow product adoption and delayed open banking regulations forced the team to halt operations.
Additionally, a health-tech pioneer, 54gene, and a digital publishing platform, Okadabooks, also folded due to mismanagement and economic pressures.
Lessons For The Future
These closures highlight a hard truth: raising large capital alone cannot ensure a startup’s survival.
However, Nigeria’s tech sector retains enormous potential, provided founders build resilient models and adapt strategically to challenges.
