Nigeria’s startup funding crashes 96% in July as big investors stay away

Nigerian startups saw their funding crash by 96% in July 2026 as deal activity dried up in the month leading to annual summer activities.

Startups in West Africa’s largest economy raised a combined $4.9 million across six disclosed deals in July 2026, marking one of the country’s weakest monthly funding performances in recent periods.

The funding was spread across startups operating in Education & Jobs, Agriculture & Food, and Deeptech, with investors largely backing early-stage ventures and providing selective debt financing to agribusinesses.

The July figure placed Nigeria fifth among African startup destinations during the month, behind South Africa, Kenya, Zambia, and Egypt, accounting for 4.79% of the continent’s total startup funding of $102.2 million.

According to Nairametrics analysis on H1 funding data, July funding figures represent a significant cooling from the pace seen in H1 2026, when Nigerian startups attracted $184.7 million across 51 deals, with the top 10 deals contributing $132.2 million (71.58%) of all disclosed funding.

Compared with the corresponding period of 2025, Nigerian startups raised $178.3 million across 63 deals, representing a 3.59% year-on-year increase in funding value, even as deal volume declined by about 19%.

The contrast suggests investors became considerably more selective at the start of the second half of the year, favoring smaller early-stage rounds over the larger growth financings that dominated H1.

What the data is saying

Compared with the same period last year, funding into Nigerian startups recorded a substantial decline.

• In July 2025, Nigerian startups raised $7.9 million across 13 deals, with one transaction having an undisclosed amount. By contrast, funding in July 2026 fell to $4.9 million across six deals, representing a 38% year-on-year decline in funding value, with total capital raised dropping by $3 million.
• The decline was also accompanied by a sharp reduction in deal activity. The number of disclosed deals fell from 13 transactions in July 2025 to six in July 2026, highlighting a more selective funding market.

The slowdown becomes even more pronounced when compared with the previous month.

• In June 2026, Nigerian startups raised $115.2 million across 18 deals, excluding one merger and acquisition transaction whose value was undisclosed.
• Against that backdrop, July’s $4.9 million represents a staggering 95.7% month-on-month decline, equivalent to a funding reduction of $110.3 million.
• Deal volume also contracted sharply from 18 deals in June to six deals in July.

Nigerian startup funding deals in July 2026

Education technology startup Codar emerged as the month’s largest disclosed fundraising deal after securing $1.5 million in a Seed round. While the participating investors were not disclosed, the funding is expected to support the company’s expansion in digital skills development and technology education.

• Agritech startup Biochar Industrial Group matched Codar’s funding size, raising $1.5 million in a pre-Seed round backed by Breega, Catalyst Fund, Mulago Foundation, and angel investors. The investment highlights continued investor confidence in climate-smart agricultural solutions capable of improving productivity and sustainability.
• Agriculture-focused Noma Service raised $700,000 through a debt financing facility provided by Sahel Capital, reinforcing the growing role of alternative financing in supporting agribusiness expansion.
• Edtech platform Growwr secured $500,000 in a Venture Round led by Launch Africa, Microtraction, and LvlUp Ventures, while agritech startup Cropsafe raised $400,000 in debt financing from Miller Center Capital to scale its operations.

Completing the list was deeptech startup UduTech, which attracted $300,000 in a Venture Round backed by Launch Africa.

More Insight

The six disclosed funding rounds reflected a diversified investment pattern across Nigeria’s innovation ecosystem.

Agriculture & Food accounted for the largest share of funding, attracting $2.6 million, representing approximately 53.1% of total disclosed capital.

• The sector’s performance was driven by investments in Biochar Industrial Group, Noma Service, and Cropsafe, underscoring continued investor confidence in agritech solutions that address food security and climate resilience.
• Education & Jobs followed closely with $2.0 million, equivalent to about 40.8% of total funding, supported by Codar and Growwr’s fundraising rounds.
• Deeptech accounted for the remaining $300,000, representing roughly 6.1% of the month’s funding through UduTech’s venture financing.

For the deal type breakdown, funding activity in July was spread across four financing structures.

• Seed and Pre-Seed funding jointly contributed $3.0 million, accounting for more than 61% of total disclosed funding, highlighting investors’ continued preference for backing startups at the earliest stages of growth.
• Debt financing represented $1.1 million, or approximately 22.4%, reflecting increasing use of structured financing, particularly among agriculture-focused businesses.
• Venture rounds contributed $0.8 million, representing about 16.3% of total funding.

What you should know

July’s data shows a sharp slowdown in Nigeria’s startup funding. Disclosed investment fell to $4.9 million, down 95.7% from $115.2 million in June 2026, mainly due to the absence of large growth-stage deals rather than a collapse in investor interest.

Year-on-year, funding dropped 38.0% from $7.9 million in July 2025, while deal count fell from 13 to six, reflecting a more selective investment market.

Early-stage funding remained prominent, with seed and pre-seed rounds accounting for most disclosed capital, while debt financing stayed relevant in agriculture. This suggests investors still back startups tackling education, food security, and productivity challenges, but with greater discipline.

Overall, July 2026 reflected a more cautious funding landscape, with capital still flowing to practical solutions in education, agriculture, and deep technology.