REPORT | ~90% of 2025 Web3 Funding in Nigeria was Grant-Based

Nigerian Web3 startups raised $43 million in 2025, more than double the previous year, signalling a tentative recovery in funding, though investment remains concentrated in early-stage deals and stablecoin-driven financial services, according to a new report.

The report showed that about 89% of total funding, roughly $38 million, flowed into finance-related products tied to stablecoin use cases such as payments and fiat-crypto exchanges, 5x YoY, underscoring a narrow sector focus within the ecosystem.

Despite the rebound in capital, deal structures pointed to a market still in its infancy. Nigerian Web3 startups recorded 82 deals in 2025, up from 72 a year earlier, but 73 of those were grant-based, with only one Series A transaction completed during the year.

Early-stage rounds dominated activity, with most funding concentrated at pre-seed and seed levels highlighting limited availability of growth capital needed to scale companies.

Sector performance remained uneven.

• Infrastructure-focused startups, including those building stablecoin rails and interoperability tools, raised just $4 million, down from $11 million in 2024

• Web3 entertainment segments such as gaming and social applications attracted just $1 million, marking a 50% decline year-on-year

The funding trends reflect a broader shift in Nigeria’s crypto market from speculative trading toward utility-driven use cases, particularly cross-border payments powered by stablecoins. On-chain transaction value rose 56% year-on-year to $92 billion while stablecoin deposits surged significantly over the past several years, the report said.

Analysts say the concentration of capital and reliance on grants suggest global venture capital interest has yet to fully return even as startup formation accelerates and Nigeria maintains its position as one of Africa’s most active Web3 hubs.

Stay tuned to BitKE for the latest crypto updates across Africa.

Join our WhatsApp channel here.

Follow us on X for the latest posts and updates

Join and interact with our Telegram community

_________________________________________