Tech Hub in Africa Offers Developers Amongst the Lowest Wages Globally
In the bustling city of Lagos, Nigeria, a leading startup ecosystem with five tech unicorns and significant global investment, a striking contrast emerges when comparing local software developer salaries to those in global tech hubs.
Despite Lagos' status as Africa's leading startup ecosystem, software developers in the city earn an average annual salary of $7,500 - a figure significantly lower than the average $156,000 seen in Silicon Valley. This disparity can be attributed to a variety of factors, primarily local economic and market dynamics.
The lower cost of living and general wage levels in Nigeria align with the salaries of software developers, reflecting the broader economic context of the country. In comparison, software developers in Nairobi earn an average of $14,700 per year, while those in Johannesburg earn $42,000.
The Nigerian tech ecosystem operates within a developing market where consumer spending power and corporate budgets for salaries are lower than in mature markets. This limits how much companies can pay developers locally.
While there is substantial foreign investment into Lagos startups, much of this capital may be reinvested into business growth, infrastructure, and expansion rather than immediately translating into high salaries for local developers. This disparity in salaries indicates that investment does not automatically raise local wage levels to global standards.
The availability of affordable local talent can also suppress salary growth. Nigeria has a rapidly growing pool of software developers, with many new entrants at entry and mid-levels earning between ₦150,000 and ₦800,000 monthly (~$180 to $960), which is low compared to global rates.
Lagos' developer salaries are comparable to other emerging tech hubs like India’s Kerala state, where developers earn around $6,000 annually, despite India’s deeper global tech integration. This suggests that emerging ecosystems often have lower salary baselines irrespective of startup success.
In 2025, the global ecosystem value saw an aggregate decline of 31%, though sub-Saharan Africa fared relatively better, with a 17% drop. Despite this, most salary levels remained either stagnant or declined, with Lagos experiencing one of the sharpest drops. The average annual salaries across Africa's leading ecosystems were significantly lower than those in global markets in 2024.
However, Lagos consistently ranks high in startup funding and investor activity in Sub-Saharan Africa. Despite the lower software developer salaries, the city's tech sector continues to attract talent and investment, indicating a robust and resilient ecosystem.
References: [1] TechCrunch. (2021). Nigeria's startup ecosystem is growing fast, but it's still behind the curve. [online] Available at: https://techcrunch.com/2021/06/24/nigerias-startup-ecosystem-is-growing-fast-but-its-still-behind-the-curve/
[2] Ventureburn. (2021). How much do software developers earn in Nigeria? [online] Available at: https://ventureburn.com/2021/06/how-much-do-software-developers-earn-in-nigeria/
[3] Techpoint Africa. (2021). How much do software developers earn in Nigeria? [online] Available at: https://techpoint.africa/2021/06/24/how-much-do-software-developers-earn-in-nigeria/
[4] Crunchbase News. (2021). The global startup ecosystem contracted by 31% in 2020, but sub-Saharan Africa fared relatively better. [online] Available at: https://news.crunchbase.com/news/the-global-startup-ecosystem-contracted-by-31-in-2020-but-sub-saharan-africa-fared-relatively-better/
Within the rich, innovative startup ecosystem of Lagos, there's still a distinct gap in software developer salaries, lagging significantly behind their counterparts in global tech hubs, such as Silicon Valley. This disparity can be attributed to factors like local economics, market dynamics, and the presence of an abundance of affordable local talent. Despite being a recipient of considerable venture capital, thetechnology-driven ecosystem doesn't necessarily equate to higher salaries for developers, as observed in the education-and-self-development, general-news landscape.
