Odu’a Investment targets ₦1tn asset base by 2030
Odu’a Investment Company says it is accelerating its long-term growth strategy after reporting a strong improvement in profitability for the 2025 financial year. The investment holding company says its focus remains on portfolio optimization, strategic investments and value creation as it works towards achieving a one trillion-naira asset base by 2030. Bimbo Ashiru, Chairman of Odu’a Investment Company, joins CNBC Africa for more on the company’s growth strategy and investment outlook.
Tue, 30 Jun 2026 14:59:30 GMT
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Key Points:
- African startups raised about $1.3 billion in the first half of 2026.
- Debt has overtaken equity for the first time in African startup funding, according to Collins Nwabu.
- Nwabu said debt financing is a natural progression for startups that have matured beyond the early stage.
- Early-stage startups still typically rely on equity because they often lack profitability, track record and collateral.
- Renewable energy startups may be able to access debt earlier because they often have underlying assets.
- Equity funding has slowed both globally and locally, with foreign capital drying up and local investors unable to fully replace it.
- Investors are increasingly prioritizing startups that can demonstrate profitability or a clear path to making money.
- Regulatory readiness and compliance systems are becoming critical factors in investment decisions, especially in fintech.
- Fintech remains the dominant startup vertical, but renewable energy, electric mobility, agritech and health tech are also attracting interest.
- Nigeria’s startup ecosystem is maturing, supported by more angel investors, mentors and experienced founders.
- Funding remains available but is increasingly selective and not growing as quickly as before.
- Mergers and acquisitions are emerging as a more realistic exit route than IPOs for many startups.
- Nigeria’s stock market remains too narrow to serve as a broad-based exit platform for startups at scale.
Topics
African startupsstartup fundingdebt financingequity fundingCollins NwabuSignal Alliance Technology HoldingsNigeria startupsfintechrenewable energyventure capitalangel investorsLagos Angel Networkstartup regulationIPO exitsM&A exits
African startups raised about $1.3 billion in the first half of 2026, but the more notable shift in the market may be less about the headline figure and more about how that capital is being structured. According to Collins Nwabu, founder of Signal Alliance Technology Holdings, debt has overtaken equity for the first time, signaling a maturing startup ecosystem and a more selective investment climate across the continent
Speaking in a television interview reviewing the state of the African startup space in the first six months of the year, Nwabu said the growing use of debt financing reflects the natural evolution of companies that are moving beyond their earliest stages and beginning to resemble more mature businesses
“I think it’s a natural move,” Nwabu said, explaining that startups cannot remain in a perpetual early-stage phase. In his view, debt is generally not a practical option at inception, when founders often lack profitability, track record and operating history. But after raising initial equity and building out the business, many companies can begin to choose between debt and equity depending on their structure, cash flows and growth plans
That transition is especially relevant for businesses with underlying assets, such as renewable energy ventures, where debt may be introduced earlier in the lifecycle than in pure software startups. Nwabu noted that sectors tied to physical infrastructure or equipment can be better positioned to access debt because lenders have more tangible bases on which to underwrite risk
The shift is also being driven by a slowdown in equity capital, both globally and locally. Nwabu said the drying up of foreign capital in recent years has left a gap that local investors have not been able to fully fill at the same pace. As a result, founders and investors alike are adjusting strategies to reflect a tougher fundraising environment and a more disciplined allocation of capital
That moderation in equity appetite is reshaping what investors want to see from startups. Rather than backing companies primarily on growth narratives, many investors are now prioritizing businesses that can demonstrate resilience, operational seriousness and a path to profitability
Nwabu said investors increasingly want companies that can prove they are “making money, not just raising money.” In practical terms, that means startups are under pressure to show they can survive for longer without constant external funding, while also building sound internal structures for governance, compliance and long-term execution
Regulation has become a particularly important screening factor. In sectors such as financial technology, where African startups have historically attracted the most capital, regulatory oversight is arriving earlier and with greater force. Nwabu said founders can no longer assume they have time to scale first and address compliance later
For investors, that means a startup’s readiness for regulation is becoming a core part of the investment case. Businesses that can demonstrate strong compliance systems and preparedness for oversight are more likely to attract support, particularly in an environment where capital is selective and risk tolerance is lower
The comments point to a broader maturation in the startup ecosystem, especially in Nigeria, one of Africa’s most active innovation hubs. Nwabu said the market has developed significantly over the past decade, citing the growth of institutions such as the Lagos Angel Network and the emergence of a new generation of angel investors. Some of those new backers, he noted, come from the first wave of successful startups or from professionals who worked within that ecosystem and are now reinvesting their knowledge and capital into the next cycle.
That institutional and human capital buildup is helping deepen the market. Beyond funding, the ecosystem now offers more mentoring, stronger investor education and greater understanding of startup finance than in its earlier years. According to Nwabu, those factors are contributing to a more sophisticated operating environment for founders
Even so, the funding environment remains constrained. Nwabu described capital as still available, but growing slowly and becoming increasingly selective. He also highlighted concern around a thinning early-stage pipeline, suggesting that while the ecosystem is maturing at the later stages, the flow of fresh companies entering the investment funnel may be under pressure
On sector trends, Nwabu said fintech remains the dominant vertical in African startup funding, reflecting a decade of strong investor interest and several regional success stories that have expanded across borders. But he added that the market cannot rely on a single vertical indefinitely
Other segments have continued to attract attention at different points, including agritech, health technology and, increasingly, renewable energy. He said the structure and challenges of African power systems have created growth opportunities in renewables, which in turn have drawn investor capital. Electric vehicles, which are often grouped within the broader renewables category, are also contributing to funding momentum in that space
Still, the message to founders was clear: being labeled a startup is not itself a business model. Nwabu cautioned against treating startup status as a permanent identity rather than as an early phase in building a real company. In the current market, he suggested, seriousness of execution matters far more than branding
The discussion also turned to exits, a longstanding issue in African venture capital. While public listings are often viewed as a hallmark of ecosystem maturity, Nwabu argued that initial public offerings are only one of several possible outcomes and, in reality, not the most common route for startup investors
He said mergers and acquisitions are becoming an increasinglys the market consolidates. He pointed to examples of startups buying other startups, creating liquidity for founders and investors without requiring a stock market listing
That said, Nwabu acknowledged that Nigeria’s stock market remains relatively narrow and would need to broaden significantly to become a more effective platform for startup exits. Over time, as the market deepens, more IPOs may emerge, but for now acquisitions appear to be the more realistic and immediate route
Taken together, Nwabu’s assessment suggests African startups are entering a more disciplined phase—one where capital structure, profitability, compliance and strategic exit planning are becoming as important as top-line growth. For founders, the implication is that the era of easy equity may be fading, replaced by a market that rewards operational durability and financial maturity
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