Nigeria’s digital economy is on course to generate about $18.3 billion in revenue by 2026, signalling a decisive shift in the country’s dependence on oil, industry leaders have said.
The projection, unveiled in Lagos at the Business Journal Yearly Lecture 2025, pointed to a near fourfold jump from $5.09 billion in 2019 and almost double the $9.97 billion recorded in 2021, highlighting the speed at which digital activity is reshaping Africa’s largest economy.
Speaking at the programme, the Managing Director, Arthur Stevens Asset Management Limited, Olatunde Amolegbe, said Nigeria’s digital economy had moved from the fringes of policy discourse to the centre of national development, driven by fintech innovation, expanding telecommunications infrastructure and rising internet adoption.
Presenting a paper titled: ‘Al and Digital Economy: Projecting the Future of Economic Growth in Nigeria’, Amolegbe said Nigeria was increasingly aligned with global digital trends, where technology-driven activities are expected to account for about a quarter of global GDP by 2026, up from 15.5 per cent in 2016.
Within Africa, he said Nigeria had emerged as a bellwether, leading the continent’s start-up investment and hosting five unicorns- Interswitch, Flutterwave, Opay, Andela, and Moniepoint.
Internet usage has climbed to 107 million users as of early 2025, largely on the back of mobile-first connectivity, which now accounts for more than 90 per cent of access nationwide.
Telecommunications alone contributed about 9.2 per cent of real gross domestic product (GDP) in the second quarter of 2025, while fintech and digital payments continued to scale rapidly, supported by improving regulation, wider consumer trust and platforms such as the Nigeria Inter-Bank Settlement System (NIBSS).
The launch of the eNaira in 2021, Amolegbe noted, underscored Nigeria’s early willingness to experiment with sovereign digital innovation.
Beyond payments and telecoms, he said, artificial intelligence, blockchain, streaming platforms and social media were redefining productivity and social interaction, with vast untapped potential in agriculture, healthcare, education, infrastructure and energy.
According to him, AI could raise farm yields, widen access to healthcare, deepen digital learning and support smarter infrastructure and cleaner energy systems.
Yet, despite the momentum, he warned that structural constraints threaten to slow progress.
Broadband penetration remains at about 48.8 per cent, far below the 70 per cent national target, while rural connectivity gaps persist.
Policy inconsistency, rising right–of–way charges in some states, and low automation in manufacturing and agriculture were identified as critical bottlenecks.
Their concerns were echoed by the President of the Association of Telecommunications Companies of Nigeria (ATCON), Tony Emoekpere, who said Nigeria’s demographic advantage could easily translate into continental dominance if regulatory frictions are resolved.
“Nigeria has the market size and population to lead Africa’s digital economy, but inconsistent regulations and high operation costs are slowing infrastructure rollout,” Emoekpere said.
He added that harmonised policies would accelerate broadband expansion and unlock emerging technologies such as AI.
The Director-General of the Lagos Chamber of Commerce and Industry (LCCI), Chinyere Almona, described the digital economy as indispensable to Nigeria’s long-term competitiveness, urging authorities to prioritise regulatory certainty and skills development.
