Nigeria’s digital economy revenue is projected to reach $18.30bn by 2026, asset managers said, underscoring the growing role of technology, fintech, and artificial intelligence in driving economic growth.
Information and communications technology underpins this expansion, providing the networks and platforms that enable fintech, e-commerce, AI, and other digital services.
Data from the National Bureau of Statistics show that in the ICT sector, telecommunications and information services contributed N7.47tn to GDP in Q3 2025, up 1.22 per cent from N7.38tn a year earlier.
The digital economy revenue projection was made by the Managing Director and Chief Executive Officer of Arthur Stevens Asset Management Limited, Olatunde Amolegbe, while delivering the keynote address at the Business Journal Annual Lecture 2025 held in Lagos recently. The event was themed “AI & Digital Economy: Projecting the Future of Economic Growth in Nigeria.”
Amolegbe said Nigeria’s digital economy has expanded rapidly in recent years, rising from $5.09bn in 2019 to $9.97bn in 2021, as mobile connectivity, fintech adoption, and private-sector innovation accelerated.
“Nigeria’s digital economy is undergoing rapid transformation, positioning the country as one of Africa’s leading technology-driven markets,” he said, noting that global estimates show the digital economy accounted for 15.5 per cent of global GDP in 2016 and could rise to 25 per cent by 2026.
He added that Nigeria currently leads Africa in startup investment and hosts five unicorns – Interswitch, Flutterwave, OPay, Andela, and Moniepoint, reflecting strong private-sector innovation. Internet penetration, he said, reached about 107 million users in early 2025, driven largely by mobile-first access, which now accounts for more than 90 per cent of nationwide connectivity.
According to Amolegbe, the telecommunications sector alone contributed 9.20 per cent to real Gross Domestic Product in the second quarter of 2025, while fintech and digital payments continue to expand, supported by the Nigeria Inter-Bank Settlement System, evolving regulations, and rising consumer adoption.
Speaking on artificial intelligence, he said technologies such as AI, blockchain, streaming platforms, and social media are reshaping Nigeria’s socio-economic landscape, citing the launch of the eNaira in 2021 as evidence of early adoption.
He identified agriculture, healthcare, education, infrastructure, and energy as sectors offering major opportunities for AI-driven growth but still lagging in technology adoption.
“AI can improve yields, strengthen healthcare delivery, expand digital learning, support smarter infrastructure planning, and accelerate Nigeria’s transition to cleaner and smarter energy systems,” Amolegbe said.
However, he warned that structural challenges could slow progress. Broadband penetration stood at about 48.81 per cent as of August 2025, below the 70 per cent target of the National Broadband Plan, while only about 23 per cent of rural communities currently have internet access. He also cited regulatory bottlenecks, including high right-of-way charges imposed by some states, which have increased operating costs for telecom operators.
Despite the challenges, Amolegbe said Nigeria’s youthful population, expanding connectivity, policy initiatives such as NITDA’s AI Strategy, and international bandwidth from eight submarine cables with over 40 Tbps capacity provide a strong foundation for growth.
“Nigeria stands at a pivotal moment where digital transformation, powered by AI and disruptive technologies, can accelerate long-term economic growth and global competitiveness,” he said, adding that coordinated policies, infrastructure investment, and talent development would be critical to unlocking the full value of the digital economy.
