Expert Projects Nigeria’s Digital Economy Revenue To Hit $18.3bn In 2026

The managing director and chief executive officer of Arthur Stevens Asset Management Limited, Olatunde Amolegbe, has stated that, Nigeria’s digital economy revenue is projected to rise to $18.30 billion by 2026, driven by rapid technology adoption, growing internet penetration and private-sector innovation.

Amolegbe made the projection while delivering the keynote address at the Business Journal Annual Lecture 2025 in Lagos with the theme: “AI & Digital Economy: Projecting the Future of Economic Growth in Nigeria.”

He said the country’s digital economy had recorded steady growth from $5.09 billion in 2019 to $9.97 billion in 2021, adding that the sector was fast positioning Nigeria as one of Africa’s leading technology-driven markets.

“Nigeria’s digital economy is undergoing rapid transformation, positioning the country as one of Africa’s leading technology-driven markets. Global trends show the digital economy accounted for $11.5 trillion, about 15.5 per cent of global GDP in 2016, with projections to reach 25 per cent by 2026,” Amolegbe stated.

According to him, the growth trajectory aligns with the Digital Economy for Africa (DE4A) initiative, which is anchored on inclusivity, homegrown innovation, collaboration and transformational scale to support Africa’s vision of achieving full digital enablement by 2030.

Furthermore, he noted that, Nigeria currently leads Africa in start-up investments and hosts five technology unicorns – Interswitch, Flutterwave, OPay, Andela and Moniepoint – reflecting the strength of private-sector innovation.

Amolegbe disclosed that, internet penetration in the country reached about 107 million users in early 2025, driven largely by mobile-first access, which now accounts for over 90 per cent of national connectivity.

“Key sectors such as telecommunications already contribute significantly to the economy, adding 9.20 per cent to real GDP in the second quarter of 2025, while fintech and digital payments are expanding rapidly, powered by the NIP network, forward-leaning regulations and increased consumer adoption across banking channels,” he said.

Speaking on the impact of disruptive technologies, he stressed that artificial intelligence, blockchain, streaming platforms and social media were reshaping Nigeria’s socio-economic landscape.

He added, “Nigeria has demonstrated early adoption, including the launch of its central bank digital currency, the eNaira, in 2021”

The asset management chief further identified agriculture, health, education, infrastructure and energy as major economic opportunity areas still lagging in technological innovation.

“AI can improve yields, strengthen healthcare delivery, expand digital learning, support smarter infrastructure planning and accelerate Nigeria’s transition to smarter and cleaner energy systems,” Amolegbe said.

He revealed that, Nigeria’s AI-driven digital growth is supported by strong demographics, emerging policy interventions such as the National Information Technology Development Agency’s (NITDA) AI Strategy, and expanding connectivity through eight submarine cables delivering over 40 terabits per second of international bandwidth capacity.

However, he warned that, the country must urgently address governance, talent development, digital infrastructure and regional collaboration gaps to fully unlock the value of AI and the digital economy.
On infrastructure deficits, Amolegbe revealed that as of August 2025, broadband penetration stood at about 48.81 per cent, far below the 70 per cent target of the National Broadband Plan 2020–2025.

“Over 45 per cent of Nigerians live in rural areas, yet only about 23 per cent of rural communities have internet access. This digital divide is excluding millions from digital opportunities,” he said.
He also decried slow policy harmonisation and regulatory bottlenecks, noting that, although the federal government agreed in 2020 to cap Right-of-Way fees at N145 per metre, some states now charge as high as N9,477 per metre.

“This has pushed operating costs for telecom firms to a record N5.85 trillion in 2024, significantly slowing infrastructure rollout and AI adoption,” he warned.