By. Majeed Salaam
Nigeria’s digital economy is on course for a sharp revenue expansion, with earnings projected to rise to about $18.30 billion by 2026, highlighting the sector’s growing role as a driver of economic growth and innovation.
This projection was disclosed by the Managing Director (MD)/Chief Executive Officer (CEO) of Arthur Stevens Asset Management Limited, Mr Olatunde Amolegbe, while delivering the keynote address at the Business Journal Annual Lecture 2025 held in Lagos. According to him, the country’s digital economy has moved from the margins to the mainstream in less than a decade, reflecting both local innovation and alignment with global technology trends.
Mr. Amolegbe said Nigeria’s digital economy generated about $5.09 billion in revenue in 2019, rising to $ 9.97 billion by 2021. The projected jump to $18.30 billion by 2026, he noted, highlights the speed at which digital platforms, services and infrastructure are reshaping economic activity.
Globally, the digital economy has become a major pillar of growth. Mr. Amolegbe cited estimates showing that digital activities accounted for about $11.5 trillion, or 15.5 percent of global Gross Domestic Product (GDP), in 2016. Projections indicate that this share could rise to about 25 percent by 2026, reflecting deeper integration of technology into production, trade and services.
He said Africa is positioning itself to tap into this momentum through initiatives such as the Digital Economy for Africa programme, which is built around inclusivity, local innovation, collaboration and scale. The initiative, he explained, supports the continent’s ambition of achieving full digital enablement by 2030.
Within Africa, Nigeria stands out as a leading digital market. Mr. Amolegbe noted that the country currently leads the continent in start-up investment and is home to five technology unicorns: Interswitch, Flutterwave, OPay, Andela and Moniepoint. These firms, he said, reflect the strength of private-sector innovation and the growing confidence of global investors in Nigeria’s technology ecosystem.
Internet penetration has also expanded rapidly. In early 2025, Nigeria had about 107 million internet users, driven largely by mobile-first access. Mobile connections now account for more than 90 percent of internet connectivity nationwide, lowering entry barriers and expanding access to digital services across income groups and regions.
The contribution of digital-related sectors to the broader economy is already visible. Mr. Amolegbe said telecommunications alone added about 9.20 pe cent to real GDP in the second quarter of 2025. Fintech and digital payments are also expanding at a fast pace, supported by the Nigeria Inter-Bank Settlement System network, evolving regulations and growing consumer adoption across banking channels.
He pointed out that Nigeria has shown early willingness to adopt new digital tools, citing the launch of the eNaira in 2021 as an example. While adoption has been gradual, the initiative signalled an openness to innovation within the financial system.
According to Mr. Amolegbe, the next phase of growth lies in applying digital solutions and artificial intelligence to sectors that have lagged in technology uptake. These include agriculture, healthcare, education, infrastructure and energy.
He said artificial intelligence has the potential to improve crop yields, enhance healthcare delivery, expand access to digital learning, support smarter infrastructure planning and accelerate the transition to cleaner and more efficient energy systems. Nigeria’s large and youthful population, he added, provides a strong demographic foundation for AI-driven growth.
Policy support is also beginning to take shape. Mr. Amolegbe referenced emerging interventions such as the National Information Technology Development Agency’s AI strategy, alongside expanding connectivity infrastructure. Nigeria is currently connected to eight submarine cables with a combined capacity of over 40 terabits per second, strengthening its bandwidth base and ability to support data-intensive services.
Despite the optimism, he cautioned that realising the full economic value of the digital economy and artificial intelligence will require deliberate action. Key gaps remain in governance frameworks, talent development, digital infrastructure and regional collaboration.
According to him, without stronger institutions, skilled manpower and coordinated policies, the benefits of digital growth could remain uneven or underutilised. He stressed the need for sustained investment in education and skills, clearer regulatory frameworks and stronger partnerships within Africa to scale innovation beyond national borders.
