Digital infrastructure powering Nigeria’s economic growth in 2025

Aerial view of data centre infrastructure in Lagos, Nigeria, symbolising digital transformation.

Digital infrastructure is the backbone of Nigeria’s ambitions to lead Africa’s technology-powered future. As the world accelerates toward a digitally integrated global economy, Nigeria’s ability to compete and thrive hinges on its investments in connectivity.

This is no longer just a technical requirement—it is a national development imperative, central to achieving inclusive economic growth, quality public services, and global competitiveness.


The Current Landscape: Progress and Persistent Gaps

In the past decade, Nigeria has made notable strides:

  • Broadband access has grown, reaching urban centres and state capitals with faster, more stable internet.
  • Mobile phone penetration now exceeds 90%, opening channels for service delivery across sectors.
  • Investments in data centres, undersea cables, and fibre optics are rising, supported by both local innovators and global tech players.

Yet, beneath these gains lie significant disparities:

  • Urban-Rural Divide: Cities like Lagos and Abuja enjoy 4G and emerging 5G networks, while rural communities remain disconnected or underserved, widening the digital exclusion gap.
  • Affordability Crisis: Millions still find mobile data plans and smart devices too expensive. For many, internet access is a luxury, not a utility.
  • Unreliable Infrastructure: Recurrent power outages, limited energy infrastructure, and ageing telecom equipment hamper digital service delivery and slow down innovation.

Why This Matters: From GDP to Social Transformation

Digital connectivity is not an isolated sector—it is a horizontal enabler of national growth:

  • Economic Growth: The World Bank estimates that a 10% increase in broadband penetration can drive up to 1.5% GDP growth. In a digitally powered economy, productivity gains ripple across agriculture, trade, manufacturing, and services.
  • Job Creation: ICT infrastructure stimulates employment in construction, civil works, telecommunications, software development, digital logistics, and customer support—sectors critical to Nigeria’s youth-heavy labour market.
  • Public Services: From mobile health to e-learning platforms and e-government services, dependable internet access improves efficiency, transparency, and citizen engagement.
  • Investment Magnet: Countries with reliable digital infrastructure are more attractive to global investors, tech companies, and startup incubators, fostering a thriving innovation ecosystem.

Strategic Developments: Seeds of a Digital Future

Nigeria’s digital economy agenda is backed by key initiatives:

  • The National Broadband Plan (2020–2025) outlines a clear target: 70% broadband penetration by 2025. It emphasises inclusion, affordability, and rural outreach.
  • Undersea Cable Projects, including Google’s Equiano and MainOne’s expansion, will increase bandwidth, reduce latency, and lower data costs, especially for coastal and inland regions.
  • 5G Rollout: Licensed providers are already piloting 5G in major cities, with the potential to unlock smart city frameworks, IoT applications, remote healthcare, and AI-driven productivity.
  • Public-Private Partnerships (PPPs): Co-financed infrastructure projects have proven successful in reducing deployment risks and enabling cost-effective expansion.

Policy and Investment Priorities: Pathways to Acceleration

For Policymakers:

  • Regulatory Support: Enable infrastructure sharing, simplify licensing, and implement open-access policies to reduce market entry barriers.
  • Investment Incentives: Offer tax holidays, grants, and duty exemptions for connectivity projects, especially in underserved regions.
  • Digital Integration in Planning: Align digital infrastructure targets with national development blueprints and state-level budgets.
  • Energy Innovation: Promote solar-powered base stations and hybrid energy models to overcome power supply challenges in remote areas.

For Investors:

  • Focus on Underserved Markets: Rural broadband, edge computing hubs, and mini data centres represent untapped high-growth markets.
  • Leverage PPPs: Collaborate with telcos and government agencies to finance infrastructure projects with long-term returns.
  • ESG-Driven Investments: Align capital with environmental and social goals—bridging the digital divide while delivering impact.
  • Adopt Scalable Models: Infrastructure-as-a-Service (IaaS), tower sharing, and capacity leasing reduce CAPEX and maximise ROI.

The Backbone of Nigeria’s Digital Renaissance

Digital infrastructure is not just a component of the economy—it is its nervous system. It connects farmers to markets, students to classrooms, hospitals to patients, and businesses to the world. Its impact is transformative and far-reaching.

To Policymakers: The time for incremental change is over. Bold, inclusive, and future-focused policies must anchor Nigeria’s digital journey.
To Investors: The returns are not just financial—they are generational. Your investment builds the bridges to Nigeria’s digital future.

Let us build not just networks, but pathways to opportunity, gateways to innovation, and a platform for national transformation.

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The Future Is Digital: Nigeria’s Fintech Surge and the New Era of Payments in 2025

In today’s fintech landscape, one thing is clear: the future is digital.

The future is digital, and Nigeria is rapidly proving that with its booming fintech ecosystem.

Fintech innovations, mobile money adoption, and digital lending are reshaping how Nigerians access and use financial services.

As we head into 2025, a new era of payments is emerging, driven by technology, regulation, and the urgent need for inclusion.

Market Expansion and Digital Payment Adoption

The adoption of digital payments in Nigeria has experienced remarkable growth, with penetration rates increasing from 23% to 46% over the past eight years. This surge is indicative of a broader shift towards cashless transactions, driven by the proliferation of mobile devices and internet connectivity.

The ₦71.5 trillion processed in mobile transactions in 2024 is further evidence that the future is digital.

Technological Innovations Shaping Financial Services

Artificial Intelligence (AI) Integration

Fintech companies are increasingly leveraging AI to enhance customer experiences and operational efficiency. AI algorithms facilitate personalised financial services, including tailored investment advice and customised loan offerings, based on individual user behaviour and preferences.

Additionally, AI-driven risk management systems analyse transaction data in real-time, effectively identifying and mitigating potential fraudulent activities.

This technological integration not only bolsters security but also promotes financial inclusion by extending credit access to individuals without traditional credit histories. 

Rise of Contactless Payments

The adoption of contactless payment methods is gaining momentum, with fintech platforms moving towards biometric authentication, such as facial and fingerprint recognition, to streamline payment processes.

This shift aligns with consumer preferences for convenient and secure transaction methods, reducing reliance on physical payment cards and point-of-sale (POS) terminals.

The trend towards device-less payments is expected to become more prevalent, offering users seamless financial interactions through mobile applications. 

Digital Lending and Buy Now, Pay Later (BNPL) Services

The demand for credit services is being met through innovative digital lending platforms and BNPL options. These services utilise AI-enhanced analytics to make data-driven lending decisions, extending credit to a broader segment of the population.

The expansion of agent banking networks further supports financial inclusion, providing essential services to rural and underserved communities, thereby bridging the gap between urban and rural financial access. 

Regulatory Developments and Strategic Initiatives

Introduction of AfriGo Pay

In a move to bolster the domestic payment infrastructure, the Central Bank of Nigeria (CBN), in collaboration with the Nigeria Inter-Bank Settlement System (NIBSS), launched AfriGo Pay in January 2023.

As Africa’s first national domestic card scheme, AfriGo Pay aims to enhance the cashless economy and promote financial inclusion by offering additional options alongside international card schemes like Mastercard, Visa, and Verve.

The initiative is part of a broader strategy to provide innovative, cost-effective, and competitive payment solutions within the Nigerian market. eNaira: Nigeria’s Digital Currency Initiative

Government-backed initiatives like eNaira and AfriGo Pay confirm that the future is digital, even from a policy standpoint.

Launched in October 2021, the eNaira represents Nigeria’s foray into central bank digital currencies, positioning the naira for the digital economy. While initial adoption rates were modest, with fewer than 0.5% of Nigerians utilising the eNaira within the first year, efforts continue to address challenges such as technological infrastructure, electricity reliability, and public trust.

As more Nigerians adopt mobile wallets and digital banking, it’s evident that the future is digital, and it’s inclusive.

Ongoing initiatives aim to enhance the eNaira’s utility, aiming to increase its adoption and integration into the nation’s financial system.

Future Outlook: Trends to Watch

Expansion of Digital Remittances

Africa is witnessing a significant surge in digital remittance services, with startups like Nala and Flutterwave leading the charge to reduce transaction costs and enhance service delivery.

Despite these advancements, Sub-Saharan Africa remains the most expensive region for remittance transfers, with average fees around 8.37%, exceeding the global target of 3% set for 2030.

Addressing these costs presents a substantial opportunity to enhance the efficiency of remittance flows into the continent. 

Launch of Pan-African Currency Exchange Platform

The Pan-African Payments and Settlement System (PAPSS), supported by 15 central banks, is set to introduce an African currency market platform. This initiative aims to facilitate direct currency exchanges between African nations, bypassing traditional intermediaries like the US dollar.

The platform is expected to enhance trade efficiency, mitigate currency volatility, and strengthen economic ties across the continent. 

Conclusion

With innovation outpacing traditional systems, there’s no denying that the future is digital in Nigeria.

Stakeholders are presented with a dynamic landscape rich with opportunities to engage in a rapidly evolving market that promises substantial returns and contributes to the broader goal of financial inclusion and economic development.

In summary, the future is digital, and Nigeria’s fintech ecosystem is well-positioned to lead the continent forward.

Contact Cloud Technology Hub for a strategy consultation, or subscribe to our newsletter for more tips.