Nigeria’s digital economy revenue is projected to rise sharply to $18.3 billion by 2026, reflecting accelerating growth driven by fintech expansion, rising internet penetration and increased adoption of artificial intelligence.
The Managing Director and Chief Executive Officer of Arthur Stevens Asset Management Limited, Olatunde Amolegbe made the projection while delivering the keynote address at the Business Journal Annual Lecture 2025 held in Lagos.
Amolegbe noted that the forecast represents a significant increase from $5.09 billion in 2019 and $9.97 billion in 2021, underscoring the pace at which Nigeria’s technology ecosystem is expanding.
Speaking on the theme, “AI and Digital Economy: Projecting the Future of Economic Growth in Nigeria,” Amolegbe said Nigeria is rapidly positioning itself as one of Africa’s leading technology-driven markets, supported by favourable demographics, private sector innovation and expanding digital infrastructure.
He cited global data showing that the digital economy accounted for $11.5 trillion, or 15.5 per cent of global GDP, in 2016, with projections indicating it could reach 25 per cent of global GDP by 2026.
According to him, “Nigeria’s growth trajectory aligns with the Digital Economy for Africa (DE4A) initiative, which targets full digital enablement across the continent by 2030.”
Amolegbe disclosed that Nigeria currently leads Africa in start-up investment and hosts five unicorns, namely Interswitch, Flutterwave, OPay, Andela and Moniepoint, highlighting strong private sector participation in digital innovation.
He said that internet penetration climbed to about 107 million users in early 2025, driven largely by mobile-first connectivity, which now accounts for over 90 per cent of internet access nationwide.
He further noted that key sectors are already contributing meaningfully to economic growth.
Amolegbe said the telecommunications sector accounted for 9.20 per cent of real Gross Domestic Product (GDP) in the second quarter of 2025, while fintech and digital payment services continue to expand rapidly, driven by the Nigeria Inter-Bank Settlement System (NIBSS), evolving regulations, and growing consumer adoption of electronic payment channels.
According to the asset management chief, emerging technologies such as artificial intelligence, blockchain, streaming platforms and social media are reshaping Nigeria’s socio-economic landscape, citing the launch of the eNaira in 2021 as an example of early adoption of digital innovation.
He identified agriculture, healthcare, education, infrastructure and energy as sectors with significant untapped digital potential, noting that the application of AI could improve productivity, enhance service delivery and accelerate the country’s transition to smarter and cleaner energy systems.
Amolegbe said; “Nigeria’s push towards AI-driven growth is being supported by policy initiatives such as NITDA’s Artificial Intelligence Strategy and expanding international bandwidth, with eight submarine cables providing over 40 terabits per second (Tbps) of capacity.”
However, he cautioned that fully unlocking the economic value of the digital economy would require stronger governance frameworks, deeper talent development, sustained investment in digital infrastructure and enhanced regional collaboration.
NP