Nigeria’s digital market to hit $22.8bn in 2029 – Report
Nigeria is rapidly solidifying its position as a leader in Africa’s Fourth Industrial Revolution, with its digital transformation market projected to rise to $22.82 billion by 2029, according to a new report by Rome Business School Nigeria.
The report, released on Monday, highlights Nigeria’s burgeoning adoption of Artificial Intelligence, the Internet of Things, and robust broadband infrastructure, positioning the nation at the forefront of the continent’s digital evolution.
Driving this transformative growth are the finance and telecommunications sectors.
The latest report reveals that approximately 32% of financial service providers in Nigeria now leverage AI for critical functions such as credit scoring, fraud detection, and enhanced customer engagement.
Fintech giants like Paystack and Flutterwave are also revolutionising digital payments, further fueling the nation’s digital economy.
Expanded broadband connectivity has been instrumental in fostering e-commerce and entrepreneurial opportunities, significantly strengthening Nigeria’s digital ecosystem.
The Information and Communication Technology sector remains a pivotal contributor to economic growth, accounting for a substantial 29% of Africa’s internet usage.
The sector’s contribution to Nigeria’s Gross Domestic Product has also seen a significant increase, rising from 8.1% in 2020 to 10.3% in 2022, reaching a valuation of $55.4 billion.
“The digital transformation market in Nigeria is projected to grow from $9.61 billion in 2024 to $22.82 billion by 2029, showcasing the rapid advancement and potential of the sector,” the report said
In the statement issued to Punch Online, the Founder and Dean of Rome Business School, Antonio Ragusa, said “Digital transformation is a catalyst for economic growth.”
He emphasised the importance of stakeholders leveraging Nigeria’s youthful population and vibrant tech ecosystem to further accelerate digital progress.
The latest report also highlighted the transformative impact of digitalization on traditional sectors like agriculture and manufacturing. RusselSmith, for instance, has emerged as the first 3D industrial manufacturer to produce anti-corrosion components for Nigeria’s upstream petroleum sector, showcasing the potential for innovation across various industries.
Despite these impressive advancements, the report acknowledges persistent challenges, including regulatory inconsistencies, infrastructure gaps, and a shortage of skilled digital talent.
The General Manager of Rome Business School Nigeria, Olakunle Asunmo, underscored the need for policy stability and continuous skills development to sustain the current momentum.
“To truly capitalise on this digital surge, we need to ensure policy stability and prioritize skills development,” Asunmo said in the statement.
The Rome Business School report concludes with a call for “increased investment, innovation, and collaboration to solidify Nigeria’s position as a global digital leader. It urges stakeholders to work together to overcome existing challenges and fully harness the potential of the nation’s digital economy.”
