Nigeria’s Information and Communications Technology (ICT) sector has rapidly evolved from a supporting player to a key driver of economic transformation, connecting millions of users, revolutionizing financial transactions, and reshaping business and daily life. Sustained policy support and private investment are expected to position the sector as a major contributor to GDP growth in 2026, Lucas Ajanaku reports.

The ICT sector has already demonstrated strong momentum. In the fourth quarter of 2024, it contributed 17.7% of real GDP, led by mobile and broadband services. By Q1 2025, the sector recorded 31.63% year-on-year nominal growth, with its GDP share exceeding 10% in both real and nominal terms. Growth has been driven by increasing data consumption, expanded broadband access, and the integration of digital services across households and businesses.

Economist Dr. Ayo Teriba, CEO of Economic Associates, predicts that the ICT sector will surpass all budget projections, drawing parallels to the economic boom of 2006. With policy consistency, he forecasts inflation falling to single digits, supporting further economic growth.

Key drivers of growth include infrastructure investments, rising smartphone penetration, and government frameworks like the National Digital Economy Policy and Strategy (NDEPS 2020–2030). The sector’s contribution to GDP is projected to rise to 20–22% in 2026, further diversifying the economy beyond oil.

President of the Association of Telecommunications Companies of Nigeria (ATCON), Tony Emoekpere, attributes improved performance to policy responsiveness. Meanwhile, the Nigerian Communications Commission (NCC)’s approval of a capped 50% tariff adjustment in January 2025 has allowed telecom operators to invest in infrastructure, though consumers continue to demand improved quality of service (QoS).

Broadband penetration reached 50.58% in late 2025, approaching the 70% target for 2025 under the National Broadband Plan. Programs such as the Three Million Technical Talent (3MTT) initiative aim to train young Nigerians in AI, cybersecurity, fintech, and other digital skills, fostering a tech-savvy workforce to drive innovation and growth.

The Nigerian startup ecosystem is also set to flourish, with projected $10 billion in cumulative VC funding, solidifying Nigeria’s position as Africa’s top tech hub, particularly in healthtech, edtech, and logistics. Digital finance adoption is rising, with over 80% of adults using wallets, real-time payments, and mobile services, promoting financial inclusion.

Infrastructure challenges remain, including rural broadband coverage at 23%, power reliability issues, and skill mismatches. To address these, initiatives like Project BRIDGE and the National AI Strategy are underway. The government also plans 7,000 new telecom towers to achieve 98% nationwide coverage, alongside zero-rated Right-of-Way policies in 12 states.

Minister of Communications, Innovation, and Digital Economy, Bosun Tijani, highlighted Nigeria’s achievements in AI readiness, including funding for 55 academic researchers and 10 AI/blockchain startups, and the launch of the AI Collective platform in partnership with global tech giants. He emphasized that digital expansion could yield 2.5% GDP growth with just a 10% increase in connectivity hubs, and that $2 billion in investment is earmarked to ensure affordable, high-quality nationwide connectivity.

Tijani projected that the ICT sector’s contribution to GDP could rise from 16% to 22%, creating long-term economic benefits. He stressed that these reforms are designed for sustained impact, bridging the gap between government services and citizens while positioning Nigeria as a global leader in the digital economy.