Can Nigeria’s Tech Sector Drive Inclusive Growth?

THE MINISTRY OF SCIENCE AND TECHNOLOGY

In recent years, the African digital economy has blossomed, transforming the continent from a mainly agrarian and resource-led economy to one of the world’s fastest-growing internet markets. Estimates indicate that by 2030, sub-Saharan Africa alone will account for 50 per cent of all new entrants to the global labour force. Showcasing the region’s unprecedented economic potential, especially in the context of Africa’s increasing digital adoption and the development of emerging technologies. This new momentum has been the object of attention from international investors, analysts and advisors—who all agree that the digital economy is crucial to future African economic growth.

The digital economy is most commonly defined as the portion of economic production derived from digital technology and businesses whose models depend on digital goods or services. In Nigeria, the digital economy has had an increasingly substantial contribution to economic growth. Since the dramatic influx of foreign investment into startups in 2022, the performance of digitally enabled business in the country has been auspicious. At the end of 2022, Lagos’ startups were estimated to be worth over $8.4billion and the Information Communication Technology (ICT) sector nationwide contributed over 19.78 per cent of Nigeria’s total GDP in 2024, an estimated 20 per cent increase from the previous year. Moreover, the sector has been projected to generate $18.3 billion by 2026, affirming the expectations of the digital economy being a key driver of growth for Nigeria and Africa at large.