Nigeria’s digital economy is expanding rapidly, but major structural gaps continue to limit its impact. Reports on connectivity, cybersecurity, and digital infrastructure show that while internet coverage has reached over 90 per cent in some areas and 5G networks are gradually expanding, actual usage remains low due to affordability challenges, limited device ownership, and uneven rural access. Feature phones still dominate mobile usage in sub-Saharan Africa, reflecting the income barrier that keeps millions offline despite available infrastructure.
At the same time, cybersecurity risks are increasing across critical sectors. The Nigerian Communications Commission warned that thousands of cyberattacks and fibre cuts were recorded in 2025, alongside rising threats from AI-powered attacks, ransomware, and data breaches. With most national data still hosted outside Africa, concerns over data sovereignty and system vulnerability continue to grow, especially as more services move online.
Across industries, experts are also pointing to a widening gap between digital ambition and real-world execution. Although most organisations prioritise digital ecosystems, only a small fraction are effectively sharing and integrating data. Legacy systems, weak governance, and poor coordination between stakeholders continue to slow progress, limiting the value of investments in digital transformation.
In response, regulators and institutions are introducing reforms aimed at improving efficiency and trust in the system. These include the rollout of Nigeria’s e-invoicing framework to improve tax compliance and transparency, foreign exchange market reforms designed to create clearer rules and reduce uncertainty, and new cybersecurity frameworks to strengthen resilience across the telecoms sector.
Despite these efforts, stakeholders say the core challenge remains the same: infrastructure is improving, but affordability, security, and execution capacity are still lagging behind. Without stronger coordination and broader inclusion, experts warn that the digital divide could widen further even as technology adoption accelerates.
