Nigeria ICT Market Size (2024 - 2029)

Nigeria ICT Market Analysis

The Nigeria ICT Market size is estimated at USD 27.75 billion in 2024, and is expected to reach USD 64.33 billion by 2029, growing at a CAGR of 18.32% during the forecast period (2024-2029).

• The Nigerian ICT market is witnessing growth propelled by factors such as rising internet and mobile adoption, evolving government policies, the surge of fintech and e-commerce, increased foreign investments, a digital transformation accelerated by the COVID-19 pandemic, and a robust startup ecosystem.
• The Nigerian information and communications technology (ICT) market is thriving, primarily fuelled by rising internet penetration and mobile phone usage. Given its large and predominantly young population, Nigeria has experienced a notable uptick in both mobile and internet usage. This surge has, in turn, bolstered the demand for ICT services and products. Moreover, the ongoing expansion of 4G networks, coupled with the imminent introduction of 5G technology, is significantly amplifying connectivity, thereby propelling the digital services industry.
• Government initiatives and policies play a substantial influence in Nigeria's tech landscape. The government has rolled out diverse programs, focusing on enhancing digital literacy, bolstering tech startups, and upgrading ICT infrastructure. Notably, initiatives such as the National Digital Economy Policy and Strategy (NDEPS) underscore a clear goal: propelling economic diversification via ICT.
• Also, the surge in fintech and e-commerce is driving demand for ICT services. Nigeria's fintech industry is witnessing rapid growth, particularly in mobile banking, digital payments, and blockchain. Concurrently, the expanding e-commerce landscape underscores the necessity for robust ICT infrastructure and services.
• Foreign investments and partnerships play a pivotal role in the Nigerian ICT market. International tech firms and investors are increasingly injecting capital, expertise, and technology, thus catalyzing market expansion. Furthermore, a rapidly growing tech startup ecosystem is fuelling innovation and entrepreneurship, bolstering the already dynamic ICT market. Key initiatives, such as tech hubs and incubators, play a pivotal role in nurturing startups, thereby accelerating technological progress.
• In January 2024, Anambra state's government announced a collaboration with several high-tech companies based in the United States. They stated their goal as identifying opportunities for strategic partnerships, corporate alliances, technology collaborations, and innovation. The vision is to elevate Anambra as Nigeria's digital and creative hub, establish it as Africa's Silicon Valley - the Solution Innovation District, and integrate technology across all facets of life.
• In July 2024, Shell Petroleum Development Company Limited (SPDC), along with its joint venture partners, Nigerian National Petroleum Company Limited (NNPC), TotalEnergies, and Nigeria Agip Oil Company, inaugurated an advanced ICT center at Sa'adu Zungur University (formerly Bauchi State University) in Gadau, Bauchi State. This initiative marked a significant stride in bolstering education in Nigeria.
• However, the Nigerian ICT market’s growth is hampered by inadequate infrastructure, unreliable power supply, regulatory hurdles, and a lack of financing for startups. Cybersecurity threats, high operational costs, and low digital literacy rates in the population compound these challenges.

Nigeria ICT Industry Segmentation

The ICT market includes manufacturing and service enterprises. Its products mainly focus on information processing and electronic communication, covering transmission and display. This market is crucial for spearheading technological progress, elevating productivity, and improving overall output.

The Nigerian ICT market is segmented by type (hardware, software, IT services, and telecommunication services), size of the enterprise (small and medium enterprises and large enterprises), and industry vertical (BFSI, IT, and telecom, government, retail and e-commerce, manufacturing, energy and utilities, and other industry verticals). The market sizes and forecasts are provided in value terms (USD) for all the above segments.