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Exploring the Potential of Digital Transformation on the Nigerian Economy

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President Muhammadu Buhari
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The concept of a digital economy is essentially a new economy stream that brings with it new momentum.

 

As ICT technologies develop rapidly and become integrated into more and more verticals, the digital economy is becoming the fastest growing, most innovative, and widest-reaching economy.

 

Unleashing the potential of economic development, it drives the transformation of traditional industries, fuels sustainable economic development, improves social management and services, and fosters innovation.

 

Accenture forecast that optimizing the use of digital skills and technologies could generate US$2 trillion of additional global economic output by 2020.

 

The study also revealed the vast role digital technologies play in economic activity, with more than one-fifth of the world’s GDP attributable to digital skills, capital, goods, and services.

 

According to Tencent’s 2017 report China’s Internet + Digital Economy, China’s digital economy created about 2.8 million jobs in 2016, accounting for 21% of the total new jobs.

 

Nigeria is undoubtedly one of Africa’s most promising nations with over 190million people, this country remains the largest mobile market on the continent.

 

Over the past years the country has witnessed a surge and growth of e-commerce businesses, an increase in small to large scale enterprise and not to mention a ton of mobile based services that meet a wide range of needs for people every day.

 

A majority of these innovations and establishment are riding on the back of Technology and Connectivity.

 

National Bureau of Statistics (NBS) predicted that the e-commerce sector is expected to contribute about 10 per cent, a projected N10trillion, to the nation’s Gross Domestic Product (GDP) by 2018.

 

The e-Commerce market in Nigeria is currently worth around $13billion (about N4.01trillion), according to a report by London based Economist Intelligence Unit (EIU), Nigeria’s e-commerce market value could rise to $50billion (N15.45trillion) over the next decade.

 

However Africa and specifically in Nigeria face challenges stemming from insufficient ICT infrastructure, to the lack of unskilled human capital and most importantly firm government push on ICT and digital transformation.

 

Specifically Nigeria as a country needs to focus on its infrastructure establishment. Reliable and affordable broadband for businesses and individuals are critical for future stages of ICT use.

 

While it is evident that there has been some considerable level of development and adoption of technology and telecommunication, however to build and sustain a viably digital economy in Nigeria and to fully reap the benefit from it, there are critical areas that need attending to.

 

Connecting the Unconnected

The relevance of the connectivity cannot be over emphasized. Taking communication sites for instance, Indonesia, a country with similar population with Nigeria, has more network base station sites than Nigeria.

 

According to ICT development Index 2017 by ITU, there is a need to increase network sites in Nigeria like the one in Indonesia, both urban and rural areas, not to mention that more than half of Nigeria’s 180 million population living in rural areas have much poorer mobile signal coverage.

 

It is important to note that with the increasing rate of mobile internet penetration in Nigeria, 23million of the Nigerian population still have no telecommunication access largely in the rural communities.

 

Is some rural villages in Ogun State bordering with the Republic of Benin, residents would have to go over the border to Benin Republic just make a phone call, which would be International call as the telecommunication provider was not Nigerian based. Worse case they would need to commute to the next village to make local calls via local operators.

Huawei-Logo.jpg

Huawei has started a series of rural telecommunication access initiatives with some of operators across Africa, leveraging our Rural Star solution.

 

The solution is specifically designed for remote parts of the country that do not currently have mobile network coverage, our goal is to bridge the digital divide in remote parts of Africa, especially in Nigeria.

 

The solution leverages cutting edge technology innovation by reducing the total cost of building and running a mobile network site by up to 70 per cent.

 

There is an increase in the MBB subscription rate with affordability being improved over the year. However, there are limited metro and access fiber network in Nigeria 11% proportion is far lower than other Africa countries Affecting user experience and broadband development.

 

The growth in internet/mobile adoption amongst Nigerians present huge opportunities for businesses that take advantage of new technologies such as social media and e-commerce.

 

The annual research project called the Global Connectivity Index (GCI). Nigeria ranks 70th in GCI 2018. The report shows that as an early starter (countries in the early stage of ICT infrastructure build-out), Nigeria needs to focus on increasing ICT infrastructure and policies to give more people access to the digital world.

 

The report finds that a 1 point increase in GCI score is equivalent to 1) a 2.1% increase in competitiveness 2) 2.2% increase in national innovation, and 3) a 2.3% increase in productivity.

 

Reaping the benefits of a digital economy starts with having reliable mobile networks and internet access to connect the unconnected. Internet access itself is not enough though.

 

Huawei believes that in Africa connectivity brought by the network of communication towers and fiber is like the “soil”, which provides the fertile ground for important value-adding crops, which in this case are services including Safe City, E-government, E-education, E-health, E-agriculture etc. that enhance public social services delivery and better allocation of resources.

 

Public sector as an Enabler and Private Sector as an Innovator

To achieve digital economy, we need joint efforts from both private and public sectors, with the right programs and policies the Nigerian governments can make digital transformation a reality much seamless for citizens and businesses.

 

According to OECD’s Digital Economy Outlook 2016, by the end of 2015, 80% of OECD member states had developed national strategies or departmental policies and built strategic frameworks for the digital economy. Nigeria is not left behind in building a framework to boost its digital transformation;

“SMART Digital Nigeria” has been proposed as the required panacea to bridge the uneven growth presently dominating the ICT sector. The plan observed that Nigeria’s longstanding focus mostly over the last seventeen years on Information Technology infrastructure development and also other areas in the industry including promotion of ICT local content, ICT deployment in Government and expansion of ICT access to Nigerians by deepening the penetration of broadband to ensure that information and knowledge is not only secured but enhances national security and creating of more jobs for as well as unleash the creativity of our teeming youth for overall national development.

 

To make a lasting impact with this program, there are three levels that should be looked into: Public investment and support for private investment in ICT infrastructure, particularly data centers and broadband connectivity, through Infrastructure sharing, investment-friendly regulations, Taxation Policies that fosters investment, spectrum policies that aims to improve coverage, and cutting of red tap to ease the investment e.g. in approval of Right of Ways. Policies that support the advancement of digital transformation of industries.

 

Support for online services, including ecommerce, internet banking, e-government, e-health, and e-learning. These steps will not only enhance the availability and accessibility of internet and other serviced based on ICT infrastructure, but also can be interpreted directly into affordability of those services to bridge the digital gap and achieve digital inclusiveness.

 

Take Infrastructure sharing for an instance, research shows that Infrastructure sharing can impact the reduction of capital investment substantially with on-going operating cost reductions between 50% and 80% depending on market structure and the sharing model implemented. Opening up public infrastructure such as lamppost, Electric Pole, government buildings, billboards has an important role to play in limiting the cost and increasing speed and smoothness of network expansion projects.

 

These efforts will enable private sectors deploy and scale network access much faster and seamless across and the country and ultimately increasing connectivity access and reach to more citizens much faster.

 

A look ahead

Information technology is not the ultimate solution for economic growth, however ICT serves as a tool that enables digital transformation and provides newer and smarter way of communicating and transacting.

 

For Nigeria Unlocking the dividends of digital economy becomes imperative in the face of dwindling oil revenue with increasingly pressure on the economy.

 

An effective blend of broadband access coupled with effective and reliable internet connectivity will also go a long way in fast tracking business productivity and thereby promote digitalized business behavior which in reality is the bone of future economy.

 


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Nigeria CommunicationsWeek believes that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. So since 2007, we have devoted our energy to independent reportage of technology and how they affect lives.

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Kaspersky Detected More than 92,000 Malware Attacks Disguised as AI Services in Four Months

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In conjunction with its participation at the AI Everything Kenya x GITEX Kenya conference, global cybersecurity company, Kaspersky, has revealed that from January to the beginning of May 2026, Kaspersky solutions detected more than 92,000 attacks of malware and potentially unwanted applications worldwide disguised as popular Artificial Intelligence (AI) agents and AI services.

Cybercriminals exploited trusted brands to lure victims into downloading malicious files, with fake ChatGPT applications accounting for 49% of all detected attacks, while Claude and Gemini each represented 18%.

Since the beginning of the year, Kaspersky researchers have identified more than 15,000 samples of malware masquerading as agentic AI software, including fake versions of rapidly growing tools such as OpenClaw. Among these samples were banking trojans, spyware, exploits, and malware downloaders capable of deploying additional malicious payloads.

In May 2026, Kaspersky Global Research and Analysis Team also uncovered a new campaign linked to the Silver Fox advanced persistent threat (APT) group. In this operation, attackers distributed fake Claude AI applications for Windows, macOS, and Linux, targeting users seeking access to AI tools. Once launched, the malicious installers silently deployed malware onto victims’ devices, enabling long-term access to compromised systems and sensitive information.

“The introduction of AI agents into enterprise environments changes the nature of trust itself. Every automated action becomes part of a wider chain of systems and data exchanges, which means security is no longer just about protecting endpoints – it is about controlling how intelligence, permissions, and decisions propagate across interconnected AI-driven processes,” explains Dmitry Galov, Head of Russia and CIS units at Kaspersky Global Research and Analysis Team.

“Users should also keep in mind that attackers are actively leveraging popular AI services as a lure to steal victims’ confidential data and funds. Taking into account the evolution of modern threat landscape, reliable security solutions are becoming an essential part of digital life.”

Kaspersky recommends organisations to protect corporate infrastructure against a wide range of threats by using solutions such as from the Kaspersky Next product line that provide real-time protection, threat visibility, investigation and advanced response capabilities.

If a company lacks cybersecurity personnel, it can adopt managed security services such as Kaspersky Managed Detection and Response (MDR) and / or Incident Response that covers the entire incident management cycle – from threat identification to continuous protection and remediation.

Organisations should also equip their cybersecurity team with in-depth visibility into cyber threats targeting the organisation. For example, the latest Kaspersky Threat Intelligence delivers rich, contextual insights throughout the entire incident management cycle, enabling timely identification of cyber risks. AI-powered open-source intelligence search enhances cybersecurity teams’ ability to uncover and respond to emerging threats with greater precision.

Individual users are advised to stick to AI services from reputable companies with strong privacy and security track records. Avoid using anonymous or unknown bots that could be designed to harvest data. Malicious or fake AI bots may attempt to extract personal information to commit fraud, phishing, or blackmail. To protect your data, use a security solution to prevent visits to phishing sites and stop malware installation.

 


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Identy.io, US Firm Eyes 1Bn Biometric Verification Transactions in Nigeria

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Identy.io, a United States-based cybersecurity and mobile biometric authentication company, has announced plans to process one billion biometric identity verification transactions in Nigeria within the next few years as digital banking adoption continues to expand across the country.

Identy.io, US Firm Eyes 1Bn Biometric Verification Transactions in Nigeria

The company said increasing demand for secure digital identity systems within the banking, telecommunications, and public sectors is creating fresh opportunities for biometric authentication solutions, especially as financial institutions strengthen compliance and anti-fraud measures.

Speaking at an executive roundtable on mobile biometric innovation in Lagos, Jesus Aragon, chief executive officer, Identy.io, said Nigeria’s fast-growing digital financial services sector requires more reliable and scalable identity verification technology to support customer onboarding and transaction security.

He explained that the company’s mobile biometric solution enables users to verify their identities directly from their smartphones without depending on physical scanners, external devices, or centralized processing infrastructure.

The technology supports fingerprint and facial verification while functioning effectively in areas with limited internet connectivity.

According to Aragon, the platform is designed to integrate with Nigeria’s Bank Verification Number (BVN) system and the Nigeria Inter-Bank Settlement System (NIBSS), allowing financial institutions to carry out secure remote identity authentication.

He stated that the company’s technology includes liveness detection and deepfake identification features capable of detecting fake fingerprints, manipulated images, masks, and other fraudulent identity attempts during digital onboarding processes.

The Identy.io boss added that the company’s offline verification capability distinguishes it from several existing solutions in the market, noting that biometric authentication can be completed entirely on users’ mobile devices without constant internet access.

He further disclosed that biometric information captured during authentication remains on the user’s device instead of being transferred to external servers or centralized databases, reducing exposure to data breaches and cyberattacks.

Industry stakeholders at the roundtable also discussed the increasing pressure on Nigerian banks to improve customer verification processes following stricter regulatory directives by the Central Bank of Nigeria on Know Your Customer (KYC) compliance and fraud prevention.

Participants noted that agency banking operations in rural and low-connectivity locations continue to face security and onboarding challenges, creating demand for stronger and more flexible authentication systems.

Aragon maintained that biometric authentication could significantly reduce fraud associated with passwords and one-time passwords (OTPs), stressing that biometrics provide stronger identity assurance for financial transactions.

The company also confirmed that it has expanded its footprint across Africa, Latin America, and the United States, with operational presence already established in Nigeria and Kenya.

Aragon expressed confidence that Nigeria’s banking and telecom industries would generate massive biometric verification volumes in the coming years as financial inclusion and digital payment systems continue to deepen nationwide.


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TD Africa, HPE Drive Conversations on the Future of Intelligent Networking

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TD Africa, in collaboration with Hewlett Packard Enterprise (HPE) Operated by Selectium, hosted a high-level partner engagement event on May 14, 2026, focused on emerging trends shaping the future of enterprise networking and infrastructure transformation.

TD Africa, HPE Drive Conversations on the Future of Intelligent Networking

TD Africa

The engagement brought together key partners to explore how organisations can build smarter, faster, and more secure network infrastructures capable of supporting today’s rapidly evolving digital economy. Central to the discussions was the growing relevance of WiFi 7 and the shift from traditional networking models to intelligent, AI-driven infrastructure ecosystems.

As businesses continue to accelerate digital transformation, conversations at the event centred on a critical question: Is your infrastructure ready for the speed of transformation? From edge-to-cloud connectivity and IoT integration to AI-enabled networking and advanced security frameworks, the session highlighted the increasing demand for agile, scalable, and resilient enterprise solutions.

Speaking at the event, Dr. Ifee Kojo, Country Manager, HPE Operated by Selectium, highlighted HPE’s commitment to helping organisations modernise their infrastructure and navigate the future of connectivity. “HPE is driving transformation across the entire technology ecosystem, from the data centre to the edge, from IoT to AI-powered connectivity.

“Our focus is on helping businesses strengthen security, improve scalability, and build intelligent infrastructures that support innovation and growth.

“Through our strong partner TD Africa, we can extend these solutions more effectively into the market, ensuring organisations have access to the right technologies needed to compete and thrive in a rapidly evolving digital world,” she said.

Also speaking, Chioma Chimere, Coordinating Managing Director at TD Africa, emphasised the importance of future-ready networking in enabling business resilience and long-term digital growth. “Networking today is no longer just about connectivity; it has become the backbone of enterprise transformation.

“As organisations embrace AI, cloud environments, remote operations, and data-driven systems, the need for secure, intelligent, and scalable infrastructure becomes even more critical.

“TD Africa is committed to ensuring our partners are equipped with the right technologies, insights, and support needed to navigate this shift successfully.

“Our collaboration with HPE reflects our shared commitment to helping businesses modernise confidently and prepare for the future of digital innovation,” she stated.

Through strategic collaborations with global Original Equipment Manufacturers (OEMs) like HPE, TD Africa continues to strengthen its position as a key distributor of enterprise and networking solutions across Africa, enabling partners and organisations to access cutting-edge technologies backed by technical expertise, market reach, and ecosystem support.


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