General News
Four Drivers of Nigerian Digital Advertising in 2023
By Brian Abel, Regional Sales Manager, West Africa, Ad Dynamo by Aleph
Nigeria has long been considered Africa’s largest economy in terms of GDP, this should come as no huge surprise, especially considering its population of over 200 million, making it the largest in the continent, and boasting an abundance of natural resources, as well as strong trade links with its neighbouring countries. However, as vast as the Nigerian economy may appear to be, it is still very much going through stages of growth.
Helping to drive this evolution is the rapid digitalisation of many economic sectors. Consider the financial sector for example, while Nigeria has been a major centre of African banking for many years, recently it has also become the leading fintech player in the continent. Moreover, of Africa’s handful of unicorns (start-ups valued at more than US$1 billion), the majority are in fact headquartered in Nigeria.
Rapid digitalisation has also impacted the world of advertising, with the country’s current digital advertising sphere worth over $179.20 million. And, as we know, digital advertising isn’t static, it’s constantly evolving, driven by ever-shifting trends, a fact that remains as true now, in 2023, then it has ever been. With that in mind, it is beneficial to understand the major trends, and recognise which are set to impact Nigerian digital advertising over the course of the year.
Twitter to build on its return
At the start of 2022, the Nigerian government reversed its seven-month ban on Twitter. At first, ordinary Nigerians and advertisers alike were a little cautious when it came to returning to the social network. After all, once a service has been banned, it’s hard to imagine that the same might not happen again.
Fortunately, Twitter and the Nigerian government were able to come to an agreement, developing a Code of Conduct in line with global best practices. Over the months that followed, Twitter continued to make gains and once again proven its worth. The platform is slowly but surely securing its stance as the best location for advertisers to reach mass audiences, enabling them to build brand recognition, whilst developing trust, establishing relationships, increasing sales, and improving the customer’s experience.
While the government is keeping a close eye on the social network, especially following Elon Musk’s acquisition, it is set to remain a valuable digital advertising platform in 2023.
Post-Covid adjustments
During the peak of Covid-19 between 2020 and 2021, came an unexpected shining light for digital marketing and technology companies alike. With strict lockdowns in place globally, people were mostly confined to homes, and it should come as no shock that the need to connect took on new forms, as the masses flocked to their online devices to reach loved ones, purchase goods, and seek a sense of normality.
However, as we stepped back into the outside world again, both tech and digital marketing witnessed revenue hits. Nigeria was not spared this cooling-off period, which was exacerbated by internet access issues for people during the year. That said, as connectivity becomes more reliable, ubiquitous, and affordable, digital marketing should continue its rise, with some analysts predicting that the sector will be worth close to $259 million by 2027. Not to mention, once the Pan-African telecommunications service provider, Seacom, launches their West African hub in 2023, that number could be reached even faster.
Marketers leverage entertainment and media
As far back as 2017, PwC predicted that Nigeria would be the world’s fastest-growing entertainment and media market. While Turkey currently holds the top spot, E&M growth in Nigeria remains strong. In fact, analysts predict that spending in the sector will increase by an average of just below 9% in the next five years.
One of the most visible areas of growth can be seen in music streaming. Since its Nigerian launch in February 2021, Spotify has achieved impressive growth in the country. Within a year after launching in Nigeria, music fans in the country had curated some 1.3 million user-generated playlists. Additionally, during the same period, nearly 21,000 songs were added to the platform. In fact, Nigeria was the country with the second most streams after Pakistan, among new markets, with Kenya following behind third in the ranking.
Digital marketers and media platforms have embraced the potential that comes with this advertising growth. Spotify, for example, has a 3D audio feature which allows brands to provide high-quality advertising through an immersive, dynamic, and sensory audio experience. Advertisers around the world have also realised this power and spend is expected to increase in Nigeria, and on a global scale.
Demand for digital marketing skills grows
One of the effects of the accelerated growth in Nigeria’s digital advertising sector has been a growing gap between the available skills and those required to operate effectively. While it’s a figure that applies to more than just digital advertising, research from the International Finance Corporation (IFC) reveals that approximately 230 million jobs across Africa will require digital skills by 2030.
Fortunately, a number of players have stepped forward to try and turn the situation around. Our own Digital Ad Expert Programme, for instance, aims to educate, certify, and connect thousands of Africans with the digital skills they need, enabling them to succeed in this increasingly digitised economy. Whilst these skills will of course open the door to an array of career opportunities in digital advertising, they will also accelerate the broader digital economy and provide much-needed jobs on a global scale.
Embracing shifts
Ultimately, whilst at present we foresee these trends to be the 2023 drivers for the world of digital advertising and marketing, it is important not to dismiss the possible emergence of others throughout the coming year. Thus, the ability to understand and navigate these shifts will be your key. This can, however, be not notoriously difficult, and therefore using a media buying partner, with significant experience in Nigeria and across the biggest digital platforms, to guide you through the maze can go a long way.
Nigerians in the diaspora have petitioned Dr. Olubunmi Tunji-Ojo, minster of Interior, over passport printing in Atlanta and New York Consulates in the United States of America.
To this effect, the minister has approved and directed the Nigeria Immigration Service (NIS) to immediately deploy new printers to the passport offices in both cities.
These printers, according to him, are ready for installation. This short-term solution, he said, aims to resolve the current challenge promptly.
In a statement, the minister said that there is a new solution being implemented as a long-term plan that will usher in a streamlined passport regime, enabling Nigerians to apply for their passports with more ease.
Part of this plan includes the activation of a Passport Personalisation Centre in Abuja, which is scheduled to start in the next few weeks while also opening up more countries for the already-deployed contactless solution.
According to Tunji-Ojo, they are working round the clock, and none of the agencies is left behind.
“At the Nigeria Immigration Service, there has been an end-to-end automation of the passport application process and the introduction of the contactless application process, which has since been launched in Canada,” he said.
The Central Bank of Nigeria (CBN) said it has approved the release of the Nigerian Foreign Exchange (FX) Code and will officially launch the same on January 28, 2025.
The FX code serves as a guideline to the banking industry to promote ethical conduct of authorised dealers in the Nigerian Foreign Exchange Market (NFEM).
“The Bank will formally launch the Code at the CBN Head Office Auditorium, Abuja, on Tuesday, January 28, 2025,” the CBN said in a notice published on its website.
In a bid to strengthen the governance and transparency of Nigeria’s FX market, the CBN in November 2024 introduced revised guidelines for the Nigeria Foreign Exchange Market (NFEM).
A key feature of these guidelines requires the boards of banks, alongside their Chief Executive Officers (CEOs) and Chief Compliance Officers, to annually attest to the Nigeria FX Code of Ethics and Conduct. This attestation underscores their commitment to uphold market integrity and comply with all CBN-issued circulars and guidelines.
The revised guidelines aim to deepen the foreign exchange market following the consolidation of all official FX market windows. The circular, issued by Omolara Omotunde Duke, director of the CBN’s financial markets department, supersedes prior directives, including the operational changes announced on June 14, 2023, and earlier circulars dating back to 2017.
Under the new framework, authorised dealers must facilitate FX transactions for firms and individuals while ensuring compliance with regulations. These dealers are tasked with conducting due diligence, providing transparent pricing, and offering market access through digital solutions.
Furthermore, all legitimate FX transactions must occur exclusively through authorised dealers, while dealings with unlicensed intermediaries are strictly prohibited.
Bureaux de Change (BDC) operators are also included in the revised guidelines. Licensed BDCs are allowed to purchase FX from authorised dealers to meet customer needs, within the limits set by the CBN. Similarly, all FX transactions conducted by BDCs, International Money Transfer Operators (IMTOs), and authorised dealers must adhere to the terms of their licenses and the Nigeria FX Code.
Moniepoint Inc, one of Nigeria’s leading business payments and banking services platforms, has secured an investment from Visa, a global leader in digital payments.
The investment marks an important milestone in Visa’s commitment to advancing financial inclusion and shaping the future of digital payments while fostering SME growth across Africa.
Founded in 2015 by Tosin Eniolorunda and Felix Ike, Moniepoint (formerly known as TeamApt) has established itself as a leading financial platform for Nigeria’s vast network of small and medium-sized businesses (SMEs), offering an integrated suite of services, including digital payments, bank accounts, credit, foreign exchange (FX), and management tools.
The platform processes over 1 billion transactions monthly, with total payments volume exceeding $22 billion, enabling businesses to digitize their operations and thrive in Africa’s rapidly evolving economy.
With this investment, Visa supports Moniepoint’s mission to empower African businesses, further accelerating its growth and expansion across the continent. Moniepoint’s profitable and scalable business model, alongside its strong operational and financial track record, has positioned it as a transformative force in the African fintech ecosystem.
As Africa’s Fintech landscape continues to evolve rapidly, driven by a dynamic ecosystem and a focus on bridging the financial inclusion gap, Visa has been at the forefront of this transformation, putting its expertise and resources to work in support of the growth of African Fintech startups.
Tosin Eniolorunda, Founder and Group CEO of Moniepoint Inc., said: “We are thrilled to announce Visa’s investment in Moniepoint. Visa’s backing is a strong endorsement of our vision to digitize and support African businesses at scale.
“Together, we aim to deepen financial inclusion, enabling SMEs to access the tools and resources they need to thrive in an increasingly digital economy. Given that about 83% of employment across Africa is in the informal economy, we are very keen to widen access and participation in the formal financial system and drive economic growth across Africa.”
He continued, “Visa’s expertise in global payments and Moniepoint’s proven ability to serve African businesses make this partnership an exciting opportunity in shaping the continent’s economic future even as we pave the way for a more inclusive and dynamic financial ecosystem.
“We are delighted in joining forces with Visa to enhance the digital payment infrastructure, expanding financial services, and fostering innovation in Africa.”
Andrew Torre, Regional President, Central and Eastern Europe, Middle East and Africa at Visa, added: “Moniepoint has built an impressive platform that directly addresses the needs of Africa’s SMEs, a critical segment in enabling economic development.
“By making financial services and digital payments more accessible and efficient, Moniepoint is helping transform how businesses operate in Nigeria and beyond. We are excited to support their next phase of growth and innovation.”
“Visa’s investment in Moniepoint is the latest example of our long-standing commitment to advancing digital economies in Africa. We will enable even the smallest businesses to thrive through innovative payment and software solutions that allow SMEs to scale and open new revenue opportunities, while streamlining their operations.”
Moniepoint has experienced exponential growth since its founding in 2015, with revenues increasing by over 150% CAGR in recent years. The company’s efforts to expand access to financial services align closely with Visa’s mission of enabling individuals and businesses to thrive in the global economy.
Congratulating both parties, the Nigerian Investment Promotion Commission (NIPC) celebrates this strategic investment in Moniepoint, highlighting it as proof of Nigeria’s attractiveness for investors due to its favorable business climate.
Furthermore, the NIPC praised Moniepoint as an exemplar of Nigerian excellence contributing significant value to the global financial ecosystem. The Commission emphasized its commitment to supporting investors and fostering economic cooperation in finance and technology to help Nigeria reach its full economic potential.
This partnership combines Moniepoint’s local expertise and innovative business model with Visa’s global resources and capabilities. Together, Moniepoint and Visa aim to accelerate the digital transformation of African SMEs, driving financial inclusion and long-term economic prosperity.
Visa joins other notable investors including Development Partners International, Google’s Africa Investment Fund, Verod Capital, Lightrock, QED Investors, Novastar Ventures, British International Investment (BII), FMO (the Dutch entrepreneurial development bank), Global Ventures and Endeavor Catalyst in advancing Moniepoint’s mission to create a society where everyone experiences financial happiness.
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