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Unlocking Nigeria’s Digital Economy: What 2025 Means for Investors by Reuben Kalu

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Reuben Kalu
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In recent years, Nigeria has made considerable strides in embracing the digital revolution. As 2025 unfolds, the nation’s digital landscape reveals a mix of tremendous growth, evolving technologies, and lingering challenges. Drawing insights from the latest “Digital 2025” global report by DataReportal, we examine how Nigeria is positioned to harness emerging digital trends and what the outlook means for individuals, businesses, and policymakers.

Reuben Kalu

Internet Penetration: A Nation Going Online

The internet is fast becoming a lifeline for many Nigerians. According to recent trends, Nigeria, like much of Sub-Saharan Africa, is witnessing a steady increase in internet penetration. The “Digital 2024 October Global Statshot Report” already highlighted a surge in internet usage last year, and 2025 is expected to continue on an upward trajectory.

From urban hubs like Lagos and Abuja to emerging towns across the country, mobile internet access is enabling millions to connect, learn, and transact in ways that were unimaginable just a decade ago. This surge is largely driven by affordable smartphones, expanding mobile networks, and a youthful population eager to explore digital tools.

Social Media: A Digital Community on the Rise

Social media engagement in Nigeria continues to climb. The latest insights from DataReportal’s “Digital 2025: The State of Social Media” show that less than half of the connected population in Sub-Saharan Africa were using social media at the beginning of 2025. Still, the numbers are climbing, and Nigeria is a key player in this trend.

Platforms like WhatsApp, Facebook, Instagram, and TikTok dominate the social scene, not only for social interaction but also for business marketing, civic engagement, and education. Influencer culture, social commerce, and video content are reshaping how Nigerians consume and create information. Small businesses, in particular, are leveraging these platforms to reach wider audiences and scale faster than ever before.

The AI Wave: Nigeria’s Emerging Potential

Artificial Intelligence (AI) is no longer a far-off concept—it’s here, and it’s making waves. While the global spotlight is on AI’s transformative power, Nigeria stands at the threshold of an AI-driven future. According to DataReportal’s “AI Making Gains” section, the global adoption of AI tools is accelerating, and while Nigeria-specific data is limited, the implications are significant.

In Nigeria, startups and tech innovators are beginning to integrate AI into their products and services. Chatbots are enhancing customer service, AI-driven tools are streamlining data analysis, and educational platforms are adopting machine learning for personalized learning experiences. As digital literacy improves and AI tools become more accessible, we can expect broader adoption across industries like transportation, health and hygiene,  fintech, and agriculture.

E-Commerce and Mobile Payments: The Rise of Digital Transactions

With a growing number of internet users and smartphones, e-commerce in Nigeria is thriving. Homegrown platforms like Jumia and Konga, alongside global entrants, are transforming how Nigerians shop. Whether it’s fashion, electronics, or groceries, consumers are embracing the convenience of online shopping.

At the heart of this revolution is mobile payments. From USSD codes to digital wallets and banking apps, cashless transactions are becoming the norm. This trend not only enhances transaction speed but also supports financial inclusion for underserved populations. The push towards a digital economy is evident, and with increased trust in payment systems, e-commerce growth is set to skyrocket.

Digital Infrastructure and Literacy: Bridging the Gap

Despite the progress, Nigeria still grapples with infrastructural and educational gaps. Internet accessibility in rural areas remains inconsistent, and electricity challenges hinder digital participation. Moreover, digital literacy is uneven, with many citizens unaware of the full potential of online tools.

To bridge this divide, stakeholders must invest in public-private partnerships. Government initiatives focused on expanding broadband coverage, coupled with community-based digital skills programs, can empower more Nigerians to participate in the digital economy.

Data Privacy and Cybersecurity: A Growing Concern

As digital adoption rises, so does the risk of cyber threats. Personal data protection, financial fraud, and online harassment are becoming more prevalent issues. For Nigeria to maintain momentum in its digital journey, there must be stronger emphasis on cybersecurity education and regulation.

The Nigeria Data Protection Commission (NDPC) is already taking steps in this direction, but more collaboration is needed between the government, private sector, and civil society to create a safe digital environment.

Opportunities Ahead: What This Means for Nigerians

For individuals, the digital transformation means access to better education, remote job opportunities, and faster communication. For entrepreneurs and businesses, it opens up new markets, smarter tools, and innovative business models. For the government, digital tools offer better citizen engagement, streamlined services, and improved transparency.

Youth, in particular, are set to benefit immensely. With the right training and exposure, Nigeria’s young population can drive tech innovation, develop world-class products, and position Nigeria as a global digital force.

A Digital Nigeria is Taking Shape

The digital outlook for Nigeria in 2025 is both exciting and transformative. With rising internet usage, growing social media communities, and increasing AI integration, Nigeria is clearly on the path to becoming a major player in the global digital economy.

But this future won’t build itself. It will require intentional investment, smart policies, and a collective effort from every sector of society. The opportunities are vast—and for those ready to embrace the digital leap, the rewards will be even greater.

As we navigate the rest of 2025 and look to the years beyond, one thing is certain: Nigeria’s digital journey is just beginning, and the best is yet to come.

 


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Ugo Onwuaso is an ICT enthusiast. He believes technology should be used for general good. He holds a Master of Public Administration (MPA) degree from the Lagos state University. Dear Reader, Your support matters. But we believe that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. That is why, we have devoted our energy to independent reportage of technology and finance and how they affect lives. Our incisive and analytical view of how technology news affects the daily life help individuals and organizations make up their minds. Quality journalism costs money. Today, we're asking that you support us to do more. Kindly support our effort to deliver technology and finance journalism to everyone in the world. Donate as little as N1,000. Bank transfers can be made to: UBA Plc 1017156876 Communication Week Media Ltd

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Spotify Marks 5 Years in Nigeria with 163.5% Listening Surge, Afrobeats Boom

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Spotify marked five years in Nigeria since its February 2021 launch with dramatic year-on-year listening growth averaging 163.5% through 2025, featuring triple-digit surges early on and sustained momentum, propelled by Afrobeats streams rocketing +5,022% alongside booming genres like Amapiano (+10,330%), Gospel/Praise (+5,499%), Hip-hop/Rap (+3,020%), and R&B (+2,602%).

Spotify Marks 5 Years in Nigeria with 163.5% Listening Surge, Afrobeats Boom

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Indigenous language music listening surged +554% in Nigeria in 2024 and +87% in 2025, with global growth at +141% and +41% respectively, underscoring rising demand for local storytelling sounds.

The platform’s Nigerian artist roster expanded +158%, fueling a discovery boom where average listeners (aged 26) streamed 150 different artists recently; users created over 25 million playlists, logged 1.4 million play hours in 2025 alone, and streamed 59 billion podcast hours total.

Top Artists (2021-2025): Asake, Wizkid, Seyi Vibez, Burna Boy, Davido.

Top Songs: “Remember” (Asake), “Dealer” (Ayo Maff & Fireboy DML), “Awolowo” (Fido), “Kese (Dance)” (Wizkid), “Lonely At The Top” (Asake), “Joy is Coming” (Fido), “With You” (Davido feat. Omah Lay), “Terminator” (Asake), “MMS” (Asake feat. Wizkid), “Doha” (Seyi Vibez).

Nigeria’s debut stream was Shiga Lin’s Cantopop epitomizing borderless discovery from day one.


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Pheelz Shares His Journey on Glo-Sponsored African Voices

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Nigerian singer, songwriter and producer Pheelz (Phillips Kayode Moses) is set to feature this weekend on African Voices Changemakers, the flagship magazine programme on CNN International.

The 30-minute episode, sponsored by digital solutions company Globacom, premieres on Saturday, February 21, 2026. In a candid sit-down with host Larry Madowo, Pheelz opens up about his journey from church musician to global hitmaker, reflecting on the intersections of faith, fame and the expanding influence of Afrobeats on the world stage.

Now 31, Pheelz began his musical path as a multi-instrumentalist in church before earning widespread acclaim in 2012 as the producer behind the hit tracks “First of All” and “Fucking with the Devil” on Olamide’s YBNL album. His rapid rise saw him named among NotJustOk’s Top 10 Hottest Producers in Nigeria in 2013.

He further solidified his reputation by producing nearly every track on Olamide’s Baddest Guy Ever Liveth, earning nominations at The Headies 2013 and in the Producer of the Year category at both The Headies 2014 and the Nigeria Entertainment Awards. In 2020, he clinched The Headies Producer of the Year award, and in 2021 secured the Soundcity MVP Award for Best Collaboration for “Finesse,” his smash hit with Bnxn (formerly Buju).

On the programme, Pheelz reflects on the experiences that shaped his sound and creative philosophy, discusses landmark collaborations, shares his perspective on artificial intelligence and artistry, and explains why sound, storytelling and culture remain central to African music’s global resonance.

The show airs on DSTV Channel 401 at 8:30 a.m. (WAT) on Saturday, with repeat broadcasts at 12:00 noon the same day; Sunday at 4:30 a.m. and 7:00 p.m.; Monday at 4:00 a.m. and 6:45 p.m.; and Tuesday at 6:45 p.m. The broadcast schedule continues through Monday of the following week.


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Dr. Cairo Ojougboh Foundation Bolsters Nigeria’s Education Drive with ₦2.7m Student Support

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Dr. Cairo Ojougboh Foundation has reinforced government’s educational development efforts in Nigeria through a targeted initiative honouring the late medical doctor and House of Representatives member, Dr. Cairo Ojougboh.

Dr. Cairo Ojougboh Foundation Bolsters Nigeria's Education Drive with ₦2.7m Student Support

L-R: Son of the late Dr, Cairo Ojougboh, Mr. Nkem Ojougboh; Chairperson, Dr. Cairo Ojougboh Foundation, Mrs. Bose Ojougboh and another son, Mr. Orieka Ojougboh, during the event in Agbor, Delta State recently.

The foundation recently hosted a programme themed “Your Future, Your Choice” at St. Columba’s Grammar School in Agbor, headquarters of Ika South Local Government Area, Delta State.

It presented a cheque of ₦2,700,000 to cover examination fees for students preparing for West African Examinations Council (WAEC), National Examinations Council (NECO), and Junior Secondary School (JSS) 3 exams.

Academic excellence received further boosts with cash rewards for top students across the school’s nine academic arms, alongside distributions of notebooks and writing materials to enhance learning.

Chairperson Mrs. Bose Ojougboh, joined by her sons Mr. Nkem and Mr. Orieka Ojougboh, urged students to view challenges as stepping stones, embrace discipline, consistency, and focus, and make intentional choices shaping their futures.

“The school that moulded Dr. Cairo’s values deserves our support,” she said, highlighting the foundation’s commitment to inspiring hard work and personal growth.

Old Boys of St. Columba’s Grammar School, led by Elder Ndudi Agholor, attended in force, sharing nostalgic reflections and praising the school’s sustained high standards under current leadership.

School Principal Rev. Fr. Joseph Ugboh and Ika South LGA Chairman Engr. Jerry Ehiwarior lauded the initiative as “commendable and impactful,” calling for its continuation to preserve Dr. Ojougboh’s legacy of discipline, excellence, and service.

They noted the support had motivated students to pursue their goals with renewed determination, ending the event on a hopeful note.


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