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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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Youth Talent Takes Center Stage as T2 Ignites High-Octane Rap Battles @ Carnival Calabar

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The energy at the Carnival Calabar Music Concert reached a new high as T2 introduced a first-ever rap battle platform, giving young Nigerians an electrifying stage to showcase their talent, creativity, and self-expression while competing for exciting prizes.

Held at the U.J. Esuene Stadium, the activation blended pulsating music, vibrant culture, and youthful energy into a dynamic celebration that kept thousands of carnival-goers fully engaged from start to finish.

Eight fearless contestants stepped into the spotlight, going bar for bar in an intense lyrical showdown. Rappers fused local languages, pidgin, and sharp punchlines, creatively weaving the T2 brand into their verses.

Anchored by the energetic hosting duo MC Double I and MC Princess, the rap battles thrilled over 16,000 attendees, including the Governor of Cross River State, Senator Bassey Otu, delivering an unforgettable showcase of youth talent and cultural expression.

With prizes including fridges, gas cookers, sound systems, and airtime top-ups, the competition remained fierce throughout the night. After two high-energy rounds narrowed the field to a five-man final duel, Emmanuel Eye emerged as the overall winner, taking home the grand prize — a fridge.

“I never expected this at all,” Emmanuel said. “I came to the concert like anyone else, and hearing about the T2 rap battle was a surprise. When I got the chance to perform, I just went for it. Being named the overall winner is amazing, and I’m grateful to T2 for creating this platform to showcase our talent.”

Beyond the stage performances, T2’s presence added a digital layer to the carnival experience. As part of its role as Digital Technology Partner of Carnival Calabar, the brand introduced the MyT2 App as a lifestyle companion, while also enabling line reactivations, airtime top-ups, and instant rewards for hundreds of attendees, blending technology seamlessly into the live celebration.

Commenting on the activation, Chinelo Manefo, Specialist, Events and Sponsorship at T2, said:

“The energy from both the rappers and the crowd was incredible. This platform reflects exactly what T2 aims to create — a celebration of youth, creativity, and culture, enhanced by technology that connects people and experiences. Seeing the audience so immersed shows how music and performance can empower the next generation.”

The Carnival Calabar Music Concert, headlined by Tiwa Savage, Timaya, and top local performers, was further energized by T2’s interactive rap battle platform. By blending music, culture, youth expression, and digital innovation, T2 reinforced its commitment to championing Nigeria’s next generation, giving young creatives a stage to shine while enriching how they experience the festival.

 


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Aig-Imoukhuede Foundation Wrapped Up 2025 with Real Change in Governance, Health, Media Across Africa

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Aig-Imoukhuede Foundation has announced its 2025 achievements, marking a year of accelerated impact, systemic reforms and innovation in public leadership and service delivery across Africa.

Aig-Imoukhuede Foundation Wrapped Up 2025 with Real Change in Governance, Health, Media Across Africa

Aig-Imoukhuede Foundation

A statement issued on Wednesday in Lagos said the foundation strengthened governance, improved primary healthcare, drove digital transformation and elevated media’s role in promoting public sector accountability.

It said the AIG Public Leaders Programme (PLP) trained 72 public sector leaders from Nigeria, Egypt, Tanzania, Cameroon, Zambia, Malawi and Kenya—its fastest growth to date—bringing the alumni network to 309.

These alumni are driving 237 reform projects to enhance public institutions, from faster decision-making to greater transparency, with nine promoted to higher roles for their contributions.

On civil service modernisation, the foundation accelerated digitalisation at the Office of the Head of the Civil Service of the Federation (OHCSF), streamlining 19 processes and achieving a 75 per cent increase in work speed through automated workflows.

It also trained over 400 officials from the Federal Ministry of Justice, Federal Civil Service Commission and Federal Ministry of Innovation, Trade and Investment in digital skills to support the FCCSIP 25 initiative and ongoing digital rollouts.

In healthcare, the Adopt-A-Healthcare-Facility Programme renovated four primary healthcare centres in Edo State, boosting antenatal visits by 73 per cent, immunisation coverage over 100-fold and fully vaccinating 554 children, while supporting 6,788 patients.

The foundation recognised 18 outstanding public servants with ₦500,000 each via the Emily Aig-Imoukhuede Endowment Awards and received a partnership award from the OHCSF for civil service reform efforts.

To empower media, it trained 50 journalists from top Nigerian media houses in impact storytelling, data analysis, visual and ethical reporting to better inform citizens on public sector changes.

Over five years (2021–2025), the foundation invested £2.6 million in PLP, saved ₦2.38 billion for the public sector through capacity building, trained 1,500+ civil servants, upskilled 660 digitally, trained 40 permanent secretaries and awarded 33 scholarships driving seven policy changes.

Other milestones include digitising 5,000 files, automating 333 processes, a 61 per cent efficiency gain, 60 per cent digital file creation at OHCSF, 128 excellence awards, 116 process reforms, 23 advocacy projects, 25 capacity initiatives, 18 podcasts, four healthcare articles, three policy papers, 23 adopted PHCs (four renovated) and 878+ fully immunised children aged 0–9 months.

Executive Vice Chair, Mr Aigboje Aig-Imoukhuede, said: “2025 was a year of real, measurable impact. From training hundreds of public servants to improving healthcare, helping ministries go digital, and equipping journalists to tell stories that matter, our work is making governments work better for citizens and communities across Africa.”


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Showmax Unlocks Easier Payments for Nigerian Subscribers via Baxi

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Showmax, Africa’s leading streaming service, has expanded its payment options in Nigeria through a partnership with Baxi by Onafriq, giving customers an easier and more convenient way to subscribe and stay connected to world-class streaming entertainment.

Started Monday, 22 December 2025, existing Showmax customers can log into the Baxi by Onafriq app, select and pay for any of Showmax plans including: Showmax Entertainment Mobile, Showmax Entertainment (All Devices), Showmax Premier League Mobile, Showmax Entertainment (All Devices) + Premier League Mobile, Showmax Entertainment Mobile + Premier League Mobile.

This update allows customers to complete their entire subscription process within the Baxi app, delivering a more efficient payment experience.

Alternatively, existing customers with verified mobile numbers can top up their Baxi by Onafriq app or through its Baxi POS agent device to load funds directly into their Showmax account. These funds can then be used to pay for a Showmax plan.

For new customers, subscribing is also seamless. After creating a Showmax account on their mobile device, they will receive an OTP via SMS or WhatsApp, which allows them to verify their mobile number and immediately return to the app to top up and activate their subscription.

Speaking on the announcement, Tope Oshunkeye, Executive Head of Marketing, West Africa, MultiChoice, said: “With these new payment options from Baxi by Onafriq, we are making streaming on Showmax more accessible, allowing our customers to pay quickly and securely through a trusted financial service provider. This is a significant step forward in our mission to deliver world-class streaming experiences for our customers”.

“This launch is about making entertainment access seamless,” said Mxolisi Msutwana, Managing Director, Anglophone West Africa, Onafriq. “By automating the renewal process, we are not only providing greater convenience for customers but also helping to drive the adoption of digital payments across Nigeria.”

With more people turning to digital services, Showmax is doubling down on its commitment to make it affordable and effortless for customers to access and stream the stories they love. By partnering with Baxi by Onafriq, a popular agent and digital payment network, Showmax is meeting subscribers where they already are.

Showmax, launched in 2015 and available in more than 40 markets across the continent, is a leading African streaming service. It offers a unique combination of original African content, first and exclusive international series, popular movies, premium documentaries and the best kids’ shows, plus a mobile-only product to watch the Premier League.

Onafriq is an omnichannel network of networks, making borders matter less by providing our partners with a single pathway to unlock the full power of cross-border and cross-platform payment solutions. With a network spanning 43 African markets, Onafriq connects over 1 billion mobile money wallets, 500 million bank accounts, and over 400,000 agents in Nigeria, enabling domestic and cross-border disbursements and collections, card issuing and processing, agency banking, and treasury services.

In Nigeria, Onafriq operates as a B2B payments enabler with an extensive agency banking network through its flagship product, Baxi. Baxi connects over 400,000 agents nationwide, offering essential financial services such as bill payments, airtime and data purchases, funds transfers, cash-in and cash-out transactions, and more, driving financial inclusion and providing seamless access to digital financial services for millions.

 


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