Nigeria’s Tech Sector Shifts from Survival to Consolidation in 2025, Sets Stage for Expansion
By Abbas Badmus
Nigeria’s technology sector in 2025 marked a decisive shift from survival mode to consolidation, as operators, startups, regulators and policymakers navigated economic headwinds while laying firmer foundations for long-term digital growth. Despite inflationary pressures, foreign exchange constraints and a global technology slowdown, the sector emerged as one of the economy’s most resilient pillars—driving productivity, financial inclusion and innovation.
From broadband expansion and surging data consumption to fintech dominance, data localisation and the mainstreaming of artificial intelligence, 2025 proved a year of stabilisation and strategic recalibration, positioning the industry for broader expansion in 2026.
Broadband Crosses 50% Milestone
One of the sector’s most notable achievements was Nigeria crossing the 50 per cent broadband penetration mark, according to data from the Nigerian Communications Commission (NCC). The milestone, delivered under the National Broadband Plan (NBP) 2020–2025, reflected years of sustained investment in fibre deployment, mobile broadband expansion and public–private partnerships aimed at extending connectivity to underserved areas.
Although the NBP’s 70 per cent target remained unmet, the progress reinforced broadband’s status as critical national infrastructure—supporting digital payments, cloud services, e-learning, telemedicine and e-government platforms.
Data Consumption Hits Record Highs
Beyond access, usage figures underscored how deeply digital services penetrated everyday life in 2025. Monthly internet data consumption peaked at approximately 1.24 million terabytes in November, the highest ever recorded, while total annual traffic was projected to exceed 13 million terabytes—representing about 35 per cent year-on-year growth.
The surge was fuelled by video streaming, fintech transactions, e-commerce, social media, cloud computing and remote work tools. However, rising demand also exposed persistent challenges, including network congestion, uneven service quality, affordability concerns and infrastructure resilience gaps, particularly in rural and underserved communities.
Fintech Consolidates Its Role as Economic Infrastructure
Nigeria’s fintech ecosystem remained central to the country’s technology narrative in 2025, reinforcing its position as Africa’s largest instant payments market. Data from the Nigeria Inter-Bank Settlement System (NIBSS) and the State of Inclusive Instant Payment Systems (SIIPS) showed Nigeria accounting for a substantial share of the continent’s nearly $2 trillion in instant payment transactions.
NIBSS Instant Payment (NIP) processed record volumes as instant transfers became the default for individuals, businesses and government agencies. Leading fintech platforms such as Moniepoint, OPay, PalmPay, Kuda and Paga expanded rapidly, supported by extensive agency banking networks that brought financial services closer to millions of Nigerians.
Beyond consumer payments, growth was recorded in merchant collections, government disbursements and digital revenue systems. Regulators, including the Central Bank of Nigeria (CBN) and NIBSS, also intensified efforts around fraud monitoring, system resilience and consumer protection.
Data Localisation Gains Momentum
Another defining trend in 2025 was the shift from policy debate to practical execution on data localisation and digital sovereignty. Driven by foreign exchange pressures, security concerns and the demand for faster, more reliable services, local hosting gained renewed urgency.
Telecom operators played a central role. MTN Nigeria launched a modular, scalable data centre to support local hosting and cloud services, while Airtel Nigeria expanded fibre capacity and upgraded its network for data-intensive applications. Globacom leveraged its extensive national fibre backbone and submarine cable assets, and 9mobile (now T2) focused on network optimisation and enterprise partnerships.
At the ecosystem level, the Internet Exchange Point of Nigeria (IXPN) recorded significant growth in local traffic as more networks, banks and content providers interconnected domestically—reducing latency, lowering costs and easing exposure to foreign exchange volatility.
Regulatory Focus Sharpens
Regulation continued to shape the sector’s trajectory in 2025. The NCC stepped up enforcement of quality-of-service standards, spectrum management, consumer protection and infrastructure-sharing policies, aimed at improving network performance and sustainability.
Beyond telecoms, the Federal Ministry of Communications, Innovation and Digital Economy advanced its digital economy agenda, prioritising broadband expansion, innovation support, digital public infrastructure and emerging areas such as artificial intelligence and data governance.
Artificial Intelligence Moves into the Mainstream
Artificial intelligence (AI) transitioned from experimentation to real-world deployment in 2025, with Nigerian startups applying AI solutions across healthcare, agriculture, finance, security and language technologies.
In healthcare, firms such as Intron Health, BetaLife Health and AwaDoc deployed AI for speech recognition, predictive analytics and conversational care. In agriculture and finance, platforms including Farmspeak, NeuraFarm, Lendsqr, Curacel and Trade Lenda used AI for productivity enhancement, credit scoring, insurance processing and fraud detection. Meanwhile, Towntalk, IDB Analytics and CDIAL AI focused on security analytics and African language technologies, supported by initiatives like the Nigeria Artificial Intelligence Research (NAIR) scheme.
Skills Development Takes Centre Stage
Recognising that infrastructure alone cannot sustain digital growth, 2025 also saw intensified investment in human capital. The Federal Government’s 3 Million Technical Talent (3MTT) programme trained thousands of young Nigerians in software development, data analysis, cybersecurity, AI and product management.
Regulatory agencies such as the NCC and the National Information Technology Development Agency (NITDA) expanded ICT training centres and startup support programmes, while global technology companies—including Google, Microsoft, Meta and Amazon Web Services—scaled cloud, AI and digital skills initiatives nationwide.
Industry Resilience, Eyes on 2026 Expansion
Industry leaders described 2025 as a year of endurance and stabilisation. According to the President of the Association of Telecommunication Companies of Nigeria (ATCON), Mr Tony Emoekpere, the sector demonstrated resilience despite economic and operational pressures.
“Looking back at 2025, it was a year defined by stabilisation and careful capital discipline,” Emoekpere said. “Telecom operators, tower companies and internet service providers did not retreat, even in the face of rising energy costs, foreign exchange volatility, high equipment import costs and persistent Right-of-Way bottlenecks.”
Instead, he noted, operators focused on network densification in high-demand corridors and accelerated the transition to solar and hybrid energy systems to reduce dependence on diesel.
On broadband, Emoekpere highlighted the 50 per cent penetration milestone as a reflection of surging data consumption and the embedding of digital services into everyday life. Looking ahead, he said 2026 must be about “execution, speed and scale,” driven by rising demand from fintech, AI and other data-intensive sectors.
He stressed that increased investment in data centres and last-mile broadband infrastructure, visible enforcement of telecom assets as critical national infrastructure, harmonised Right-of-Way charges and reduced multiple taxation would be crucial to sustaining growth.
As Nigeria enters 2026, the technology sector appears poised to move from consolidation to expansion—anchored on stronger infrastructure, deeper digital adoption and a growing pool of skilled talent.