Industry leaders and stakeholders have raised serious concerns about Nigeria's position in Africa's digital economy landscape, revealing that the country trails behind several African nations in technological advancement. The sobering assessment came during The Nigeria Summit 2025 held in Lagos, marking 65 years of Nigeria's independence.
Nigeria's Current Standing in Digital Economy
Experts at the summit highlighted that countries including Rwanda, Morocco, South Africa, Botswana, and Kenya are currently leading Africa's digital transformation. Despite Nigeria's large population and strong entrepreneurial spirit, which should naturally position it as a continental leader, significant gaps remain in infrastructure and regulatory frameworks.
Mark Simmonds, Chairman of Invest Africa Advisory Board, painted a stark picture of Nigeria's global standing. He revealed alarming statistics showing Nigeria attracted only $300 million in foreign direct investment during 2024, compared to Algeria's $1.2 billion and Indonesia's massive $55 billion. Simmonds attributed this disparity to regulatory challenges, reputation issues, and negative international media coverage.
Critical Challenges Facing Nigerian Startups
The situation appears particularly dire for Nigeria's startup ecosystem. Ina Alogwu, Chief Digital and Innovation Officer at T2 Mobile, expressed deep concern about the high failure rate of Nigerian startups compared to other African countries. She described the future outlook for Nigerian entrepreneurs as bleak without immediate intervention and support systems.
Energy experts at the same summit added another dimension to the challenges, emphasizing the need for stable power infrastructure to support digital growth. Folake Akinkugbe-Filani, CEO and Managing Director of Energy Inc Advisors, stressed that industrial parks require robust energy support that depends heavily on grid stability. She identified transmission and distribution challenges as major contributors to energy losses and higher operational costs.
Pathway to Digital Leadership
Despite the challenges, speakers expressed optimism about Nigeria's potential. Simmonds acknowledged that the current administration is moving in the right direction regarding macroeconomic policy, though much work remains. He emphasized that digital economy benefits would impact consumers, businesses, industrial sectors, and government operations if properly harnessed.
Unwana Esang, Principal Consultant Services at Mastercard, called for establishing a trusted and resilient digital system built on transparency and accountability. Such a system would create a more equitable ecosystem for digital transactions and boost confidence among international investors.
Key recommendations from the summit included:
- Aligning Nigerian policies with the African Free Trade Agreement
- Improving regulatory coordination across West Africa
- Stabilizing the national grid and supporting renewable energy projects
- Enhancing digital infrastructure to support technological implementation
The consensus among stakeholders was clear: while Nigeria faces significant hurdles in its digital transformation journey, the potential rewards make the effort essential for the nation's economic future and continental leadership aspirations.
