Nigeria’s e-commerce sector is on track to surpass $16 billion by 2030, driven by innovative platforms such as Jumia and Konga amid accelerating digital transformation.
At the 35th annual conference of the Finance Correspondents Association of Nigeria (FICAN) held in Lagos, Professor Olayinka David-West, Dean of Lagos Business School (LBS), highlighted the urgent need for Nigeria to embrace a comprehensive digital revolution. Under the theme, ‘Bracing for the Digital Economy in Nigeria: Taxation, Banking and Finance,’ she stressed that this shift is essential for redefining the nation’s economy and enhancing citizens’ quality of life.
Represented by Professor Akintola Owolabi from LBS’s Cost and Management Accounting department, David-West emphasized the relevance of the conference’s focus in fostering sustainable development for Nigeria.
She explained that LBS’s strategic mission is closely aligned with promoting digital innovation and financial inclusion, aiming to cultivate leaders equipped to steer Nigeria through this evolving digital landscape. The country’s digital economy is rapidly expanding, propelled by a youthful, tech-savvy population and widespread adoption of digital technologies.
Data from the Nigerian Communications Commission’s 2024 report reveals that internet penetration has reached 43.5%, with over 163 million Nigerians connected online as of March 2024. The telecommunications industry contributes approximately 18 to 20 percent to Nigeria’s GDP, underscoring the critical role of information and communication technology (ICT) in economic growth.
David-West remarked, “This digital transformation goes beyond mere numbers; it is revolutionizing commerce, service delivery, and livelihoods. Our thriving e-commerce market, expected to exceed $16 billion by 2030, is powered by pioneering companies like Jumia and Konga.”
She further highlighted emerging logistics innovators such as Kwik and GIGL, which demonstrate how digital advancements create new value chains, boost operational efficiency, and open up fresh economic opportunities. These trends are poised to generate significant employment, reduce reliance on oil revenues, and transform service sectors nationwide.
In the financial sector, Nigeria stands as both a catalyst and beneficiary of digital progress. In 2024 alone, the country’s fintech industry attracted investments exceeding $2 billion, reinforcing its status as Africa’s fintech hub. This influx of capital is fueling cutting-edge innovations that are reshaping financial services and expanding access.
Leading Nigerian banks, including Access Bank and GTBank, are leveraging advanced technologies such as Artificial Intelligence (AI) and Machine Learning (ML) to improve fraud detection, customize customer experiences, refine credit assessments, and deploy AI-driven support systems.
Addressing the taxation landscape within the digital economy, David-West noted the dual challenges and opportunities it presents for revenue generation. Since January 2022, Nigeria has imposed a 6% Digital Services Tax (DST) on foreign digital service providers, complementing existing VAT measures on international digital services and capitalizing on the growing digital marketplace.
She cited the electronic money transfer levy as a practical example, where a N50 charge applies to recipients of bank transfers of N10,000 or more, providing a valuable revenue stream amid the expanding digital payments ecosystem.
David-West also underscored the potential of digital payments and mobile money platforms to formalize Nigeria’s vast informal economy, improve tax compliance, and integrate businesses into the formal financial system.
Looking forward, she observed, “The convergence of digital innovation across banking, finance, and taxation serves as a powerful engine for Nigeria’s economic advancement. Efficient digital payment infrastructures enable streamlined tax collection, broaden financial inclusion, and supply essential data for informed policymaking and enforcement.”
She praised the Central Bank of Nigeria’s operational sandbox framework, which provides a controlled environment for fintech experimentation, fostering regulatory innovation that supports the growth of Nigeria’s digital financial ecosystem.
Meanwhile, FICAN Chairman Chima Titus described the conference theme as both timely and critical, emphasizing the digital economy’s evolution from a promising concept to a fundamental pillar of modern economic growth. He highlighted that Nigeria and Africa are on the cusp of a transformative era driven by data analytics, digital payments, AI, and cross-border technological collaboration.
Titus pointed to recent statistics illustrating this momentum: the ICT sector contributed 18.3% to Nigeria’s GDP in Q2 2025, digital payment transactions surpassed N600 trillion in the first half of 2025-a 22% year-on-year increase-and mobile money users have exceeded 73 million, successfully reaching previously underserved rural populations.
He further noted that the Central Bank of Nigeria’s Payment System Vision 2020 outlines a comprehensive strategy for the country’s digital future, incorporating AI, blockchain-based settlements, and cross-border payment solutions facilitated by the African Continental Free Trade Area (AfCFTA). He stressed that a robust digital economy requires a fair and effective tax framework.
The conference brought together key stakeholders, including the Federal Inland Revenue Service (FIRS), Central Bank of Nigeria (CBN), and major banks, to exchange insights and collaboratively shape Nigeria’s roadmap toward a thriving digital economy.
