Nigeria’s rapidly expanding digital economy, currently projected to hit a valuation of $18.3 billion by the end of the year, faces a severe bottleneck due to chronic underinvestment in essential digital infrastructure and a widening digital divide.
Speaking at the Nigeria Information Technology Reporters Association (NITRA) Innovative and Scientific Conference last week, Lanre Idowu, Divisional Head of Financial Industry Partnerships at Remita, warned that the full economic benefits of this growth will remain out of reach for millions of citizens unless critical systemic gaps are urgently addressed.
Addressing tech industry stakeholders, Idowu outlined the reality of Nigeria’s tech landscape as “two Nigerias”, one a globally celebrated hub for fintech innovation and startup capital, and the other a vast population restricted by poor broadband coverage, high data costs, and limited access to basic digital services.
While acknowledging that Nigeria has cultivated one of Africa’s most dynamic fintech ecosystems, driven by instant payment adoption and cross-sector growth, Idowu emphasized that uneven broadband penetration and affordability challenges continue to lock rural and underserved communities out of the modern economy.
“The country’s digital divide should be viewed as an opportunity divide because millions remain excluded from education, healthcare, financial services, and economic opportunities,” Idowu noted.
He identified five core barriers stalling inclusive digital growth across the nation. The first is connectivity, caused by uneven broadband rollout across non-urban centers. Affordability is the second barrier due to the rising cost of data and connected hardware. The third is digital literacy, stemming from a gap in skills needed to navigate digital solutions. Fourth, device access remains a challenge because of limited access to basic internet-enabled hardware. Finally, trust is undermined by low consumer confidence resulting from transaction failures and slow dispute resolution.
Idowu stressed that building trust is critical, noting that while the banking sector has evolved dramatically from the era of manual forms and 15-day cheque clearances to instant USSD and mobile transfers, system reliability and clear dispute channels remain paramount for mass adoption.
Highlighting the journey of Nigeria’s financial technology revolution, Idowu credited structured collaboration among government bodies, regulators, commercial banks, telecom operators, tech innovators, and the media.
However, he issued a warning regarding key access channels like Unstructured Supplementary Service Data (USSD), which was specifically designed to serve unbanked populations without smartphones or internet access. He noted that escalating USSD transaction tariffs threaten to turn low-income users away, directly undermining years of progress in financial inclusion.
To protect the trajectory toward the $18.3 billion target, Idowu urged platform creators and policymakers to design solutions with local contexts in mind—incorporating regional languages, varied literacy levels, and low-spec devices right from the development phase.
“The future of Nigeria’s digital economy depends not only on innovation but also on inclusion,” Idowu stated. “When technology becomes accessible to everyone, regardless of geography or income level, we truly begin to bridge the digital divide.”