Nigeria’s digital economy was only worth $5.09 billion in 2019, but it’s now projected to be over $18.3 billion in 2026. This incredible increase has come about thanks to the rapid rise of the internet in the country, and industries that cater for the online world.
Fintech is one of the greatest contributors to Nigeria’s digital economy, but other areas such as entertainment and AI are playing a part as well. Even though these numbers are already impressive, this is just the beginning, and there’s a rich future ahead of the digital landscape in Nigeria.
Internet Usage Rising Rapidly
There are now over 100 million internet users in Nigeria, and that number is increasing fast. The amazing thing is that internet usage still stands at under 50 percent of the population, highlighting how much growth is left on the horizon. The expansion of the internet is coming thick and fast now, though, with the cost of entry cheaper than ever before. Most people are online through smartphones, which become more affordable each year as new generations are released.
There are also more mobile data plans to choose from nowadays, with faster connections that enable easy access to entertainment and social media. Countries like Nigeria are often seen as the next frontier for the internet, and international companies are flocking here to take advantage of the fertile online landscape. There are also countless internet startups emerging, with Nigeria leading the way in Africa for startup investment.
Fintech a Huge Contributor to Growth
With so many people now using smartphones and the internet, they need ways to perform transactions online. Nigeria has fully embraced fintech, and the industry is now one of the biggest contributors to the growth of the country’s digital economy. In fact, there’s a strong chance that cash will soon be phased out as more people move towards online payment platforms.
There are a few companies that are leading the way in Nigeria’s fintech market and experiencing rapid growth. Flutterwave is the biggest, and it’s currently valued at more than $3 billion. There’s also OPay, which has more than 35 million users and 600,000 merchants. There’s a chance that these companies or others like them could soon become super apps similar to the likes of WeChat in China.
Online Entertainment Will Contribute a Lot
One of the primary uses of the internet for Nigerians is to access online entertainment, with streaming platforms and gaming sites all attracting a lot of interest. Nigeria accounts for around 10 percent of Netflix’s African subscribers, and there has been an increase in Nigerian content on the platform to cater to these people.
Many Nigerians also use the internet to access casino online, but they mainly go through companies based in other countries. This means they play a lot of content geared towards Western players, such as The Sun Winning Headlines Cash Collect. There’s clearly a gap in the market for more Nigerian-focused iGaming titles and apps.
Nigeria’s digital economy boom has been highly impressive so far. But the amazing thing is that there’s so much more to come. As more people get online in the country, the growth of industries such as fintech and entertainment will be exponential.
