Sector eyes broader expansion in 2026 – ATCON
By Juliet Umeh
Nigeria’s technology sector in 2025 did not make its biggest statements through flashy headlines or unicorn announcements. Instead, it evolved in quieter, more structural ways—strengthening the digital foundations that increasingly support healthcare delivery, financial inclusion, public services, and everyday life.
Against a backdrop of inflation, foreign exchange constraints, and a cautious global tech climate, the sector focused less on rapid expansion and more on stability, efficiency, and long-term readiness. The result was a year that subtly repositioned technology as essential national infrastructure rather than a growth experiment.
Connectivity becomes more embedded in daily life
One of the clearest signals of this shift was Nigeria crossing the 50 per cent broadband penetration mark in 2025, according to the Nigerian Communications Commission (NCC). While short of the 70 per cent target set under the National Broadband Plan (2020–2025), the milestone reflected steady progress in fibre deployment, mobile broadband expansion, and public–private partnerships.
More importantly, broadband’s role expanded beyond access to become a backbone for essential services—supporting telemedicine, digital payments, cloud platforms, remote work, and online learning. For sectors like health and education, connectivity increasingly shaped service reach and quality.
Rising data use mirrors deeper digital dependence
Data consumption trends offered another window into how embedded technology has become. Monthly internet usage climbed to a record 1.24 million terabytes in November, with total annual traffic projected to exceed 13 million terabytes—about 35 per cent higher than the previous year.
This growth reflected Nigerians’ reliance on video content, fintech platforms, e-commerce, social communication, and cloud-based tools. At the same time, it highlighted emerging pressures around network quality, affordability, and infrastructure resilience, particularly outside major urban centres.
Fintech matures into everyday infrastructure
In 2025, fintech further cemented its role as everyday economic infrastructure rather than a niche innovation space. Nigeria remained Africa’s largest instant payments market, with NIBSS Instant Payment (NIP) processing record volumes for individuals, businesses, and government agencies.
Platforms such as Moniepoint, OPay, PalmPay, Kuda, and Paga expanded their reach through agent networks, helping millions access basic financial services. Regulatory bodies, including the Central Bank of Nigeria (CBN) and NIBSS, also sharpened oversight around fraud prevention, system resilience, and consumer protection—reflecting fintech’s growing systemic importance.
Data localisation gains practical momentum
Another notable evolution was the move from conversation to action around data localisation. Pressures linked to foreign exchange exposure, security, and service reliability pushed operators and enterprises to prioritise local hosting.
MTN Nigeria launched a modular data centre, Airtel expanded fibre capacity, Globacom leveraged its national backbone, and 9mobile (T2) focused on enterprise optimisation. At the ecosystem level, the Internet Exchange Point of Nigeria (IXPN) recorded increased local traffic as more banks, networks, and content providers interconnected domestically—reducing latency, costs, and dependence on offshore infrastructure.
Regulation nudges the sector toward sustainability
Rather than dramatic policy shifts, 2025 saw more deliberate regulatory enforcement. The NCC intensified efforts around quality of service, spectrum management, infrastructure sharing, and consumer protection, while the Ministry of Communications, Innovation and Digital Economy continued to push its digital economy agenda.
Artificial intelligence, data governance, and digital public infrastructure also gained more policy attention, laying groundwork for more structured innovation across sectors such as healthcare, agriculture, and security.
AI moves closer to real-world use
Artificial intelligence quietly crossed a threshold in 2025, shifting from pilot projects to practical applications tailored to local needs. In healthcare, startups like Intron Health, BetaLife Health, and AwaDoc applied AI to speech recognition, diagnostics, and conversational care. In finance and agriculture, companies such as Lendsqr, Curacel, Farmspeak, and NeuraFarm focused on credit scoring, insurance, productivity, and risk management.
Language and security-focused solutions also advanced, supported by initiatives like the Nigeria Artificial Intelligence Research (NAIR) programme.
Skills development gains urgency
Alongside infrastructure, skills emerged as a central concern. The Federal Government’s 3 Million Technical Talent (3MTT) programme trained thousands in software development, AI, cybersecurity, and data analysis, while agencies such as NCC and NITDA expanded training and startup support initiatives.
Global technology firms—including Google, Microsoft, Meta, and Amazon Web Services—also scaled digital skills and cloud training programmes, reinforcing the link between human capital and sustainable digital growth.
Looking ahead: from stability to scale
Reflecting on the year, President of the Association of Telecommunication Companies of Nigeria (ATCON), Mr. Tony Emoekpere, described 2025 as a period of resilience and careful adjustment.
“Rather than retreat in the face of rising energy costs, foreign exchange volatility, and Right-of-Way challenges, operators focused on network densification and accelerated the transition to solar and hybrid energy systems,” he said.
Looking ahead to 2026, Emoekpere noted that the focus must shift to execution and scale, particularly as demand rises from fintech, artificial intelligence, and other data-intensive sectors. He stressed the importance of protecting telecom infrastructure, harmonising Right-of-Way charges, and reducing multiple taxation to unlock the sector’s full potential.
If 2025 was about strengthening the digital base, stakeholders agree that 2026 could be the year those foundations translate into broader economic and social impact—especially in critical sectors like healthcare, education, and public services.
