Dean of LBS: Professor Olayinka David-West,
Nigeria is standing at the threshold of a digital revolution that could reshape its economy, create millions of jobs, and unlock unprecedented growth opportunities. This was the central message at the 35th annual conference of the Finance Correspondents Association of Nigeria (FICAN), where the Lagos Business School (LBS) projected that the country’s e-commerce market will exceed $16 billion by 2030.
The conference, themed “Bracing for the Digital Economy in Nigeria: Taxation, Banking and Finance”, brought together critical stakeholders from the Federal Inland Revenue Service (FIRS), the Central Bank of Nigeria (CBN), and top banks to chart a roadmap for Nigeria’s digital future.
Delivering the keynote, Professor Olayinka David-West, Dean of LBS, represented by Prof. Akintola Owolabi, described the digital economy as “a powerful catalyst for diversification and inclusive growth.” She explained that Nigeria’s youth-driven innovation and increasing internet adoption present a once-in-a-generation opportunity for transformation.
According to the Nigerian Communications Commission (NCC), over 163 million Nigerians were online as of March 2024, representing 43.5 per cent internet penetration. The ICT sector currently contributes 18–20 per cent of GDP, highlighting its position as one of the most important drivers of Nigeria’s economy.
“This digital revolution is more than statistics—it is redefining commerce, services, and livelihoods,” David-West said. “Platforms like Jumia and Konga are fuelling a rapidly expanding e-commerce market, while startups such as Kwik and GIGL are building innovative logistics networks that create jobs, drive efficiency, and power new value chains.”
She highlighted the strength of Nigeria’s fintech ecosystem, which in 2024 attracted over $2 billion in investments, sustaining its dominance as Africa’s fintech hub. With banks such as GTBank and Access Bank deploying artificial intelligence (AI) and machine learning (ML) to improve fraud detection, personalise customer services, and strengthen credit systems, the financial sector is both leading and benefiting from the digital transition.
On taxation, David-West stressed that Nigeria is beginning to align its fiscal policies with the realities of the digital economy. The 6% Digital Services Tax (DST) on non-resident providers and the N50 electronic money transfer levy on transactions above N10,000 are examples of how government revenue streams are evolving. “Digital payments and mobile money have the potential to formalise the informal sector, boost tax compliance, and strengthen economic planning,” she said.
Yet, she warned that Nigeria must address persistent challenges, including poor electricity supply, weak broadband infrastructure, and a shortage of digital skills. “To fully unlock the potential of digital transformation, regulators must carefully balance innovation with consumer protection,” she advised, commending the CBN’s regulatory sandbox framework as a step in the right direction.
Also addressing participants, FICAN Chairman, Mr. Chima Titus, described the digital economy as “the new backbone of modern growth,” noting that digital payments in Nigeria surpassed N600 trillion in the first half of 2025, a 22% year-on-year increase. He also highlighted that mobile money adoption has grown to more than 73 million users, extending financial inclusion to rural communities.
Titus further pointed to the ICT sector’s 18.3% contribution to Nigeria’s GDP in Q2 2025 as evidence of its transformative role, while praising the CBN’s Payment System Vision 2020, which incorporates AI, blockchain, and AfCFTA-enabled cross-border payments as a framework for the future.
“No robust digital economy can thrive without an equitable and effective tax system,” Titus cautioned, urging collaboration between policymakers, regulators, and industry players to strengthen Nigeria’s position in the global digital marketplace.
The conference ended with a resounding call for bold policies, innovation, and cross-sector partnerships to ensure Nigeria not only embraces digital transformation but also harnesses it to build a more inclusive and resilient economy.
Nigeria’s digital economy is set to surpass $16 billion in e-commerce by 2030, according to Lagos Business School at the FICAN 35th anniversary conference. Experts from CBN, FIRS, and top banks stress innovation, taxation, and collaboration as the key to driving growth and financial inclusion.
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