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  • Business - Economy
  • Updated: April 28, 2022

Nigeria And The Booming Digital Economy

Nigeria has one of the fastest-growing economies in the world, and digitalisation is a big factor in this growth.

Digitalisation is the process of adopting digital techniques and tools into a business model.

In the modern world, businesses are increasingly relying on digital tools to provide the best services and compete with other companies.

This is true of Nigeria too, where a booming economy is fuelled by the latest digital practices and techniques.

More Nigerians than ever are now online, giving businesses in the country more opportunities. As Nigerian companies grow, they’re also able to expand into new markets.

There is a lot of potential for growth across Africa but markets in Europe, North America, and Asia are also open to many Nigerian businesses.

All kinds of industries are affected by digitalisation, but none more so than the financial industry.

In Nigeria, financial services are being transformed by digital technology, with new services giving consumers more control over their money.

With a large percentage of the population currently bankless, financial apps and other digital services can help give Nigerians better opportunities.

The Rise of Mobile Banking Services in Nigeria

Mobile and online banking services make getting access to finances easier than ever.

In Europe, services such as PayPal are incredibly popular for sending and receiving money. Known as an eWallet, PayPal facilitates fast transfers for low cost in lots of different currencies.

eWallets offer advantages in speed and security, allowing consumers to make safe and fast transactions online.
eWallets aren’t just for consumer purposes. They’re also essential for businesses.

Online payment services are very important for global companies that deal with clients across a range of countries.

For example, digital marketing firm AWISEE.com makes use of PayPal for receiving payments from its international clients.

According to fresh statistics, mobile banking services have increased in Nigeria and other Sub-Saharan African (SSA) countries in the previous six years.

Users name fast transactions as the most important factor that would motivate them to use mobile money services more frequently.

In addition, the added security of being able to pay without worrying about revealing baking information is important.

In Nigeria, PayPal is also used, although it’s not as popular as competing services. Skrill is extremely popular as a standard eWallet service, while other fintech solutions are also widely used. Mobile banking doesn’t just have to be about sending and receiving money.

There are now a great number of mobile financial services that offer savings, loans, and integration with services such as Apple Pay.

The rise of financial technology in Nigeria has led to a growing percentage of the population being financially aware.

As the population grows and the country develops, it is more important than ever for people to be in control of their finances.

Mobile banking services aid in the digitalisation of the country and help Nigerian businesses gain international clients.

What Does the Future Hold for Nigerian Digital Businesses?

Nigeria’s economy is growing fast thanks to digitalisation and the fact that more people than ever are now online.

In 2021, around 51% of the country had regular access to the internet; that’s more than 100 million people. As this number continues to grow, Nigerian businesses will gain a wider range of consumers.

Additionally, digitalisation is helping Nigerian companies to work with international clients. The growing fintech scene in Nigeria isn’t just focused on Nigerian consumers.

A recent example is Paystack, a Nigerian company that was acquired by Stripe in 2020 for $200 million. This shows the value of Nigerian businesses, as the company looks to expand across Africa and possibly the US too.

The increasing demand for digital services in Nigeria means that there are more opportunities than ever for local businesses.

Financial technology isn’t the only sector that’s growing, with entertainment and eCommerce also being boosted by the digital economy.

According to the Director-General of the National Information Technology Development Agency (NITDA), Kashifu Inuwa Abdullahi, Nigeria will soon generate more revenue from digital sources than from oil. Currently, oil and gas are Nigeria’s main export, making up 65% of government revenues. This was around $30 billion in 2018.

A young population, fast-growing internet usage, and expanding consumer power mean that Nigeria is in a perfect position to digitalise its economy.

The number of cashless transactions is increasing as users move towards online and mobile payments, also facilitating easy online transactions.

The government also intends to increase spending on digital training.

In the past year, training has been supplied to more than 60,000 Nigerians in an effort to expand digital literacy. In addition, more than 2,000 people benefited from specialist training, which focuses on three areas: digital productivity tools, digital content creation, and digital marketing.

All of these are important in driving e-commerce and digital inclusion, according to Kashifu Abdullahi.

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