Nigeria’s $18.3bn digital economy faces inclusion crisis, Remita warns

Nigeria’s digital economy is projected to reach $18.3 billion by the end of the year, but millions of citizens risk being left behind unless the country urgently invests in digital infrastructure, affordable internet access and cybersecurity, according to payments technology company Remita.

Speaking at the Nigeria Information Technology Reporters Association (NITRA) Innovative and Scientific Conference in Lagos, Lanre Idowu, divisional head of financial industry partnerships at Remita, said Nigeria’s digital transformation is increasingly becoming two Nigerias, one celebrated globally for its thriving fintech industry and another where poor connectivity, high costs and limited digital access continue to shut millions out of economic opportunities.

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His comments highlight a growing contradiction in Africa’s largest economy. While Nigeria has emerged as one of the continent’s biggest fintech markets, attracting billions of dollars in investment and building one of Africa’s fastest-growing digital payments ecosystems, broadband access, digital literacy and affordability remain major barriers to inclusive growth.

“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 said.

He identified connectivity, affordability, digital literacy, access to digital devices and trust as the five biggest obstacles preventing Nigerians from fully participating in the digital economy.

According to him, the country’s digital products must be designed to accommodate different languages, literacy levels, income groups and device types if Nigeria hopes to achieve meaningful digital inclusion.

Nigeria has recorded significant progress in digital financial services over the past decade. Instant payments have become the standard for consumers, businesses and government agencies, while fintech startups continue to gain international recognition. Digital banking, agency banking, mobile money and payment platforms have also transformed how Nigerians access financial services.

However, Idowu warned that uneven broadband penetration and the rising cost of internet connectivity threaten to slow that progress, particularly in underserved rural communities where millions remain disconnected.

“The future of Nigeria’s digital economy depends not only on innovation but also on inclusion. When technology becomes accessible to everyone, regardless of geography or income level, we truly begin to bridge the digital divide,” he said.

He noted that trust also remains a significant challenge, with many Nigerians losing confidence in digital platforms when transactions fail or complaints are not resolved quickly.

According to him, strengthening cybersecurity and improving consumer protection will become increasingly important as more financial services move online.

Idowu reflected on how Nigeria’s banking sector has evolved from an era when customers spent hours filling paper forms and waited between five and 15 working days for outstation cheques to clear. Today, technologies such as Automated Teller Machines (ATMs), mobile banking, USSD banking, agency banking and digital payment platforms have dramatically reduced the role of distance and time in financial transactions.

Despite these gains, he cautioned that recent increases in USSD transaction charges could discourage low-income Nigerians from using digital financial services, potentially reversing years of progress in financial inclusion.

He said the growth of Nigeria’s fintech industry has been driven by collaboration among government, regulators, banks, telecommunications companies, fintech firms, consumers and the media.

According to him, government provided policy direction, regulators established frameworks that encouraged responsible innovation, banks pioneered digital financial services, while telecommunications operators expanded connectivity that enabled digital payments to flourish.

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“No single institution built Nigeria’s fintech ecosystem alone. Government, regulators, banks, telecommunications operators, fintech innovators, consumers and the media all contributed to the progress we see today,” he said.

His remarks come as policymakers increasingly view the digital economy as a major driver of economic diversification beyond oil. Industry analysts, however, say sustaining that growth will depend less on developing new financial technologies and more on expanding broadband infrastructure, reducing the cost of connectivity and ensuring that digital services remain accessible to low-income and rural populations.

Without those investments, Nigeria’s projected $18.3 billion digital economy could become a story of rapid growth that benefits only the connected, leaving millions of citizens excluded from the country’s digital future.