By Abbas Badmus,

Nigeria’s technology sector in 2025 marked a decisive shift from survival mode to consolidation, as operators, startups, regulators and policymakers navigated economic headwinds while laying firmer foundations for long-term digital growth. Despite inflationary pressures, foreign exchange constraints and a global technology slowdown, the sector emerged as one of the economy’s most resilient pillars—driving productivity, financial inclusion and innovation.

From broadband expansion and surging data consumption to fintech dominance, data localisation and the mainstreaming of artificial intelligence, 2025 proved a year of stabilisation and strategic recalibration, positioning the industry for broader expansion in 2026.

Broadband Crosses 50% Milestone

One of the sector’s most notable achievements was Nigeria crossing the 50 per cent broadband penetration mark, according to data from the Nigerian Communications Commission (NCC). The milestone, delivered under the National Broadband Plan (NBP) 2020–2025, reflected years of sustained investment in fibre deployment, mobile broadband expansion and public–private partnerships aimed at extending connectivity to underserved areas.

Although the NBP’s 70 per cent target remained unmet, the progress reinforced broadband’s status as critical national infrastructure—supporting digital payments, cloud services, e-learning, telemedicine and e-government platforms.

Data Consumption Hits Record Highs

Beyond access, usage figures underscored how deeply digital services penetrated everyday life in 2025. Monthly internet data consumption peaked at approximately 1.24 million terabytes in November, the highest ever recorded, while total annual traffic was projected to exceed 13 million terabytes—representing about 35 per cent year-on-year growth.

The surge was fuelled by video streaming, fintech transactions, e-commerce, social media, cloud computing and remote work tools. However, rising demand also exposed persistent challenges, including network congestion, uneven service quality, affordability concerns and infrastructure resilience gaps, particularly in rural and underserved communities.

Fintech Consolidates Its Role as Economic Infrastructure

Nigeria’s fintech ecosystem remained central to the country’s technology narrative in 2025, reinforcing its position as Africa’s largest instant payments market. Data from the Nigeria Inter-Bank Settlement System (NIBSS) and the State of Inclusive Instant Payment Systems (SIIPS) showed Nigeria accounting for a substantial share of the continent’s nearly $2 trillion in instant payment transactions.

NIBSS Instant Payment (NIP) processed record volumes as instant transfers became the default for individuals, businesses and government agencies. Leading fintech platforms such as Moniepoint, OPay, PalmPay, Kuda and Paga expanded rapidly, supported by extensive agency banking networks that brought financial services closer to millions of Nigerians.

Beyond consumer payments, growth was recorded in merchant collections, government disbursements and digital revenue systems. Regulators, including the Central Bank of Nigeria (CBN) and NIBSS, also intensified efforts around fraud monitoring, system resilience and consumer protection.

Data Localisation Gains Momentum

Another defining trend in 2025 was the shift from policy debate to practical execution on data localisation and digital sovereignty. Driven by foreign exchange pressures, security concerns and the demand for faster, more reliable services, local hosting gained renewed urgency.

Telecom operators played a central role. MTN Nigeria launched a modular, scalable data centre to support local hosting and cloud services, while Airtel Nigeria expanded fibre capacity and upgraded its network for data-intensive applications. Globacom leveraged its extensive national fibre backbone and submarine cable assets, and 9mobile (now T2) focused on network optimisation and enterprise partnerships.

At the ecosystem level, the Internet Exchange Point of Nigeria (IXPN) recorded significant growth in local traffic as more networks, banks and content providers interconnected domestically—reducing latency, lowering costs and easing exposure to foreign exchange volatility.

Regulatory Focus Sharpens

Regulation continued to shape the sector’s trajectory in 2025. The NCC stepped up enforcement of quality-of-service standards, spectrum management, consumer protection and infrastructure-sharing policies, aimed at improving network performance and sustainability.

Beyond telecoms, the Federal Ministry of Communications, Innovation and Digital Economy advanced its digital economy agenda, prioritising broadband expansion, innovation support, digital public infrastructure and emerging areas such as artificial intelligence and data governance.

Artificial Intelligence Moves into the Mainstream

Artificial intelligence (AI) transitioned from experimentation to real-world deployment in 2025, with Nigerian startups applying AI solutions across healthcare, agriculture, finance, security and language technologies.

In healthcare, firms such as Intron Health, BetaLife Health and AwaDoc deployed AI for speech recognition, predictive analytics and conversational care. In agriculture and finance, platforms including Farmspeak, NeuraFarm, Lendsqr, Curacel and Trade Lenda used AI for productivity enhancement, credit scoring, insurance processing and fraud detection. Meanwhile, Towntalk, IDB Analytics and CDIAL AI focused on security analytics and African language technologies, supported by initiatives like the Nigeria Artificial Intelligence Research (NAIR) scheme.

Skills Development Takes Centre Stage

Recognising that infrastructure alone cannot sustain digital growth, 2025 also saw intensified investment in human capital. The Federal Government’s 3 Million Technical Talent (3MTT) programme trained thousands of young Nigerians in software development, data analysis, cybersecurity, AI and product management.

Regulatory agencies such as the NCC and the National Information Technology Development Agency (NITDA) expanded ICT training centres and startup support programmes, while global technology companies—including Google, Microsoft, Meta and Amazon Web Services—scaled cloud, AI and digital skills initiatives nationwide.

Industry Resilience, Eyes on 2026 Expansion

Industry leaders described 2025 as a year of endurance and stabilisation. According to the President of the Association of Telecommunication Companies of Nigeria (ATCON), Mr Tony Emoekpere, the sector demonstrated resilience despite economic and operational pressures.

“Looking back at 2025, it was a year defined by stabilisation and careful capital discipline,” Emoekpere said. “Telecom operators, tower companies and internet service providers did not retreat, even in the face of rising energy costs, foreign exchange volatility, high equipment import costs and persistent Right-of-Way bottlenecks.”

Instead, he noted, operators focused on network densification in high-demand corridors and accelerated the transition to solar and hybrid energy systems to reduce dependence on diesel.

On broadband, Emoekpere highlighted the 50 per cent penetration milestone as a reflection of surging data consumption and the embedding of digital services into everyday life. Looking ahead, he said 2026 must be about “execution, speed and scale,” driven by rising demand from fintech, AI and other data-intensive sectors.

He stressed that increased investment in data centres and last-mile broadband infrastructure, visible enforcement of telecom assets as critical national infrastructure, harmonised Right-of-Way charges and reduced multiple taxation would be crucial to sustaining growth.

As Nigeria enters 2026, the technology sector appears poised to move from consolidation to expansion—anchored on stronger infrastructure, deeper digital adoption and a growing pool of skilled talent.

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The Association of Telecommunication Companies of Nigeria (ATCON) has projected that Nigeria’s telecommunications industry will move from a phase of consolidation in 2025 to a period of expansion in 2026.

ATCON President, Mr Tony Emoekpere, disclosed this while outlining his outlook for the sector in an interview with the News Agency of Nigeria (NAN) in Lagos.

According to him, the expected expansion will be driven by renewed investor confidence, rising digital demand and improved policy coordination across the industry. He said the sector is entering 2026 with stronger fundamentals, supported by increased collaboration among operators, regulators and the Federal Government to deepen digital inclusion.

Emoekpere noted that the outlook reflects the industry’s resilience despite significant economic and operational pressures over the past year. He described 2025 as a period marked by stabilisation and careful capital discipline.

He said telecom operators, tower companies and internet service providers remained committed to the market despite challenges such as rising energy costs, foreign exchange volatility, high equipment import costs and persistent Right-of-Way (RoW) bottlenecks.

“Rather than retreat, industry players focused on network densification in high-demand corridors and accelerated the transition to solar and hybrid energy systems to reduce dependence on diesel,” he said.

On broadband growth, Emoekpere said data from the Nigerian Communications Commission (NCC) showed that Nigeria’s broadband penetration crossed the 50 per cent mark in 2025, driven by rising data consumption.

He attributed the growth to the increasing adoption of digital payments, streaming services, cloud computing and other online platforms in everyday life. He also commended the NCC for maintaining transparent industry reporting, enforcing Quality of Service standards and ensuring efficient spectrum management.

“These actions have helped preserve investor confidence in the sector,” Emoekpere said.

He added that growing demand from fintech, artificial intelligence and other data-intensive sectors would be a major growth driver in 2026. “If 2025 was about endurance, 2026 must be about execution, speed and scale,” he said.

Looking ahead, the ATCON president said industry players plan to intensify investments in data centres and last-mile broadband infrastructure, including fibre-to-the-home and fixed wireless access.

He stressed that visible enforcement of telecom assets as critical national infrastructure would be crucial to success in 2026, calling for coordinated action to protect fibre routes and telecom towers from vandalism and other risks.

Emoekpere also urged the harmonisation of Right-of-Way charges across states and a reduction in multiple taxation, which he said continues to place a heavy burden on operators.

Industry data shows that Nigeria’s broadband penetration stood at 50.58 per cent as of November, with 109.6 million broadband connections nationwide. While this marks a significant milestone, the country is still expected to fall short of the 70 per cent broadband penetration target set under the National Broadband Plan (2020–2025).

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