By Juliet UmehNigeria’s technology industry in 2025 underwent a decisive shift from mere survival to strategic consolidation, as operators, startups, regulators, and policymakers adapted to tough economic realities while positioning the sector for sustainable digital growth. In spite of inflation, foreign exchange volatility, and a global slowdown in tech investments, the sector remained one of the most resilient segments of the Nigerian economy—driving productivity, inclusion, and innovation.Broadband penetration crosses 50% milestoneA major highlight of the year was Nigeria surpassing 50 per cent broadband penetration, according to figures from the Nigerian Communications Commission (NCC). This achievement, delivered under the National Broadband Plan (NBP) 2020–2025, reflects years of investment in fibre deployment, mobile broadband expansion, and public–private initiatives aimed at extending connectivity to underserved and rural communities.Although the NBP’s ambitious 70 per cent target was not met, crossing the halfway mark reinforced broadband’s status as critical national infrastructure—supporting digital payments, cloud services, e-learning, telemedicine, and e-commerce.Data consumption reaches record levelsBeyond infrastructure growth, data usage trends revealed just how deeply digital services became embedded in everyday life. Monthly internet consumption peaked at approximately 1.24 million terabytes in November, the highest level ever recorded in Nigeria. Total annual data traffic is estimated to exceed 13 million terabytes, representing around 35 per cent year-on-year growth.This surge was fuelled by video streaming, fintech transactions, online commerce, social media, cloud services, and remote work tools. However, rising demand also exposed persistent challenges, including network congestion, uneven service quality, affordability concerns, and infrastructure resilience—particularly in rural and underserved regions.Fintech strengthens its role as economic infrastructureFintech remained central to Nigeria’s technology story in 2025, further entrenching the country 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 significant share of the continent’s nearly $2 trillion instant payment transactions.NIBSS Instant Payment (NIP) processed record transaction volumes, with instant transfers now the default for individuals, businesses, and government agencies. Leading fintech platforms such as Moniepoint, OPay, PalmPay, Kuda, and Paga expanded aggressively, supported by extensive agent banking networks that brought financial services closer to millions of Nigerians.Beyond consumer payments, digital merchant collections, government disbursements, and revenue platforms expanded significantly. Meanwhile, regulators—including the Central Bank of Nigeria (CBN) and NIBSS—intensified oversight on fraud prevention, system resilience, and consumer protection.Data localisation gains momentumAnother defining trend in 2025 was the shift from policy discussions to practical implementation of data localisation and digital sovereignty. This push was driven by foreign exchange pressures, security considerations, and the need for faster, more reliable digital services.Telecom operators played a pivotal role. MTN Nigeria launched a modular, scalable data centre to support local hosting and cloud services. Airtel Nigeria expanded fibre capacity and prepared its network for data-heavy applications, while Globacom leveraged its national fibre backbone and submarine cable assets. 9mobile (T2) focused on network optimisation and enterprise partnerships.At the ecosystem level, the Internet Exchange Point of Nigeria (IXPN) recorded strong growth in local traffic as more networks, banks, and content providers interconnected locally—reducing latency, cutting costs, and lowering exposure to foreign exchange risks.Sharper regulation shapes sector directionRegulatory oversight intensified throughout the year. The NCC strengthened enforcement around quality-of-service standards, spectrum management, consumer protection, and infrastructure sharing, with the aim of improving network performance and long-term sustainability.At the policy level, the Federal Ministry of Communications, Innovation and Digital Economy advanced its digital economy agenda, prioritising broadband expansion, innovation support, digital public infrastructure, and emerging technologies such as artificial intelligence and data governance.Artificial intelligence moves into real-world useArtificial intelligence shifted from experimentation to real-world deployment in 2025. Nigerian startups applied AI across healthcare, agriculture, finance, security, and local language technologies—often tailoring solutions to uniquely African contexts.In healthcare, companies such as Intron Health, BetaLife Health, and AwaDoc deployed AI for speech recognition, predictive analytics, and conversational care. In agriculture and finance, Farmspeak, NeuraFarm, Lendsqr, Curacel, and Trade Lenda used AI to improve productivity, 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) programme.Skills development takes priorityRecognising that infrastructure alone cannot sustain digital growth, 2025 saw renewed focus on human capital development. The Federal Government’s 3 Million Technical Talent (3MTT) programme trained thousands of young Nigerians in software development, data analysis, cybersecurity, artificial intelligence, and product management.Regulatory agencies such as the NCC and NITDA expanded ICT training centres and startup support initiatives, while global technology firms—including Google, Microsoft, Meta, and Amazon Web Services—scaled up cloud, AI, and digital skills programmes nationwide.Sector shows resilience, targets growth in 2026 — ATCONCommenting on the outlook, Mr Tony Emoekpere, President of the Association of Telecommunication Companies of Nigeria (ATCON), said the sector demonstrated remarkable resilience in 2025 despite severe economic and operational pressures.“Looking back, 2025 was a year of stabilisation and disciplined capital management,” Emoekpere said. “Telecom operators, tower companies, and internet service providers did not retreat, despite rising energy costs, foreign exchange volatility, high equipment import expenses, and persistent Right-of-Way challenges.”Instead, he noted, operators prioritised network densification in high-demand areas and accelerated the shift toward solar and hybrid energy solutions to reduce reliance on diesel.On broadband growth, Emoekpere added: “NCC data confirms that broadband penetration crossed 50 per cent in 2025, driven by rising data consumption as digital payments, streaming services, cloud computing, and online platforms became integral to daily life.”Looking ahead, he said: “If 2025 was about endurance, 2026 must be about execution, speed, and scale. Growing demand from fintech, artificial intelligence, and other data-intensive sectors will continue to drive expansion. The industry plans to step up investments in data centres and last-mile broadband infrastructure, including fibre-to-the-home and fixed wireless access.”He emphasised that effective enforcement of telecom assets as critical national infrastructure, protection of fibre routes and towers, harmonised Right-of-Way charges across states, and reduced multiple taxation would be critical to unlocking the sector’s full growth potential.
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