…Sector poised for expansion in 2026 — ATCON
By Juliet Umeh
Nigeria’s technology sector in 2025 marked a clear transition from survival to consolidation, as operators, startups, regulators, and policymakers adjusted to economic pressures while laying the groundwork for long-term digital growth. Despite inflationary headwinds, foreign exchange constraints, and global tech slowdowns, technology remained one of the economy’s most resilient pillars, driving productivity, inclusion, and innovation.
Broadband hits 50%, even as gaps remain
One of the most significant milestones of the year was Nigeria crossing the 50 per cent broadband penetration threshold, according to data from the Nigerian Communications Commission, NCC. Achieved under the National Broadband Plan, NBP, 2020–2025, the milestone reflected years of sustained investment in fibre rollout, mobile broadband expansion, and public–private initiatives aimed at extending connectivity to underserved communities.
While the Plan’s 70 per cent target remained out of reach, the progress reinforced broadband’s growing status as critical national infrastructure, underpinning everything from digital payments and cloud services to education and healthcare delivery.
Data consumption surges as digital life deepens
If broadband expansion set the foundation, data consumption revealed how deeply digital services penetrated everyday life in 2025. Monthly internet usage peaked at about 1.24 million terabytes in November, the highest ever recorded, with total annual traffic projected to exceed 13 million terabytes, representing roughly 35 per cent year-on-year growth.
The surge was driven by video streaming, fintech transactions, e-commerce, social media, cloud computing, and remote work tools. However, rising data demand also exposed structural challenges, including network congestion, service quality gaps, affordability concerns, and infrastructure resilience, particularly in rural and underserved areas.
Fintech cements its role as economic infrastructure
Nigeria’s fintech ecosystem continued to anchor the country’s tech narrative in 2025, reinforcing its position as Africa’s largest instant payments market. Data from NIBSS and the State of Inclusive Instant Payment Systems, SIIPS, showed Nigeria accounting for a significant share of the continent’s nearly $2 trillion in instant payment transactions.
NIBSS Instant Payment, NIP, handled record transaction volumes, as instant transfers became the default for individuals, businesses, and government agencies. Fintech platforms including Moniepoint, OPay, PalmPay, Kuda, and Paga expanded rapidly, supported by agency banking networks that brought financial services closer to millions of Nigerians.
Beyond consumer payments, merchant collections, government disbursements, and digital revenue systems expanded, while regulators—including the Central Bank of Nigeria (CBN) and NIBSS—intensified efforts around fraud monitoring, system resilience, and consumer protection.
Data localisation moves from theory to execution
Another defining shift in 2025 was the growing emphasis on data localisation and digital sovereignty, driven by foreign exchange pressures, security concerns, and the need for faster, more reliable digital services.
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 prepared its network for more data-intensive services. Globacom leveraged its national fibre backbone and submarine cable assets, while 9mobile (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 locally, reducing latency, lowering costs, and easing foreign exchange exposure.
Regulation tightens as policy direction sharpens
Regulatory activity significantly shaped the sector’s direction 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 telecom regulation, the Federal Ministry of Communications, Innovation and Digital Economy pushed forward its digital economy agenda, focusing on broadband expansion, innovation support, digital public infrastructure, and emerging technologies such as artificial intelligence and data governance.
Artificial intelligence steps into the mainstream
Artificial intelligence moved from experimentation to practical deployment in 2025. Nigerian startups applied AI across healthcare, agriculture, finance, security, and language technologies—often tailoring solutions to local realities.
In healthcare, Intron Health, BetaLife Health, and AwaDoc used AI for speech recognition, predictive analytics, and conversational care. In agriculture and finance, Farmspeak, NeuraFarm, Lendsqr, Curacel, and Trade Lenda applied AI to productivity, credit scoring, insurance, and fraud detection. Meanwhile, Towntalk, IDB Analytics, and CDIAL AI focused on security analytics and African language technologies, supported by initiatives such as the Nigeria Artificial Intelligence Research, NAIR, scheme.
Skills take centre stage
Recognising that infrastructure alone cannot sustain digital growth, 2025 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 NITDA expanded ICT training centres and startup support programmes, while global technology firms, including Google, Microsoft, Meta, and Amazon Web Services, scaled cloud, AI, and digital skills initiatives across the country.
Sector show resilience in 2025, poised for expansion in 2026 – ATCON
“The outlook reflects the resilience of Nigeria’s telecoms sector despite the economic and operational pressures experienced over the past year,” said Mr Tony Emoekpere, President of the Association of Telecommunication Companies of Nigeria, ATCON.
“Looking back at 2025, it was a year defined by stabilisation and careful capital discipline. 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,” he said.
“Rather than pull back, 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,” Emoekpere added.
On broadband, he noted: “Data from the NCC shows that Nigeria’s broadband penetration crossed the 50 per cent mark in 2025. This milestone was driven by surging data consumption, as digital payments, streaming services, cloud computing, and other online platforms became embedded in everyday life.”
Looking ahead, he said: “If 2025 was about endurance, 2026 must be about execution, speed, and scale, as rising demand from fintech, artificial intelligence, and other data-intensive sectors continues to drive growth. Going into 2026, the industry plans to intensify investments in data centres and last-mile broadband infrastructure, including fibre-to-the-home and fixed wireless access. The visible enforcement of telecom assets as critical national infrastructure will be a key success factor. Coordinated action is needed to protect fibre routes and telecom towers, alongside harmonised Right-of-Way charges across states. Reducing multiple taxation remains essential, as it continues to weigh heavily on operators and limits the sector’s ability to scale sustainably.”
The post Key developments that shaped Nigeria’s tech sector in 2025 appeared first on Vanguard News.
