ICT Investment

Investment in ICT


The Nigerian information and communication sub-sector is the briskiest industry to invest in. Having evolved from a very low tele-density of 1.89% in 1993 to a magnificent 12.29% in 2018, and 14.70% in the first quater of 2020, representing an annual average of 10% to the national GDP and about 95% of the IC segment of the economy; the industry has grown phenomenally while the country remains a major market market for the fastest growing and largest telecommunications industry in Africa. With a population size of about 206 million, around 60% of whom are active internet users, the ICT industry presents attractive investment opportunities. Through various electronic platforms, Nigeria’s ICT network has revolutionized business transactions by providing the highly mobile-technology-driven population seamless ability to communicate, buy, bank, invest, distribute, and explore anytime and anywhere access to the internet is available

Nigeria, being Africa’s leading economy and population, has an overwhelming appetite for mobile connectivity. Most Nigerians have a mobile Internet connection, with upto 15 million being active on social media. The shift that is taking place in Africa’s ICT sector is driven by a strong desire to attract new businesses and the booming market is reaping these benefits, stimulating economic growth and making way for a more digital future, a future stands to be brighter for investors.

According to the Federal Ministry of Communications, Key performance indicators are evident in the US$ 32 billion of Foreign Direct Investments (FDI) made by service providers and others, from 2001 to date, in a Sector that now employs several millions of Nigerians and expatriates. There are no fewer than 152 million active telephone lines, as well as 97 million connections to the internet, translating to 107 per cent teledensity. Nigeria now boasts over 30,000 base stations, and 11 terabytes of data landing on Nigeria’s shores through five submarine cables. This exponential effort to establish and improve ICT infrastructure is in-line with the government's overall vision to make the ICT Sector the main pillar and catalyst of a robust Nigerian economy as ICT is mainstreamed into all aspects of national life. 

To fullfil its mandate, the government aslo adopted a multi-stakeholder approach through various commissions and agencies, including the private sector, with favourable policies for investment. With infrastructure in place and room for more, the opportunities for investment in Nigeria's ICT sector are numerous in a wide range of trends such as cloud computing, mobile web services, smart grids, social media, payment systems and fintech, ecommerce, online learning, biometrics, eGovernment, eHealth and many more.