By Chioma Obinagwam
Lagos Business School (LBS) has called for Nigeria to pursue a bold digital transformation to revolutionize its economy and enhance citizens’ quality of life.
Speaking at the 35th annual conference of the Finance Correspondents Association of Nigeria (FICAN) in Lagos, themed “Bracing for the Digital Economy in Nigeria: Taxation, Banking and Finance,” LBS Dean, Professor Olayinka David-West, highlighted the country’s e-commerce market, projected to surpass $16 billion by 2030, driven by platforms like Jumia and Konga.
Represented by Professor Akintola Owolabi, David-West emphasized the conference’s relevance to Nigeria’s sustainable development. She noted that LBS is committed to fostering digital transformation and financial inclusion by developing leaders to steer this evolving landscape. The event brought together key stakeholders, including the Federal Inland Revenue Service (FIRS), Central Bank of Nigeria (CBN), and major banks, to shape Nigeria’s digital economy roadmap.
Confiance News gathered that Nigeria’s digital economy is thriving, fueled by a youthful population and rapid digital adoption. According to the Nigerian Communications Commission, internet penetration reached 43.5 percent in March 2024, with over 163 million Nigerians online. The telecommunications sector contributes 18-20 percent to GDP, underscoring ICT’s pivotal role. David-West highlighted how platforms like Jumia, Konga, and logistics startups such as Kwik and GIGL are creating new value chains, boosting efficiency, generating jobs, and diversifying the economy beyond oil.
The financial sector is a key driver of this digital shift. In 2024, Nigeria’s fintech ecosystem attracted over $2 billion in investments, reinforcing its status as Africa’s fintech hub. Leading banks like Access Bank and GTBank are leveraging AI and machine learning for fraud detection, personalized services, and enhanced customer support. David-West also noted the role of digital payments and mobile money in formalizing Nigeria’s informal sector, improving tax compliance, and integrating businesses into formal financial systems.
On taxation, Nigeria’s 6 percent Digital Services Tax (DST) on non-resident digital providers, implemented since January 2022, and the N50 electronic money transfer levy on transactions above N10,000 are generating significant revenue. These measures capitalize on the growing digital marketplace while supporting efficient tax collection and financial inclusion.
However, challenges like unreliable electricity, limited rural broadband, and a digital skills gap persist. David-West stressed the need for regulators to balance innovation with consumer protection. The CBN’s sandbox framework is facilitating fintech innovation by providing a controlled environment for regulatory experimentation.
FICAN Chairman Chima Titus echoed the urgency of embracing the digital economy, citing its global importance and Nigeria’s potential. He noted that the ICT sector contributed 18.3% to GDP in Q2 2025, with digital payment transactions exceeding N600 trillion in the first half of the year, reflecting 22% year-on-year growth. Mobile money usage has reached over 73 million, extending to rural areas. The CBN’s Payment System Vision 2020, incorporating AI, blockchain, and cross-border payments under the African Continental Free Trade Area, further supports this progress.
Titus emphasized that a robust digital economy requires an equitable tax framework to sustain growth. Nigeria stands at a pivotal moment, with digital transformation poised to redefine its economic landscape and uplift millions of lives.
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