By Yahaya Umar
Nigeria’s e-commerce market is projected to surpass $16bn by 2030, according to the Lagos Business School ,LBS, which has called for a transformative digital agenda to unlock the country’s full economic potential.
The forecast was unveiled at the 35th annual conference of the Finance Correspondents Association of Nigeria ,FICAN, held in Lagos over the weekend, with the theme “Bracing for the Digital Economy in Nigeria: Taxation, Banking and Finance”.
Speaking at the event, Professor Olayinka David-West, Dean of LBS, represented by Professor Akintola Owolabi of the Department of Cost and Management Accounting, emphasised that Nigeria’s digital revolution was reshaping commerce, services, and livelihoods.
She noted that trailblazing platforms such as Jumia and Konga, alongside innovative logistics companies like Kwik and GIGL, are driving new value chains that enhance efficiency and expand economic opportunities.
David-West said the digital economy, supported by Nigeria’s young population and rapid adoption of technology, presents prospects for diversification, exponential job creation, and improved service delivery across sectors.
According to the Nigerian Communications Commission ,NCC, internet penetration stood at 43.5% in March 2024, with over 163 million Nigerians connected online. The telecoms sector contributes between 18 and 20% to national GDP, underscoring ICT’s central role in economic growth.
The financial sector, she explained, is both a driver and beneficiary of this revolution. Nigeria’s fintech ecosystem attracted over $2 billion in funding in 2024, cementing its place as Africa’s financial technology powerhouse. Local banks, including Access Bank and GTBank, are already leveraging Artificial Intelligence ,AI, and Machine Learning ,ML, to strengthen fraud detection, optimise credit scoring, and personalise customer experiences.
On taxation, David-West observed that while challenges persist, opportunities abound. Since 2022, Nigeria has imposed a six per cent Digital Services Tax ,DST, on non-resident providers, complementing existing VAT obligations.
She highlighted the electronic money transfer levy, which applies a N50 charge on bank transfers of N10,000 and above, as an example of how digital payments are bolstering government revenues.
She stressed that digital payments and mobile money could help formalise Nigeria’s vast informal sector, improve tax compliance, and integrate more businesses into the financial system.
However, infrastructure gaps such as poor electricity supply, limited broadband access, and shortages of digital skills remain obstacles to full participation.
The LBS dean urged regulators to strike a balance between enabling innovation and safeguarding consumers, pointing to the Central Bank of Nigeria’s sandbox framework as a model that encourages experimentation within the fintech space while maintaining oversight.
FICAN Chairman, Mr. Chima Titus, reinforced the urgency of building a resilient digital economy. He noted that digital transactions in Nigeria exceeded N600tn in the first half of 2025, representing a 22% year-on-year growth, while mobile money subscriptions have surpassed 73 million, extending financial inclusion to rural areas.
Titus added that the ICT sector contributed 18.3% to GDP in the second quarter of 2025, while the Central Bank’s Payment System Vision 2020 remains a guiding framework for integrating AI, blockchain, and cross-border settlements under the African Continental Free Trade Area ,AfCFTA.
“No robust digital economy can thrive without a fair and effective tax framework”, he said, underscoring the need for policy alignment to sustain growth.
