Experts have called for caution as Nigeria anticipates telecommunications investment worth over $3bn (N4.7 trillion).
They stated that while the investment would boost internet access to millions of Nigerians, overregulation could derail the investment target.
Daily Trust reports that the Minister of Communications, Innovation and Digital Economy, Dr. Bosun Tijani, recently revealed that Nigeria will receive telecommunications equipment and fibre optic infrastructure valued at $3 billion in June.
He spoke during a panel session at the Nigeria Development Update (NDU) event organised by the World Bank in Abuja recently.
According to Tijani, the investment will drive the enhancement of Nigeria’s digital backbone.
This $3 billion investment is the result of sustained efforts by the federal government, in collaboration with the World Bank, to attract long-term financing for broadband expansion, the minister said.
At a stakeholders’ engagement in Abuja titled “Realising a Nigerian Vision of Broadband for All,” Tijani explained the scale of the challenge and the need for urgent investment.
“We are here with critical stakeholders on how to attract investments and fund our broadband infrastructure. I am sure everybody that is listening to me probably understands that now we cannot do without technology on the internet; so, we all need quality access regardless of our location,” he said.
Stressing the need for a strong digital backbone, he said: “There is a need for us to invest in that database. So, it is the kind of thing that we call the telecommunications infrastructure, or in some cases, we call the fibre optic cables. So, there is actually a cable that helps us make it possible for the internet to happen.”
The minister said that the infrastructure rollout will support a pilot phase designed to bridge digital access gaps.
“A pilot phase targeting over 20 million Nigerians who currently lack access to any form of telecommunications would soon be launched,” Tijani said.
This project is expected to expand telecommunications access to unserved and underserved areas, particularly in rural communities.
Tijani explained that the initiative seeks to “Significantly enhance communication services across the country and bridge the connectivity gap.”
This aligns with the broader goals of Nigeria’s digital economy agenda, which includes ensuring inclusive access to technology and connectivity for all citizens.
President Bola Tinubu has earlier reaffirmed the federal government’s commitment to expanding Nigeria’s broadband infrastructure, highlighting a $2 billion investment in fibre optic cables aimed at improving nationwide internet connectivity.
Providing further details on the broadband expansion initiative, Minister Tijani stated that the federal government had approved a $2 billion investment into 90,000 kilometres of fibre optic cables, making it one of the largest broadband infrastructure projects in Africa.
“This project will have the third-longest fibre network in Africa, following South Africa and Egypt,” Tijani said.
He noted that significant progress had been made, with support from the Ministry of Finance and a $500 million commitment secured from the World Bank.
Tijani also revealed that Nigeria is on track to become one of the first countries in Africa to fully migrate from IPv4 to IPv6, ensuring better internet connectivity and security.
On the Right of Way fees, the Minister disclosed that 11 states have so far responded to the federal government’s request to waive the charges, a move aimed at reducing the cost of broadband expansion and enhancing internet penetration across the country
Experts speak
Speaking on the investment, founder, Majadtek Pro Technology Ltd., Engr AbdulMuizz Oyewole said it would improve the Internet speed accessibility in Nigeria.
Also, Deji Michel, an IT expert, said the digital economy would expand if the investment in broadband expands. He called on the federal government to sustain the investment in the sector.
‘Over-regulation can spoil the investment’
But there are concerns about potential over-regulation, policy inconsistency, and the cost of compliance persists. These can drive investors back, Oyewole cautioned.
“The recent developments with the Advertising Regulatory Council of Nigeria (ARCON), whose broad authority over all digital advertising was affirmed by courts in early 2025, illustrate this challenge. While aiming for ethical standards, its implementation will determine if it becomes an enabler or an impediment. From a governance and business perspective, the path forward requires a delicate balance: regulations must be developed through wide consultation, be evidence-based, and remain adaptive to the fast-paced digital landscape to encourage investment and allow innovation to flourish responsibly”, according to Majadtek founder.
Growing role of ICT in Nigeria’s economy
The Coordinating Minister of the Economy and Minister of Finance, Wale Edun, highlighted the growing role of the ICT sector in Nigeria’s economy, revealing that the industry contributed 16% to the country’s GDP in 2024.
“We are prioritising the ICT sector as a key driver of economic stability and job creation,” Edun said.
He also referenced Tinubu’s recent engagement with Flutterwave’s CEO, where the company pledged to support Nigerian youth and small businesses through technology-driven solutions.
“Flutterwave is considering listing on Nigeria’s Stock Exchange, and we expect this to strengthen the tech and payments ecosystem further,” he added.
Though experts said much has not been achieved from the government’s digital economy blueprint, which emphasises boosting internet connectivity, enhancing cybersecurity and fostering innovation through supportive policies and investments, the expected investments would go a long way in catalysing technological advancement in the country.
‘As investment lands, cybersecurity may suffer’
But experts fear the huge digital economy investment coming to the country may equally attract cyber criminals who may want to capitalise on it to defraud unsuspecting citizens and corporate entities.
“Robust cybersecurity measures are essential now to protect Nigeria’s growing digital infrastructure investment and build trust in online services,” said Dr. Adnan Ligali, a Lagos based cybersecurity analyst.
“Investing in cybersecurity not only safeguards data but also encourages more foreign investment in the tech sector, “ he added.
More innovation and startups
Nigeria’s tech scene is now vibrant, with cities like Lagos becoming hotspots for startups and innovation. Experts said more investments are needed to foster this growth and use it to create an enabling environment for more tech entrepreneurs and innovators.
They also urged the present administration to introduce more policies that would reduce bureaucratic hurdles for more startups and provide tax incentives for companies bringing in investments into the sector.
Additionally, they also urge the government to release the $500 million innovation fund to support emerging tech enterprises.
The Minister of Communications and Digital Economy, Bosun Tijani, had revealed in August 2023 that the government had secured access to approximately $500m to initiate a local funding programme for tech companies.
This initiative, he said, would boost innovation and entrepreneurship within the country’s digital sector.
The minister stated this at a dinner in partnership with the World Bank in Abuja.
He said, “So we’ve got access to about half a billion dollars to start local funding.”
Ifeanyi Maduka-Eze, a venture capitalist, said the government’s support can significantly accelerate the growth of startups and enable them to invest more in the economy.
“Access to funding and a conducive regulatory environment will encourage more young Nigerians to embark on entrepreneurial ventures, driving economic growth”, he added.
Expand e-government initiatives
The government has also been urged to expand its e-government services to make public services more accessible and efficient to citizens and enterprises. This will further encourage more foreign and local investors to invest in the country.
“E-governance can revolutionise how citizens interact with the government,” explains Adeola Adedipe, a digital transformation consultant.
“It can reduce corruption, streamline processes, and make the government more accountable to the people.”
Other factors that could discourage investors
Despite optimistic projections of more investments in the digital economy sector, several challenges could impede progress. According to experts, issues such as corruption, political instability, and inadequate infrastructure remain significant hurdles.
