Nigeria’s digital economy contributed $191m to foreign direct investment in Q1’24

The Federal Government of Nigeria has revealed that the communications and digital economy sector attracted a whopping $191 million in foreign direct investment during Q1 2024, representing a 900 per cent rise from the $22 million in Q1 2023. 

Nigeria’s Minister of Communications, Innovation, and Digital Economy, Dr. Bosun Tijani, made the revelation during an interview for an upcoming State House documentary marking President Tinubu’s second anniversary. He noted that a couple of reforms and all-around development continue to position Nigeria at the centre of the digital economy, further reinstating President Tinubu’s Renewed Hope Agenda.

Tijani also explained that the sector’s significant drive, pushed by major initiatives such as the 3 Million Technical Talent (3MTT) programme, has been instrumental in refining the Nigerian economy for digital transformation. He also attributed the development to a recently signed $2bn fund structured at lining up 90,000 kilometres of fibre optic infrastructure nationwide, starting by Q4 2025.

“These foundational reforms, coupled with advancements in artificial intelligence and the startup ecosystem, have positioned Nigeria as a global leader in the digital economy,” Tijani stated.

While the sector saw a ninefold increase in foreign direct investment from $22 million in Q1 2023 to $191 million in Q1 2024, the trend continued in Q2 2024, which also increased by 356 per cent to $114 million from $25 million YoY.

While the goal has been part of a broader effort to elevate the country’s economic landscape through technology, Bosun Tijani recently stressed that Nigeria’s digital economy is on track to contribute 21 per cent to the nation’s Gross Domestic Product (GDP) from the 16 per cent and 18 per cent it currently contributes.

While Nigeria has witnessed the rise of unicorn companies such as Flutterwave, Jumia, Andela, Moniepoint, and Interswitch, the Minister was confident that the digital economy would generate $18.3 billion by 2026.

In addition, the coordinated efforts by the sector are expected to drive high-speed internet access nationwide, benefiting not only businesses but also schools and learning institutions.

“This means more jobs and opportunities. For the first time in the history of this country, an administration is investing in 90,000 kilometres of fibre optic cables across the nation. This infrastructure will bring high-speed internet to schools through cables, not through jungles—enabling better learning environments,” he noted.

Also Read: Telecom and financial industry contribute 23.09% as Nigeria’s GDP surge by 3.84%.

Key Communications and Digital Economy sector’s contributions

Since the inception of the President Tinubu administration, the Ministry of Communications and Digital Economy Sector under the leadership of Bosun Tijani has demonstrated some significant initiatives towards redefining the digital economy image of Nigeria.

The 3MTT programme, launched in October 2023 to create a tech-savvy workforce, has already trained 390,000 Nigerians in digital skills, surpassing its initial target of 30,000. The programme selected 30,000 during the First Cohort, 270,000 for the Second Cohort, and 90,000 fellows in the recently launched Third Cohort, with more to come.

In November 2023, the Federal Government partnered with the United Nations Development Program (UNDP) to facilitate paid internships for 3,000 participants enrolled in the 3MTT initiative, a means to equip fellows with already learned skills.

Also in the area of skills acquisition, the communications and digital economy sector secured a N2.8 billion Google fund to accelerate AI talent development across Nigeria. Provided through Google.org to Data Science Nigeria in November 2024, the fund is centred on bolstering the Ministry’s ongoing AI-driven initiatives to upskill youth and under- and unemployed Nigerians, with a focus on AI skill development and education.

In a further effort to strengthen the 3MTT program, the Ministry secured a N1 billion grant from the Airtel Africa Foundation, which would be channeled towards reinforcing the project by empowering more than 25,000 Nigerian youths in digital skills and covering areas such as impactful training, community collaboration, and job placement. 

In terms of connectivity, 90,000 kilometers of fibre optic cable is set to be laid across the country to strengthen broadband connectivity. Tijani announced that the Project will commence in the fourth quarter.

“We are preparing a $2bn investment to ensure every Nigerian can access affordable, high-quality connectivity regardless of location. Increasing connectivity hubs by just 10 per cent could yield a 2.5 per cent GDP growth,” Tijani mentioned during the interview.

To bridge rural connectivity gaps, the Ministry projected that 7,000 telecom towers are set to be deployed, targeting 98 per cent nationwide coverage. The Right-of-Way issues have also been a significant progress with 12 states in the federation already adopting zero-rated Right-of-Way policies, according to the Minister. These efforts are positioned to support the National Broadband Plan’s goal of achieving 90 per cent penetration by 2025, up from 48 per cent in 2024.

Nigeria was ranked among the world’s top 60 countries for AI readiness and developing a homegrown large language model. The launch of the AI Collective platform, supported by leading partners including Pierre Omidyar, Google, and Microsoft, was a contributing factor in fostering collaboration and innovation in Nigeria’s AI push.

In a significant step toward advancing the AI ecosystem, the Ministry and Google collaborated for the  AI Fund initiative, established by the National Centre for Artificial Intelligence and Robotics (NCAIR) in collaboration with Google.

The Fund will see each selected startup receive N100 million in funding, along with up to $ 3.5 million in Google Cloud Credits to help scale their solutions. Additionally, these startups will gain access to Google’s world-class AI tools, mentorship from Google’s AI experts, and opportunities to connect with a global network of innovators and partners.

For the first time in the country, the ministry has funded 55 academic researchers to explore technology applications in sectors such as agriculture, healthcare, and education. In addition, N300m was invested in 10 startups using AI and blockchain to enhance agricultural productivity.