Nigeria’s ICT sector grows 10.98% as broadband, AI investments rise – PwC

Nigeria’s Information and Communications Technology (ICT) sector saw remarkable growth in the first quarter of 2026, expanding by 10.98% compared to the same period the previous year. This surge occurred while the overall economy grew at a much slower rate of 3.89%, according to PwC’s Strategy& H2 2026 Nigeria Economic Outlook.

To simplify, while the general Nigerian economy was growing at a leisurely pace, the ICT sector was racing ahead. It outperformed other significant sectors, such as finance and insurance, which grew by 8.54%, construction, which grew by 6.38%, and agriculture, which grew by 3.15%. In contrast, the electricity sector experienced a 15.30% decline, highlighting ongoing infrastructure challenges in Nigeria, even as the digital economy flourishes.

Two main factors fuelled this growth: an increasing number of Nigerians gaining access to mobile data and more people connecting to broadband internet. As these connections expand, so does the economic activity that relies on them, including digital payments, online services, e-commerce, streaming, and cloud computing, which businesses depend on for their operations.

PwC forecasts that Nigeria will achieve a full-year GDP growth of 4.2% in 2026, with ICT, services, and fintech playing crucial roles in this progress. However, it’s important to note that this growth is concentrated in a limited number of sectors, meaning that not everyone in the country is experiencing the benefits equally.

What is driving ICT growth in Nigeria

The growth of the Information and Communications Technology (ICT) sector goes beyond just the number of people online; it’s about the actual physical infrastructure being built.

As of May 2026, broadband access in Nigeria increased to 56.11% from 55.67% in April, with a total of 121.64 million subscriptions. Although this may seem like a small rise, even slight improvements mean millions more people can access the digital economy.

One key initiative is Project BRIDGE, which aims to lay 90,000 kilometres of fibre optic cables across Nigeria. This $800 million project, backed by the government and the European Union, will make internet access cheaper and more reliable in areas that currently lack good connectivity. When these cables reach underserved towns, it enables schools, businesses, and individuals to use online services that were once impractical due to poor internet.

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In Lagos, Airtel is building a large data centre to support cloud computing and artificial intelligence (AI). Currently, many Nigerian companies rely on data centres outside the country, which can slow down performance. Having local data centres will improve speed and could reduce costs.

Additionally, new regulations from the Central Bank of Nigeria require that payment data be stored locally starting in January 2027. This will boost the demand for local data infrastructure, making it more appealing for companies to invest in building data centres in Nigeria.

Overall, the report by PwC shows that Nigeria’s digital economy is genuinely growing, both in terms of statistics and the infrastructure needed to support it. The challenge remains to ensure that this growth benefits more people, industries, and regions across the country.

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