Nigeria’s Digital Economy Surges with $191m FDI and $2bn Fibre Optic Rollout

Nigeria’s digital economy is experiencing unprecedented growth under President Bola Ahmed Tinubu, attracting $191 million in foreign direct investment (FDI) in Q1 2024—up from just $22 million in the same period in 2023. Minister of Communications, Innovation, and Digital Economy, Dr. Bosun Tijani, attributed this surge to strategic reforms and initiatives that are strengthening the sector, including workforce development programs and emerging technology adoption. This momentum reflects Nigeria’s rising stature in the global digital landscape.

Key to this progress is the 3 Million Technical Talent (3MTT) programme, which has already trained over 117,000 Nigerians in digital skills since its launch in October 2023, surpassing its initial target. With an additional 35,000 currently in training, the ministry aims to reach the full goal of 3 million trained tech talents before the end of the administration. The programme is designed to develop a future-ready workforce, critical to sustaining the digital transformation.

Dr. Tijani also announced Project Bridge, a $2 billion initiative to deploy 90,000 kilometres of fibre optic cable starting in Q4 2025. This infrastructure investment aims to drastically improve internet access and bridge the rural-urban connectivity gap, with projections showing a 2.5% GDP growth from a 10% increase in connectivity. Plans include 7,000 new telecom towers and expanding broadband penetration from 48% in 2024 to 90% by 2025.

In addition to infrastructure, the government is investing in innovation. Nigeria has been ranked among the top 60 countries for AI readiness and is developing its own large language model. Through the AI Collective, supported by partners like Google and Microsoft, the country is funding research in AI and blockchain technologies. Already, ₦300 million has been invested in startups leveraging these technologies for agriculture, health, and education.

Finally, initiatives like the Nigeria Startup House in San Francisco and the Startup Pact aim to attract $5 billion in global startup investment. The government has also trained 500 technologists and introduced the Digital Economy Bill, which has passed its first reading. With 12 states adopting zero-cost Right-of-Way policies, and a projected GDP contribution increase from 16% to 22%, Dr. Tijani emphasized that these efforts are part of a long-term strategy to transform Nigeria’s economy for future generations.

Source: Leadership