Nigeria’s digital economy is now projected to generate $18.3 billion in revenue by 2026, up from around $5.1 billion in 2019 and nearly $10 billion in 2021.
This expansion shows a dynamic mix of regulatory changes, private‑sector innovation, expanding connectivity and dynamic digital policy frameworks at home and abroad.
Internet connectivity and digital adoption have also grown, but not uniformly. In late 2025, Nigeria had 109 million internet users, equal to about 45.5% of the population, while nearly 130 million people were offline, mostly in underserved regions.
This means Nigeria’s digital economy is large, burgeoning and indispensable to national growth, but still finding it difficult with structural gaps in connectivity, regulation and inclusion.
Hence, let’s examine the policies in Nigeria impacting this growth, as well as the global digital economy policies and standards that are influencing Nigeria’s digital growth and sustainability in 2026.
Nigeria’s Core Digital Economy Policies
The digital sector in the country is anchored in a suite of policy frameworks and proposed laws that have matured through 2025 and into 2026.
1. National Digital Economy Policy and Strategy 2020–2030
At the centre of Nigeria’s digital policy architecture is the National Digital Economy Policy and Strategy (NDEPS) 2020–2030.
This blueprint identifies key pillars including infrastructure, digital literacy, service platforms, regulation, innovation ecosystems and more, and sets targets for digital integration across sectors.
It is the umbrella under which most other digital reforms sit, including broadband expansion, digital public infrastructure (DPI), skills development and data governance.
Agencies across government are now aligning their implementation plans to NDEPS goals, making it the principal reference point for regulators and investors alike.
The strategy is the primary driver of Nigeria’s digital policy priorities to 2030.
2. The National Digital Economy and E‑Governance Bill
One of the most consequential legal instruments in 2026 is the National Digital Economy and E‑Governance Bill.
Passed by the National Assembly and awaiting final assent early this year, the law will be a foundational statute for digital regulation.
Under its provisions:
- Government digital services must meet statutory standards for reliability and interoperability.
- Regulators are empowered to oversee algorithms, digital platforms, data governance and digital identity systems.
- Risk assessments and compliance obligations will be required for digital systems used in public administration and critical services.
The Bill will effectively give regulators expanded powers over digital governance structures, closing gaps in statutory oversight.
3. Data Protection Framework
Since the 2023 Nigeria Data Protection Act (NDPA), enforcement has enhanced, with the Nigeria Data Protection Commission issuing guidelines and compliance timelines.
By 2026, the NDPA’s enforcement mechanisms are expected to be fully operational, imposing clear requirements on data controllers and processors, especially for personal and cross‑border data, a critical area for fintech, e‑commerce, healthtech and digital services.
This legislation is compulsory. Firms handling personal data now face defined regulatory obligations, with penalties for non‑compliance adequately enforced.
4. Cybersecurity Policy and Strategy
Nigeria’s National Cybersecurity Policy and Strategy (NCPS), updated in recent years, aims to strengthen national resilience against cyber threats. It emphasises:
- Protection for critical infrastructure
- Incident reporting systems
- Collaboration between public and private sectors
- A risk‑based compliance model
Although there are still gaps in enforcement capacity and coherence across agencies, the NCPS anchored the cybersecurity environment for digital commerce, government platforms and national infrastructure.
Recent studies show that Nigeria still faces enduring challenges in resource coordination and legislative clarity, suggesting further improvements will be needed beyond 2026.
5. Broadband and Connectivity Policies
Connectivity underpins every aspect of the digital economy. Nigeria’s National Broadband Alliance and successor initiatives aim to achieve broadband access targets set under the National Broadband Plan.
But then, as of mid‑2025:
- Broadband penetration stood at about 48.8%, short of the original 70% target.
- Rural areas were still notably underserved, enlarging the rural-urban digital divide.
Policy reforms in 2026 focus more on reducing cost obstacles (e.g., rights‑of‑way reform) and incentivising private investment in fibre and wireless infrastructure.
6. Digital Skills, Innovation and Startup Policies
Nigeria is expanding digital skills initiatives, including collaborations between government, industry and academic institutions.
These programmes supply talent to the growing tech sector, support innovation clusters and help bridge gaps in tech workforce readiness.
Relevant initiatives include:
- Expanded digital literacy programmes (public and private)
- Targeted training for young professionals in software, cybersecurity, AI‑related skills
- Regulatory incentives that support growth in startup ecosystems
These policies are better recognised as essential to sustaining Nigeria’s digital growth.
Global Policies and Standards Influencing Nigeria (2026)
Nigeria does not operate in a policy vacuum. Multiple international frameworks and regulatory regimes now affect domestic strategy, especially where digital services cross borders or foreign investment and trade are involved.
Here are the key global policies in 2026 that are important to Nigeria:
1. European Union Artificial Intelligence Act
The EU AI Act, adopted in 2024 and set to become fully applicable by 2 August 2026, is the world’s first comprehensive regulatory framework for artificial intelligence.
It uses a risk‑based classification to regulate AI systems, impose information duties, and ban harmful uses.
Although it is an EU law, the Act has global effects:
- It applies to providers and deployers whose products affect the EU market, even if based elsewhere.
- It introduces obligations for general‑purpose systems, transparency, impact assessments and documentation.
- Penalties for non‑compliance can be significant.
For Nigerian digital product developers and exporters, compliance with the EU AI Act is becoming more of a commercial necessity if they serve EU customers or integrate with platforms operating in Europe.
The Act’s phased compliance timeline and extraterritorial reach mean that businesses worldwide, including in Nigeria, must adjust governance and product development practices in the new year to avoid market limitations.
2. African Continental Free Trade Area (AfCFTA) Digital Trade Protocol
The AfCFTA Digital Trade Protocol is part of Africa’s trade pact and seeks common standards for digital trade, including:
- E‑commerce regulations
- Consumer protection
- Electronic transactions
- Interoperable standards for services
AfCFTA signatories like Nigeria have taken steps to implement these protocols, making the country a digital trade champion in Africa.
This framework reduces conflict for cross‑border digital services within the continent, encouraging harmonised regulation and a larger integrated market.
3. WTO and Digital Trade Initiatives
The World Trade Organisation (WTO) and the World Bank are working on projects supporting digital trade uptake in Africa. The emphasis is on reducing limitations to data flows, enabling digital export services, and harmonising policies with international norms.
Nigeria’s engagement in these processes affects its trade policy and digital market regulations, as the country works to align with global trade expectations.
4. Global Digital Governance Principles
Various multilateral initiatives, especially under the United Nations and G7/OECD forums, are producing guiding principles on digital rights, human‑centred governance, and ethical use of new technologies.
While these frameworks are not binding, they influence investor expectations, normative benchmarks for regulation, and bilateral cooperation agreements.
Sectoral Impacts: How Policies Affect Key Industries
Fintech and Payments
Fintech is one of the fastest‑growing sub‑sectors of the digital economy, helping drive revenue growth. Payment systems, digital banking, and e‑commerce platforms are directly affected by:
- Data protection laws
- Cross‑border data flow expectations
- Digital identity policy
- AfCFTA e‑commerce frameworks
Nigeria’s regulatory approach aims to strike a balance between innovation and consumer protection.
Artificial Intelligence Beyond Compliance
AI is a strategic focus of both domestic and global policy:
- Nigerian policy levers include evolving digital regulation under the National Digital Economy and E‑Governance Bill.
- EU AI Act compliance affects products and services destined for Europe.
- Global best practices influence national frameworks and industry standards.
AI governance in 2026 will be more about risk oversight, accountability and interoperability.
Digital Infrastructure and Public Services
Digital public infrastructure such as identity systems, interoperable platforms and reliable broadband are central to policy execution.
Broadband expansion, DPI rollout, and regulatory certainty are critical for long‑term digital inclusion and competitiveness.
Policy Synergies, Gaps and Opportunities
While Nigeria has a growing policy toolkit, there are still challenges:
- Digital Divide: Broadband and internet access is still uneven, especially in rural areas.
- Regulatory Coordination: Overlapping mandates between regulators can slow implementation.
- Global Compliance: Adhering to global norms (e.g., the EU AI Act) requires capacity building and investment in governance systems.
The opportunities are quite obvious:
- Alignment with AfCFTA positions Nigeria at the heart of African digital trade.
- Global frameworks bring a chance to signal regulatory maturity to investors.
- Domestic laws now provide clearer rules for data protection and AI.
In 2026, Nigeria’s digital economy has matured from a nascent sector to a major growth engine, underpinned by solid policy frameworks, energetic private innovation, and active engagement with global regulatory regimes.
In 2026, the digital economy policies in the sector will involve implementation, compliance, infrastructure expansion and capacity development.
And yes, the foundations are now in place for Nigeria to benefit from its internal digital market, and also compete globally, provided that policymakers, businesses and citizens work in concert to close gaps, adopt standards, and sustain digital growth.
