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.

According to the Nigerian Communications Commission (NCC), this escalation was driven by inflation, exchange rate volatility, growing costs of energy, and above all, inconsistent Right of Way (RoW) fees that continually chokes network expansion across states.

“Most Licensees complained of high Right of Way (RoW) fees, harsh microeconomic operating employment and rising inflation. However, the NCC has been able to secure zero Right of Way (RoW) fees in some States in Year 2024,” the Commission stated in its 2024 industry report.

Uneven Fees, Unequal Access

Despite the Governors Forum’s 2020 resolution setting RoW charges at ₦145 per linear metre, some states have ignored the guideline. Operators disclosed that Ogun State now demands ₦9,477 per metre, the highest nationwide, followed by Lagos (₦6,264) and Oyo (₦5,303).

Others, including Cross River (₦4,737), Rivers (₦4,047), Edo (₦3,491), and Ondo (₦3,075), have also imposed heavy levies. The disparity has slowed broadband rollout, forcing firms to revise deployment plans or suspend network projects entirely.

However, there’s progress. Eleven states have now eliminated RoW fees, according to Dr Aminu Maida, the NCC’s executive vice chairman. “One of the most significant barriers to broadband deployment in Nigeria has been the high RoW fees charged by state governments, despite a resolution by the Nigerian Governors Forum fixing the rate at N145 per linear metre,” he said.

The Commission confirmed that Adamawa, Bauchi, Enugu, Benue, Zamfara, Anambra, Katsina, Kebbi, Nasarawa, Osun, and Plateau have all adopted zero-cost policies to support broadband rollout.

Broadband Goals Falter

The government’s vision to achieve 70% broadband penetration by 2025 is now clearly out of reach. Data from the NCC shows that as of September 2025, penetration stood at 49.3%, well below target.

Experts say the shortfall is financial, not just technical. Each kilometre of fibre delayed by high state fees represents a lost opportunity to extend digital inclusion.

Gbenga Adebayo, chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), said unresolved structural issues are a drag on progress. He pointed to multiple taxation, hidden levies, and high RoW costs as contributing challenges.

He also noted that while some states have waived fees, they continue to impose “education taxes” and “highway levies” under different names, eroding the benefits of those waivers.

High Investment, Shrinking Margins

The NCC report revealed that capital expenditure by telecom operators surged 159% to ₦2.9 trillion in 2024, up from ₦1.12 trillion the previous year. The increase, the Commission said, reveals both aggressive investment in network upgrades and the inflationary impact of the naira’s sharp depreciation following the Central Bank’s exchange rate unification policy.

Telecom companies have spent heavily on 5G rollout, fibre expansion, and network modernisation. Yet, much of that spending has been absorbed by currency losses and rising import costs for equipment.

While revenues climbed 44.7% to ₦7.67 trillion, the profits have barely offset the inflationary and fiscal pressures facing operators, as Nigeria’s telecom costs continually surge.

Tariff Hike Brings Temporary Relief

To ease the burden, the NCC in January 2025 approved a 50% tariff increase for telecom services, a controversial but necessary step, according to industry analysts. The revision allowed major operators, including MTN and Airtel, to return to profitability after reporting significant losses in 2024.

However, the higher tariffs have also limited consumers, particularly low-income users, prompting warnings from advocacy groups about potential digital exclusion in rural and underserved communities.

Policy Flashpoint and the Road Ahead

With telecoms contributing 16.1% to Nigeria’s GDP in Q2 2025, the sector has become the second-largest non-oil contributor to the economy. But then, the persistence of uneven RoW charges has turned the issue into a national policy flashpoint.

Stakeholders are now urging federal intervention to harmonise fees nationwide, arguing that broadband rollout, essential for education, finance, and digital commerce, should not depend on a state’s internal revenue strategy.

For Nigeria’s competitive edge to remain, policymakers must choose between short-term state revenue and long-term national connectivity, ensuring telecom costs are reduced. The choice, as the numbers show, can no longer be delayed.