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.

Instead of eroding safety, 84% of these businesses report stronger privacy initiatives since integrating AI into their operations.

The findings, titled The AI Privacy Equation: The Nigerian Model of Responsible AI Adoption and unveiled at Zoholics Nigeria, revealed Nigeria as a global reference point for AI adoption balanced with privacy. 

Beyond AI adoption and privacy focus, the event also celebrated another milestone for Zoho, which announced a 75% customer growth in Nigeria in 2024, one of its fastest-growing markets worldwide.

“We continue to invest in Nigeria as businesses here accelerate their adoption of technology to grow and scale,” said Kehinde Ogundare, country head, Zoho Nigeria. 

“The latest study around AI and Privacy proves that Nigerian businesses are leading the way in responsible AI adoption, as they temper the new technology with privacy measures. This mirrors Zoho’s philosophy of building contextual and privacy-first AI models that can help businesses realise tangible benefits. We infuse our AI solutions—from conversational and prescriptive to agentic and generative—with business context so that it can provide organisations with decision intelligence.”

Balancing AI With Privacy

The study, which surveyed 386 Nigerian business leaders, shows how companies are embedding AI responsibly. Ninety-four percent now have a dedicated privacy officer or team, a figure well above global averages. 

Nearly 40% allocate over 30% of their IT budgets to privacy protection, opining that governance is not a constraint but a competitive advantage.

Michael Fauscette, CEO and chief analyst of Arion Research, underscored this shift:

“The Nigerian model challenges the conventional wisdom that AI adoption requires privacy trade-offs. When 84% of organisations strengthen their privacy measures through AI implementation rather than weakening them, it demonstrates that privacy-conscious design can actually enhance AI outcomes. Nigerian businesses are proving that robust governance isn’t a constraint on innovation, it’s a competitive advantage.”

Leadership and Deployment

More than half of survey respondents were CEOs or senior executives, showing that AI adoption is being driven from the top. Unlike other markets where implementation lags, Nigeria is moving quickly from pilots to enterprise-wide rollouts. 

Thirty-one percent of businesses reported advanced integration across the organisation, while another 26.5% are deploying AI across multiple departments.

The financial services sector, which accounted for 29% of respondents, is leading the charge. Customer service automation (49%), software development (46%), and marketing optimisation (32%) are the top use cases, all designed with privacy-by-design principles.

Skills, Barriers and Regulation

On challenges, despite rapid adoption, thirty-seven percent of companies revealed a lack of technical expertise as their biggest challenge, followed closely by privacy and security issues (35%). 

To close this gap, 69% of businesses are prioritising data analysis and interpretation, 53% are focusing on AI literacy, and 40% are investing in prompt engineering for generative AI.

Regulation is also impacting behaviour. Nearly 65% of organisations say awareness has increased since Nigeria’s Data Protection Act was introduced. Many conduct regular privacy audits (57%), minimise data used in AI training (57%), and require explainability of AI decisions (52%).

Why it Matters to Zoho

For Zoho, these findings on AI adoption and privacy, align directly with its positioning. The company has consistently rejected data monetisation in favour of privacy-first design, a stance that resonates with Nigerian businesses now investing heavily in privacy-conscious AI.

Zoho’s growth in Nigeria is being driven by demand for scalable, unified solutions. Its top-performing products in the country include Zoho Workplace (enterprise email and collaboration), Zoho Books (accounting software), Zoho Campaigns (marketing automation), and Zoho One (a suite of 55+ integrated business applications). 

Key customer sectors include IT services, financial services, energy, manufacturing, real estate, media, education, and retail.

In tying AI adoption to privacy protection, Nigerian businesses are gaining global competitive advantage, and for Zoho, this validates its belief in Nigeria, both as a high-growth market and as a model for how technology and trust can advance together.

A Bank Verification Number (BVN) to open an account; a National Identification Number (NIN) to access public services; a Permanent Voter’s Card (PVC) to perform your civic duty; and if you’re behind a wheel, a VIO clearance or risk fines. Now, even the NDLEA wants a biometric record. 

Unlike many developed countries where identification systems are integrated and citizen data is protected by strong privacy laws, Nigeria’s identity space is fragmented and duplicative. 

Countries like Estonia and Sweden use a single digital ID for banking, healthcare, and voting, while others like the UK, leveraging National Insurance Number, and the U.S. limit biometric collection and ensure data transparency.

In Nigeria, however, citizens must enrol separately for multiple IDs, usually submitting the same biometric data to different agencies with little coordination or oversight. 

This lack of interoperability creates inefficiency and also exposes personal data to greater risks, without giving citizens control over how their information is used.

Welcome to Nigeria’s identity maze, where every agency wants your face, but none can protect or guarantee what happens to it. There is saturation without structure.

A Nation of IDs, Not Citizens

Nigeria’s identity industry is an administrative overgrowth. Thirteen major identity systems currently operate across the country, each usually overlapping, and rarely integrated. 

As of July 2025, over 121 million Nigerians have registered for the NIN. But fewer than 60% of them enjoy reliable access to the public services that required registration in the first place.

The BVN, launched by the Central Bank of Nigeria and managed by NIBSS, has reached 64.8 million enrolments, despite Nigeria having over 231 million active bank accounts. 

The logic behind BVN was straightforward; tie every account to a unique identity. Yet banking access in rural communities is still sporadic at best and exploitative at worst.

The problem isn’t a lack of data, it’s that the data isn’t working.

The Cost of Being Counted

Every agency now wants to scan your fingerprint, snap your photo, and save your biodata. But when Nigerians need help, from resolving SIM reactivation to correcting a simple name mismatch, they face endless queues, crashing systems, and opaque processes.

Between 2023 and 2025, more than 430 cases of identity mismatches were reported, many leading to lost access to funds or public benefits. Even more troubling, over 6,000 foreign nationals, mainly from Niger, were found in the NIN database, leading to both security concerns and doubts about data accuracy and oversight.

In contrast, the NDLEA has taken biometric data collection to a new level, establishing a registry of over 59,000 inmates while simultaneously reporting 14 million Nigerians as drug abuse victims. The question arises: is the growing pool of personal data being used to rehabilitate and support people or simply to monitor and catalogue them?

Where is the Protection?

Despite the enormous volume of sensitive data being collected, Nigeria’s Data Protection Act is still largely toothless. The NDPR, the earlier framework, was a step in the right direction, but enforcement has been inconsistent. 

Citizens have no clear right to see, correct, or delete their own records. Inter-agency data sharing happens without transparency. Cybersecurity protocols are either absent or rudimentary.

We’re storing millions of records, but infrastructure is still vulnerable to basic breaches. Most systems lack end-to-end encryption. User passwords are often poorly protected. Some databases are hosted on outdated servers. It’s like building a bank vault with cardboard and asking citizens to trust it.

The Human Impact: A New Kind of Exclusion

When people are denied access to healthcare, banking, or education because their biometric records are “not found,” that’s not just a technical failure, but institutional abandonment. 

People are being locked out of essential services simply because data silos don’t talk to each other, and there’s no central accountability.

The most vulnerable groups, those in rural areas, the elderly, and women in informal economies, are being excluded from a digital society that claims to be inclusive. The language of technology hides the truth: you can now be poor, invisible, and digitally invalid.

From Data Capture to Digital Control

There’s a deeper issue at play. Nigeria’s identity obsession is starting to look less like governance and more like control. Identity is no longer a right, it’s a barrier. 

Government agencies claim they need these systems to improve service delivery, tackle crime, or manage welfare. But without integration, transparency, and security, what we have instead is a massive surveillance infrastructure, waiting to be abused.

We’re not just becoming citizens of a data state, we’re becoming profiles, without the power to decide how we’re represented or what happens to our information.

What Needs to Change?

Nigeria’s current course is unsustainable. We need more than another government committee or press release.

• A unified identity architecture must be built, where one ID can serve multiple purposes across verified agencies.
• Data security regulations must be enforced with real consequences for leaks or misuse.
• A fully empowered, independent Data Protection Authority should be in place to oversee how information is collected, stored, and shared.
• Citizens must be given data access rights, including the right to correct, challenge, or delete personal information.
• Most importantly, digital systems should enhance access, not deny it.

Conclusion: The Person Is the Point

We cannot continue to build an identity system where the data matters more than the people it’s meant to serve. Nigerians are not spreadsheets. We are not QR codes or fingerprints or poorly formatted PDFs. We are individuals who deserve dignity, privacy, and trust in our institutions.

Until the government stops treating digital identity as a checkbox and starts treating it as a responsibility, we will continue to live in a country where you exist only if the system agrees, and the system is sometimes wrong.