Digital transformation holds key to Nigeria’s economic future – LBS

The Lagos Business School (LBS) has called on Nigerians to embrace digital transformation as a critical driver of economic growth, warning that failure to do so could stall the nation’s development.

The Dean of LBS, Prof. Olayinka David-West, made the call while speaking at the 35th annual conference of the Finance Correspondents Association of Nigeria (FICAN) on Saturday in Lagos.

She said Nigeria’s digital economy had the potential to redefine commerce, expand job opportunities, and improve the quality of life for millions of citizens.

Represented by Prof. Akintola Owolabi, Department of Cost and Management Accounting, David-West noted that Nigeria’s e-commerce market was on course to exceed 16 billion dollars by 2030.

This, she added, is powered by platforms such as Jumia and Konga, alongside logistics startups like Kwik and GIGL.

“This digital revolution transcends statistics; it reshapes commerce, services, and livelihoods.

“Digital technologies are creating entirely new value chains, driving diversification away from oil, and promising exponential employment opportunities,” she said.

According to her, Nigeria’s financial sector has been a major beneficiary of this digital shift, with the country’s fintech ecosystem attracting over two billion dollars in investments in 2024, cementing its place as Africa’s fintech powerhouse.

She added that some banks were already deploying artificial intelligence and machine learning to improve fraud detection, personalise services, and enhance credit scoring.

On taxation, David-West said the nation’s digital economy presented both challenges and opportunities, pointing to the 6 per cent Digital Services Tax (DST) introduced in 2022 as well as the electronic money transfer levy as examples of innovative revenue streams.

“Digital payments and mobile money services can help formalise Nigeria’s vast informal sector, enhance tax compliance and expand financial inclusion,” she said.

She warned that weak infrastructure, poor broadband access, and limited digital skills remained critical hurdles.

Also speaking, FICAN President, Mr Chima Titus, said the theme of the conference, “Bracing for the Digital Economy in Nigeria: Taxation, Banking and Finance”, was timely and urgent.

He said the ICT sector contributed 18.3 per cent to Nigeria’s GDP in the second quarter of 2025, while digital transactions crossed N600 trillion in the first half of the year, recording a 22 per cent year-on-year growth.

“Mobile money usage has surpassed 73 million, reaching rural communities previously excluded from the financial system.

“The Central Bank’s Payment System Vision 2020 now provides a blueprint for digital innovation, incorporating AI, blockchain settlements, and cross-border payments under AfCFTA,” he added.

Titus stressed that for Nigeria to fully harness its digital potential, policymakers must adopt an equitable and effective tax framework to balance innovation with regulation.

The conference brought together regulators, bankers, fintech innovators, and journalists to deliberate on strategies that could strengthen Nigeria’s digital economy and unlock its growth potential.