Nigeria’s e-commerce market is projected to surpass $16 billion by 2030, according to the Lagos Business School (LBS), which has called for urgent reforms to harness digital transformation for economic growth and improved living standards.

The Dean of LBS, Professor Olayinka David-West, made the projection at the 35th Annual Conference of the Finance Correspondents Association of Nigeria (FICAN), held in Lagos over the weekend. The conference, themed “Bracing for the Digital Economy in Nigeria: Taxation, Banking and Finance,” brought together stakeholders from the Central Bank of Nigeria (CBN), Federal Inland Revenue Service (FIRS), leading banks, and fintech innovators.

Represented by Professor Akintola Owolabi of LBS’s Department of Cost and Management Accounting, David-West stressed that Nigeria stands at a pivotal point in its digital journey. She noted that internet penetration had reached 43.5 per cent, with over 163 million Nigerians online as of March 2024, while the telecoms sector contributes about 20 per cent to GDP.

“This digital revolution transcends statistics; it is reshaping commerce, services, and livelihoods,” she said. “Our e-commerce market, fuelled by pioneers like Jumia and Konga, is expected to exceed $16 billion by 2030. Logistics startups such as Kwik and GIGL further demonstrate how digital technologies create new value chains, drive efficiencies, and expand opportunities,” she said.

David-West added that Nigeria’s financial sector is both a driver and a beneficiary of the digital shift. In 2024, the fintech ecosystem attracted over $2 billion in investments, sustaining Nigeria’s position as Africa’s fintech powerhouse.

“Leading banks such as Access Bank and GTBank are already deploying artificial intelligence and machine learning to enhance fraud detection, personalize services, and optimize credit scoring,” she said.

She also highlighted taxation as a critical pillar of the digital economy, pointing to the six per cent Digital Services Tax (DST) introduced in 2022 on non-resident digital service providers, alongside VAT on foreign digital services. Other initiatives include the electronic money transfer levy, which places a N50 fee on transfers above N10,000.

“These measures not only provide revenue streams but also help formalize Nigeria’s vast informal economy through digital payments and mobile money services,” she explained.

While praising these strides, David-West cautioned that challenges remain. Infrastructure deficits, unreliable electricity, limited broadband in rural areas, and a shortage of digital skills continue to hinder inclusive participation. Regulators, she said, must strike a balance between encouraging innovation and safeguarding consumers.

She pointed to the CBN’s regulatory sandbox as a positive step, allowing controlled experimentation in fintech. “Nigeria stands on the brink of a digital revolution that can redefine our economic landscape and uplift the quality of life for millions,” she declared.

In his remarks, the Chairman of FICAN, Mr. Chima Titus, described the conference theme as both timely and urgent. He said the global digital economy had evolved into a backbone of growth, and Nigeria must keep pace with innovation.

“The ICT sector contributed 18.3 per cent to GDP in Q2 2025, while digital payment transactions exceeded N600 trillion in the first half of the year, a 22 per cent increase year-on-year. Mobile money adoption has also reached over 73 million users, extending financial services to rural areas,” he stated.

Titus emphasized the importance of the CBN’s Payment System Vision 2020, which outlines a digital future powered by artificial intelligence, blockchain settlements, and cross-border payments under the African Continental Free Trade Area (AfCFTA).

“No robust digital economy can thrive without an equitable and effective tax framework,” he added, urging stakeholders to build a system that fosters innovation while ensuring fairness and compliance.

The conference ended with a consensus that Nigeria must accelerate digital reforms to unlock new opportunities in e-commerce, finance, and taxation, positioning itself as a leader in Africa’s digital future. (Nigerian Tribune)

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