The Lagos Business School (LBS) has stressed the crucial need for Nigeria to embark on a transformative digital journey that can redefine its economy and improve significantly the quality of life for its citizens.
LBS, disclosed that the country’s e-commerce market is projected to exceed $16 billion by the year 2030, supported by pioneering platforms like Jumia and Konga.
The Dean of the Lagos Business School, Professor Olayinka David-West stated this at the 35th annual conference of the Finance Correspondents Association of Nigeria (FICAN) in Lagos with the theme, “Bracing for the Digital Economy in Nigeria: Taxation, Banking and Finance”.
Industry stakeholders, including the Federal Inland Revenue Service (FIRS), Central Bank of Nigeria (CBN), and leading banks converged to share insights and shape Nigeria’s digital economy roadmap.
Representing David-West, Prof. Akintola Owolabi, Department of Cost and Management Accounting at LBS, stated that “the conference theme, ‘Bracing for the Digital Economy in Nigeria: Taxation, Banking and Finance,’ is timely and vital for Nigeria’s sustainable development.”
David-West pointed out that the strategic vision at LBS aligns closely with advancing digital transformation and promoting financial inclusion, aiming to develop the leaders needed to navigate and drive this emerging landscape.
The Dean said “Nigeria’s digital economy is undergoing remarkable growth, energised by a young and dynamic population alongside rapid digital adoption. According to the Nigerian Communications Commission’s 2024 report, internet penetration has reached 43.5 per cent, with over 163 million Nigerians online as of March 2024. The telecommunications sector contributes around 18 to 20 per cent to Nigeria’s GDP, highlighting the vital role of information and communication technology (ICT) as a driving force in the economy.
David-West noted that “this digital revolution transcends statistics; it reshapes commerce, services, and livelihoods. Our burgeoning e-commerce market, projected to exceed $16 billion by 2030, is fuelled by trailblazing platforms like Jumia and Konga.
She also said, leading Nigerian banks, including Access Bank and GTBank, harness cutting-edge technologies like Artificial Intelligence (AI) and Machine Learning (ML) to enhance fraud detection, personalise services, optimise credit scoring, and deploy AI-enhanced customer support.
She said that “in addressing taxation within the digital economy, there are both challenges and substantial opportunities for revenue generation.
She cited an example of this initiative as the electronic money transfer levy, which imposes a N50 fee on recipients of bank transfers of N10,000 and above, serving as a valuable revenue stream in Nigeria’s evolving digital payments landscape.
David-West highlighted how digital payments and mobile money services can serve as a foundation for formalising vast informal sectors, enhancing tax compliance, and integrating businesses into formal financial systems.
Looking ahead, she noted that “the interconnection of digital transformation across banking, finance, and taxation is a powerful catalyst for Nigeria’s economic growth. Seamless digital payment systems facilitate efficient tax collection, broaden financial inclusion, and provide critical data for evidence-based policy-making and enforcement.”
She, however, said, “several challenges remain that require immediate attention, including infrastructure deficits such as unreliable electricity and limited broadband access in rural areas, as well as a shortage of digital skills that restrict economic participation.
The chairman of the Finance Correspondents Association of Nigeria (FICAN), Mr Chima Titus, said, “This year, conference theme is both timely and urgent, focusing on the digital economy, taxation, banking, and finance.”
He said that “globally, the digital economy has evolved from being merely a promising frontier to a critical backbone of modern growth. In Nigeria and across Africa, we find ourselves on the brink of a significant transformation driven by data, digital payments, artificial intelligence, and cross-border innovation.”
He noted that “Current statistics underscore our potential: the ICT sector contributed 18.3 per cent to Nigeria’s GDP in the second quarter of 2025, and digital payment transactions exceeded N600 trillion in the first half of the same year, showcasing a 22 per cent year-on-year growth. Mobile money usage has surpassed 73 million, successfully reaching rural communities that were previously excluded.
Titus added that no robust digital economy can flourish without an equitable and effective tax Framework.”
Reporting By Sherifat Oyediran