en.Wedoany.com Reported - Nigeria's digital economy is projected to reach $18.3 billion by 2026, but its growth faces severe challenges. Commercial law firm Duale, Ovia and Alex-Adedipe (DOA) recently held the fifth DOA Business Series in Lagos, bringing together leaders from various sectors of the country's digital economy to discuss core issues such as regulation, capital, and business competitiveness.
The first panel discussion focused on the prerequisites for driving the digital economy, but the conversation quickly shifted to the challenges of infrastructure development. Dapo Otunla of IHS Nigeria stated that the company manages over 16,000 base stations nationwide. After building a telecom base station in Nigeria, generators must still be deployed and diesel transport arranged, whereas in India, connecting a base station to the power grid is the final step. He noted that fragmented right-of-way policies and a lack of coordination between states and infrastructure companies significantly increase the cost of doing business. Oluwaseun Oluboyo of ipNX added that Nigeria's internet traffic being routed through foreign servers causes latency, and the solution lies in locally building data centers, internet exchange points, and content hosting facilities. On the capital front, Jude Chiemeka of Nigerian Exchange Limited (NGX) believes the capital market has the capacity to absorb large-scale investments, and sustainable finance and non-interest financial channels remain underutilized. Robert Ijewere of NOLT Finance emphasized that cost is the key: a business is viable when the cost of capital is 13%, but the situation is entirely different when it reaches 30%. In an environment where the Monetary Policy Rate (MPR) is 26.5%, many digital enterprises struggle to bear the interest burden, and he suggested formally recognizing intellectual property as collateralizable assets. Ugodre Obi-Chukwu of Nairametrics stated that Nigeria has largely solved the payment problem, and the next step is to develop consumer credit and capital formation.
The second panel discussion invited representatives from the Federal Ministry of Communications, the Nigeria Data Protection Commission (NDPC), Microsoft, ESIEE Paris, and Bluechip Technologies to explore data and artificial intelligence governance. Babatunde Bamigboye of the NDPC stated that the commission aims to empower businesses rather than punish them, and noted that the core principles of the Nigeria Data Protection Act provide feasible guidance for AI deployment. Regarding data localization, he emphasized that data localization is not sovereignty; the key is who has access and control. Dr. Olumide Okubadejo of ESIEE Paris shared that building AI systems for Nigeria requires addressing unique challenges such as latency, device diversity, language structure, and security constraints. He pointed out that Nigeria should focus more on data ownership at the model and output levels, and that certain data should be nationalized to ensure national interests. Both discussions reflected that while Nigeria has market size and talent advantages, deficiencies in stable electricity, coherent policies, affordable capital, and data governance frameworks constrain the development of the digital economy.
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