Nigeria warns weak digital infrastructure deters foreign investment
Nigeria's government is implementing a new digital identity framework under the NIMC Act 2026 to reduce business costs and attract capital, warning that failure to build resilient infrastructure will exclude the country from the global economy.
The Nigerian government has initiated an overhaul of its digital public infrastructure, warning that continued gaps in the system will drive up corporate costs and deter foreign investment. The push centres on establishing a comprehensive, interoperable digital identity ecosystem mandated under the newly enacted NIMC Act 2026.
Abisoye Coker-Odusote, director-general of the National Identity Management Commission, told an IT governance summit in Abuja that reliable digital infrastructure is now a baseline requirement for capital flows. “Countries with robust DPI attract more domestic and foreign investments because businesses operate more efficiently and securely,” she said.
Conversely, she warned that the absence of a professional framework leaves financial institutions facing heightened risks and marginalises local enterprises from the global economy. The government is positioning the digital identity system as a tool to improve transparency, ensuring public services and social interventions reach intended beneficiaries rather than being lost to inefficiency.
For businesses operating in the market, the reforms promise tangible operational gains by reducing bureaucratic friction. Emmanuel Olarewaju, executive chairman of Tranter IT, noted that digitising government services could slash administrative bottlenecks. “Where some processes take about three months, they can be reduced to one week because information will be collected online,” he said, adding that this will directly enhance the ease of doing business and improve government revenue collection.
The state is also framing the digital identity network as a critical defence mechanism for the financial sector. A verified identity ecosystem is expected to strengthen Nigeria's ability to investigate and combat identity theft, cybercrime, financial fraud and terrorism financing. To facilitate this, the NIMC Act 2026 expanded the commission's mandate to cover secure authentication, electronic signatures and digital trust services across sectors.
Realising these economic benefits will require substantial coordinated spending. Coker-Odusote stressed that building resilient infrastructure demands collective action from government agencies, telecom operators and financial institutions. “It also requires sustained investment in cybersecurity, digital literacy and institutional capacity,” she said.
Technology providers are already positioning themselves to support the rollout. Solomon Raj, associate director at ManageEngine, said the company is aligning its cybersecurity and IT management solutions with Nigeria’s National Digital Economy Policy and Strategy, which runs through 2030. The new infrastructure is being built on international best practices and open standards, with privacy and security embedded into its design.
