EU Drives Private Sector Investments to Boost Nigeria’s Digital Economy

The European Union (EU) is actively engaging with private sector players in Nigeria to foster investments that will accelerate the country’s digital transformation. At a recent meeting in Lagos, the EU outlined its commitment to strengthening Nigeria’s digital economy through public-private partnerships.

The EU-Nigeria Digital Economy Package, aligned with the Global Gateway Strategy, aims to position Nigeria as a regional digital hub. Key initiatives under this program include expanding the national fiber-optic network by 90,000 km, enhancing digital public services, and equipping the ICT workforce with essential skills through initiatives such as the 3 Million Technical Talents (3MTT) program, according to an official EU statement released on Friday.

Boosting Digital Infrastructure Through Private Sector Participation

Speaking at a business breakfast with industry leaders, Massimo De Luca, Head of Cooperation at the EU Delegation to Nigeria and ECOWAS, emphasized the EU’s drive to attract private investments into Nigeria’s digital infrastructure. He highlighted the EU’s approach to de-risking financial mechanisms and offering guarantees to encourage private sector participation in large-scale projects, such as the extensive fiber-optic expansion.

“Digital public services and entrepreneurship present significant opportunities for private sector investment, with multiple procurement systems enabling collaboration between the EU and Nigeria’s private businesses,” De Luca stated.

The European Investment Bank (EIB) has already committed €100 million to improve 4G connectivity in Lagos and Ogun states, while also providing technical assistance for the nationwide 90,000km fiber-optic rollout. This project aligns with Nigeria’s Broadband Strategy, aiming to enhance digital connectivity in both urban and rural areas.

Strengthening Nigeria’s Digital Identity and Startups

The EIB is further backing Nigeria’s digital transformation with a €250 million loan to the National Identity Management Commission (NIMC) to enhance the country’s digital identity infrastructure with high data protection standards. This investment serves as a foundational step towards digitizing public services in Nigeria.

Additionally, the EU is offering technical support for the digitalization of the Office of the Vice President and working with the Federal Ministry of Communications, Innovation, and Digital Economy to simplify business registration for startups and MSMEs.

“With increased digital skills, Nigeria’s businesses and citizens will be better positioned to leverage the opportunities brought by digital transformation,” the EU statement added.

Support for Tech Startups, Innovation, and Skills Development

The EU is committed to fostering a thriving tech startup ecosystem in Nigeria by supporting innovative solutions that drive economic and social growth. To this end, the Digital Transformation Centre (DTC)—co-funded by the EU and Germany’s GIZ—is promoting an innovation-friendly environment and new digital solutions.

The EU is also financing the Nigerian Jubilee Fellowship Programme (NJFP), a €45 million initiative designed to equip young ICT graduates with industry-relevant skills and place them in leading Nigerian and European companies. Similarly, a €9.5 million grant supports the DTC project, aimed at upskilling youth and women in the digital economy.

Enhancing Data Protection and Cybersecurity Standards

As part of its broader digital strategy, the EU is actively assisting Nigeria in developing robust regulatory frameworks to uphold high standards of privacy, cybersecurity, and data protection. The EU’s support played a role in the adoption of Nigeria’s Data Protection Law and the strengthening of the Data Protection Commission, aligning local standards with those of the EU to enhance enforcement capacity.

According to Thuweba Diwani, Head of Project at GIZ-DTC Nigeria, the EU’s initiatives also focus on creating stronger connections between Nigerian private sector players in the digital economy and their European counterparts.

With these investments and partnerships, the EU aims to drive Nigeria’s digital revolution, supporting infrastructure development, workforce upskilling, and an enabling environment for tech-driven economic growth.