Nigeria's Digital Economy Faces N1.84tn Credit Drop

As of September 2025, Nigeria's digital economy has experienced a credit contraction of N1.84 trillion, marking the lowest level recorded in the first nine months of the year, according to the Central Bank of Nigeria's Q3 2025 statistical bulletin. This decline reflects a broader trend of fluctuating financial exposure within the ICT sector, which saw credit levels drop significantly from N2.01 trillion in January 2025 to N1.84 trillion by September.

The data indicates a correlation between credit availability and business activity, with higher credit exposure observed in March and July 2025. Analysts, including Egora Harri Ugoji, emphasize that the current credit level is grossly inadequate for sustaining growth, suggesting that funding needs to increase to between N5 trillion and N6 trillion.

The reliance on foreign venture capital, particularly from the United States, raises concerns about the sustainability of Nigeria's tech ecosystem amid external economic pressures. Despite these challenges, Nigeria's tech sector continues to attract foreign investment, with fintech firms accounting for 70% of the total capital raised in the first quarter of 2025.