Nigeria’s $11bn Digital Economy at Risk as Skilled Talent Shortage Deepens

Nigeria’s fast-growing digital economy is now under threat from a widening shortage of skilled manpower, a challenge experts say could put as much as $11 billion in annual value at risk. While the ICT sector continues to expand faster than most other sectors, the supply of industry-ready talent is falling far behind demand.

Industry leaders warn that this structural gap could slow productivity, weaken investor confidence, and undermine the government’s target of raising ICT’s contribution to GDP to 21% by 2027. Communications Minister Dr. Bosun Tijani noted that the sector now accounts for nearly 19% of GDP, up from about 16% in previous years.

Data show that firms require advanced digital skills from roughly 30% of their workforce, yet only about 11% of workers currently possess such capabilities. Additionally, just 7% of Nigerians aged 15 to 24 reportedly have marketable ICT skills suited for today’s digital economy.

Local technology firms say the effects are already visible, with project delays, rising operational costs, and growing pressure on experienced staff who must compensate for the lack of practical competence among newly certified entrants often described as “paper engineers.”

Despite initiatives such as the 3MTT programme, fibre infrastructure expansion, and NITDA’s training plans, experts argue that infrastructure growth alone will not solve the problem. They call for a coordinated reform that links education, industry, and research, similar to models seen in countries like South Korea, Canada, and the UAE.