The World Bank says Nigeria’s expanding broadband infrastructure and digital investments are helping to create new jobs and boost productivity across key sectors of the economy.
In its latest Africa’s Pulse report released on Tuesday, the Washington-based institution said the arrival of submarine fibre optic cables and last-mile digital infrastructure has led to a 5–7 percent increase in employment in countries such as Nigeria, Kenya, and Ghana.
“Evidence has shown that the adoption of digital technologies has significant impacts on productivity and job creation. The labor market impacts of digital technologies in Sub-Saharan Africa have been positive,” World Bank said.
“For instance, access to fast internet through the arrival of submarine fiber optic cables to Africa increased employment by about 7 percent. Conditional on employment hours of work also increased significantly.
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“Similar findings have been found in country-specific case studies in South Africa and for the expansion of mobile broadband in Nigeria, Rwanda, Senegal, and Tanzania.
“These labor market effects of access to digital technologies are driven by supply factors, such as increasing access to employment opportunities and higher uptake of education, and demand factors, through their impact on business dynamics via net firm entry and productivity growth.”
According to the report, access to reliable and affordable internet connectivity is enabling new forms of enterprise in Nigeria, from e-commerce and digital payments to remote work and tech-enabled services.
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“For instance, the arrival of high-speed internet in Africa led to an increase in FDI, particularly in the service sector, with the finance, technology, retail, and health services subsectors as the main beneficiaries,” the report added.
“Such investments not only increase the entry of new firms but enhance competition and increase aggregate productivity and job creation.”
World Bank noted that Nigeria’s ICT sector remains one of the country’s fastest-growing industries, contributing significantly to gross domestic product (GDP) and supporting innovation in finance, education, and agriculture.
The report said the digital economy now represents a growing share of Nigeria’s formal employment base, with startups and tech hubs emerging as key players in youth employment and service exports.
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However, World Bank cautioned that the benefits of connectivity remain uneven, citing rural access gaps, high data costs, and limited power supply as constraints to wider participation.
Providing recommendations, the bank suggested “affordable access, expand infrastructure, and strengthen data systems—supported by shared facilities and hubs for entrepreneurship and training”.
