$80bn digital economy: Sanwo-Olu eyes Africa’s innovation capital

Lagos State Governor Babajide Sanwo-Olu announced ambitious goals for the state's digital economy during a speech at the GITEX Nigeria Official Tour, held at Landmark Centre in Victoria Island, Lagos. The event, themed “Beyond Connectivity: The Bridge to Sovereign AI & Innovation,” saw Sanwo-Olu express confidence that Lagos would rise not just as Nigeria’s commercial capital but as Africa’s innovation capital. His remarks came amid over $80 billion in commitments to technology development, reflecting a broader push to position Lagos as a hub for technological advancement. Sanwo-Olu emphasized that achieving this status would require more than rhetoric, it demanded sustained investment in infrastructure, talent development, progressive policies, and effective execution. He pointed to Lagos' current standing as the seventh-largest economy in Africa, surpassing many other nations on the continent, as evidence of the city's potential. The governor highlighted that Lagos had already begun shaping the future economy, citing success stories such as fintech, logistics, and e-commerce startups that originated in Yaba and now serve millions across multiple markets. Artificial intelligence, according to Sanwo-Olu, would play a transformative role in how people work, learn, create, govern, and conduct business. However, he cautioned against viewing the digital revolution solely as a consumer-driven trend. Instead, he called for Africa to take ownership of the technologies being developed, stressing the need for local talent, robust data infrastructure, research institutions, and commercial models that retain value within the continent rather than exporting it. This vision aligns with broader efforts to build indigenous technological capabilities and reduce reliance on foreign innovations. To support these ambitions, Sanwo-Olu outlined several key initiatives. Between 2019 and 2025, approximately 3,000 kilometers of fiber-optic infrastructure had been laid, forming part of a plan to complete a 6,000-kilometer unified network. Addressing another critical barrier to productivity, the governor noted that Lagos had implemented legal, regulatory, and commercial measures to tackle power shortages. These included plans to secure between 200 and 400 megawatts of state-procured electricity capacity, aiming to improve reliability and attract further investment. Sanwo-Olu also encouraged investors and global technology firms to consider Lagos not just as a market but as a strategic base for expanding operations across Africa. He urged them to establish engineering capacities, data centers, and regional headquarters in the state, emphasizing that the true opportunity lay in building and exporting from Lagos rather than simply selling to it. “Bring us your capital and your confidence,” he said, “and let Lagos be your gateway to the entire continent.” In addition to Sanwo-Olu’s vision, Wamkele Mene, Secretary-General of the African Continental Free Trade Area (AfCFTA) Secretariat, praised Nigeria’s leadership in advancing Africa’s digital economy. Nigeria, along with Kenya and South Africa, has emerged as a co-champion of digital trade, driven by its thriving technology and fintech ecosystems and a dynamic generation of entrepreneurs. Mene noted that Nigeria’s growing pool of tech talent and innovative enterprises could help translate digital innovation into commercial value while strengthening regional integration through the AfCFTA. As Lagos continues to invest in its digital infrastructure and foster a culture of innovation, the city’s aspirations reflect a broader shift toward self-reliance and leadership in the region. With continued progress in areas such as connectivity, energy, and talent development, Lagos may soon solidify its place as a beacon of technological advancement in Africa.