According to 2018 data, 30.9% of Nigerians lived in conditions of extreme poverty. As modernization advances and access to smart technologies becomes more widely available, researchers observe how the positive correlation between the availability of high-speed internet tools and mobile banking is reducing poverty in Nigeria. With these positive research findings, the Nigerian government has acknowledged the necessity of internet availability in poverty reduction initiatives like its National Broadband Plan.

Poverty in Nigeria

Based on data from the World Bank, poverty significantly impacts Nigeria. The 2025 research shows nearly one-third of Nigerians live on less than $2.15 per day. Inequality in poverty is also drastically exacerbated by region. Research from 2018/19 found that 46.5% of residents within Nigeria’s northern provinces experienced poverty compared with 13.5% of those in Nigeria’s south.

Efforts to reduce extreme poverty have slowed since before the recent COVID-19 pandemic. Lack of national economic policy transformation has only exacerbated the Nigerian struggle of increasing employment opportunities. This has left the majority of living conditions suboptimal. Though Nigeria’s government has made macroeconomic changes to stimulate the economy, income has remained unable to keep up with sustained inflation, the World Bank reports.

Growth in Technology

As modernization brings technological access around the globe, nations experiencing substantial poverty bear the benefits. Smartphone technology has brought both global connectivity and the availability for benefiting from applications which require the internet. The 2018 Pew Research data found that 32% of Nigerians own a smartphone. Though figures show that smartphone ownership is broadly stratified by income, Nigeria has notably high low-income ownership compared to other sub-Saharan nations.

In 2018, 93% of high-income Nigerians owned smartphones, alongside 74% of low-income Nigerians. With ownership rates soaring overall, a 2020 GSMA and the World Bank study named Nigeria as “the largest mobile market and economy in Africa.”

Reducing Nigerian Poverty

Other global research studies have found a link between internet access, mobile banking, and reductions to national poverty rates. The 2020 GSMA and World Bank study focused on monitoring the effects of internet access on Nigerian poverty. In addition to the study’s assertion of Nigeria as one of Africa’s mobile giants, researchers found that after two years of broadband internet access, 2.5 million Nigerians had escaped extreme poverty. Additionally, the study noted how Nigerian households in rural areas benefited more substantially than those in urban communities.

The benefit of internet access experienced by impoverished Nigerians in rural communities is one reflected in a 2023 national survey. Conducted by the Department of Finance and Banking at the Rivers State University in Nigeria, scholars cited how rural communities often lack local banking branches. 2018 data from the World Bank noted that Nigeria has only 4.3 banks per 100,000 people. With access to the internet for these rural communities, mobile banking allows the ease of financial literacy without the necessity of extensive travel.

The study notes statistical evidence that mere knowledge around savings, payments, and credit positively impacts the poor and the success of new businesses. The researchers concluded that digital payment platforms provide substantial poverty alleviation for Nigerians in the Rivers State with implications for the nation at large.

Companies/Governmental Initiatives

In light of these findings that internet access is reducing Nigerian poverty, the national government has recently sought to expand broadband across the country. As Nigeria’s economy continues to stagnate, government officials see the availability of broadband as a possible solution for future economic growth.

The Broadband Strategic Plan 2020-2025 focuses on providing free nationwide areas where Nigerians can access the internet free of charge. Though the government has designated 75 public places itself (like airports, universities, marketplaces), Nigeria’s seven state governments have instituted their own initiatives for free Wifi. The Edo State government, for example, launched its “Free Wifi Initiative” in June 2023. The initiative provides free 24-hour internet coverage in both governmental and recreational areas, according to ICT Works.

Mobile Money on the Rise

As Nigeria continues to promote free internet access for its citizens, access and usage of mobile banking have only increased. In addition to governmental Wifi initiatives, institutions such as the Central Bank of Nigeria have planned to highlight their mobile framework.

In its 2024 Report on Mobile Money, the GSMA cited how in 2022 alone, Nigeria saw exponential growth in the usage of online banking services. As evidence proves that internet access is reducing Nigerian poverty, the continuance of government broadband initiatives and financial education programs could continue to be instrumental in this national eradication of hardship.

– Piper Aweeka

Piper is based in AReno, Nevada, USA and focuses on Technology and Solutions for The Borgen Project.

Photo: Flickr