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IT Services - Nigeria

Nigeria
  • The IT Services market in Nigeria is expected to witness a significant revenue growth, reaching a projected value of US$2.56bn in 2025.
  • Among the various segments within the market, IT Outsourcing is projected to dominate with a market volume of US$992.61m in the same year.
  • This indicates the strong presence and demand for outsourced IT services in Nigeria.
  • Furthermore, the IT Services market is anticipated to exhibit a steady annual growth rate of 12.03% between 2025 and 2029, resulting in a market volume of US$4.03bn by 2029.
  • This growth signifies the increasing reliance on IT services in Nigeria and the potential for further expansion in the coming years.
  • In terms of average spending, the projected Spend per Employee in the IT Services market is estimated to reach US$31.84 in 2025.
  • This indicates the level of investment that companies in Nigeria are willing to allocate towards IT services, highlighting the importance of technology in driving business operations and growth.
  • When comparing Nigeria's IT Services market to the global landscape, it is noteworthy that United States is expected to generate the highest revenue, reaching a staggering US$550.28bn in 2025.
  • This demonstrates the dominance of the US market in terms of IT Services market and its substantial contribution to the global industry.
  • Overall, the IT Services market in Nigeria is poised for growth and presents numerous opportunities for businesses operating in this segment.
  • The projected revenue figures and market volumes underscore the significance of IT services in driving economic development and technological advancement in the country.
  • Despite challenges with infrastructure and connectivity, Nigeria's IT services market is growing rapidly, driven by increased investment in digital transformation initiatives.

Definition:
The IT Services market encompasses a wide range of services used by organizations to create, manage, and deliver information, and it includes services that provide assistance with various other business functions. The primary goal of IT services is to ensure that information technology infrastructure, applications, and systems are effectively implemented, operated, and optimized to support an organization's business objectives and requirements. The specific range of services offered may vary depending on the service provider and the client's requirements.

Structure:

IT Services contains four distinct markets that are based on different services:

  • IT Consulting & Implementation covers advisory services that help businesses evaluate their technology strategies and align them with their business strategies or internal processes.
  • Business Process Outsourcing (BPO) refers to the transfer of entire business processes or individual activities from a company to a third party and is often IT based. BPO covers a wide variety of business processes, usually either in the back office (e.g., human resources) or in the front office (e.g., customer service in call centers).
  • IT Outsourcing refers to the external contracting of all IT-related services instead of relying on company-owned resources. In an IT context, these activities include IT administration, IT application, and web hosting services.
  • The Other IT Services market covers revenues for areas that are not specifically mentioned in the other markets, such as system integration, software installation and support, and IT education and training.

Additional Information:

The IT Services market comprises revenues, revenue change, average spend per employee, and a list of the key players in the market and their consolidated revenues. Market values represent revenues that are generated by primary vendors either directly or through distribution channels at the manufacturer price level (excluding VAT). Reported market revenues include spending by enterprises (B2B) and governments (B2G). Detailed definitions of each market can be found on the respective page where the market data is displayed. Key players in the market include IBM, Cognizant, Hewlett Packard Enterprise, and TCS.

For more information on the data displayed, use the info button right next to the boxes.

In-Scope
  • IT consulting & implementation, such as Accenture, Hitachi, and Hewlett Packard Enterprise
  • Business process outsourcing, such as IBM, Infosys, and NTT Data
  • IT outsourcing, such as Capgemini, Cognizant, and Fujitsu
  • System integration services, such as Deloitte, CGI, and Tata Consultancy Services
  • IT training & education, such as Skillsoft, LinkedIn Learning, and NIIT
Out-Of-Scope
  • Infrastructure as a service, such as Microsoft Azure, Alibaba Cloud, and DigitalOcean
  • Platform as a service, such as Microsoft Azura, Google Cloud, and Engine Yard
  • Software as a service, such as Oracle Cloud Applications, Google Workspace, and Workday
  • Support or maintenance of company-owned software products
IT Services: market data & analysis - Cover

Market Insights report

IT Services: market data & analysis
Study Details

    Revenue

    Notes: Data was converted from local currencies using average exchange rates of the respective year.

    Most recent update: Apr 2024

    Source: Statista Market Insights

    Market Insights

    2016
    2017
    2018
    2019
    2020
    2021
    2022
    2023
    2024
    2025
    2026
    2027
    2028
    Gartner1.841.922.042.142.182.422.622.783.04
    IDC1.942.062.162.12.22.262.4
    Statista1.741.81.881.91.862.062.242.482.722.943.163.363.54

    Notes: The chart “Comparable Estimates” shows the forecasted development of the selected market from different sources. Please see the additional information for methodology and publication date.

    Most recent update: Apr 2024

    Notes: Data was converted from local currencies using average exchange rates of the respective year.

    Most recent update: Apr 2024

    Source: Statista Market Insights

    Key Players

    Most recent update: Dec 2024

    Source: Statista Market Insights

    Analyst Opinion

    The demand for IT services in Nigeria has been on the rise in recent years, driven by a growing economy and increasing adoption of technology across various industries.

    Customer preferences:
    Nigerian businesses are increasingly recognizing the importance of digital transformation and are seeking IT services to help them achieve their goals. These services include software development, cloud computing, cybersecurity, and data analytics. Additionally, there is a growing demand for mobile application development as more Nigerians are accessing the internet through their smartphones.

    Trends in the market:
    One of the key trends in the IT services market in Nigeria is the increasing adoption of cloud computing. This is driven by the need for businesses to reduce costs and improve efficiency. Another trend is the growing importance of cybersecurity, as businesses become more aware of the risks associated with cyber threats. Data analytics is also becoming increasingly important as businesses seek to make data-driven decisions.

    Local special circumstances:
    Nigeria is the largest economy in Africa and has a relatively young and tech-savvy population. This has created a unique opportunity for IT services providers to cater to the needs of a growing market. However, the country also faces challenges such as poor infrastructure and a lack of skilled workers, which can limit the growth potential of the IT services market.

    Underlying macroeconomic factors:
    Nigeria's economy has been growing in recent years, driven by the oil and gas industry as well as the services sector. This has led to increased investment in technology and a growing demand for IT services. However, the country also faces challenges such as political instability and corruption, which can impact the business environment. Additionally, the COVID-19 pandemic has had a significant impact on the economy and the IT services market, with many businesses forced to adapt to remote work and digital solutions.

    Global Comparison

    Notes: Data was converted from local currencies using average exchange rates of the respective year.

    Most recent update: Apr 2024

    Sources: Statista Market Insights, Financial Statements of Key Players, National statistical offices

    Methodology

    Data coverage:

    The data encompasses B2G, B2B, and B2C enterprises. Figures are based on enterprises' technology spending on products, consulting, and outsourcing services.

    Modeling approach / Market size:

    Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players in the industry, Statista's primary research and surveys, and IT associations. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, internet users, and telecommunication. This data helps us estimate the market size for each country individually.

    Forecasts:

    In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing method is used based on the market data characteristics. The main drivers are the GDP and its sector composition, internet penetration, the level of digitization, and the attitude toward IT security.

    Additional notes:

    The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.

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    IT Services: market data & analysis - BackgroundIT Services: market data & analysis - Cover

    Key Market Indicators

    Notes: Based on data from IMF, World Bank, UN and Eurostat

    Most recent update: Jan 2025

    Source: Statista Market Insights

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    Unseen yet omnipresent, Information Technology (IT) services are the invisible gears driving modern organizations. These services support business operations and digital transformation through outsourcing, managed services, security, data management, and cloud computing. By leveraging these services, companies enhance efficiency, reduce costs, and gain competitive advantages in a digital marketplace. Prominent cloud providers worldwide include Amazon Web Services, Microsoft Azure, Google Cloud, and Alibaba Cloud. In the managed services sector, Oracle, Accenture, and IBM are among the largest providers globally.
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