Nigeria’s youthful population drives the rapid expansion of the iGaming sector

Nigeria’s iGaming sector is witnessing explosive growth in 2024, fueled primarily by the country’s youthful population and expanding digital infrastructure. Although certain areas of the industry remain unregulated, remote gaming—particularly online sports betting—has surged in popularity, driven by young Nigerians.

Over 60% of Nigeria’s population is under 25, and their embrace of digital entertainment has significantly contributed to the rise of the iGaming market. “As Nigeria’s youthful population increasingly engages with digital platforms, the iGaming sector has seen exponential growth,” said Scott Lawson, a writer specializing in Nigeria’s online casinos for the international review platform, Online-casinos.com. “This demographic, paired with expanding internet access, provides a fertile ground for the online gambling industry to thrive.”

Smartphone penetration and improved internet access are crucial to the sector’s growth, with the majority of young people accessing online gaming through mobile platforms. This demographic shift is setting the stage for continued expansion in the coming years.

The State of Nigeria’s iGaming Market

Online sports betting dominates Nigeria’s iGaming scene, followed by virtual games and online casinos. Major platforms like Bet9ja lead the market, alongside offshore operators such as Mozzart, 22Bet, and Betway.

Key insights from the industry include:

• The remote gaming sector of Nigeria is valued at approximately $400 million in 2023.
• The market is expected to grow by 16% annually, reaching over $500 million by 2025.
• 90% of Nigerian internet users access iGaming platforms via mobile devices.
• Online sports betting accounts for nearly 80% of Nigeria’s iGaming market.
• Bet9ja is the leading platform with a market share of about 60% in online sports betting.
• Over 50% of Nigerian iGaming participants are aged 18-35.
• The country’s overall internet penetration is over 60%.
• 60% of transactions on online gambling platforms are made through mobile money services like M-Pesa and Paga.
• There are over 50 licensed iGaming operators in Nigeria, regulated by the National Lottery Regulatory Commission (NLRC).
• By 2025, Nigeria is expected to have over 30 million active iGaming users.

The combination of affordable smartphones and accessible mobile internet has opened the iGaming world to millions of Nigerians, particularly the younger, tech-savvy generation.

Nigeria’s Youth: A Key Demographic

With the largest youth population in the world, Nigeria is perfectly positioned for continued iGaming growth. The country’s median age is just 18.1 years, and an estimated 70% of the population is under 30.

Other significant factors include:

• A youth unemployment rate of 42.5% in 2023, pushing many towards digital and mobile platforms for entertainment.
• 75% of Nigerian youth have access to smartphones, with 70% of internet users aged between 16 and 35.
• Social media and mobile apps are central to the lives of over 70% of the youthful population, offering new avenues for digital engagement, including iGaming.

This burgeoning youth population, combined with urbanization and increasing internet penetration, creates a ripe environment for the iGaming sector to continue its rapid development.

Opportunities for Growth in Nigeria’s iGaming Sector

The growing influence of Nigeria’s youth is a double-edged sword for the iGaming industry. While it presents immense growth potential, there are challenges that need to be addressed to ensure sustainable and responsible expansion.

Notable opportunities include:

• A tech-savvy generation poised to adopt advanced iGaming technologies, including virtual reality (VR), augmented reality (AR), and artificial intelligence (AI).
• The rise of mobile gaming, even in rural areas, driven by the increasing availability of affordable smartphones and internet access.
• A shift towards faster-paced gaming options, like virtual sports and eSports, appealing to the younger audience.
• Offshore investors eyeing the market, with new entrants expected once comprehensive iGaming regulations are in place.
• Enhanced opportunities for sponsorships and partnerships between international gaming platforms and local youth sports clubs.

However, with this growth comes the need for robust regulations to protect young players from potential harms, such as gambling addiction. Policymakers, industry stakeholders, and investors must prioritize responsible gaming practices and put measures in place to safeguard the welfare of Nigerian gamers.

Conclusion

Nigeria’s youthful population is the driving force behind the expansion of the country’s iGaming industry. As more young people embrace mobile technology and digital entertainment, the sector is poised for continued growth. However, with this rapid development, it is essential to implement responsible gaming practices and regulatory frameworks to protect the country’s young players while ensuring the industry’s sustainable growth.