Abstract: The International Telecommunications Union’ statistics currently show that the Information and Communication Technology (ICT) industry had experienced continuous growth, as well as rapid progress in policy and technology development, resulting in an increasingly competitive and networked world. There are more ICT users worldwide and more people communicating than at any other time in history. It is also encouraging, that overall, the digital divide has been reduced, with statistics showing that within few years the gap separating the developing and the developed countries has been shrinking in terms of mobile subscribers, fixed telephone lines, access/subscriptions to satellite TVs and Internet usage. Despite these gains, we cannot deny the fact that the growth and development of ICT infrastructure and implementation in Nigeria are still faced with some challenges that has prevented the nation from maximizing the potentials offered by ICT and related technologies. This paper presents an overview of the current status of growth and prospects of ICT penetration in Nigeria. Some of the challenges identified as militating against ICT expansion and indicators by which ICT penetration can be assessed based on International consensus were discussed. We conclude by positing that an understanding of these indicators will enhance the formulation of the right policies within the government sector and aid business and individuals in their pursuit of the benefits accruable from the dynamics of the information age.