Globally, digtal economy is developing rapidly. In fact, It is the single most important driver of innovation, competitiveness and growth, and it holds huge potential for entrepreneurs and small and medium-sized enterprises (SMEs).
New digital trends such as cloud computing, mobile web services, smart grids, and social media, are radically changing the business landscape, reshaping the nature of work, the boundaries of enterprises and the responsibilities of business leaders.These trends enable more than just technological innovation. They spur innovation in business models, business networking and the transfer of knowledge and access to international markets.
Unfortunately, despite its large, youthful, and entrepreneurial population, digital economy is yet to be fully exploited given its potential to become an engine of economic transformation in Nigeria. How Nigerians adopt digital technologies will be a key determinant of their future growth.
Worried about this development, the Director General of National Information Technology Development Agency ( NITDA), Mallam Kashifu Inuwa, disclosed that, as far as digital economy in the world is concerned, which is valued at $11trillion, Nigeria despite its huge population and potentials, is lagging behind.
Nigeria’s unimpressive position in the digital cum data driven economy and the need for its repositioning in that direction, came to the fore recently when the Chairman of the Senate Committee on Media and Public Affairs, Senator Ajibola Basiru, paid courtesy visit on NITDA DG.
All over the world, awareness is on the rise about the usefulness of Information and Communication Technology (ICT) to promote and enhance growth and development. Business and economic experts have realize that no nation can have competitive advantage in terms of trade, industry, manufacturing and services among others without adopting, deploying, integrating and utilizing ICT in various sectors in the 21st century.
The developed nations; United State (US), United Kingdom(UK), Germany and Japan were able to attain present level of development through the deployment of high technology, especially in the industrial sectors. In addition, Brazil, China, Russia, India and other Asian Tigers economy are rising due the high adoption and integration of innovative technology.
Consequently, developing nations are beginning to realize that any development efforts that is not technological based is likely to fail. The African nations, have also recognized that local and global competitiveness depends largely how they deploy technology to transform different sectors of their economies, especially the industrial sector.
World Bank assessment shows that, Nigeria is capturing only a fraction of its digital economic potential and will need to make strategic investments to develop a dynamic, transformative digital economy.
The Nigeria Digital Economy Diagnostic says that with improvements in digital connectivity, digital skills, digital financial services and other core areas of digital development, Nigeria can fully unleash new economic opportunities, create jobs and transform people’s lives.
Isabel Neto, World Bank Senior Digital Development Specialist, in a report stated that, “as the biggest economy in Africa with one of the largest populations of young people in the world, Nigeria is well-positioned to develop a strong digital economy, which would have a transformational impact on the country.”
“Through innovations and investments, the Nigerian economy can harness digital data and new technologies, generate new content, link individuals with markets and government services, and roll out new, sustainable business models.” She noted
In Nigeria, digital economy is a key priority. The country has made some strides to strengthen the country’s digital space. Nigeria’s Economic Recovery and Growth Plan 2017–2020 (ERGP) recognizes the need for a digital-led strategy to make the Nigerian economy more competitive in the 21st century global economy.
Clearly, ICT infrastructure plays a key role in the socio-economic and technological development of a digital economy. There is lack of adequate ICT infrastructure (Computers, Internet and broadband) in Nigeria.
Although United Nation (UN) ranks Nigeria high in the Online Services Index (OSI) and e-government Development Index (EGDI), it does not feature among the top ten in Africa. In addition, Nigeria ranks 75th in Global connection index (GCI) in 2019. Most GCI indicators place Nigeria below the global average.
The country has fallen behind others in terms of broadband penetration. One of ways to go is to Improve digital infrastructure. Because despite having the largest mobile market in Sub-Saharan Africa which is supported by strong broadband infrastructure and improved international connectivity, Nigeria has minimal fixed broadband infrastructure and connectivity in rural areas, leaving a significant number of the most marginalized segments of the population without internet access.
Experts also say that, for Nigeria to maximize it’s potential of digital economy, it must srengthen digital platforms. For these Experts, strong public and private digital platforms support the provision of digital services and a thriving eCommerce platform. However, millions of Nigerians lack formal identification records to access a range of public and private services.
It is also important for the handlers of the nation’s digital economy to increase access to digital financial services. This is because findings revealed that about 60 million Nigerian adults are without access to a formal account, stalling the country’s journey toward financial inclusion. Whereas in other African markets financial inclusion would mostly be driven by digital financial service (DFS) providers, in Nigeria the huge potential of DFS still remains untapped.
Analysts say that, if Nigeria wants to be relevant, it must close the digital skills knowledge gap. The capabilities and skills required to use various forms of digital technologies remain limited to a small segment of the population.
It’s also worthy of note that Increases in higher level education and the existence of accessible online training initiatives is bringing digital skills to those able to access them. However, low enrollment in basic education and the poor quality of that education coupled with a lack of digital skills in curricula is segmenting digital skills into a slim share of the population, excluding the poorest from the benefits of the digital world.
Meanwhile, the current Nigeria’s digital economy policy, spearheaded by the Federal Ministry of Communications and Digital Economy (FMoCDE) is targeted at mobilizing other sectors and align with the Economic Recovery and Growth Plan (ERGP) of the Federal Government in order to achieve economic growth and diversification. The policy is aimed at having every Nigerian to be connected with the Internet and expressed the goal of digital Nigeria by being computer literate, owning a digital device, having access to the Internet, owning a bank account that can be accessed and operated digitally and online.
Above all, digital economy policy of the Federal Government hopes to see majority of the citizens undertake many activities electronically. Digital economy policy of the Federal Government of Nigeria is in line with global trend in business transactions, strengthen the economy and increase transparency, competitiveness and integration framework into the global economy. The current administration is putting measures and policies in place, both economic and Information Technology, to drive digital economy policy implementations in Nigeria.
It is important to note that the success of digital economy implementation in Nigeria depends largely on the availability of ICT infrastructure, development, upgrading, deployment and utilization. The current drive by the Government of Nigeria for a digital economy is no doubt for economic development and increased global competitiveness.
However, while it appears that Federal Government is set for the implementation of this policy, many Nigerians are worried whether the country is truly ready, given the state of digital infrastructural deficit
