Connect with us

News

World Bank says Underdeveloped Broadband Infrastructure Hampering Nigeria’s Digital Economy

Published

on

Kindly share this post

The World Bank says Nigeria’s digital economy plan is being continually hampered by an underdeveloped fixed broadband infrastructure.

The global bank disclosed this in its ‘Nigeria Development Update: Time for Business Unusual’ report.

According to the bank, Nigeria’s digital economy can transform economic activities and improve government efficiency.

The World Bank said, “Nigeria’s digital economy can transform economic activities by unleashing new productivity gains, offering new services, and improving the government’s efficiency.

“It can also lead to greater citizen engagement, rebuilding trust and enabling access to service.

“Nigeria has the potential to accelerate its digital transformation by leveraging its relatively strong mobile broadband infrastructure, expanding e-commerce markets, and growing digital financial services.

“However, Nigeria continues to face significant challenges which have hindered the country’s ability to reap the full benefits of the digital economy.

“One leading barrier is Nigeria’s underdeveloped fixed broadband infrastructure, which is attributable to high federal and state taxes and an insufficient wholesale regulatory regime.

“This weak infrastructure base creates a ripple effect across the economy, contributing to low levels of financial inclusion, and persistent geographic and gender gaps in access to and use of digital technologies.”

The bank added that the ongoing security crisis in the North had increased these challenges.

It said, “However, Nigeria is only capturing a fraction of its digital economy growth potential.

“Minimal fixed broadband infrastructure and a lack of accessible and affordable connectivity in rural areas are exacerbating the digital divide.

“The country also faces several additional challenges, including suboptimal management of its telecom and power networks, security, and transparency issues, and constraining fiscal policies.”

According to the global bank, digital technologies have the ability to transform all aspects of the economy, as they lower the cost of economic and social transactions for firms, individuals, and the public sector.

The World Bank added that the nation shouldn’t just focus on the information and communication technology sector, as the digital economy referred to a modern economy enabled by digital technologies.

The bank said because the nation had the largest mobile market in Sub-Saharan Africa, improving digital platforms had the potential to connect governments, businesses, and consumers, create market efficiencies and reduce entry barriers.

According to the bank, e-commerce is one of the biggest strengths of Nigeria’s digital ecosystem.

It said in 2018, e-commerce spending in Nigeria was estimated at $12bn and was projected to increase to $75bn in revenues by 2025.

The global bank said a 10 per cent increase in mobile broadband penetration could lead to a minimum of 0.8 per cent growth in GDP in other regions of the world, and 2.46 per cent growth in Africa.

The report said, “To deliver on the 2030 aspirations of greater access to the digital economy and to meet the bold EGRP’s objective of lifting 100 million Nigerians out of poverty, the government needs to continue to strategically invest in the foundational elements of its digital economy.”

According to the global bank, Nigeria needs about 120,000 to 167,000 kilometres of fibre infrastructure, in addition to its existing 55,000kms, at a cost of $3.4bn. The bank added that this amount included about $870m in fibre deployment costs plus an estimated $2.5bn for 10 years (DCF) cost of Rights of Way fees.

The bank said, “If Rights of Way fees charged by all states are reduced to N145 per metre, then the cost of this dark fibre deployment including RoW fees would decline dramatically from $3.4bn to $1bn, as the DCF of 10 years of RoW fees would decline from $2.5bn to about $150m.

“Currently, the lack of an open-access wholesale network, combined with ineffective wholesale access regulation, varied Federal and State levies, and excessive rights of way fees, continues to hamper investments in the sector.

“Unlike West African peers, such as Ghana and Senegal, Nigeria does not have a pervasive, open access national backbone network through which high-speed Internet connectivity can be affordably extended across the entire country. As such, most telecommunications operators in Nigeria continue to self-provision their own infrastructure.

“This has resulted in unnecessary duplicative investments, with high-traffic intercity routes often having three or more fibre-optic links whilst others have none.”

The bank said about 63 per cent of Nigerians living in rural areas remained unconnected, compared to 40 per cent of people living in urban areas.

According to the bank, there is a north-south divide within the country, with southern states well ahead of northern counterparts in access within a household to mobile phones, and in terms of quality of service.

According to the World Bank, if Nigeria is to fulfil the potential offered by the digital economy, it must first improve its digital infrastructure.

It said, “Innovative solutions and strategic interventions and investments are required in order for Nigeria to gain the critical number of Internet subscribers needed to build its digital ecosystem and kick start its digital transformation”.


Kindly share this post

Dear Reader, Your support matters. But we believe that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. That is why, we have devoted our energy to independent reportage of technology and finance and how they affect lives. Our incisive and analytical view of how technology news affects the daily life help individuals and organizations make up their minds. Quality journalism costs money. Today, we're asking that you support us to do more. Kindly support our effort to deliver technology and finance journalism to everyone in the world. Donate as little as N1,000. Bank transfers can be made to: UBA Plc 1017156876 Communication Week Media Ltd

News

Adeleke Describes Adenuga’s Contribution to African Economy as Unquantifiable

Published

on

Kindly share this post

Senator Ademola Adeleke, the Osun State Governor, has described the Chairman of Globacom, Dr. Mike Adenuga, Jr., as an icon who has made enormous contributions to the development of Nigeria and Africa.

Speaking when he received the Public Sector team from Globacom in his office at Osogbo recently, the governor also commended the positive impact the company has made in the telecoms industry in terms of innovation and pricing.

He described Dr Adenuga as a great believer in Nigeria “whose impact on the Nigerian and the African economy cannot be quantified”.

Adeleke assured the Globacom team led by Niyi Odejobi of his government’s readiness to explore areas of business partnership with the company. “Be rest assured that this partnership is already a reality. We just need to work out the details”, Senator Adeleke noted.

He urged telecommunications companies to strengthen ties with the state government, adding that “the subnational entities are where your market is. Even though the regulatory body is national, your market base remains the states and the local governments. You must deliberately prioritize partnership with the state government.

“The telecom community must understand that giving full support to the states in terms of payment of right taxes and corporate social responsibility is an investment in your market. The more robust the state governments are, the more buoyant your market will be,” the governor said.

In his own remarks, Odejobi pledged Globacom’s support for the growth and development of Osun State, adding that it would deploy various internet and digital infrastructure to promote governance and businesses in the state.


Kindly share this post
Continue Reading

News

Foodstuff Store introduces Innovative Recycling Program

Published

on

Kindly share this post

Foodstuff Store, an AgriTech company on Wednesday announced the introduction of its innovative recycling program. The expansion of the corporate mission to include waste management and recycling solutions underlines the company’s commitment to sustainability and environmental responsibility.

Foodstuff Store is providing a way by which their customers who are provided with wholesome and fresh food products directly from farmers can now dispose of their plastic wastes as an added service, thereby reducing their ecological footprint.

For every waste item delivered for recycling by customers, they’ll receive a credit that can be used for a next purchase at the Foodstuff Store.

Not only will this ensure a contribution to a cleaner environment, but it will also provide a way to incentivise their efforts towards adopting sustainability practices.

“We are thrilled to offer our customers a convenient way to recycle and contribute to a cleaner Nigeria and a cleaner planet,” says Diana Tenabe, Chief Operating Officer at Foodstuff Store. “By offering rewards for recycling, we hope to incentivize eco-conscious behavior within our communities in Nigeria.”

Nigeria faces a significant challenge with plastic pollution. The prevalence of single-use plastics, which is caused by widespread use of sachet water pouches, plastic shopping bags, and take-away containers, leads to massive waste generation. There are also recycling capacity challenges in Nigeria, where only a small percentage of plastic waste gets recycled.

Additionally, indiscriminate disposal of plastics and other waste materials contributes to overflowing landfills with plastics, clogged drainages that lead to flooding, and harming marine life.

Foodstuff Store believes that by working together with its customers, it can create a positive impact on the environment. This new program allows customers to enjoy the quality products and services they expect from Foodstuff Store, while also contributing to a more sustainable future.


Kindly share this post
Continue Reading

News

Edenlife Opens the first Homemade Outlet Store in Oniru, to open 49 more Across the Country 

Published

on

Kindly share this post

Homemade by Eden, the food retail business of Nigerian home concierge startup, Edenlife has marked a significant step towards National expansion with the launch of its first Outlet store in Oniru, Lagos State. This move signals the company’s commitment to bringing its signature homemade meals directly to consumers across the country.

Commenting on the launch of the Oniru Outlet, Nadayar Enegesi, CEO of Edenliife stated, ‘’At Eden Life, it’s in our DNA to adapt and meet the evolving needs of our consumers.

The new outlet store by Homemade exemplifies this commitment. These outlet stores will deliver delicious, home-cooked meals to its customers and create job opportunities in logistics and tech support, driving local economic growth.

By sourcing fresh ingredients from smaller Nigerian farms, we strengthen the agricultural sector and ensure a reliable supply chain. And there’s more to come we have plans to launch mobile kitchens in other strategic locations across the nation.

It’s a win-win situation – our customers enjoy a taste of home, we create jobs, empower local businesses, and contribute to a stronger Nigerian economy.’’

The establishment of these outlet stores translates to new job opportunities in logistics and potentially tech support for the mobile units. Additionally, the focus on fresh, local ingredients could encourage partnerships with smaller Nigerian farms, strengthening the agricultural sector and supporting local food production.

This localized approach to food delivery keeps money circulating within communities and fosters a more sustainable economic ecosystem.

Speaking at the launch event on Friday, May 10, 2024, Orafiri Adoki, Business Lead of Homemade stated that some of Nigeria’s food culture has not been fully explored.

She stated, “Nigeria has such a rich culture around food, which has not been explored to its maximum. So, with the launch of the Homemade outlet, we hope to introduce some of the meals Nigerians are used to at home while providing creative and innovative ways to enjoy these meals,” .

As Nigeria’s e-commerce sector continues to evolve, Eden Life’s innovative approach positions the company as a frontrunner in driving industry growth and reshaping consumer expectations. By providing a seamless omnichannel shopping experience, Edenliife not only captures market share but also cultivates meaningful connections with Nigerian consumers.

Nigeria’s e-commerce industry has been experiencing a boom in recent years, driven by factors like increasing internet penetration, smartphone adoption, and a growing young population. The e-commerce market in Nigeria is estimated to be around USD 8.53 billion in 2024.

It is expected to grow at a compound annual growth rate (CAGR) of 11.82% during the forecast period (2024-2029), reaching approximately USD 14.92 billion by 2029. E-commerce is expected to continue its strong growth trajectory in Nigeria, presenting immense potential for e-commerce platforms like Edenlife to capitalize on the rising demand for convenient and affordable food options.


Kindly share this post
Continue Reading

Trending