Connect with us

E-Business

Exploring the Potential of Digital Transformation on the Nigerian Economy

Published

on

Kindly share this post

The concept of a digital economy is essentially a new economy stream that brings with it new momentum.

 

As ICT technologies develop rapidly and become integrated into more and more verticals, the digital economy is becoming the fastest growing, most innovative, and widest-reaching economy.

 

Unleashing the potential of economic development, it drives the transformation of traditional industries, fuels sustainable economic development, improves social management and services, and fosters innovation.

 

Accenture forecast that optimizing the use of digital skills and technologies could generate US$2 trillion of additional global economic output by 2020.

 

The study also revealed the vast role digital technologies play in economic activity, with more than one-fifth of the world’s GDP attributable to digital skills, capital, goods, and services.

 

According to Tencent’s 2017 report China’s Internet + Digital Economy, China’s digital economy created about 2.8 million jobs in 2016, accounting for 21% of the total new jobs.

 

Nigeria is undoubtedly one of Africa’s most promising nations with over 190million people, this country remains the largest mobile market on the continent.

 

Over the past years the country has witnessed a surge and growth of e-commerce businesses, an increase in small to large scale enterprise and not to mention a ton of mobile based services that meet a wide range of needs for people every day.

 

A majority of these innovations and establishment are riding on the back of Technology and Connectivity.

 

National Bureau of Statistics (NBS) predicted that the e-commerce sector is expected to contribute about 10 per cent, a projected N10trillion, to the nation’s Gross Domestic Product (GDP) by 2018.

 

The e-Commerce market in Nigeria is currently worth around $13billion (about N4.01trillion), according to a report by London based Economist Intelligence Unit (EIU), Nigeria’s e-commerce market value could rise to $50billion (N15.45trillion) over the next decade.

 

However Africa and specifically in Nigeria face challenges stemming from insufficient ICT infrastructure, to the lack of unskilled human capital and most importantly firm government push on ICT and digital transformation.

 

Specifically Nigeria as a country needs to focus on its infrastructure establishment. Reliable and affordable broadband for businesses and individuals are critical for future stages of ICT use.

 

While it is evident that there has been some considerable level of development and adoption of technology and telecommunication, however to build and sustain a viably digital economy in Nigeria and to fully reap the benefit from it, there are critical areas that need attending to.

 

Connecting the Unconnected

The relevance of the connectivity cannot be over emphasized. Taking communication sites for instance, Indonesia, a country with similar population with Nigeria, has more network base station sites than Nigeria.

 

According to ICT development Index 2017 by ITU, there is a need to increase network sites in Nigeria like the one in Indonesia, both urban and rural areas, not to mention that more than half of Nigeria’s 180 million population living in rural areas have much poorer mobile signal coverage.

 

It is important to note that with the increasing rate of mobile internet penetration in Nigeria, 23million of the Nigerian population still have no telecommunication access largely in the rural communities.

 

Is some rural villages in Ogun State bordering with the Republic of Benin, residents would have to go over the border to Benin Republic just make a phone call, which would be International call as the telecommunication provider was not Nigerian based. Worse case they would need to commute to the next village to make local calls via local operators.

Huawei-Logo.jpg

Huawei has started a series of rural telecommunication access initiatives with some of operators across Africa, leveraging our Rural Star solution.

 

The solution is specifically designed for remote parts of the country that do not currently have mobile network coverage, our goal is to bridge the digital divide in remote parts of Africa, especially in Nigeria.

 

The solution leverages cutting edge technology innovation by reducing the total cost of building and running a mobile network site by up to 70 per cent.

 

There is an increase in the MBB subscription rate with affordability being improved over the year. However, there are limited metro and access fiber network in Nigeria 11% proportion is far lower than other Africa countries Affecting user experience and broadband development.

 

The growth in internet/mobile adoption amongst Nigerians present huge opportunities for businesses that take advantage of new technologies such as social media and e-commerce.

 

The annual research project called the Global Connectivity Index (GCI). Nigeria ranks 70th in GCI 2018. The report shows that as an early starter (countries in the early stage of ICT infrastructure build-out), Nigeria needs to focus on increasing ICT infrastructure and policies to give more people access to the digital world.

 

The report finds that a 1 point increase in GCI score is equivalent to 1) a 2.1% increase in competitiveness 2) 2.2% increase in national innovation, and 3) a 2.3% increase in productivity.

 

Reaping the benefits of a digital economy starts with having reliable mobile networks and internet access to connect the unconnected. Internet access itself is not enough though.

 

Huawei believes that in Africa connectivity brought by the network of communication towers and fiber is like the “soil”, which provides the fertile ground for important value-adding crops, which in this case are services including Safe City, E-government, E-education, E-health, E-agriculture etc. that enhance public social services delivery and better allocation of resources.

 

Public sector as an Enabler and Private Sector as an Innovator

To achieve digital economy, we need joint efforts from both private and public sectors, with the right programs and policies the Nigerian governments can make digital transformation a reality much seamless for citizens and businesses.

 

According to OECD’s Digital Economy Outlook 2016, by the end of 2015, 80% of OECD member states had developed national strategies or departmental policies and built strategic frameworks for the digital economy. Nigeria is not left behind in building a framework to boost its digital transformation;

“SMART Digital Nigeria” has been proposed as the required panacea to bridge the uneven growth presently dominating the ICT sector. The plan observed that Nigeria’s longstanding focus mostly over the last seventeen years on Information Technology infrastructure development and also other areas in the industry including promotion of ICT local content, ICT deployment in Government and expansion of ICT access to Nigerians by deepening the penetration of broadband to ensure that information and knowledge is not only secured but enhances national security and creating of more jobs for as well as unleash the creativity of our teeming youth for overall national development.

 

To make a lasting impact with this program, there are three levels that should be looked into: Public investment and support for private investment in ICT infrastructure, particularly data centers and broadband connectivity, through Infrastructure sharing, investment-friendly regulations, Taxation Policies that fosters investment, spectrum policies that aims to improve coverage, and cutting of red tap to ease the investment e.g. in approval of Right of Ways. Policies that support the advancement of digital transformation of industries.

 

Support for online services, including ecommerce, internet banking, e-government, e-health, and e-learning. These steps will not only enhance the availability and accessibility of internet and other serviced based on ICT infrastructure, but also can be interpreted directly into affordability of those services to bridge the digital gap and achieve digital inclusiveness.

 

Take Infrastructure sharing for an instance, research shows that Infrastructure sharing can impact the reduction of capital investment substantially with on-going operating cost reductions between 50% and 80% depending on market structure and the sharing model implemented. Opening up public infrastructure such as lamppost, Electric Pole, government buildings, billboards has an important role to play in limiting the cost and increasing speed and smoothness of network expansion projects.

 

These efforts will enable private sectors deploy and scale network access much faster and seamless across and the country and ultimately increasing connectivity access and reach to more citizens much faster.

 

A look ahead

Information technology is not the ultimate solution for economic growth, however ICT serves as a tool that enables digital transformation and provides newer and smarter way of communicating and transacting.

 

For Nigeria Unlocking the dividends of digital economy becomes imperative in the face of dwindling oil revenue with increasingly pressure on the economy.

 

An effective blend of broadband access coupled with effective and reliable internet connectivity will also go a long way in fast tracking business productivity and thereby promote digitalized business behavior which in reality is the bone of future economy.

 


Kindly share this post

Nigeria CommunicationsWeek believes that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. So since 2007, we have devoted our energy to independent reportage of technology and how they affect lives.

Continue Reading
Advertisement
Comments

E-Business

Nigeria Ranks Second as Africa Domain Name Registrations Hit 4.33m

Published

on

Kindly share this post

In the latest study commissioned by the Internet Corporation for Assigned Names and Numbers (ICANN) in collaboration with PowerSoft Africa, Nigeria moved up to second place in the Africa Domain Name Industry.


L-R:Dr. Bosun Tijani, minister of Communications, Innovation and Digital Economy; Kashifu Inuwa, director general, National Information Technology Development Agency (NITDA), and Adesola Akinsanya, president, Nigeria Internet Registration Association (NiRA)

Similarly, African country code Top-level Domains report shows 4.33million registrations as of November 2023 and additional 1.4 million generic top level domain registrations from African entities.

Covering 54 countries in Africa, the ICANN report released by the Coalition for Digital Africa at ICANN80 in Kigali, Rwanda, shows that high Internet access costs continue to limit widespread usage, with the average African spending about 4% of their monthly income on 1GB of data – twice the global affordability target.

Also, the projected average annual overall growth in the number of domain names across the continent is 12.4%, suggesting significant opportunities for local providers in individual country.

On infrastructure, the report indicates Over 1.1 million kilometres of terrestrial and submarine fiber cables interconnect the continent, enhancing cross-border communications and internet access, and a significant concentration of web content and domain hosting remains within only a few countries, underscoring the need for more localized Internet service.

For Nigeria, the report shows that “as with South Africa and Kenya, Nigeria has multiple undersea cables. The ccTLD is well run as there are now six IXPs and multiple Data Centres.

“Nigeria’s biggest advantage is its huge population and large economy. Nigeria has the highest number of Internet users on the continent. Coming in just after Kenya on the number of ccTLD domains but ahead on gTLD domains, Nigeria also has a high score from its six IXPs.

Speaking at the unveiling of the report, Sally Costerton, ICANN’s Interim President & CEO, said that report that sheds light on the growth, challenges, and opportunities within the Domain Name System (DNS) across Africa.

“Building on the initial study conducted in 2016, this study provides critical insights into how the landscape has evolved and where it is headed.

The study is an integral part of ICANN’s commitment to support the growth and development of the Internet’s infrastructure, namely the DNS infrastructure, in a highly dynamic region.

It was also created in response to a request from the African community within the context of the implementation of the ICANN Africa Regional Plan for Fiscal Years 2021-2025”.

She said that the recommendations focus on key areas such as infrastructure development, regulatory adjustments, and capacity building, which are crucial for harnessing the full potential of the DNS industry in Africa.

According to recent NiRA report, the .ng domain name, Nigeria’s Internet country code top-level domain (ccTLD), has crossed 215,000 registrations.

Commenting on the report, Mr. Adesola Akinsanya, President of the Nigeria Internet Registration Association (NiRA), expressed delight on Nigeria’s domain name growth trajectory.

According to him, the report is a reflection of NiRA and other stakeholders’ efforts, particularly, the registrars, towards deepening the country’s DNS industry.

In his words, “the study that was done regarding the DNS industry in Africa and I am privy to the first edition in which Nigeria was not even in the top three. Today, we are number two in Africa. It shows that the efforts of NiRA, both past and present EBoD and the secretariat staff, alongside the registrars, our efforts are making impacts.

“The study also shows the commitment of the registry in making sure that the best practices in the DNS industry are followed.

“Secondly, this is a continental rating; we are not the ones praising ourselves. The message we (NiRA) has for the DNS community in Nigeria is that we do not have any other country. So, .NG is our collective passport in the digital space. From businesses, web developer community, registrars, businesses and individuals adopting .NG, we salute your efforts.

“We can do more, because we are not the first yet. There are lots of grounds to cover. So, let’s push for more adoption of the .NG while we tackle all necessary challenges on the way”, Akinsanya said.

Murtala Abdullahi, the CEO of Smartweb Nigeria Limited, one of the NiRA registrars, said the report shows increased acceptability of the .NG brand.

He added that the country is privileged to have huge population with a lot of individuals and businesses showing interest in the .NG domain name.

“Two years back, we have people adopting more of .com.ng, but today they are converting to .NG. We register more of the .ng than even the .com.

“So, people are now beginning to understand the value of the .ng in terms of the optimization, SEO and other things.

“And another factor is the exchange rate. So, it helps to boost the adoption of .ng, because in terms of price competitiveness, .com is around N20,000 while .ng is below N15,000.

On his part, Sir Remmy Nweke, the Lead Consulting Strategist, DigitalSENSE Africa Media, and a leading voice in .NG advocacies, said he was glad that efforts of both NiRA BOT and the EBoD is paying-off, stressing the need for more vanguards for the .NG adoption in the country.

He said, “I’m excited in the sense that despite that, we’re not there yet, we’re making steady progress. So, it is a way of encouragement that the study came out positively for us. And I’m sure we will continue to collaborate to make sure that whatever is being done is on progressive line to make sure that even if it is next year, or in the next few years that we’re going to conduct this exercise again, there must be improvements on our internet adoption, local hosting and other variables.

“In general, .ng is our brand. So, every Nigerian is expected to buy into this dream. Get at least one domain for yourself. And then when you use it, always make time to share the stories of how you are using it. If you have issues, please report back to us (NiRA) so that it will be resolved”.

According to the report, Google indexes a total of 44.3 million web pages under the .NG domain, significantly up from 16 million, in the year under review.

 


Kindly share this post
Continue Reading

E-Business

Sterling Bank Adopts Blockchain Technology to Revolutionise Credential Verification

Published

on

Kindly share this post

Sterling Bank, has partnered with the School of Politics, Policy, and Governance (SPPG) to revolutionise credential verification through blockchain technology.

The bank in a statement noted that this collaboration marks a significant milestone in enhancing the efficiency, security, and accessibility of academic credentials in Nigeria.

Commenting on the collaboration, the Chief Growth Officer Sterling Bank, Obinna Ukachukwu, stated: “We are thrilled to partner with VX Technologies and SPPG to introduce this game-changing initiative.

“We believe in the power of innovation to drive progress and transform lives at Sterling Bank. By supporting the adoption of blockchain technology in education, we are not only revolutionizing credential verification but also advancing our H.E.A.R.T strategy for Education, which prioritizes Access and Equity.”

On his part, Ryan Hawkos, Director of Operations, VX Technologies, added: “We are pleased to acknowledge the impactful generosity of Sterling Bank, who has provided the funding necessary for the initial phase of this project. This support ensures that thousands of SPPG alumni can access their digital certificates, with the first one thousand certificates being provided at no cost.”

According to the Chief Executive Officer of SPPG, Alero Ayida-Otobo, “Sterling Bank’s commitment to quality and positive educational experiences for people is yet again demonstrated here in their commitment to supporting the adoption of innovative technology across the educational ecosystem.

“We are one of the first institutions in Nigeria to embrace blockchain for academic credential management, and we look forward to a near future where this is the norm across Nigeria,” he added.


Kindly share this post
Continue Reading

E-Business

NDPC Slams N400m Fine on Four Banks, Three Firms for Data Violation

Published

on

Kindly share this post

Nigeria Data Protection Commission (NDPC), has fined four banks and three companies N400 million for breaching data of Nigerians.

NDPC Slams N400m Fine on Four Banks, Three Firms for Data Violation

Vincent Olatunji, national commissioner, NDPC,

The NDPC also said that over the past year, more than 1000 financial institutions, schools, insurance companies, and consultancy firms have undergone investigations for breaches of citizens’ data.

Vincent Olatunji, national commissioner, NDPC, disclosed this while speaking of the implementation of the NDPC Act, since June 14 when the nation’s data protection law was enacted.

He added that there are ongoing investigations concerning data infractions.

According to Olatunji the activities of the NDPC have led to increased levels of compliance with the Nigeria Data Protection Act in both the private and public sectors.

He said: “When we started, the level of compliance within the private sector was about 49 percent while the public sector was 4 percent. But today, private sector compliance is above 55, while the public sector has reached 15 percent,” Olatunji said.

“The nation’s data ecosystem is now worth over N10 billion and the commission considers it imperative to ensure that citizens’ data are safe, secure and protected in line with global best standards and practices.”

He further said Nigeria is now at the forefront of the activities of the global data assembly due to the Data Protection Act 2023 and the impact of the data ecosystem on the national economy as nations like Kenya, Ghana, China, Singapore, and Malaysia, among others now share experiences with Nigeria.

“The Data Protection Act 2023 is a major milestone for Nigeria. Mr President laid our apprehension to rest when he signed the Act on June 12, 2023,” he said.

“It was a major turnaround for the industry. Now the data ecosystem is beyond everybody because it is a global phenomenon due to the impact of technology.

“In terms of jobs and wealth creation, promotion of tourism, perception and attraction of foreign direct investments into Nigeria, we have taken a leapfrog and even overtaken some countries.

“And that’s why Nigeria was given the hosting right for 2024 All African Data Protection Commission’s and Institutions. About 30 countries will be here next year for the event.”

Olatunji said the NDPC now collaborates with the Central Bank of Nigeria (CBN), the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), and other regulatory organisations to make sure stakeholders under their supervision abide by the Data Protection Act.

According to Olatunji, capacity building, awareness raising, and stakeholder engagement have raised the bar for compliance within the ecosystem.

He also said to check the activities of digital loan platforms, the commission collaborated with CBN, the Independent Corrupt Practices and Other Related Offences Commission (ICPC), the Economic and Financial Crimes Commission (EFCC) and other regulatory authorities.

The national commissioner, however, said awareness would continue to be created for vulnerable Nigerians who become victims of the loan sharks due to ignorance.

Olatunji also said the country’s population and landmass are a challenge to a total clampdown on the digital loan sharks as most of them operate from isolated or remote areas without known addresses.

 

 

 


Kindly share this post
Continue Reading

Trending