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Leveraging Digital Technology To Boost Nigeria’s MSMEs

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By Adeniyi Ogunfowoke,

Small and medium scale businesses are the foundation of Nigeria’s economy. Thanks to digital technology, it is worth noting that e-commerce platforms like Jumia have so far played a key role in boosting and accelerating MSMEs in the last 7 years. A significant number of MSMEs are riding on these platforms to reach millions of customers in Nigeria and across Africa. Today, these MSMEs are raking in more revenue compared to the past.

 

The fact is, there is a link between technology adoption and the MSME sector growth, with some stating that MSMEs who were early adopters of eCommerce platforms doubled their annual revenue much faster than their counterparts who were reluctant to join the rising tide of e-commerce. This article explores the five leading ways in which technology will encourage growth in the MSME sector.

Creating a digital business

Thinking through and executing a digital business model requires a fundamental shift in strategy because it is completely different from offline business. In this case, you either bring out a new offering or take the existing offering to market in newer ways. This means being able to explore technologies such as the Internet of Things and Artificial Intelligence to make the customer experience seamless. The opportunities for digital technology in MSMEs are numerous. It only requires very strong business understanding to be able to analyze what the ecosystem looks like, have a very strong understanding of the customer and their insatiable expectations to being able to devise an appropriate strategy to create the digital business that meets their needs.

Social impact

You can’t afford to operate your business as if it exists in a vacuum any longer. The rise of social media networks such as Twitter, Facebook and Instagram means your customers are simply a click away, and users can now connect without regard to geographical obstacle, financial background, or even social status. Indeed, in the past, there were very limited avenues for customers to raise their queries but now as a business, you are likely to incur an unfavourable rant or a bad review on Facebook. This is why as a business, you should not compromise on standards because what goes on on the Internet stays on the Internet. This means that if you earn a bad reputation, it’s going to stick with you. It is for this reason that businesses large and small worry about their digital footprint, and a good number of organisations have experts who are on the lookout for potential “bad press” and are out making the rounds trying to be proactive.

Increased interest in and need for security

Businesses of all sizes need to be increasingly aware of the need for enhanced security. The rise in cyber-crime has also led to an increased interest in protecting data, training employees and incorporating IT into every aspect of the business. At the very least, an organization needs to be committed to protecting data with backups, integrating patches and updates regularly and training all employees to spot the signs of trouble.

Connectivity

Digital technology has also increased the ease with which we can all stay in touch, interact and engage. Whether it’s having your co-workers and employees available via text/video chat at a moment’s notice, or being able to send targeted promotional email blasts to pre-qualified customers when they’re shopping at nearby businesses, the rise of mobile technology has blended almost seamlessly with communication software to create a web of real-time information.

Improved access to information and data

Digital Technology has made it easier than ever to research and find data without leaving the office. Enhanced access to data gives your business the ability to offer your customer service team not only a way to connect with customers but also a way to instantly access complete customer history. In addition to this, you can provide a better user experience for anyone who interacts with your brand.

Irrespective of how big or small a business enterprise is, application of digital technology offers numerous benefits including those that facilitate the smooth running of business operations. These benefits are sometimes tangible while other times, they are intangible. The bottom line is that business applications play a significant role in increasing profitability for businesses while generating the results that customers need.


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Ugo Onwuaso is an ICT enthusiast. He believes technology should be used for general good. He holds a Master of Public Administration (MPA) degree from the Lagos state University. 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

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FG to Connect Schools Nationwide to Internet – Education Minister

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Federal government of Nigeria has announced plans to connect schools across the country to reliable internet services as part of a major initiative aimed at strengthening digital learning and expanding access to modern educational tools.

FG to Connect Schools Nationwide to Internet - Education Minister

The government said the programme will help equip students with the digital skills needed to thrive in a technology-driven global economy while ensuring that every Nigerian child has access to quality education comparable to global standards.

The development was disclosed in a statement issued on Wednesday in Abuja by Folasade Boriowo, director of Press and Public Relations at the Federal Ministry of Education Nigeria.

According to the statement President Bola Ahmed Tinubu directed Tunji Alausa, minister of Education, and Bosun Tijani, minister of Communications, Innovation and Digital Economy, to work together to implement the nationwide connectivity project.

Speaking during a high level meeting with stakeholders in Abuja, Alausa explained that the initiative builds on earlier connectivity efforts through the Nigerian Research and Education Network (NgREN), which previously supported broadband connectivity for tertiary institutions under a World Bank-funded project.

He noted that although the programme initially recorded significant progress in connecting universities and other tertiary institutions, the momentum slowed after the initial funding cycle ended, making a renewed and expanded strategy necessary.

The minister said the new effort aims to revive and strengthen the programme while extending connectivity across all levels of the education sector.

“Connectivity is not limited to broadband fibre alone. It also involves telecommunications towers, satellite systems and other digital infrastructure required to provide reliable internet access across the country,” Alausa said.

He revealed that the government is implementing major connectivity projects, including the deployment of about 90,000 kilometres of fibre optic broadband infrastructure, the installation of 3,700 telecommunications towers, especially in rural and underserved communities, and the expansion of satellite capacity to improve nationwide coverage.

According to him, the goal is to ensure that schools from primary to tertiary institutions are deliberately connected as broadband cables are deployed and towers installed across the country.

Alausa also said the meeting produced several concrete steps to accelerate connectivity within the education sector, including the expansion of the NgREN governing council to include representatives responsible for foundational and secondary education.

Two technical working groups have also been established to drive implementation one focusing on connectivity for tertiary institutions and another dedicated to foundational and secondary schools.

He expressed optimism that the first phase of the initiative would begin to deliver visible improvements within the next three months.

The minister added that improved connectivity would enable students and teachers to access digital learning platforms, global knowledge resources, and emerging technologies such as Artificial Intelligence (AI).

He further disclosed that the project would support the gradual transition of major national examinations to Computer-Based Testing (CBT), with plans for exams conducted by West African Examinations Council (WAEC) and National Examinations Council (NECO) to fully adopt CBT within the next two to three years, similar to the system currently used by the Joint Admissions and Matriculation Board (JAMB).

Also speaking, Tijani emphasized that technology-driven education cannot succeed without reliable internet connectivity.

He noted that although Nigeria hosts about eight international submarine internet cables the highest number in Africa the challenge lies in distributing that capacity inland through fibre networks capable of reaching communities nationwide.

 

“Most of the internet capacity enters Nigeria through submarine cables landing in Lagos, but without sufficient inland fibre infrastructure, that capacity cannot effectively reach schools and communities across the country,” he said.

Both ministers reaffirmed the government’s commitment to collaboration between the education and communications sectors to ensure that investments in digital infrastructure translate into improved learning outcomes for Nigerian students.


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WhatsApp Launches Parent-managed Accounts for Pre-teens Amid Safety Concerns

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WhatsApp said yesterday it would allow parents to ​create accounts for pre-teens, restricted to messaging ‌and calling, amid rising global concerns about the impact of social media and chat apps on children.

A number of ​countries around the world are now seeking ​to follow Australia, which last year became the first ⁠country to adopt a social media ban ​for teenagers because of mental health worries.

Messaging apps have ​also triggered concerns following hacking incidents where users were persuaded to divulge security verification and pin codes giving malicious ​actors access to personal accounts and group chats.

WhatsApp ​said the idea of parent-managed accounts came after feedback from ‌parents, ⁠who wanted a messaging service tailored for under-13s.

“These accounts come with strict new default settings, parental controls and options for parents to guide their ​pre-teens’ (under 13s) first ​messaging experiences,” ⁠the messaging app said in a blog post.

“Once set up, these accounts ​are controlled by the parent or guardian ​who ⁠will be able to decide who can contact the account and which groups they can join. ⁠In addition, ​parents can review message requests ​from unknown contacts and manage the account’s privacy settings,” it ​said.


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Reps Give FAAN Two-week Ultimatum to Recover N18.98bn Debts from Foreign Airlines

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House of Representatives Committee on Finance has given the Federal Airports Authority of Nigeria (FAAN) two weeks to recover N18.98 billion owed to the Federal Government by foreign airlines operating in the country.

Reps Give FAAN Two-week Ultimatum to Recover N18.98bn Debts from Foreign Airlines

The directive was issued on Tuesday by the Committee Chairman, Rep. James Faleke, during an interactive session with FAAN officials led by the Managing Director, Mrs Olubunmi Kuku, as part of the committee’s ongoing revenue monitoring exercise.

Lawmakers expressed displeasure over what they described as the growing debt profile of international airlines, insisting that the situation was unacceptable in the face of government’s revenue needs.

Faleke said the accumulation of liabilities, despite clearly defined payment timelines for airport service charges, raised serious concerns about enforcement and compliance in the aviation sector.

In her presentation, Kuku explained that airlines using Nigerian airports are required to settle their service charges within two weeks.

She, however, disclosed that several operators had exceeded this window, with some liabilities ageing beyond 30 days, 90 days and, in certain instances, more than a year.

She put the total outstanding indebtedness of foreign airlines to FAAN at N18.98 billion.

According to her, the debts relate to statutory charges for services provided by FAAN and are largely processed through the International Air Transport Association’s (IATA) global settlement platform.

Airlines listed in the debt profile include Qatar Airways, Lufthansa, British Airways, Virgin Atlantic, KLM, EgyptAir, Ethiopian Airlines, Air France, Royal Air Maroc, Turkish Airlines and Africa World Airlines.

She said Qatar Airways and Lufthansa each owe about N1.5 billion, Virgin Atlantic about N1.35 billion, while KLM, EgyptAir and Ethiopian Airlines each owe over N1 billion.

Other carriers, including Air France, Royal Air Maroc, Turkish Airlines and Africa World Airlines, carry liabilities ranging between N700 million and N1 billion.

Committee members queried why FAAN allowed the debts to accumulate beyond the stipulated two-week payment period.

One lawmaker asked why airlines that defaulted were neither sanctioned nor barred from operating at Nigerian airports, and whether late payments attracted interest charges.

Members warned that persistent delays in settling obligations could amount to negligence and undermine the integrity of government revenue collection.

Responding, Kuku said international airline payments often pass through IATA’s central clearing system used globally for ticketing and financial settlements, which can create delays beyond FAAN’s direct control.

She stressed that FAAN closely monitors ageing of debts, steps up engagements with airlines once liabilities exceed 30 days and applies stronger enforcement measures when debts cross 90 days.

She added that the authority had, in some instances, grounded defaulting airlines, particularly domestic operators that do not operate under the same global credit structure as foreign carriers.

Unsatisfied, the committee directed FAAN to furnish it with detailed addresses and documentation of all indebted airlines and warned that the affected carriers would be invited to appear before the House if they failed to clear their debts within the two-week deadline. “We need every kobo that belongs to this country,” Faleke said, adding that any airline found violating its financial obligations to Nigeria would be held accountable.

Foreign airlines operating in Nigeria are required to pay passenger service charges, landing and parking fees, aeronautical charges and other operational levies for the use of airport facilities and services.

Lawmakers have repeatedly argued that while the IATA settlement structure is global, it should not be used as justification for prolonged delays in remitting monies owed to Nigerian agencies.

The latest directive by the House Committee on Finance forms part of wider National Assembly efforts to strengthen revenue collection, block leakages and shore up government income, especially from strategic sectors such as aviation.


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