E-Business
Collaborative Action Needed to Boost Digitalisation in Nigeria and Support Economic Growth
In the face of serious economic and developmental challenges, the Nigerian Government through the Strategic Blueprint of the Federal Ministry of Communications, Innovation, and Digital Economy has identified digitalisation as a key enabler to stabilise and strengthen the macroeconomic environment.
It is pursuing structural reforms, creating an environment conducive to private and public sector growth and job creation, while concurrently recognising the need to diversify away from the reliance on the oil and extractives sector. This shift towards diversification underscores the digital sector’s significant role in steering Nigeria towards a more resilient and dynamic economic future.
The largest contribution of the digital sector to Nigeria’s overall GDP is through the impact digitalisation has on the productivity of other sectors. For example, in the short-term, measures such as cash transfers to citizens can be done more quickly and efficiently using mobile money payment platforms. Digital technologies also boost productivity in the agricultural sector through increased use of agricultural inputs, better storage facilities and more coordinated support across agencies with the use of digital technologies to communicate and support small-scale farmers.
It is estimated that, in 2023, the telecoms sector was contributing 13.5% to the GDP of Nigeria. Considering the direct and indirect contribution of the mobile ecosystem, as well as the productivity impact throughout the economy, the telecom sector’s contribution to Nigeria’s overall economic activity is much greater, estimated at 33 trillion NGN in 2023, with 2.4 trillion NGN in tax revenue contributions.
The GSMA today published its latest report ‘The role of mobile technology in driving the digital economy in Nigeria’ which addresses the challenges hindering the growth and development of the telecommunications industry and the crucial role of the mobile sector in Nigeria’s economic development. Connectivity to mobile services, including Mobile Money is the foundation on which digitalisation is built. The Mobile Network Operators (MNOs) are committed to investing to support the realisation of the digitalisation ambitions that will unlock economic growth and development in the country.
Navigating a complex operating environment
To unlock these economic opportunities, connectivity and mobile financial services are crucial foundations. The GSMA’s report emphasises that while 29% of Nigerians are regularly using mobile internet, there remains untapped potential, as 71% are not accessing these services on a regular basis. An improved policy environment has the potential to help the industry boost coverage and adoption, resulting in 15 million additional internet users by 2028. However, the sector faces challenges to infrastructure deployment.
These include:
- Complex and costly process of securing Rights of Way (RoW) significantly increases the time and costs associated with rolling out infrastructure.
- The complex tax environment in Nigeria, providing for high and increasing costs of tax compliance because of the complex and overlapping tax structure within the country.
- Increasing costs are making it difficult for the industry to maintain sustainable levels of investment. The primary driver of this has been increases in the cost of power for sites due to the rapid increases in the price of fuel, increased government fees and levies, and increased demand for forex, in an import-dependent environment, due to contractual obligations for network infrastructure and services that are denominated in USD.
Transforming Nigeria into a digital economy
An enabling policy and regulatory framework will be critical to realising the full potential of Nigeria’s digital transformation, as recognised in Nigeria’s Strategic Plan 2023 – 2027 as well as the Federal Ministry’s National Broadband Alliance for Nigeria (NBAN). Without universal access to digital connectivity, a broader digital transformation of the Nigerian economy is not possible.
It is clear that the mobile industry is a key partner for the government in achieving its objectives and can contribute to some of the key elements of the government’s plan. The value of this contribution can significantly increase with the necessary support from government required to overcome the obstacles outlined above.
To this end, the report recommends initiatives to support policymakers in creating an economic and regulatory environment that supports growth, investment, and competition.
These include implementing a legal framework for Critical National Infrastructure to address challenges in building network infrastructure; simplifying and improving the process for issuing RoW and standardising it across the country; reducing the industry’s tax burden to help cut operating costs; and creating a regulatory environment that supports sustainable investment.
Angela Wamola, Head of Sub-Saharan Africa at the GSMA, said: “High-speed connectivity is the bedrock of any digital nation, and the Nigerian government recognises the mobile industry’s role in laying key foundations on which digital transformation is built.
“Future policies should be geared towards reducing the cost and complexity of infrastructure rollout to encourage investment and boost the adoption of mobile broadband.
“The impact of such actions would go far beyond mobile, driving productivity gains across the economy and creating millions of new jobs in Nigeria.”
E-Business
FG to Incorporate Contactless Fingerprints for Online Passport Renewal
Nigeria Immigration Service (NIS) said that it will soon enter an era where the application process for renewing passports will be done entirely online, including the confirmation of biometrics.
This will be done through a dedicated NIS app which will require the creation of a profile and enable the submission of contactless fingerprint and face biometrics with verification using the National Identification Number (NIN).
The system is expected to rollout in April 2025.
There have been previously announced failed launch dates for the passport project, which began pre-deployment tests without the biometric capture capability at the end of last year.
Olubunmi Tunji-Ojo, minister of Interior, said in an X thread that he presided over a meeting in collaboration with the NIS, to make a preview of the new system to be introduced.
Those who took part in the discussions included representatives from government, civil society organizations, the media and actors from the tech space.
The Minister said during the meeting, they collected feedback from several stakeholders which they plan to incorporate into the system for seamless functioning when it shall be launched in the coming months, according to Premium Times.
He also revealed that Iris Smart Technologies, which holds a once-threatened contract to produce the country’s biometric passports, and Newworks Solutions are the technology providers working with the NIS.
Tunji-Ojo said the new system involves “cutting-edge technology” which “enhances the passport acquisition process by allowing eligible applicants to initiate and complete their applications seamlessly from the comfort of their homes or workplaces on their mobile devices.”
“This new feature is undoubtedly a game-changer, and we are eager to fully roll it out in our new passport regime. Our goal remains to transform our systems and methods to align with global best practices, setting the pace for other nations to follow without compromising national security,” the minister added.
After the review, feedback obtained from the cross section of stakeholders will be crucial in fine-tuning the system which he says will first be launched for people in the diaspora, said Tunji-Ojo.
Authorities say once it goes live, passport applicants seeking renewal will be able to apply for the document and have it delivered to their home without having to visit any NIS office in person.
The Interior Ministry and NIS reiterated that the project is part of President Bola Tinubu’s Renewed Hope Agenda which seeks to make life easier for Nigerians.
The introduction of the contactless biometric capture system for passport renewal is part of other announced reforms in that sector, one of which is the passport processing time which had been brought down to just 24 to 48 hours following the submission of an application, says the Interior Minister.
E-Business
Firm Warns that Employees’ Digital Fatigue Leads to Higher Cyber Risks
In observing World Mental Health Day on the 10th of October, Kaspersky warns of the relationship between digital fatigue and increased exposure to cyber risks.
In today’s data-driven and digital business environment, office employees are bombarded with a constant feed of notifications, continuous digital interactions and the need to make huge amounts of decisions throughout the day.
Even though advanced technologies like artificial intelligence (AI) and machine learning are helping to improve efficiencies, workers are under significant strain.
This can result in digital fatigue that not only negatively impacts an employee’s well-being and productivity versus higher rates of burnout, but also risks opening the company to a range of cyberthreats, from phishing to deepfakes, warns Kaspersky.
“Employees face hundreds of decisions daily, that range from small, routine choices to critical business decisions. Eventually, the brain’s ability to make sound judgments declines over time and pressure. The constant influx of emails, messages, and alerts are exacerbating this digital fatigue,” says Brandon Muller, Technical Expert for the MEA region at Kaspersky.
In fact, a research by Forbes Advisor shows that digital communications make 58% of employees feel like they need to be available more often.
This results in 60% of the workforce feeling increased burnout. The constant need to stay online and multitask adds to this high-pressure environment, making employees more prone to mistakes.
Phishing still prevalent
Phishing remains one of the most widespread forms of cybercrime. Fatigued employees are more likely to miss the warning signs of a phishing email, especially when they are just one among many in their overflowing inboxes and as phishing campaigns become ever more sophisticated.
These attacks are designed to deceive employees into disclosing sensitive information, such as login credentials or financial data, by posing as legitimate sources.
While phishing attacks come in various forms, they often target corporate email systems due to the potential wealth of valuable information they hold, making them prime targets for exploitation.
The rising threat of deepfakes
AI is also contributing to the rise of deepfakes – highly convincing audio or video content manipulated to deceive the recipient. Even when not fatigued, employees are finding it more difficult to assess the authenticity of such content.
When it comes to digital fatigue, these deepfakes can pose a serious risk in corporate settings, where cybercriminals may impersonate executives to authorise fraudulent transactions or gain access to sensitive information.
Other threats
From inadvertent installation of malware to checking the contents of a USB found on a way to the office – the cyber risks may vary in form and can lead to devastating consequences. If robust cybersecurity solutions are in place to help identify and filter the threats, and if employees are educated and alert, organisations are in a much safer position.
Supporting employees
There are several proactive measures organisations can adopt to help reduce the cognitive load on their employees:
- Cybersecurity training that is relatable and engaging: By using automated, customised training platforms that adjust content based on role and experience, organisations can make sure their employees stay informed without feeling overwhelmed. Gamified elements in training can also enhance engagement and retention.
- Automated cybersecurity solutions: Investing in advanced cybersecurity tools, such as automated threat detection and response systems, help businesses reduce human error and mitigate risks.
Protection solutions for mail servers with anti-phishing, anti-spam, and malware detection technologies decrease the chance of infection. These tools can work in the background, allowing employees to focus on their work without constantly worrying about potential cyber threats.
- Enable a Default Deny policy for critical user profiles, particularly those in financial departments, which ensures that only legitimate web resources can be accessed.
- Create areas for employees to take a break.
Advice for employees to combat digital fatigue:
- Establish routines for certain decisions to save mental energy for more critical choices.
- Prioritise tasks, delegate or automate less important decisions.
- Identify most important criteria to ease decision making, narrow down your choices, ask for advice and additional information.
- Focus on key data, limit information overload and distractions when taking important decisions.
- Recognise the signs of decision fatigue, such as reduced concentration, increased irritability, and procrastination.
- Schedule regular breaks to recharge and prioritise some exercise such as going for a walk. Also consider exercises for your eyes and neck.
- Stay alert when receiving messages that look uncommon, as well as when visiting new web pages and making money transactions.
“The demands of the digital workplace are not going away. Fortunately, organisations can take meaningful steps to support their employees while still protecting the business from cyber threats. By addressing the root causes of decision and digital fatigue, companies can reduce the risk of successful phishing, deepfakes, and other sophisticated cyberattacks,” concludes Muller.
E-Business
Better Digital Payments Infrastructure is Facilitating Access to New Markets for Enterprise
By Doreen Lukandwa, Head, Commercial Strategy at Onafriq
Saying that small and medium-sized enterprises (SMEs) are the backbone of economies in East Africa is an understatement. SMEs make up the largest part of all registered entities in nearly every industry and sector in most East African countries, averaging between 60% to 90%, including micro-enterprises.
As the region continues to experience significant progress and development, the SME ecosystem plays a crucial role in creating employment opportunities, encouraging innovation and entrepreneurship, and diversifying economies.
However, only a few of these SMEs will grow into larger-sized firms or expand their reach into markets beyond the area they operate. This is mainly due to the constraints they face that limit their ability to expand and scale their business, such as inadequate financing and access to investment and financial services and insufficient integration into international capital markets.
Historically, the finance sector in East Africa has shown a preference for traditional banks, which have been restricted in terms of geographical reach and other factors. This has resulted in limited access to financial services for many merchants in the region, hindering economic growth and development. But this is changing.
The emergence of an increasingly robust digital payments infrastructure in East Africa presents an incredible opportunity for businesses to scale by opening up access to new markets in the region, across the continent, and around the globe.
Expanding the global footprint of enterprise
Africa accounts for 70% of the world’s $1 trillion in mobile money value, mainly due to the boom in digital instant payment solutions and inclusive interoperable payment systems across the continent. East Africa makes up the largest mobile money market on the continent, with transaction values worth $491 billion for 390 million registered accounts in 2022.
These booming, secure, efficient, and interconnected digital payment systems are transforming the business landscape by breaking down geographical barriers and broadening enterprises’ ability to collect and make payments to and from anywhere in the world.
Trailblazing fintech firms are revolutionising the digital payments space and helping enterprises solve their revenue collection and payments challenges, reducing operational costs and leaving them free to focus on operational efficiency.
Now, SMEs can scale their existing services into new African and global markets by capitalising on the growing digital payment infrastructure without the need to build their payment infrastructure or platforms. With just the right payment partner, businesses can expand into new territories by establishing a virtual financial presence, helping duplicate their services in the new market.
By leveraging the shared infrastructure and resources from their payment partner, enterprises can now mitigate risks while gaining access to local knowledge and networks.
Enabling enterprise to meet its full potential
The increased access to new markets for enterprises, facilitated by the digital payments space, enables their ability to scale up, compete with larger firms, and increase their growth potential.
By scaling effectively, East African SMEs can keep up with customer and market demands, improve their efficiencies and find new avenues of revenue growth without being held back by a lack of resources or infrastructure. It encourages innovation, which could see the development of new products and services, increase sales opportunities, and further their ability to serve more customers and expand into new markets.
As the rapid growth of digital payments technology continues, we can expect to see more enterprises take advantage of the increased access to new markets, resulting in the growth of SMEs across the region and subsequently driving the creation of better-paid jobs, economic growth and ensuring more competitive economies.
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