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Digital Inequality is a Major Threat to Africa’s Economic Future 

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By Sean Riley, CEO of Ad Dynamo by Aleph

It’s no secret that Africa suffers from incredibly high levels of economic inequality, with South Africa taking the top spot on a global level. In terms of wealth inequality, seven in ten of the world’s most unequal countries are located in Africa. Moreover, Marie Francoise Marie-Nelly, World Bank Country Director for Botswana, Eswatini, Lesotho, Namibia, and South Africa points out that despite many African countries “undertaking some of the most redistributive spending in the world, particularly on education and health, inequality remains extremely high”. This suggests that in order for the continent’s population to thrive economically in the future, it must also address digital inequality.

While many articles have been written about the continent’s ability to ‘leapfrog’ stages of economic development, through the likes of cellular technology for instance, this isn’t universally true. Even though cities in some of Africa’s biggest markets embrace 5G, access still remains a major barrier for many.

If Africa is to reach its full potential and secure the economic future that so many believe it is capable of, it is imperative that digital inequality is addressed immediately.

Promising growth, but still room for improvement

There is however, promising growth especially when it comes to internet access. According to Statista, Nigeria is set to add 35 million new users by 2026. In Ghana, World Bank figures show that 58% of the population is now online, with the number of new internet users also increasing by 6% between 2020 and 2021.

Yet, there is still significant room for additional growth. Focusing on Sub-Saharan Africa, upwards of 800 million people are not yet connected to mobile internet. A comparatively small proportion of those people (270 million) are not connected because they do not have the required coverage. However, of greater concern are the 520 million people across the region who could theoretically access the mobile internet but still don’t. This comes down to a number of interconnected reasons, including cost, lack of skills, education, age, and location.

As connectivity becomes cheaper and more ubiquitous, those numbers should organically decrease, presenting some economic benefits on its own, but it won’t be enough to ensure that Africa reaches its full potential.

After all, 50% of the Global Gross Domestic Product (GDP) is already digitalised, a percentage that is expected to only increase in the coming years. However, unless the right skills are developed to complement increasing connectivity, and enable the continent to effectively compete in the global digital arena, Africa risks becoming a net consumer in that economy, as organisations and entrepreneurs who fall into the other 50% will benefit.

Wide-scale skills development is needed

In order for Africa to truly reach its digital economic potential, it also needs to address the unequal spread of digital skills across the continent. This is true both for those entering the job market and those looking to become entrepreneurs, for which it is important to remember that a broad range of skills will be increasingly required. Furthermore, those able to develop software, or build and repair digital infrastructure will of course remain sought after, but those who can effectively market businesses to growing online consumers will also be of high importance. According to a study by The International Finance Corporation, 230 million jobs across the continent will in fact require a level of digital skills by 2030, Included in that number are HR, marketing, sales, and operations roles.

Newly online consumers represent a lucrative target audience for businesses around the globe. As such, they are largely targeted via major social platforms including Twitter, Snapchat, and Spotify. Thus, it is also imperative for businesses across Africa to understand how to effectively reach their audience organically and through platform advertisements.

This is something we at Ad Dynamo and the wider Aleph Group fundamentally understand, which is why we want to be part of the solution. This is why we recently launched our Digital Ad Expert educational programme in Nigeria and Ghana. The free online programme aims to educate, certify, and connect thousands of people across Africa with the necessary digital skills to succeed in a rapidly digitalising economy.

While some people in these markets have the resources needed to build up these skills on their own, we believe it’s critical to narrow the gap and reduce inequality as much as possible.

Now is the time

Thus, it is time to truly bridge the divide, and close the gaps evident across the African continent, so we can ensure its digital future. Fortunately, there is a growing number of prospects opening up to people in Africa, and with the help of solutions such as those provided by Digital Ad Expert, the opportunity to discover the world of digital marketing, and the potential it holds for you, or your business is unparalleled.


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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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NELFUND Investigates 34 Universities Over Students’ Missing Tuition Refunds

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Nigerian Education Loan Fund (NELFUND) says it is investigating about 34 tertiary institutions over allegations that they failed to refund students whose tuition fees were paid twice under the Federal Government’s student loan scheme.

The Managing Director of NELFUND, Mr Akintunde Sawyerr, disclosed this during an interview on Arise Television.

Sawyerr said the agency had deployed a five-member investigative team, including operatives of the Economic and Financial Crimes Commission (EFCC) and internal auditors, to examine the allegations.

According to him, the investigation was prompted by numerous complaints received from affected students.

“As of right now, there are 34 institutions that we are looking at closely with respect to this issue,” he said.

Sawyerr explained that the double payment issue arose because President Bola Tinubu directed that the student loan scheme commence in the middle of an academic session instead of at the beginning.

He said the decision compelled many students to pay their tuition fees to meet registration deadlines while awaiting approval of their loan applications.

“What happened is that a lot of schools got double payment; some from the students and some from us,” he said.

“The refund process is entirely out of our hands. It is the recipient of the double payments that is obliged to make refunds to the students.”

The NELFUND boss noted that many students had borrowed money from family members, friends and other sources to pay their tuition with the expectation of receiving refunds once the loans were disbursed.

He said while some institutions had promptly refunded affected students, others had failed to do so.

“Some have been very good at this. Others haven’t been so good at it,” Sawyerr said.

“I reserve judgement on the intentionality around it because, for some of them, they just didn’t have the process to make refunds.”

Sawyerr disclosed that NELFUND was exploring a tokenised payment system that would enable students to authorise tuition payments directly to their institutions, thereby reducing the likelihood of duplicate payments.

He said the agency deliberately chose not to disburse tuition loans directly to students to minimise the risk of fund diversion.

“Paying the funds to the students could really lead to the temptation for them to divert and do other things,” he said.

The managing director, however, acknowledged that NELFUND lacked the statutory powers to compel institutions to refund students or prosecute officials found culpable.

He added that many frustrated students had submitted complaints not only to NELFUND but also to anti-corruption agencies, including the EFCC and the Independent Corrupt Practices and Other Related Offences Commission (ICPC).

Sawyerr also expressed concern over increases in tuition fees by some institutions following the introduction of the student loan scheme.

He said NELFUND had declined to pay institutions that increased their tuition fees beyond acceptable levels.

“Some schools, because they get paid easily, started to put up their fees. We refused, point blank, to pay institutions who had hiked their fees beyond a certain level,” he said.

He reaffirmed the agency’s commitment to investigating every reported irregularity and strengthening the implementation of the student loan programme through continuous monitoring and internal reviews.


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Obi, NDC Presidential Candidate Faces N50Bn Defamation Claim over Alleged Podcast Remark

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Abayomi Arabambi, national vice chairman (South-West) of the Labour Party, has demanded a public apology, a retraction, and N50 billion in damages from Peter Obi, presidential candidate of the Nigeria Democratic Congress (NDC), over an alleged defamatory statement made during a podcast interview.

Obi, NDC Presidential Candidate Faces N50Bn Defamation Claim over Alleged Podcast Remark

The demand was contained in a letter issued by the law firm Neplus Ultra Attorneys and signed by Anderson U. Asemota, Peter O. Asimegbe, and Stanley C. Eziefulle on behalf of Arabambi.

According to the letter, the legal dispute arose from comments allegedly made by Obi during the interview, where he reportedly stated that Arabambi “does not have an address.”

Arabambi’s legal team described the statement as false, malicious, and defamatory, arguing that it portrayed their client as a faceless individual without legitimacy, credibility, or standing in public life.

The lawyers further claimed that the interview was widely circulated on television stations and digital platforms, exposing Arabambi to public ridicule and damaging his reputation.

“Our client has had a known residential and business address, maintains professional and political affiliations within Nigeria, and has never been a person whose whereabouts or identity were unknown,” the letter stated.

The legal team maintained that the alleged publication caused embarrassment and harmed Arabambi’s public image and political standing.

As part of their demands, the lawyers called for an unreserved public apology to be aired on national television, published on Obi’s verified social media platforms, and carried as full-page apologies in national newspapers.

They also demanded the payment of N50 billion as compensation for the alleged injury to Arabambi’s reputation, dignity, political standing, and public image.

 


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Why We’re Partnering With NIHOTOUR To Bring Nigerians In South Africa Home – Steve Babaeko

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When Nigerians began arriving back home on emergency flights following an ultimatum from anti-migrant groups in South Africa, Steve Babaeko, alongside The Nigerian Institute of Hospitality and Tourism (NIHOTOUR), saw an opportunity to step up for his fellow citizens.

Why We’re Partnering With NIHOTOUR To Bring Nigerians In South Africa Home - Steve Babaeko

Steve Babaeko

The CEO of X3M Ideas explains that he saw a deep obligation, one that had nothing to do with advertising and everything to do with hospitality. For Babaeko, it was a reminder that an agency owes a duty of care to the community it exists within.

That conviction shaped the creative agency’s partnership with the Nigerian Institute of Hospitality and Tourism (NIHOTOUR) for the newly launched ‘Welcome Home’ pilot programme at Murtala Muhammed International Airport (MMIA) in Lagos. Rather than simply crafting a messaging campaign around the crisis, X3M Ideas helped design a tangible, physical system.

“This wasn’t built as a campaign about a crisis,” Babaeko said. “It was a hospitality agency deciding what it owes its own citizens the moment they land.”

For Babaeko, what X3M has built is infrastructure, something returnees can physically walk through, use, and benefit from the instant they clear the arrival gate.

With the MMIA pilot now officially running, NIHOTOUR directs returnees to immediate support services and issues them a Returnee Card. This card grants individuals a free first night at partner hotels, immediate transport assistance from the airport, and fast-tracked business registration support.

Furthermore, the initiative features a dedicated Restart Desk to assist returnee entrepreneurs and tradespeople with job placement referrals and business registration. This operates alongside a public Homecoming counter that tracks the cumulative number of returnees welcomed, businesses restarted, and jobs facilitated.


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