The Federal Republic of Nigeria is one of the largest economies in Africa. The country’s population is ever-growing and last recorded to be above 200 million. This growing number over the past years has increased the need for efficient and accessible services that digital technologies offer. Here, we will look at the headway digital technologies have made in transforming Nigeria and fostering economic growth.
Analyzing Nigeria’s Digital Growth
It has been listed that Nigeria is one of the largest economies undergoing a major digital transformation, and one record from the Central Bank of Nigeria showed that the revenues the country received from the digital economy had risen from $5.09 billion in 2019 to $9.97 billion in 2021, with the number projected to climb as high as $18.30 billion by 2026.
This is due to the various policies initiated by the government, private sector investments, and international collaborations that have utilized digital technologies to spur economic growth in the country.
To digitalize the country, one step the government has taken includes the establishment of the National Information Technology Development Agency (NITDA). This agency came forward with a proposal for a road map with an action plan from 2024 to 2027 on how to enhance the country’s digital infrastructure, digital skills, and digital service development, with a focus on cybersecurity.
Privately owned companies have also played their part. MTN, a mobile telecommunications company partnered with Microsoft in early 2024 to give small business data hosting solutions and Microsoft Business Licenses.
Key Indicators of Digital Progress in Nigeria
Digitalization of Financial Institutions
Almost all banks and financial institutions in Nigeria now offer digital services. More than 40% of the population in this country makes use of digital methods for paying for goods and services.
This development has streamlined many processes in banking: it has made transferring funds locally and internationally faster and paying for services like utilities, rent and mortgage payments, playing casino slots, and transferring items for work can now be done in the blink of an eye.
Internet Services
Internet infrastructure has improved in Nigeria. Network service providers have upped their game, and now citizens can enjoy better coverage in different locations across states with 4G networks, and more urban areas can experience the speedy technology of 5G.
The country is also recognized as a lucrative hotspot for network enterprises to launch their products. A good example of this is when Nigeria became the first African country to gain access to the famous Starlink satellite internet services, gaining 100% broadband penetration before any other country in Africa.
Tech Startup Development
Nigeria is a conducive environment that can easily become a powerful tech hub. One statistic showed that Nigeria has the biggest number of tech startups in Africa with thousands of active companies in the country. Fintech companies such as Flutterwave and Paystack have paved the way for innovative minds to launch their own startups.
Understanding the magnitude of tech talent available in the country, various enterprises and private investments have made a move to fund promising projects. Take for instance Huawei Cloud, the company created a startup scheme that aimed to help 100 Nigerian startups on its platform over the next two years.
This initiative enabled Nigerian startups to access cost-effective cloud resources and pursue their business ventures with a lesser burden on the cost of operations.
Closing Thoughts
Nigeria has come a long way to where it is today, but there is still some way to go. There are still many challenges that hinder the full extent of digital integration. By investing more in tech infrastructure, training a skilled workforce, and creating positive digital policies, Nigeria can create a solid digital ecosystem that drives the economy forward.
