Industry reports reveal that Nigeria has witnessed a remarkable surge in digitalisation, with mobile connectivity emerging as the linchpin of the country’s societal and economic transformation. The mobile sector, in particular, significantly contributed 13.5% to Nigeria’s total GDP last year, underscoring its pivotal role in this digital revolution.
The Nigerian government’s proactive stance is evident in its strategic recognition of digitalisation as a key driver for stabilising and fortifying the country’s macroeconomic landscape. This forward-thinking approach aligns with the government’s vision to diversify the economy, moving away from traditional sectors like oil and extractives.
Angela Wamola, the head of Sub-Saharan Africa at the GSMA, asserts that high-speed connectivity is the bedrock of a digital nation. The Nigerian government’s recognition of the pivotal role of the mobile industry in propelling digital transformation is further highlighted. She emphasises the potential impact of forthcoming policies to lower infrastructure costs and simplify complexity, stimulating investment and facilitating the widespread adoption of mobile broadband. These measures are expected to spur productivity and generate numerous job opportunities across Nigeria’s economy.
Furthermore, the digital sector’s significant role in steering Nigeria toward a more resilient and dynamic economic future is evident in the country’s pursuit of structural reforms and the creation of an environment conducive to private and public sector growth and job creation.
One of the notable impacts of digitalisation is its effect on the productivity of other sectors, with advancements in areas such as cash transfers through mobile money payment platforms and increased productivity in the agricultural industry through the use of digital technologies.
Despite digitalisation’s early impact and economic success, the sector still faces challenges. The GSMA’s latest report, ‘The Role of Mobile Technology in Driving the Digital Economy in Nigeria,’ addresses these challenges and underscores the crucial role of the mobile sector in Nigeria’s economic development.
Connectivity and mobile financial services are crucial foundations for unlocking economic opportunities. The report emphasises the untapped potential in mobile internet usage and identifies an improved policy environment as essential for boosting coverage and adoption, potentially adding 15 million additional internet users by 2028.
However, challenges such as infrastructure deployment, securing the Rights of Way, and the complex tax environment in Nigeria need to be navigated. The report recommends initiatives to support policymakers in creating an economic and regulatory environment conducive to digital transformation, ultimately contributing to Nigeria’s journey towards becoming a digital economy.
