Advancements and Challenges in Nigeria’s Delicate Emerging Technology Sector

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By Kristi Pelzel

Technology headlines have most recently masked some of the negative news about COVID-19 and terrorism in the North, with what one can only hope will be a silver lining as the country moves toward 2021. These positive strides must accompany more robust policies to support success.

Last week, the Nigerian Minister of Education, Adamu Adamu, launched the National Policy on Science and Technology Education. At the same time, U.S. company, Dell Technologies, announced partnerships with global tech firms to establish a Tech Experience Centre in Nigeria.

Facebook’s Kojo Boaki, Director of Public Relations at Facebook Africa, a U.S. company, re-stated the company’s commitment, “The opening of this office in the most populous country in Africa represents an important stage that reinforces our continued commitment to this region.” This expansion will also support Facebook’s 2018 incubator for advanced technology in the suburb of “Yaba” nicknamed “Yabakon Valley” in central Lagos, supporting local emerging tech startups.

“Nigeria’s ICT (information and communication technologies) sector has grown from less than 1 percent of GDP in 2001 to almost 10 percent of GDP today” (OC&C Consulting, 2018). There are also 55 tech hubs and growing, which have raised an astonishing 100 million U.S. dollars, surpassing competitor country, South Africa. Nigeria also accounts for “23 percent of internet users in Africa, with 122 million people online in December 2018” (Internet World Stats, 2019).

Despite these reasons for optimism, there remain political, economic, and security (ground and cyber) issues that threaten tech-sector growth.

A Study

A study conducted by Tufts Fletcher School, 2017/18, examined six key countries for acceleration potential for the rapid spread of mobile digital technology, linked to economic development. Within their findings, they noted a clear pattern for Nigeria’s “untapped growth opportunities,” and lacking in online freedoms, governance, basic infrastructure, low skilled, mid-level, and high-level digital jobs, and digital money advancements.

Kenya and South Africa took top spots for “paving the way,” but if we compare this 2017/18 study to today, we find those big tech companies investing and showing presence in Nigeria over Kenya and South Africa, so there is still hope!

Addressing the Challenges

With the most recent government policy, Nigeria’s entrepreneurial climate has the potential to reset the country’s tech path to remain Africa’s leading startup and investment destination. One such policy might seem basic, but will be a significant step updating and digitizing the country for the future.

Digital Identity: The government’s National Identity Management Commission is working toward a massive registration for its mandatory National Identity Number (NIN). A unique identity system to help people access public services and financial systems, usually through a mobile phone. “NIN enrolment, which will involve the demo-graphic and biometrics data capture of all Nigerian citizens [includes those] residing in the USA, [registered] in collaboration with Thebez Global Resources Ltd, Defcon Systems Limited and National eAuthentication Limited (NeAL)” (nimc.gov June 2020).

FinTech Literacy: It’s estimated that 87% of Nigeria’s economy transacts in cash, and the adoption of mobile money is still slow outside the major metropolitan areas. Digital literacy in everyday processes is a building block to business, churches, schools, and government advancements. However, affordability and consistent connectivity are required to reinforce these new skills.

Connectivity: Policies to facilitate technology growth in the country indicate a commitment by the current Nigerian administration, and we’ve seen this taking place most recently. However, policies must be accompanied by action and modeling to gain the full support of the country. For example, power outages create a low level of trust in technology, keeping the gas-powered generator industry funded by citizens who can afford it, seen as more of a costly luxury than an environmental norm—this must change.

Cybercrime: Stricter laws on cybercrime are also critical when considering growth and access to more digital technology. The task ahead of law enforcement is not going to become more manageable with time; therefore, a forceful and robust response is required to support the emerging tech economy.

“While it was sufficient for yesterday’s auditor to understand regular and routine banking practices such as credit, treasury, etc. in his traditional assurance role, to be relevant in harnessing the opportunities in today’s business world, he must become versed in cybersecurity, artificial intelligence, data analytics, fraud management, regulatory pronouncements, forensics, etc. and having equipped himself, present balanced, objective audit reports to Executive Management while striking the right balance between the assurance and consulting responsibilities.” (Ifie Sekibo, Heritage Bank CEO, September 2020)

Global Partnerships Are Key

How Nigeria responds to mounting challenges and political pressures may have consequences for international engagement. There are signs of positive steps since COVID-19 pushed conversations about the state of education and technology forward; new policies and partnerships highlight these successes.

However, the world will tread cautiously toward these positive steps with hope and support for the current Nigerian administration to eliminate mounting intercommunal violence in the Middle Belt, corruption, and the massive humanitarian needs all necessary to pave the way toward a digital future.

 

 

Kristi Pelzel is an international communications consultant and advisor working across U.S. and African markets. Her industry experience spans 10-years in broadcast, digital, and social media communication, emphasizing strategic leadership and project management. Kristi holds a B.A. from the Academy of Art University, San Francisco, California, and an M.A. from Georgetown University, Washington, D.C.

 

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