Success
Damian:
Director of
Public Affairs at the Nigerian Communications Commission (NCC), Tony Ojobo, has
stressed the gains derivable from a digitized economy.
Speaking on
a paper titled “Drive Towards Digital Economy: The Journey So Far” at DigitalPay
Expo 2018 in Lagos, Ojobo said Digital economy means the worldwide network of economic
activities, commercial transactions and professional interactions that are
enabled by information and communications technologies (ICT).
According to
him, “It′s the economic activity that results from billions of everyday online connections
among people, businesses, devices, data, and processes.”
He went
further to say that digital economy refers to a broad range of economic
activities that include using digitized information and knowledge as the key
factor of production, modern information networks as an important activity
space, and the effective use of information and communication technology (ICT)
as an important driver of productivity growth and economic structural
optimization.
Ojobo said Internet,
cloud computing, big data, Internet of Things (IoT), fintech and other new
digital technologies are used to collect, store, analyze, and share information
digitally and transform social interactions. Digitized, networked and
intelligent ICTs enable modern economic activities to be more flexible, agile
and smart, adding that the digital economy is experiencing high growth, rapid
innovation, and broad application to other economic sectors.
“It is an
increasingly important driver of global economic growth and plays a significant
role in accelerating economic development, enhancing productivity of existing industries,
cultivating new markets and industries, and achieving inclusive, sustainable
growth.”
He said “Looking
at G20’s Digital Economy Initiative, priority areas recommended for cooperation
for promotion of the digital economy as identified by its Digital Economy Task
Force, DETF, readily present a clear direction of digital economy. An Accelerated network infrastructure connection,
promoting broadband network coverage in competitive environment, expanding high speed
Internet at affordable price; Improved business environment with policy
framework that facilitate R&D, innovation and investment, social funds
investment on ICT, welcome public private partnerships.”
He said other
policy programmes include “Encouraging Internet-based RDI, taking advantage of
Internet to promote innovation in products, services, processes, encourage
integration of digital technology in manufacturing, e-education, e-health, e-government,
e-agriculture, among other,” Ojobo said.
Part of the address
Other priority
areas include Mutual recognition of digital authentication, trade facilitation
for e-commerce by using trusted digital means, prevent barriers to market
access, strengthening cooperation in protecting consumer rights and privacy; Enhancing
digital inclusion which means using policy measures and technical means to
bridge digital divide between countries, groups, men and women, open access to
Internet and equal digital opportunities, promote broadband connectivity within
the poorest communities, promote universal access.
On promoting
Promote development of MSMEs, he said Promoting policies that encourage micro,
small and medium-sized enterprises to use ICT technology for innovation,
improved competitiveness and channels in the market, promote affordable digital
infrastructures needed for digitization of MSMEs operations.
Bench-marking
Nigeria’s Digital Economy and Entrancing digital economy in Nigeria began with
the licensing of the digital mobile service providers in 2001. He disclosed
that before 2001, the nation had less than 400,000 lines with teledensity of
less than 0.05 per cent.
Private
sector investments in the sector was just some US$50 Million before the injection
of funds following the successful auction in 2001, adding that Nigerian
Communications Act, (NCA) 2003 energized a robust regulatory environment.
ICT now contributes more than 10% to GDP; Private sector
investment in the telecom industry since 2001 till date, US$68 Billion; Telephone
Subscription being 160.5 Million as at April 2018.
Teledensity
has bourgeoned to 114.66% as at April 2018 while Internet Subscription stood at
101,209,503 as at April 2018.
Nigeria’s Value-Added
Market, according to him now valued at US$200 Million but estimated to hit
US$500 Million in 2020.
In 2016,
about 16 Million Nigerians were connected to Facebook. In 2018, Facebook recorded
26 Million users. Out of this figure, 25 million connect with mobile devices,
adding that more than 35 Million people around the world connect to Nigerian
businesses on Facebook.
Point
Agenda, primed towards Digital Economy include Facilitating Broadband
penetration through provision and optimization of access to, and use of Affordable
fixed and mobile broadband in Nigeria; Improve Quality of Service by promoting
the availability of reliable, interoperable, rapidly restorable critical ICT
infrastructure that are supportive of all required services; Optimize usage and
benefits of spectrum by maximizing availability of spectrum in order to provide
diverse and affordable ICT services.
Others
include promote ICT innovation and promoted in ways that improve the nation’s
ability to compete in the global economy, increased investment in youth and
promotion of SMEs for new business delivery breakthroughs; Facilitate Strategic
Collaboration and partnership with relevant stakeholders to foster ICT for sustainable
economic development and social advancement, among others.
Speaking
further on the regulatory impact in promoting digital Economy, he said “A close
look at the 8-Point Agenda of the current leadership of NCC, tallies with the
recommendations of the G20, a clear indication that Nigeria is on the right direction.
“Essential
drivers like broadband deployments, innovations, promotion of universal access,
quality service delivery, diffusion of services in the ICT sector, are critical
for achieving a result-oriented digital economy; Creation of an enabling
investment climate, and encouraging businesses to deploy ICT services and tools
is one of the best ways to achieve a dynamic digital economy; Broadband
equation, Digital economy is Internet economy. Availability, accessibility and
affordability, of broadband, are very critical in today’s digital economy.”
He said Nigeria
has currently achieved 22 percent broadband penetration as reported by ITU/UNESCO
Broadband Commission, saying that World Bank study concludes that 10-percentage
point increase in fixed broadband penetration would increase GDP growth by
1.38% in developing countries.
Through the
Open License regime, Nigeria has issued licenses to INFRACOS for deployment of
broadband in Lagos (MainOne), North Central (HIS) North East (Brinks) and South
East (Zinox). He said Licenses have been offered in the 2.3GHz, 5.4GHz, 2.5GHz,
700GHz and that Re-farming of frequencies are being undertaken, all targeted
towards broadband availability.
Again he
said Globacom, MainOne, Ntel’s Sat3, MTN’s West African Cable System, WACs, Ace
Cable by Dolphine all estimated at more than US$ 1 Billion provide undersea
cable broadband connectivity to Nigeria.
Commenting
on Online Financial Transactions, e-gov and Social Media, he said Online
banking, online shopping, online trading, and myriads of blogs and social media
platforms has provided a new vista in the digital economy landscape of Nigeria,
saying that Online financial transactions and mobile banking has redefined
banking and financial inclusion.
Online
shopping malls like Konga, Jumia, Olx, Yudala, Dealdey, Slot, Buyright, Mystore
are turning over millions of Naira worth of businesses on daily basis. Online
hotel and flight reservation sites like Wakanow.com, Jumia Travels, Agoda,
Hotels.ng, 9jahotels.com. Social media news platforms have altered news and
information sharing and diffusion.
Smart City
projects are springing up in some parts of the country. NITDA projects that 50%
of Nigerian cities will smart status in 2019 (Champion).
E-government
platforms available in virtually all government agencies Interactive portals
are now being developed by various government agencies to enhance their operational
efficiencies – Immigration services, Road safety, Police, Procurement, etc.
The
provision of digital infrastructure for un-served and underserved communities
or groups in Nigeria through the Universal Service Provision Service, USPS, is
one of the critical accomplishments in growing a digital economy.
A number of
projects undertaken by USPF represents critical steps in bridging the connectivity
divides in the less urban centres.
The key
programmes of USPF includes Connectivity Programes like: Rural Broadband
Initiative, RUBI: provides subsidies to enable service providers to enable provision
of broadband services in less urbanized areas.
UniCC-
University InterCampus Connectivity: Connects networks of main campus of
selected universities to networks of their corresponding medical colleges and teaching
hospitals through deployment of fibre cables.
3BTS =Base
transceiver Stations: Providing subsidies to network operators to for
deployment of base stations in underserved areas to enable easy connectivity to
the citizens.
Connectivity/capacity-building
programmes aimed at growing the ‘user-force’ that would absorb the explosion in
future digital economy e.g. Digital Access Programme, DAP, in whch more than
223 schools have benefitted.
ADAPT-Digital
Awareness Programme for Tertiary Institutions: training of Professors and lecturers,
Internet Clouds, and Internet connectivity.
University
Internet connectivity to enable online sharing of information is ongoing in consultations
with the National Universities Commission.
An
interconnectivity programme to tie teaching hospitals and similar institutions
into one network with connectivity potentials.
Digital
economy is an inevitable phenomenon of the growth potentials of the dynamic ICT
industry to which economies and nations of the world cannot resist.
The biggest
economies of the world are pursuing it with more vigour, and nations like
Nigeria, with an internationally acclaimed telecom regulator, has not been left
out in this pursuit.