Ojobo stresses gains of digital economy to Nigeria

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.