Digital Economy in Nigeria to Spur National Devt’

THE Nigeria’s digital economy has been described as one of the leading sector in the world that has a huge capacity that will impact all segments of the economy.

Managing Director, Smile Communications Nigeria Limited, Mr. Michiel Buitelaar  who made the remark  during a panel discussion at the sixth Annual Pan-African 1:1 

Investor Conference organised by Renaissance Capital in Lagos said that leveraging digital economy should be regarded as a sine qua non in sustaining the economy by the incoming administration led by Muhammed Buhari.

According to him, the quest for an economy that is digitally enable is crucial particularly in the face of dwindling oil revenue with increasingly pressure on the economy evident in budgets deficit, infrastructural deficit, high unemployment rate, harsh business environment and corruption.

Buitelaar identified infrastructural advancement as overriding factor for the immediate expansion of sectors such as agriculture, transportation, banking and finance, health-care/medicine, and education.

He said that Smile Communications aligns itself with the key statistics expected for the Nigerian Digital Economy by 2018 as released by the Federal Ministry of Communication Technology, especially for the emergence of an industry that is less fragmented.

According to the country’s target, the industry expects to attain 30 per cent broadband penetration by 2018 from the present less than 10 per cent.

The Smile MD said, “There are various advantages the digital economic providers have over the traditional. However, to make this happen faster, there are catalysts required for it to even drive other sectors outside the ICT.”

He stated that the digital economy will be the driver of the agricultural, transport, health-care/medicine, education, banking and finance adding that “In our company, for instance, we are talking to companies in those sectors and one recently said that ‘the software is eating the world.”

He said that Smile believes the new digital ICT will influence other sectors saying that he has seen in other countries, the efficiency and productivity is very likely to explode once all the digital economy has entered into their arena.

He added: “It is also our expectation that the impact will become more pronounced within the next ten years. For emphasis sake, sectors like agricultural, transport, health-care/medicine, education, commerce, in fact, the whole move of digitisation will have impact on the emerging economy and Nigeria’s economy is well positioned to make their journey better than many others.”

While extolling the outgoing administration of President Goodluck Jonathan for approving the National Broadband Plan, NBP, Buitelaar expressed confidence in the Buhari government’s compelling posture for firm implementation of the plans saying that he expects broadband impact on digital economy.

 “I think the Federal Government is doing a quite well, especially, by releasing a National Broadband Plan, NBP, but I will urge that the next Government continues with the plan in an even ‘forceful’ manner. Similarly, spectrum allocations should be looked at too; it is more of technical, but very important in the nation’s quest for more ubiquitous broadband. There are sub-sectors that the broadband availability will immediately impact their operations such as the delivery viz a viz ecommerce, e-payment, education and other clusters of business. These are crucial reasons the digital economy should be allowed to blossom.”
On infrastructure, he said the whole country will benefit in smart investments in infrastructure saying that there are issues in transport, power and payment systems; if these issues can be addressed, with a couple of other commitments, I believe in the next few years the country will be reaping large chunk of benefits from them.

Buitelaar added that Smile will not rest on its oars until Nigerians have access to qualitative and affordable broadband services stressing that “From the Smile Communications’ perspective, we have penchant interest in the provision of high quality service. Later this year we will rollout service in a couple of other cities.”

He added that Smile is serious about providing superfast broadband, high availability, high-quality and reliable offering noting that “if a small scale business is using your service, they ought to get maximum benefit; that is the way they can grow and employ more people. In that way you have impacted lives and the country’s GDP will feel the boost as well.”

Also speaking at the event, Professor Pat Utomi said that thrust of the in-coming administration should be centered on making corruption costly and unattractive through public service entrepreneurship and goal oriented; reinvent sectors like mining and building clusters of strong institutions and leveraging ICT.

Global Chief Economist at Renaissance Capital, Mr. Charles Robertson, noted great long-term potential across Africa, particularly, in Nigeria, Kenya and Egypt saying that “We believe Nigeria will be a trillion dollar economy by 2025 and it will keep doubling in size every 10 years. GDP per capita is likely to reach around $15,000 by 2050. Following the April elections, the new government represents the best opportunity in recent years to push forward reform for Africa’s largest economy.”