Nigeria urged to leverage digital economy potential through AfCFTA
By Jeph Ajobaju, Chief Copy Editor
Nigeria needs to wake up and leverage the $300 billion digital economy potential in Africa by 2025, says Ololade Shyllon, Meta’s Head of Privacy Policy, Africa, Middle East and Turkey.
She said huge economic potential awaits Nigeria and others if they can key into the continental digital economy on the fulcrum of the African Continental Free Trade Area (AfCFTA) agreement.
The World Bank has projected AfCFTA presents a major opportunity for African countries to bring 30 million people out of extreme poverty and to raise the incomes of 68 million others who live on less than $5.50 per day.
The bank said with the implementation of AfCFTA, trade facilitation measures that cut red tape and simplify customs procedures would drive $292 billion of the $450 billion in potential income gains.
Shyllon enthused at a telecom forum in Lagos AfCFTA implementation would help usher in deep reforms for long-term growth in African countries, stressing the lack of harmonisation of various trade policies would hinder reaping the benefits.
It is important to harmonise data regulation in the region, she added, saying currently 35 African countries have different data regulations unlike the European Union (EU) which has only a single data regulation.
“Free flow of data across the region is essential to boost trade. While data must be protected, a restricted data ecosystem would be a very big problem for Nigeria and others. Data kept at stagnation doesn’t make it valuable until it is used,” she said.
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Expansion of global digital economy
Nigeria Data Protection Commission (NDPC) National Commissioner, Vincent Olatunji, reiterated the worldwide digital economy is expanding at an extraordinary pace, per reporting by The Guardian.
The World Economic Forum in 2019 disclosed the global digital economy had a valuation of $11.5 trillion, which surged to $14.5 trillion in 2021, with projections it will reach $20.8 trillion by 2025.
Olatunji said the global data economy is currently estimated at $3 trillion, an asset for fostering both individual and societal value.
“Presently, we are witnessing unparalleled technological progress propelled by the potency of data. Forbes reported an astonishing volume exceeding 2.5 quintillion bytes of data is generated daily, as of October 2021,” he added
According to Olatunji, Nigeria’s digital economy is on a rapid upward trajectory, driven by increased internet access, mobile technology, a thriving start-up ecosystem, and government support.
But he noted the digital economy is challenged by infrastructure gaps, funding, digital literacy, cybersecurity threats, and negative attitude.
Nigerian Communications Commission (NCC) Executive Vice Chairman, Umar Danbatta, disclosed digital economy is based on activities that use digitalised information, technologies, and knowledge as key factors of production to drive innovation, create jobs, and promote economic growth.
He explained digital economy also refers to any economic activity primarily enabled by digitalised information or data, and stressed the ongoing digitalisation of government operations will increase efficiency, reduce corruption, and improve citizen engagement.
