A $2 Billion Boost from the World Bank, to be exact.

#NigeriaOnTheMove

Denise Williams, President and co-founder of Silicon Valley Nigerian Economic Development (SV-NED), Jackie Ugowe — Expansion Manager, Andela, and Ukinebo Dare, Managing Director of the Edo State Skills Development Agency

The World Bank produced a report after a diagnostics to access the overall gaps in Nigeria’s economic framework in tech.

What the findings reveals is awakening to the great potential that is rising ahead in this country. Nigeria and Investors abroad, should take heed to the Five Pillars of the Digital Economy transformation to invest in.

Overall, the Five Pillars of the Digital Economy in Nigeria will further advance and lift over 100 million people out of poverty.

(Left) Jackie Ugowe — Expansion Manager, Andela, Denise Williams President & Cofounder of SV-NED Inc. (middle) and Yinka Adegoke, Africa editor for Quartz (middle right), (Far-Right) Siegfried Zottel, Senior Financial Sector Specialist

The World Bank Report recommends that Nigeria and the rest of world, should observe the Digital Infrastructure from grass roots to current day. 3G coverage reaches 54% of 200 million people. 20% use smartphones, 44% use feature phone, 32% use basic phones. Men are strong users of smart phones, and women use feature phones. With this thriving economy, why is Pillar 1: Digital infrastructure important? Nigeria and Investors must look at the Broadband connectivity (ex: quality of service and signal strengths, speed of download) resolution: Increase investment in Fiberoptic development which would improve connection in the country and overall broadband speed.

Nigeria must also take notice of hinderance of “right of way”. In addition, Nigeria must consider any limitations of regulated policies that pre-dates the incoming new/and advance economy, and Nigeria’s Digital Age. Specifically, promote infrastructure sharing, and efficient spectrum allocation, and strengthening coordination between agencies governing ICT. In addition, reduce excise duties on digital devices, and introducing grants or zero-interest loans for devices purchased by marginalized segment of the population (ex: offer credit and/or loans to low-income, but seeks knowledge in digital devices).

Second Pillar: Digital Platforms: improve legal framework and streamlining coordination between different entities responsible for developing Nigeria’s ICT sectors. Nigeria must improve the skills and training of federal, state, and city/county employees. ICT must be introduced into day to day practices, using ICT hubs/incubators and accelerators, as training solutions. Increased training on public sector employees, will result in supporting an innovative environment, where these hubs can deliver digital solutions and create millions of jobs. These jobs includes Digital platforms to support 50% of the population online, to access Digital Government services, such as id cards, driver license renewals, car registration, and other government commercial services. Such as; e-learning, e-governance, e-business, e-commerce, e-banking, e-management, e-accessibility. To ensure fluidity of these services, Nigeria must produce a clear Tax requirements and/or incentives for private sectors providing these solutions.

E-governance, can produce millions of jobs in law enforcement, electronic contract developers, consumer-protection, intellectual property right protection, dispute resolution, information and cyber security departments. Overall, Nigeria must work to improve its ranking at 86th out of 190 countries in the ICT Regulatory oversight. Investment in these Digital Jobs sectors would advance the economy during Nigeria’s Digital Age.

What happens to the other 50% of Nigeria’s population not on the internet? 25% must adopt solar as alternative to consistent electricity supply. 20% have no signal, low broadband connectivity, no right of way for Fiberoptic expansion. While taking into consideration the 20 million homes with no access to electricity, which is the basic fundamental human need. In order for Nigeria to thrive in its Digital Age, ALL of its population must be lifted from poverty conditions.

Third Pillar: Digital Financial Framework, Nigeria must embrace Financial Inclusion to ALL of its population. Once Nigeria enters full-fledged into its Digital Age, following will be the need for Digital Financial Services (DFS) in Nigeria which has a huge potential in the DFS ecosystem, the report recommends Nigeria create an enabling regulatory framework.

The Fourth Pillar: Digital Entrepreneurship, the reports recommends that Nigeria must triple the number of new digitally enabled businesses created annually and given Nigeria’s young and entrepreneurial population, digital entrepreneurship has the potential to become an engine for economic transformation for Nigeria. More investment in the young adult population will urge diversification of Nigeria’s landscape. Further stimulating economic growth beyond the oil and gas industry, and set the country on a new growth trajectory. The key recommendation in this sector, is updating the legal framework to private equity investment, exploring avenues to de-risk and scale up early stage funding for digital entrepreneurs and fostering collaboration between digital entrepreneurs, innovations hubs, investors, the private sector, academia and government.

Fifth Pillar: Digital Skills: Nigeria must adopt digital skills through educational curriculum, and improve teacher training programs around digital skillsets, and implement post-school curriculum reform, to improve the awareness of the virtual economy. ALL 15 year olds no matter place of birth on the Nigerian soil must have basic digital skills competencies, in addition 100,000 graduate students from advanced digital skills program annually. The full World Bank report can be accessed here. The report was prepared with the support from The Digital Development Partnership (DDP), The International Finance Corporation’s Creating Marketing Access Window, The Bill and Melinda Gates Foundation and the Governance Partnership Facility.

Denise Williams President & Cofounder of SV-NED Inc.

On February 12th, 2020 the President & Cofounder of SV-NED Inc. Denise Williams, was invited by the World Bank to Speak on a Panel to discuss this World Bank Report and Nigeria’s Digital Age Transformation. The panel discussion was moderated by Yinka Adegoke, Africa editor for Quartz, to share ideas on Nigeria’s Digital Transformation Journey, and what will it take.

As the biggest economy in Africa, with one of the largest populations of young people in the world, Nigeria is well-positioned to develop a strong digital economy which would have a transformational impact on the country. Will Nigeria seize this opportunity?

To show its commitment to digital transformation, the government of Nigeria recently hosted its first Digital Economy Summit (Jack Ma was a special guest). While unveiling a roadmap for Nigeria’s digital future, President Buhari called the transition to the digital economy no longer optional, but “an absolute necessity.” But while there is political will, and Nigeria is the largest mobile market in Sub Saharan Africa with a strong mobile broadband infrastructure and a vibrant digital entrepreneurial ecosystem, the country can still do more to take full advantage of the digital economy.

Leading the discussion was Shubham Chaudhuri, World Bank Country Director for Nigeria. Following, Siegfried Zottel, Senior Financial Sector Specialist and Isabel Neto, Senior Digital Development Specialist, and finally, Eme Essien, Country Manager for the International Finance Corporation’s (IFC) Nigeria office. IFC, the private sector arm of the World Bank Group, has grown its portfolio in Nigeria to over $1.5 billion in the past few years in a range of sectors including energy, manufacturing, healthcare and financial institutions.

Ukinebo Dare, Managing Director of the Edo State Skills Development Agency

Topics discussed included, Digital Economy for Africa (DE4A): Ushering in Nigeria’s Digital Transformation; poverty reduction and social protection; Tackling youth unemployment through the digital economy and Nigeria’s Digital Transformation Journey, what will it take?

Denise Williams, President and co-founder of Silicon Valley Nigerian Economic Development (SV-NED), Jackie Ugowe — Expansion Manager, Andela, and Ukinebo Dare, Managing Director of the Edo State Skills Development Agency

On February 18th 2020, the World Bank issued a Press Release approving six projects worth about $2.2 billion to support Nigeria’s development priorities, including improving immunization, enabling a stronger business environment for the private sector, expanding the digital economy to promote job creation, and increasing public and private sector capacity on governance and social and environmental safeguards.

“Nigeria is central to the World Bank Group’s mission of tackling extreme poverty. The World Bank is carefully targeting its support on high impact projects as the country works to … lift 100 million of its people out of poverty,” said David Malpass, World Bank Group President.

“These projects focus squarely on delivering better services for Nigerians: ensuring that children are immunized and sleep under mosquito nets, building better roads especially in rural areas, and providing Nigeria’s poorest citizens with a unique identification that will make social safety nets and services more effective,” said Shubham Chaudhuri, World Bank Country Director for Nigeria.

The approved 6 programs will support:

Immunization Plus & Malaria Progress by Accelerating Coverage and Transforming Services
Nigeria Rural Access and Agricultural Marketing Project
Nigeria Digital Identification for Development Project
Ogun State Economic Transformation Project
Innovation Development and Effectiveness in the Acquisition of Skills Project
Sustainable Procurement, Environmental and Social Standards Enhancement Project

Nigeria’s Digital Economy Receives Boost from the World Bank

A $2 Billion Boost from the World Bank, to be exact.