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“Tech is the new oil“ is now a cliche in Nigeria.
In this issue, we asked the mafia:
If tech can really make Nigeria a prosperous Nation
Here’s what the mafia had to say 👇
Freelance tech, finance and energy analyst.
The tech sector also known as the ICT sector is one of the four most prominent sectors of the Nigerian economy. As of Q1 2022, it contributed roughly 16.20% to the country's Gross domestic product (GDP).
It is a very integral component of the economy and it will definitely make Nigeria a prosperous nation.
Economists use the GDP per capita metric to gauge the prosperity of a country. GDP per capita measures a country's economic output per person. It is calculated by dividing the GDP of a country by its population.
The ICT sector has the highest growth rate of all the main sectors of the Nigerian economy. This implies that it will continue to be a major contributor to GDP growth in the long run which will subsequently increase GDP per capita.
While I think the tech sector will make Nigeria a prosperous country, I don't think it can do it holistically. The country still needs growth in its other main economic sectors which include; Agriculture, Trade and Manufacturing.
Nurse in the day, backend programmer in the evening, voracious reader at midnight.
A prosperous nation means prosperous people.
Prosperous people mean people with well-paying jobs.
With close to 40% youth unemployment, the tech space in Nigeria cannot employ all or even half of the unemployed. Flutterwave, the highest valued tech company in Nigeria has an employee headcount of about 540; that’s a pinch of salt in the number of unemployed people in Nigeria. Tech’s mantra is to do more with fewer people; Nigeria needs to do more with more people.
Let's assume the tech space in Nigeria can employ many people.
Technology is part of the service economy and all the parts of the service economy require high skills that can only be gotten via proper education.
The educational sector in Nigeria is decrepit, ASUU has been on strike for more than six months. No, those tech boot camps and online classes won’t suffice. We will need to rehaul the whole education sector if we will train people for these sectors and change Nigeria with it, and by all indications, we are not ready for that yet.
Yes, companies will raise money, and they will hit billions of dollars in valuation. That money is only going to the pockets of founders and investors, maybe some early employers too. If Nigeria is going to make it out of the trenches, it should focus on growing industrial capacity; that space has shown a lot of promise historically to increase the fortune of a country; after doing this, we can then focus on tech.
A multifaceted human chasing passion(s) such as Product Design, Writing, financial markets and Agriculture
A better future with well-paying jobs and a decent standard of living is what millions of Nigerians dream for. And to meet these aspirations, Nigeria needs a broad-based economic growth and more effective public services. Technology can significantly contribute to the growth that Nigeria so desperately needs. The spread of digital technologies, as well as advances in energy and payment systems, can bring about productivity of business and agriculture. It can also redefine how services such as healthcare and education are delivered, and contribute to higher living of standards for millions of Nigerians by raising our education levels and improving healthcare outcomes.
And for us to really capture the full potential value of technology, we will need to find solutions as to address barriers such as the lack of access to computers, high cost of internet access, inadequate power supply and a lack of basic computer literacy among even young Nigerians as only 45% have a knowledge of word processing (NBS). Everything rises and falls on political leadership especially in emerging economies like Nigeria. Policy makers have the responsibility to create an enabling environment for a service sector like technology to flourish which is by adopting appropriate regulations protecting the rights of citizens (the Twitter ban comes to mind and the Government's general hostility towards social media) and by helping to foster an environment for innovation. Government can encourage the growth of tech industries and applications by supporting efforts to create standards and can help entrepreneurs scale up ideas into major companies through reforms to regulatory systems. Finally, Nigeria should raise its investment in research and development, which is currently pegged at a pitiable 0.2 percent of our GDP, compared with 0.7 to 1.2 percent in comparison to other developing economies as India, Malaysia and Brazil.
(Product Designer who equips his trusty finance cowl and ventures into the market from time to time)
Crude oil accounts for over 80 per cent of exports, a third of banking sector credit, and half of the government revenues. When the 2020 COVID-19 pandemic hit with a decline in oil prices, Nigeria experienced one of its worst recessions ever. It resumed growth in 2021 when pandemic restrictions were eased and the global economy resumed. This has exposed Nigeria’s economic weakness to global economic disruption, especially in the decline of oil prices and the lack of economic diversification.
As for the tech sector, it has been touted as being one of the fastest growing industries in the last decade, in addition to also being the largest employer of labour. According to the NCC, ICT alone provided about 2.5 million jobs in 10 years. ICT alone contributed N31.86 trillion to Nigeria’s GDP in the last 5 years. Despite the COVID-19 pandemic, in 2020, the sector contributed 15 per cent of the country's gross domestic product (GDP), second only to agriculture. This growth has positioned Nigeria to be the largest tech market on the African continent, with 90 tech hubs and a growing and vibrant customer base.
Tech may be the new oil, but it shouldn’t be our primary focus as an alternative to our primary source of revenue, Oil. We shouldn’t make the same mistakes we made during the oil boom. Today, the most powerful economies are gradually dropping oil as a primary source of energy and seeking alternative means. With our dwindling sales from crude oil and inefficient refineries that produce below production capacity, it is becoming clear that oil is becoming less redundant to the global economy. Rather than focus solely on the ICT sector, it should also be an avenue to look into reviving other sectors in the economy.
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