CBN: Supporting Nigeria’s Digital Economy for Youth Empowerment
By Abdulrahman Abdulraheem
As the biggest economy in Africa with one of the largest youth populations in the world, Nigeria is well-positioned to develop a strong digital economy which is expected to have a transformational impact on the country. In order to reap the full benefits, Nigeria’s policy makers know they need to focus on accelerating improvements in five fundamental pillars of a digital economy: digital infrastructure, digital platforms, digital financial services, digital entrepreneurship and digital skills.
The Nigeria Digital Economy Diagnostic report by the World Bank identifies key challenges and opportunities of leveraging the digital economy for diversified and sustained growth. It provides an assessment of the state of Nigeria’s digital economy around the five foundational pillars. The report also offers specific, actionable recommendations to the government and private sector stakeholders to further Nigeria’s development of each pillar. The report was produced in the context of the Digital Economy (DE4A) initiative, an African Union initiative supported by the World Bank Group, which aims to digitally connect every person, business, and government in Africa by 2030.
FG’s Plan
The Federal Government has a robust plan to elevate the country’s digital economy. The plan also spreads across five key economic pillars and is said to have the capability to launch the country into the comity of nations that thrive in the digital age.
Unveiled by the Minister of Communications, Innovation & Digital Economy, Bosun Tijani, the new plan revolves around Knowledge, Policy, Infrastructure, Innovation and Trade, and will serve as tech economy development catalyst for four years.
The Minister titled the blueprint: “Accelerating our Collective Prosperity through Technical Efficiency.” He has also expressed optimism that if the five pillars are critically exploited and development policies framed around them, in the next four years, the dividend will be a Nigeria with digital capabilities like most developed countries of the world.
Explaining how the five pillars will spur rapid development, the Minister said:
“Knowledge: In our rapidly interconnected world, knowledge is the foundation upon which countries build a robust and sustainable economy. As a critical prerequisite, knowledge influences how we generate innovations and technologies that drive economic growth, expand the talent pool to drive competitiveness, improve productivity and inform evidence-based policymaking, among others.
“Policy: This highlights the fundamental role of policy in enabling innovation, entrepreneurship and inclusive growth. When properly designed and executed, the policy provides a platform for innovation and entrepreneurship to thrive. Effective policy provides regulatory clarity and necessary incentives for an environment where businesses and innovators are empowered to grow. Over the next four years, the policies will focus on encouraging investment, research and development and the protection of intellectual property.
“Infrastructure: This showcases the commitment to building the critical tool required to power a strong digital economy. We recognise that economic prosperity is linked to a robust digital foundation. Our emphasis on building stronger digital infrastructure extends beyond connecting people but also focuses on economic empowerment and creating opportunities for inclusion. With improved access to quality broadband, and upgraded critical services, this pillar will catalyse a digital transformation that impacts our entire population.
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“Innovation, Entrepreneurship & Capital: In the rapidly evolving global technology landscape, innovation, entrepreneurship, and access to capital are critical components of a strong digital economy. This pillar provides a roadmap for Nigeria to harness the potential of the other three pieces as catalysts for the transformation of our digital economy. This pillar is the driving force behind the creation of an environment that encourages innovation, supports entrepreneurship and attracts the required capital to deliver on our ambitions.
“Trade: This pillar embodies our commitment to position Nigeria as a major player in the African and global technology ecosystem. As a rapidly growing economy, with the ICT sector contributing 18.44% to Nigeria’s GDP in Q2 2022, and e-commerce spending projected to grow to $75 billion by 2025 (Statista), our primary goal is to enhance Nigeria’s participation in the global technology trade over the next 4 years. A core part of this pillar is our aim to improve Nigeria’s ranking in the Economic Complexity Index (EIC) using technology.”
He added that “this strategic blueprint articulates a vision for Nigeria that builds on the transformative power of digital technology and innovation to diversify and deepen our economy.”
CBN’s Supporting Role
As the country’s number one financial regulator, the Central Bank of Nigeria (CBN) has over the years invested significantly on policies and initiatives aimed at empowering Nigerian youths and women using technology for financial inclusion. The apex bank does this by striking strategic collaborations with other institutions and critical stakeholders.
One of these critical stakeholders is the National Institute for Policy and Strategic Studies (NIPSS). The apex bank recently renewed its existing collaboration with NIPSS to enhance Nigeria’s digital economy potential for the purpose of empowering and creating jobs for millions of youths.
CBN Governor, Dr. Olayemi Cardoso, spoke passionately about this recently while welcoming participants of the Senior Executive Course (SEC) 46 of NIPSS who visited the apex bank headquarters on a Strategic Institution Study Tour.
The tour was themed: “Digital Economy, Youth Empowerment and Sustainable Job Creation in Nigeria: Issues, Challenges, and Opportunities.”
The Governor, represented by Dr. Bala M. Bello, a Deputy Governor of the CBN, highlighted the long-standing partnership between the two institutions. He commended NIPSS’ flagship Senior Executive Course for its contributions to Nigeria’s socioeconomic development.
Cardoso emphasised its commitment to leveraging digital technologies for financial inclusion, innovation and entrepreneurship.
“This study tour is an opportunity for fruitful discourse and exploring collaborative strategies. We welcome your insights and recommendations to enrich our policy formulation processes,” the CBN governor stated.
In his remarks, the Director-General of NIPSS, Prof. Ayo Omotayo, who led the delegation, acknowledged the importance of digital transformation. He acknowledged Nigeria’s progress in digital services but stressed the need for further advancements.
Prof. Omotayo said the institute, as a knowledge hub, is exploring ways to digitise all its services.
“We believe NIPSS can significantly contribute to a 12% GDP boost through effective digitalisation strategies,” Prof. Omotayo declared.
The CBN initiatives and strategies, focusing on digital financial services, digital entrepreneurship support, and emerging technologies, were also presented during the technical sessions that will harness emerging technologies to drive economic diversification and job creation.
Last Line
As part of its core responsibility of promoting sound financial system, the CBN has in recent years taken more than a passing interest in supporting and enabling initiatives that will expand the country’s digital economy for the purpose of job creation and wealth creation.
Governor Cardoso is doubling down on this practice knowing full well that the bulk of President Bola Tinubu’s Renewed Hope Agenda for the economy revolves human capital development and youth empowerment.
Abdulrahman Abdulraheem is the author of “eNaira Revolution: A Peep into Nigeria’s Cashless Future”