Closing digital divide for economic growth

Nigeria is struggling to keep pace in the rapidly evolving digital age. Recent media reports reveal that the country is still far from meeting the ambitious goals set for broadband internet connectivity, with a staggering 136 million people—representing 62 percent of the population—still digitally excluded or lacking internet access. Even more concerning is the fact that about 44.6 percent of the population, predominantly in the northern regions, are without basic telephone services. This is a deeply troubling situation that requires urgent attention.

Despite an estimated tele-density of 101.2 percent as of the first quarter, surveys conducted by telecommunications companies indicate that 61 percent of Nigerians living in rural areas remain disconnected from the digital world. In 2022, Nigeria ranked 88th out of 117 countries in the Digital Quality of Life Index, as surveyed by Statista, with a score of just 0.38 points. This index evaluates five key parameters: affordability, quality, infrastructure, e-security, and e-government. In comparison, other African countries like South Africa, Morocco, and Kenya performed better, ranking 72nd, 75th, and 76th respectively, while India ranked much higher at 52nd.

While there has been some progress in the areas of digitalisation, business opportunities, and improved service delivery by both private and public sector entities, largely driven by various policy initiatives, Nigeria still lags behind in achieving its digital goals and meeting the expectations of its citizens.

One of the primary reasons for this shortfall is the slow implementation of the National Broadband Plan, which aims for 70 percent internet penetration by 2025. Currently, Nigeria is 27 percent behind this target. Contributing factors include the lack of funding for the InfraCo project, which was designed to provide fibre connectivity to all 774 local government areas; the high cost of investments; an unfavourable operating environment for telecommunications companies; and the prohibitive costs of mobile phones and data plans.

It is disheartening that even after 24 years since the introduction of GSM telephony in Nigeria, internet access remains a luxury for many. Despite the global shift towards more advanced networks, 52 percent of Nigerian internet users are still connected to 2G networks, while other countries are considering phasing out 2G and 3G altogether. Although 4G adoption has increased to 32.74 percent, only 1.24 percent of users have access to the much-hyped 5G network. The persistence of this digital divide is likely to reinforce existing inequalities, particularly between urban and rural areas, and among different socio-economic groups.

This widening digital gap is not only a barrier to social inclusion but also a missed opportunity for economic growth. Studies suggest that digitalisation can play a critical role in stabilizing Nigeria’s economy and driving diversification through investment and job creation. The impact of connectivity on the economy has already been significant. According to Fadi Pharon, President of Ericsson Middle East and Africa, mobile money has been instrumental in enhancing financial resilience, increasing savings among Nigerian households, and promoting financial inclusion for the unbanked population.

The GSM Association estimated that the telecoms sector contributed 13.5 percent to Nigeria’s GDP in 2023, amounting to an estimated N33 trillion. However, the sector’s potential is hindered by obstacles such as inconsistent right-of-way regulations across states, multiple taxes, and the destruction of telecommunications infrastructure in the northern regions. Additionally, the high cost of mobile data, averaging N700 per gigabyte, remains unaffordable for many Nigerians, while the price of basic mobile phones has doubled over the past year, with even the most basic models now costing around N30,000.

To bridge this digital divide, it is crucial to promote digital literacy through collaborations between the public and private sectors, as well as to encourage the development of local content to increase engagement on digital platforms. Nigeria can draw valuable lessons from India, which has transformed itself into a digitally empowered society with 550 million internet connections and 500 million phone users. India’s strong adoption of internet-based ICT in education has played a key role in its emergence as a global tech powerhouse.

Summarily, Nigeria must intensify its efforts to close the digital gap and ensure that all citizens have access to the digital tools and resources necessary for social and economic advancement. The future of the nation’s economy and the well-being of its people depend on it.