The rise of the Nigerian digital economy

Must Read

List of United Bank for Africa (UBA) Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number that usually identifies both the bank and the branch where an account is held. The sort...

List of Access Bank Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number which usually identifies both the bank and the branch where an account is...

How To Block Your Bank Account And SIM Card In Case Of Emergency

Losing your phone and wallet or having them stolen can be very frustrating. However, in case that happens to...
- Advertisement -

Q2-2020 was a blood bath for most economies as the COVID-1 9 pandemic took the world into the great lockdown. Nigeria was not left behind; this was evidenced by the 6.1%y/y contraction in real GDP over Q2-2020.

Despite the steep contraction in economic output during the period, there were a few bright spots. Notably, the ICT sector – one of the fastest-growing sectors of the Nigerian economy, grew by c.15.1% y/y.

The rise of the Nigerian digital economy
Sources: NCC, United Capital Research

Specifically, the telecommunication, accounting for c.8 0.0% of the broader ICT output surged 1 8.1% y/y. This was unsurprising given the level of digital adoption across the system due to the lockdown. As at June-2020, there were 143.3mn mobile internet subscriber (vs 135.8mn in Mar-2020) and 196.4mn telephony subscriber in Nigeria (vs 189.3mn in Mar2020).

Accordingly, teledensity further improved to 102.8% (vs 9 9.2% in Mar-2020). This fast-paced growth is further reflected in the sharp increase in the number of activities in the digital economy across the country, ranging from massive growth in the eCommerce space, ride-hailing services, drop shipping, affiliate marketing, blogging/vlogging, social media marketing, amongst others.

- Advertisement -

No doubt, the use of digital channels has expanded in the wake of the COVID-1 9 pandemic and the acceleration is expected to continue even post-COVID. With the foundations of the digital economy being data and voice connectivity, the country seems to be on the right track in developing a functional digital economy.

Read Also:  Nigerian broadband plan aims to raise penetration from 38% to 70% by 2025

Beyond, e-commerce, digital marketing and drop shipping, improved data connectivity will also boost the idea of working from home, virtual employments and redefine corporate lifestyle in the pre-COVID era. However, to fully benefit from and fast track the growth of Nigeria’s digital economy, recent development around harmonization of the right of way (RoW) charges among states, must be not only b e resolved, but also friendly.

This will further spur investment in broadband connectivity and other telecom infrastructure across the country, reduce data tariff, ease doing business, boost employment, and improve the traffic situation in cities such as Lagos.

- Advertisement -
The rise of the Nigerian digital economy - Brand SpurThe rise of the Nigerian digital economy - Brand Spur
- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

The rise of the Nigerian digital economy - Brand SpurThe rise of the Nigerian digital economy - Brand Spur

Latest News

Manchester City 2020-2021 Squad Most Expensive Out of Top 5 Leagues

Football transfer fees have exploded over the last two decades with some of the top clubs not afraid to...

InfraCredit to Raise Fresh Capital

The Infrastructure Credit Guarantee Company (InfraCredit) has revealed plan to raise additional capital to fund critical projects in Nigeria. The unit of the Nigeria Sovereign...

Zedvance Partners With AMARA MEDICARE to Offer Discounted Health Plans to Customers

Leading consumer finance company, Zedvance, has announced a partnership agreement with AMARA MEDICARE that will enable its customers in Lagos have access to discounted...

SunTrust Bank Picks Former CBN Director as New Chairman

The Central Bank of Nigeria (CBN) Former Director, Mr. Olanrewaju Shittu has been elected as the chairman of SunTrust Bank Nigeria Limited by the...

Food Prices soared in October, prices highest in Edo, Kwara, Sokoto – NBS

Food prices soared in October, the consumer price index (CPI) report released on Monday by the National Bureau of Statistics (NBS) has shown. According to its...
- Advertisement -
BrandsPur Weekly Cartoons
- Advertisement -The rise of the Nigerian digital economy - Brand SpurThe rise of the Nigerian digital economy - Brand Spur