In a recent event held at the Digital Transformation Center Nigeria (DTC Nigeria), the Director General of the National Information Technology Development Agency (NITDA), Kashifu Inuwa CCIE, FNCS, emphasized the potential of digitizing Micro, Small, and Medium Enterprises (MSMEs) to significantly boost Nigeria’s economy. Inuwa stated that the adoption of digital technologies by MSMEs would not only increase revenue by 26 percent but also reduce operating costs by 22 percent, ultimately contributing a whopping $53 billion to the Nigerian economy.
The occasion was the TechMyBiz Pitch-A-Thon event, which aimed to identify and showcase digital innovations in Africa. The event, jointly funded by the European Union (EU) and the German Federal Ministry for Economic Cooperation and Development, attracted numerous innovators, entrepreneurs, and startups from Nigeria’s vibrant ecosystem. Out of the 50 selected solutions, 30 winners would emerge from the Pitch-A-Thon event, which took place from July 12th to July 14th, 2023.
During his address, the DG highlighted the importance of digitization for achieving operational excellence, enhancing business efficiency, increasing productivity, and maximizing revenue while cutting costs. However, he acknowledged the existing challenges that must be addressed to fully unleash the potential of digital transformation in SMEs.
“Firstly, we need to create innovation-friendly conditions in our country in terms of enabling policies and laws, government services, ease of doing business, and so on.”
“Secondly, we need to have support organisations — platform that will assist to digitise MSMEs for innovation hubs around the country to incubate ideas, because innovation is a process of taking an idea from inception to impact that means you can have an idea, and you can be innovative, but that is not enough, you need to commercialize your ideas.”
“Then we need the infrastructure, this is important to MSMEs, but Africa is lacking in digital public infrastructure. Digital public infrastructure is beyond having connectivity and access to computers. The Second Industrial Revolution was about massive production which requires enabling infrastructure for transportation, but today we are in the fourth Industrial Revolution, which is about digital services, therefore, we need the required infrastructure to aid digital services.”
“Lastly, is the challenge of digital skills and literacy. The digital offerings require digitally literate consumers to benefit from the services, therefore there is the need to enlighten and educate the populace to acquire digital literacy skills,’’ he said.
Inuwa reiterated the significant contribution of MSMEs to Nigeria’s economy, quoting the Director General of the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN). MSMEs account for 96 percent of businesses, employ 83 percent of the workforce, and contribute 43 percent to the nation’s GDP. By embracing digital technologies, these businesses have the potential for exponential growth and transformation.
In conclusion, Inuwa emphasized the importance of achieving digital sovereignty through adequate infrastructure. He highlighted the efforts of the Nigerian government, through NITDA, in implementing the National Digital Economy Policy and Strategy (NDEPS) to address these challenges. He also mentioned the potential impact of the Start-up Act, if fully implemented, in supporting policy development, creating a favorable environment, establishing enabling infrastructure, and fostering innovation clusters across the country.
The event was attended by esteemed individuals including Mr. Markus Wauschkuhn, Coordinator Commission Social policy, Education, Employment, Research, and Culture (SEDEC), Technical Lead Evaluation Expert Charles Emembolu, representatives from the European Union (EU), and industry experts, among others. This collaborative engagement holds promise for building an environment conducive to accelerating digitization in Nigeria, ultimately driving economic growth and development.
