By Henry Uche
Experts and entrepreneurs in the digital space have maintained that Nigeria may need not less than $10billion per year in at least a 15-year period to bridge the current gaps identifiable across the spectrum of the digital economy.
According to them, there is a need for a critical review of Nigeria’s digital economy regulations if the country must match up with other progressive economies. At the 2022 Legal Business conference in Lagos, professionals in the FinTech and blockchain subsector of the financial industry maintained that Nigeria is losing billions of naira owing to its inability to explore and maximise myriads of opportunities inherent in the digital world like other economies are doing.
On Nigeria’s imprudence and underutilisation of the digital space, the president, stakeholders in Blockchain Technology Association (SIBAN), Senator Ihenyen, affirmed that in a global digital economy worth $3trillion, Nigeria’s digital sector currently contributes 16 per cent to the GDP.
Ihenyen maintained that although the U.S digital economy accounts for half of that amount in the US GDP, the US GDP is over $20 trillion compared to the Nigeria GDP of just about $440billion currently. Therefore, considering Nigeria’s huge youth population, the rate of entrepreneurship and innovation in the country, her growing tech ecosystem and strategic position in the African market, Nigeria’s potential remains high but considerably underutilised and unharnessed.
“While what Nigeria has lost due to our inability to explore the digital space may not be quantified in monetary value, it is not unsafe to say that Nigeria has lost at least the size of its current GDP to its inability to leverage its digital economy for significant economic growth and development.
“Thus, to fully digitize and digitalize Nigeria, Nigeria needs to get five (5) things right: One, invest in digital infrastructure, including broadband connectivity in both urban and rural areas. Two, Nigeria must invest in both public and private digital platforms to support digital services and ecommerce. Three, we must invest in digital financial services in order to boost financial inclusion.
“Four, we must invest in digital skills through massive capacity building programs targeted at its teeming youths. Lastly, invest in policy development that will encourage and support digital entrepreneurship and innovation across sectors of the economy, not stifle it,”
He added that altogether, these five investments will cost Nigeria a lot of money, however, “Roughly, in my estimation considering figures from statistics and the realities we face today, Nigeria may need not less than 10billion dollars per year in at least a 15-year period to bridge the current gaps identifiable across the spectrum of the digital economy. Of course there will be need for periodical review in order to address any unforeseen changes,” he asseverated.
Speaking on opportunities for inherent in the digital space for lawyers, the convener and founder o Legal Business Network, Ifeoma Ben ( Esq) revealed that the advent of technology has opened up verse opportunities through which legal luminaries could offer 21st century Services to clients, only if they would run along side with the speed of time.
“The advent of technology has revolutionized the way lawyers sell legal services. Lawyers must keep up with technological changes that impact the practice of law. There are opportunities for lawyers in the blockchain space, therefore there is a need for lawyers to acquire the skills needed to create legal solutions for their clients in the technology space,”
Ben added that the recent unveiling of eNaira by the CBN really exposed myriads of issues that needed critical examination by experts in the digital space. She noted that rather than making some policy pronouncement which inhibits budding digital entrepreneurs from exploring and maximising the digital space, the regulators should strike a balance between regulation and innovation where both the government, operators, investors and other stakeholders would be safe and operate for economic growth development and sustenance.
“The recent unveiling of the eNaira by the Central Bank of Nigeria has exposed many legal issues and the inherent opportunities in the burgeoning blockchain and financial technology ecosystem. Technology is the future. There is need for regulators to strike a balance between regulation and innovation hence the theme of the Legal Business Conference 2022 – Regulating Blockchain and Fintech Innovations: Finding the Balance,” she maintained.
Other digital enthusiasts drawn from the legal Profession, banking, economics and other disciplines decried the level of exploits and impacts Nigerians are making in other developed countries, simply because the political leaders in those countries understand the time and seasons and provided supportive environment for operators and investors in the space to thrive.
They lamented that digital imprudence /underutilization and lack of sound Policy is setting the country aback. They noted with dismay that rather than chasing insignificant trends, the regulator should have engaged Professionals across board and seek ways to balance the policy equation with respect to regulations.