NDPC Highlights Funding and Literacy as Challenges in Leveraging Africa's $300 Billion Digital Economy Opportunities

Nigeria has been encouraged to seize the potential economic gains of up to $300 billion that Africa's digital economy is expected to offer by 2025. Dr. Ololade Shyllon, Head of Privacy Policy for Africa, the Middle East, and Turkey at Meta, stressed the importance of strategic engagement with the region's digital economy, citing the role of the African Continental Free Trade Area (AfCFTA) agreement in driving this growth.

The World Bank has already projected that AfCFTA could help lift 30 million people out of extreme poverty and increase the incomes of 68 million others living on less than $5.50 per day. However, Nigeria faces challenges related to funding and digital literacy in fully realizing these opportunities.

The World Bank has projected that the implementation of the African Continental Free Trade Area (AfCFTA) could result in trade facilitation measures that simplify customs procedures and reduce bureaucratic red tape, contributing $292 billion of the potential $450 billion in income gains.

During a panel discussion at a telecommunications forum in Lagos, Dr. Ololade Shyllon, Head of Privacy Policy for Africa, the Middle East, and Turkey at Meta, emphasized that the successful implementation of AfCFTA would catalyze essential long-term growth reforms in African nations. She also highlighted the obstacle posed by the lack of harmonization of trade policies across the region, calling for a focus on harmonizing data regulations in Africa, where currently, 35 countries have diverse data regulations compared to the European Union's unified data regulation system.

In order to fully tap into the region's potential, Africa must harmonize its data regulations, as per Dr. Ololade Shyllon. She emphasized the importance of the free flow of data across the region for trade, highlighting that while data protection is crucial, a restricted data ecosystem could pose significant challenges to Nigeria and other nations. Data becomes valuable when it is used rather than being stagnant.

Dr. Vincent Olatunji, National Commissioner of the Nigeria Data Protection Commission (NDPC), pointed out the rapid expansion of the global digital economy. According to the World Economic Forum, the global digital economy's value increased from $11.5 trillion in 2019 to $14.5 trillion in 2021, with projections estimating it will reach $20.8 trillion by 2025. Furthermore, the global data economy is valued at approximately $3 trillion, highlighting the growing significance of data as a strategic asset for individuals and societies alike.

At present, we are experiencing remarkable technological advancements driven by the power of data. Forbes reported that as of October 2021, an astounding volume of over 2.5 quintillion bytes of data is generated daily," he noted.

He added that Nigeria's digital economy is rapidly growing, thanks to improved Internet access, mobile technology, a flourishing startup ecosystem, and government backing. Nonetheless, the digital economy faces challenges such as infrastructure deficiencies, funding gaps, digital literacy issues, cybersecurity threats, and the need for attitudinal changes.

Seeking backing for the burgeoning digital economy in Nigeria, Prof. Umar Danbatta, the Executive Vice Chairman of the Nigerian Communications Commission (NCC), emphasized that the digital economy relies on utilizing digitized information, technologies, and knowledge as fundamental production factors to foster innovation, generate employment prospects, and stimulate economic development.

He further clarified that the digital economy encompasses economic activities primarily facilitated by the utilization of digitized information or data. Danbatta highlighted the ongoing effort to digitize government operations, which is poised to enhance efficiency, curb corruption, and enhance citizen engagement.