COUNTRY FOCUS : NIGERIA
While Nigeria ’ s vision is to be a global economic leader leveraging global technology implementation and innovation by startups , on the short term Nigerian states are grappling to boost investor confidence in fibre networks , providing single window clearance for entry of global technology businesses , reduction of tariffs , and ensuring fair returns on investment .
Striving to lead in digital im and network connectivity
Cityscape of Lagos Island , Nigeria at sunset
With a population of close to 220 million and an Internet penetration rate of 51 % at the beginning of 2022 , Nigeria ’ s large ICT consumer market offers room for growth , making it an enticing prospect for local and international investors , particularly with the population forecast to reach 377m by 2050 , according to Oxford Business Group .
Moving forward , the financial technology space and wider start-up ecosystem are bright spots for the domestic economy . Greater public-private cohesion in those areas would give the government an opportunity to collaborate with the country ’ s most innovative minds to develop effective solutions to macro and socioeconomic challenges .
According to the US based International Trade Administration , the information and communications technology , ICT sector in Nigeria continues to play a pivotal role in the nation ’ s recovery in the wake of an economic lull . Data from the Nigerian Communications Commission , NCC reported that the ICT sector contributed 9.88 % to the total nominal GDP in Q4 of 2021 . The figure reflects a declining shift as foreign exchange disparity widened and most organisations returned to physical business operations .
Nigeria is regarded as Africa ’ s largest ICT market with about 82 % of the continent ’ s telecoms subscribers and 29 % of Internet usage . Sub-Saharan Africa is also projected to be the world ’ s fastest growing region with a compound annual growth rate , CAGR of 4.6 % and an additional subscriber enrolment of over 167 million in the next five years .
The NCC estimates that the country has about 85 million broadband subscriptions , penetration of 44 % and 206 million lines in the voice segment , teledensity of 108 % as of June 2022 .
In September 2021 , the Nigerian government approved 5G in Nigeria . The four major mobile network operators in the country , Airtel , Globacom , MTN , and 9Mobile continue to strengthen their market share .
The government of Nigeria recognizes ICT as the enabler for developing other critical sectors including education , healthcare , agriculture , and manufacturing . In its drive to diversify the economy from oil and gas , the government is encouraging partnerships between local ICT companies and foreign investors .
To promote these partnerships and grow an entrepreneurial ecosystem in the technology sector , the Nigerian government has supported government or private sector led incubator hubs , youth innovation programs , and science technology parks .
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