As the future of work and life becomes increasingly intertwined with digitisation and technology, the demand for higher-value skills and digital literacy is on the rise. This shift is creating new business models, job opportunities, and driving economic growth. According to the World Economic Forum, an estimated 70 percent of new value created over the next ten years will be based on digitally-enabled businesses—businesses that leverage digital technologies to create, deliver, and capture value in the market. The benefits are substantial, as these digital tools and technologies are expected to boost productivity, efficiency, and innovation across various sectors, thereby accelerating economic growth.
Nigeria’s digital opportunity: Job creation and emerging sectors
In Nigeria, the onset of digitisation presents a significant opportunity for job creation and the emergence of new sectors. Digital technologies are reshaping traditional industries, with sectors like fintech, e-commerce, and digital health growing rapidly. For instance, companies like Flutterwave and Paystack are revolutionising financial services by providing innovative solutions for entrepreneurs. A 2022 McKinsey report projects that Africa’s Financial Services market will grow by 10 percent annually, reaching $230 billion in revenues by 2025, with Nigeria’s fintech sector accounting for about a third of this market.
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The need for enhanced digital literacy
To capitalise on the opportunities presented by digitisation, Nigeria must prioritise enhancing digital literacy and developing higher-value skills across its workforce. With the population becoming increasingly connected through the internet and digital devices, ensuring that citizens—especially the younger generation—are digitally literate is key to harnessing the full potential of digital technologies. An estimated 122.5 million people are internet users in Nigeria, indicating a 55.4 percent nationwide connectivity. According to the Nigerian Communications Commission, 70 percent of these users are young people between 18 and 35 years old. However, this also means that a large proportion of Nigerians, most of whom are young, still cannot access the internet and are unable to benefit from advancements in communication and technology. This digital divide could result in a generation missing out on the global digital revolution and its dividends to Nigeria.
Bridging the digital divide: Gender equality in access
The digital divide is even more pronounced when examining the disparity between men and women. Women are notably disadvantaged in accessing mobile and internet technologies, with only 34 percent of Nigerian women and girls online compared to 54 percent of men and boys (GSM Association). To bridge this inequality and truly harness Nigeria’s potential as a digital powerhouse, it is essential to address these gaps. By advancing gender equality in digital access and youth participation, we can strengthen our economy and make meaningful progress towards achieving the Sustainable Development Goals (SDGs), ensuring inclusive and equitable growth for all.
A unified approach to digital literacy: BOI leading the charge
To truly enhance Nigeria’s collective digital literacy, especially among the youth, a coordinated effort is essential. Development Finance Institutions (DFIs) like the Bank of Industry (BOI), alongside the government and private organisations, have a pivotal role to play. Their contributions through policies, training programmes, and infrastructure development are crucial in promoting digital literacy across the nation. However, the current landscape is fragmented, with too many splintered efforts that dilute the impact of initiatives.
Recognising this challenge, the BOI has already taken significant steps to lead the unification of these efforts. By aligning roadmaps with key stakeholders, pooling resources, and strategically deploying massive capacity, the BOI is working to create a more cohesive and effective approach to digital literacy. This unified strategy not only maximises the impact of digital literacy initiatives but also accelerates Nigeria’s journey towards becoming a digital economy powerhouse. The BOI’s leadership in this regard is paving the way for unprecedented results, setting the foundation for a digitally empowered future.
BOI’s commitment to digital empowerment
Recognising the challenges of the digital divide and other inequalities, the Bank of Industry has identified six thematic groups: Youth & Skills, Gender, Digital, MSMEs, Climate Finance, and Infrastructure, to deepen our development impact. Each thematic group has interventions designed to provide targeted solutions to their respective sectors, fostering more equitable and inclusive development.
Investing in the future: The path to sustainable development
At the Bank of Industry, we are committed to supporting and empowering the next generation to harness digital tools and contribute to sustainable development. A digitally literate economy could significantly boost Nigeria’s growth over the next decade, potentially increasing GDP by 2 percent by 2028, creating nearly 2 million new jobs, and generating NGN 1.6 trillion in additional tax revenue (GSM Association). Investing in a digitally skilled workforce is crucial to fully realise these opportunities and drive sustainable development.
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Join the movement: Celebrating International Youth Day
As Jack Ma insightfully noted, “The most important thing is to make technology inclusive – make the world change.” And I couldn’t agree more. We joined the world in celebrating International Youth Day as Nigerian youths participated in our carefully curated Masterclass session which held on 15th August 2024. This event featured thought leaders and seasoned professionals who shared their expertise and insights on this year’s theme, “From Clicks to Progress: Youth Digital Pathways for Sustainable Development.” This occasion presented an opportunity to impact over 150 young individuals, equipping them with essential digital skills and fostering their growth as future leaders in the digital space.
Dr. Olasupo Olusi is MD/CEO, Bank of Industry
