The Executive Vice Chairman of the Nigerian Communications Commission (NCC), Professor Garba Danbatta, said so much data is being utilized by companies as they move to the digital era, noting that the industry is witnessing new business delivery and breakthroughs due to the expansion of boundaries of digital Micro, Small and Medium Enterprises (MSMEs), especially fintech and e-commerce firms.
He said the increasing number so of MSMEs in the country contribute to the growth of the Nigerian digital economy riding on telecom infrastructure. Danbatta reckons that digital services and contents provided by these MSMEs will leverage on broadband infrastructure and the deployment of 5G network being driven by the Commission to deliver more innovative and high-quality experiences to consumers.
Just recently, at the 10th edition of Business 360 Clinics organised by Abuja Enterprises Agency (AEA) in Abuja, Prof. Umar Danbatta reiterated the Commission's commitment to continually drive initiatives that accelerate broadband deployment to increase penetration and make internet connection readily available to telecom consumers.
Speaking on the theme of the event, "Technology Utilization and Innovation: Effects on SME Profitability and Productivity" in the context of the regulatory activities of the Commission, the EVC, who was represented by Assistant Director, Digital Economy, NCC Paul Okeke, noted that NCC has been at the heart of providing the digital drive for transforming businesses and sustaining socio-economic activities in Nigeria.
During the panel session titled "Technology Adoption: A must for MSMEs Sustainability and Competitiveness (Challenges and Ease of Use)," Prof. Danbatta highlighted the Commission's commitment towards technological and digital transformation in a manner that makes entrepreneurship seamless.
While addressing the issue of challenges on digital literacy, Prof. Danbatta informed the audience that the Commission has strategic partnerships with various organizations including Small and Medium Enterprises Development Agency of Nigeria (SMEDAN) which birthed initiatives such as Digital Economy Academy where business owners learn about security risks and online threats in a 12-course programme for 3 months.
The EVC charged entrepreneurs to leverage technology to harness the benefits of these initiatives to sustain their businesses. "As a regulator of Telecommunication, the Commission is in active collaboration with other agencies in the Ministry of Communications and Digital Economy, as well as with other public sector institutions such as the Economic and Financial Crimes Commission (EFCC), Office of the National Security Adviser (ONSA) to ensure that policies become effective in curtailing cyber-attacks and threats on businesses," he stated.
The participants and business owners also seized the opportunity of the platform to make complaints and resolve their business-related challenges while adopting technology for their various businesses during the interactive session. Representatives of relevant agencies at the event also seized the opportunity to attend to enquiries from participants who are running businesses and those who are aspiring entrepreneurs.
The digital economy represents a wide range of economic activities that use digitized information and knowledge as key factors of production. The digitization of the economy creates benefits and efficiencies as digital technologies drive entrepreneurship, innovation and fuel job opportunities and economic growth.
The telecommunications sector has become the infrastructure of infrastructures driving the Nigerian economy. Its impacts can be felt across all the sectors of the economy. In the financial services industry, the deposit money banks ride on telecom infrastructure from licenced telecom companies for their 24-hours automated teller machines (ATMs), Unstructured Supplementary Service Data (USSD), Wireless Access Providers depend on it for Value Added Services (VAS).
The efforts of NCC in driving the growth and development of the digital economy has helped Nigeria financial technology (Fintechs) and Startups attract global attention and investment inflows through creating enabling environment, provision of available, accessible and affordable high- capacity broadband through licenced telecommunications companies across the country.
Between 2014 and 2019, Nigeria's bustling fintech scene raised more than $600 million in funding, according to McKinsey & Company. It went a notch higher as Nigeria Startups raised $1.37 billion of the $4 billion raised in Africa in 2021. Of these, the FinTech space alone accounted for about 63 per cent of all total funding, compared with just 25 per cent in 2020.
Today, the Nigerian technology ecosystem is vibrant and has about 3,340 startups as at December 2022, which is almost five times then the second largest adult ecosystem in Africa, Kenya. Nigeria is home to five out of seven unicorns in Africa, making it the optimal talent development spot in Africa which has been pivotal to Nigeria's digital economy drive.
Nigerian tech startups attracted $704 million in 2019, $440 million in 2020 due to global COVID impact, $1.7 billion in 2021 and $1.2 billion in 2022 from investors. The Nigerian tech ecosystem boasts of large and growing economy, access to market, entrepreneurial culture, supporting government policies and access to talent which has attracted about 30 per cent of the foreign investments coming to Africa.
Also, the Commission established the Computer Security Incident Response Team (NCC-CSIRT), the telecom sector's cyber security incidence centre to focus on incidents in the telecom sector and as they may affect telecom consumers and citizens at large.
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
The CSIRT also works collaboratively with the Nigeria Computer Emergency Response Team (ngCERT), established by the Federal Government to reduce the volume of future computer risks incidents by preparing, protecting and securing the Nigerian cyberspace to forestall attacks, problems or related events.
The Commission has issued a string of spectrum licences and renewals such as Digital Mobile Licence (DML) in 2001, Fixed Wireless Access (FWA) in 2002, Second National Operator (SNO) to Globacom in 2003, Third Generation (3G) in 2006, Fourth Generation (4G) in 2017 and Fifth Generation (5G) in 2021 as well as 2.6GHz licences.
In the last 22 years after, the telecom sector has witnessed significant and phenomenal growth in terms of level of access to voice, data, video and emergency services and has become an enabler of growth in other sectors of the country and the key driver of digital economy services for all the players in the financial services industry (FSI) especially banks, capital market operators, fintechs, oil and gas, energy, entertainment, education, agriculture, healthcare, manufacturing, logistics, and government, etc. due to the regulatory excellence of the Nigerian Communications Commission.
