The National Information Technology Development Agency has stated that digitizing Micro, Small, and Medium Enterprises could improve Nigeria’s GDP by $53 billion.
This was said by the director-general of NITDA, Mr. Kashifu Inuwa, when he visited the Lagos headquarters of the GIZ/Digital Transformation Centre, Nigeria.
The digital transformation of MSMEs, according to Inuwa, will contribute to the expansion of the national economy.
According to him, recent studies have demonstrated that any MSME that adopted a digital transformation strategy could see a 26% rise in income and a 22% decrease in costs.
He continued by citing statistical data that in 2018, digitally changed businesses contributed $13.5 trillion to the world’s GDP and that in 2023, it is anticipated that this contribution will reach $22 trillion.
According to a statistical study, digitally transformed businesses contributed $13.5 trillion to the global GDP in 2018, and it is predicted that by 2023, they will have increased to $53.3 trillion, or more than 50% of it.
Inuwa made the following predictions about the potential contribution of MSMEs to Nigeria’s GDP through digitization:
“If Nigeria can successfully digitally transform its MSMEs, the GDP or MSMEs’ revenue may increase by 26%.
“Currently, MSMEs make up about 43% of Nigeria’s $205 billion GDP. By digitizing our MSMEs, which make up 26% of this, we can boost our GDP by $53 billion.”
The NITDA director claims that there are numerous laws in place to safeguard the market, promote innovation, and enhance service provision.
He emphasized the strategic action plan that supported MSMEs as a regulatory change intended to foster an environment favourable to startups or MSMEs.
The second pillar of the plan, according to Inuwa, focuses on digital literacy and skills since the digital economy, also known as the digital economy or digital transformation, is a knowledge-based economy in which human capital is the most valuable resource.
“By 2030, NITDA hopes to have 90% of people digitally literate. Every Nigerian should be able to access digital services via digital devices. Every nation must develop local talent and expand its digital offering, hence NITDA launched the project to teach one million developers in 2022.”
He stated that so far, they had taught 219,000 Nigerians various technological skills. and more than three million Nigerians have received digital literacy training from NITDA through a variety of means.
The DTC Nigeria program, according to the director-general, was financed by the German government and the European Union but was carried out by GIZ with NITDA serving as the implementing partner.
He continued by saying that the GIZ/DTC and NITDA were collaborating to co-create in order to close the digital divide.
The State Manager of the Small and Medium Enterprises Development Agency of Nigeria, Mr. Bunmi Kunle-Dawodu, also spoke during the visit and said that SMEDAN had aided entrepreneurs in a variety of ways.
He claimed that its collaboration with GIZ Nigeria and DTC had aided businesses in various ways in their digitalization as technology had become a permanent fixture.
The manager of SMEDAN claimed that utilizing technology to run businesses made it simple for business owners to market their enterprises and perform better.
