In 2018, I opined on the transformational impact of technology with an outlook of the technologies that are driving innovation and change and their future potential into 2019, most of which came to pass. 2020 was a difficult year to predict and most analyses turned out wrong because of the unprecedented COVID-19 pandemic. With a decline in real GDP by 6.1% in the second quarter of 2020, only a few sectors recorded favourable growth rates. However, the technology sector has more or less, benefitted from the COVID-19 pandemic. The global health crisis has affected almost all facets of economic and social life but has only exposed how crucial some technologies like digital technologies are in our lives.
Despite the pandemic, technology is and will continue impacting communities and markets in remarkable ways in Nigeria and at such remarkable speed that sets the country apart and propels the entire African continent forward. This transformation comes with massive commercial potential for both local and international businesses. A great deal of the development of the service sector in Nigeria is as a result of digital connectivity; which not only increases the availability of goods and services but fosters collaboration between innovators in different places. Despite challenges, Nigeria has over 60 million potential e-consumers, presenting a great opportunity for the ever-increasing list of e-commerce and digital payments start-ups. 2021 will only usher more online services because of growing online demand and an ever-expanding consumer base. In the public sector, we have seen how digital technologies have revolutionised vital tasks from payments to procurements. Ranging from online meetings to resource planning, the Nigerian public sector should see more digital technology in 2021.
- Borno attack: Vigilantes get surveillance vehicles
- The fate of facial recognition technology to be decided in 2021
Digital connectivity will break down even more barriers between formal and informal markets and even open new markets. FinTech in Nigeria is even more exciting following a stellar $200 million dollar acquisition of Nigerian start-up Paystack by US FinTech giant Stripe. With the rise of new telecom-backed Fin-Tech like 9PSB and the continuous innovation of the traditional money deposit banks with mobile services, the sector should record even bigger booms in 2021. There is also a great opportunity because of the ineffectiveness of the current FinTech solutions in truly reducing financial exclusion in the country by banking the unbanked rather than targeting the already banked city dwellers. In terms of investments, it is also noteworthy that there are new entrant start-ups that offer Nigerians the opportunity to invest in US stocks and earn returns in US dollars. This is fast becoming a trend and 2021 may just usher in a spike in these types of investments as Nigerians are becoming increasingly connected to a global financial market that is wary of the weakening Naira.
Bitcoin and other cryptocurrencies are at an all-time high. I certainly think 2021 will see a lot more cryptocurrency transactions as Nigerians are more aware and interested in the currency, partly enticed by the meteoric rise of cryptocurrencies like Bitcoin and Ether. There are now local start-ups enabling cryptocurrency transactions and an even more active community of cryptocurrency believers despite an almost prohibitive stance from Nigeria’s apex bank.
The last two years saw a rise of crowdfunding solutions especially in big sectors like agriculture, which constitute majorly of smallholder farmers who lack access to finance. Companies that use digital technology to bridge the financial gap for smallholder farmers by giving the working professional a window into farming while supporting the rural farmer with much-needed finance; sharing the profit of the harvest at the end between the investor and the farmer. I don’t see a tremendous rise in this model in 2021 and beyond, largely because of external factors that have made the economics of agriculture more complex but also because of the farmers and investors that have had bad experiences with these companies.
Similarly, the sharing economy booms because of digital connectivity. Ridesharing businesses are flourishing while a crop of new companies with a fast growing user base dominate the shared commerce space. Further disruptions like these, with a bias for logistics and delivery services, will surface in 2020 largely because of the restrictions of the pandemic but also with the convenience of the development of the physical, telecommunication and financial infrastructure along which commercial activity flows.
In education, we have seen some disruptive use of digital technologies from companies with management solutions and educational delivery of the highest standard, yielding hundreds of millions of Naira in revenue. These companies kept students learning safely despite school closures throughout this global health crisis. I maintain that 2021 will see even more active involvement of digital learning tools in our schools and homes.
Because of challenges in data collection and non-existent legacy technologies, Big Data and Analytics have not had a mark in the Nigerian technological crusade. With a massive availability and flow of data ranging from government records to election data and social media, it is likely that 2021 will usher in the new age of big data and analytics opportunities in the country. It will be worrisome if the agricultural sector for instance does not wake up to the Big Data opportunities in the sector where billions are sunk in every year.
With the advantages of a young and rapidly increasing population, businesses, policymakers and investors must be ready to take on the challenges that still lie ahead in order to maximise the opportunities that this wave of disruption portends for the country and its people in 2021 and beyond.
Join Daily Trust WhatsApp Community For Quick Access To News and Happenings Around You.
