EMPOWERING AN INCLUSIVE DIGITAL ECONOMY FOR YOUTH
DEVELOPMENT AND SUSTAINABLE GROWTH IN NIGERIA
BY:
NAME: OLUWABUKOLA DORCAS ABOLADE
MATRIC NO: 229545
DEPARTMENT: ECONOMICS
LEVEL: 300
GMAIL: [email protected]
ESSAY’S DETAILS:
FONT: TIMES NEW ROMAN
FONT SIZE: 12
WORD COUNT: 1000 EXCLUDING REFERENCES
REFERENCING STYLE: AMERICAN PSYCHOLOGICAL ASSOCIATION(7TH
EDITION)
INTRODUCTION
The digital economy in Nigeria has experienced significant growth, contributing approximately
15.35% to GDP in 2022, according to the National Information Technology Development
Agency (NITDA, 2022). The sector is fuelled by innovations in fintech, e-commerce, and
digital services. Companies such as Flutterwave and Jumia have gained global recognition,
highlighting the potential of Nigerian entrepreneurs to compete on the international stage.
For Nigeria, a country teeming with youthful energy and entrepreneurial potential, embracing
an inclusive digital economy is not merely an option; it is a necessity. With a population
exceeding 200 million and over 60% under the age of 25 (National Bureau of Statistics, 2022),
the nation stands at a critical juncture where strategic action can transform its demographic
advantage into sustainable prosperity. This essay explores how empowering an inclusive digital
economy can catalyse youth development and drive sustainable growth in Nigeria, leveraging
key interventions, examples, and strategies to ensure no one is left behind.
DEFINITIONS OF KEY CONCEPTS
An inclusive digital economy is one where everyone; irrespective of gender, income, location,
or social background can participate and benefit from the opportunities offered by digital
technologies. This concept transcends mere access to the internet and devices; it encompasses
equitable access to skills, resources, and platforms that enable individuals to thrive in the digital
era. Youth development on the other hand refers to the intentional process of equipping young
people with the skills, knowledge, and resources to reach their potential as active contributors
to society. Meanwhile, sustainable growth integrates economic progress, social equity, and
environmental preservation to create development that benefits current and future generations.
In the Nigerian context, this means fostering growth that reduces dependence on oil revenues,
diversifies the economy, and ensures widespread access to digital opportunities while
addressing climate challenges.
THE IMPORTANCE OF INCLUSIVE DIGITAL ECONOMY
The importance of an inclusive digital economy for Nigeria is undeniable, particularly with its
youth unemployment rate at 42.5% in 2023 (NBS, 2023). Investing in digital skills and
opportunities is crucial for socio-economic transformation. Digital platforms like Andela
showcase how Nigerian youth can globally compete while expanding inclusion can create over
three million jobs by 2025 (Oxford Business Group, 2022). Additionally, access to digital
platforms allows marginalised groups, including rural youth and women, to participate in e-
commerce, agri-tech, and remote work, as seen with initiatives like Farmcrowdy. Furthermore,
empowering the youth with digital skills is essential for global competitiveness. However,
challenges such as low broadband penetration (43% as of 2023) and digital literacy disparities
persist. Rural areas face significant gaps, and systemic gender biases limit women’s access to
digital opportunities, highlighting the need for targeted efforts to overcome these barriers and
foster a truly inclusive digital economy.
STRATEGIES FOR EMPOWERING AN INCLUSIVE DIGITAL ECONOMY
1. Infrastructure Development: One of the fundamental requirements for a robust digital
economy is access to reliable and affordable digital infrastructure. Nigeria’s broadband
penetration stands at a mere 45%, far below the global average, with rural areas experiencing
even less connectivity (World Bank, 2023). Expanding digital infrastructure; particularly
internet access, is crucial to ensuring that every Nigerian can benefit from digital services. This
includes the growth of e-commerce, digital services, and remote work, all of which require fast
and reliable internet. The Nigerian government must prioritise investments in broadband
infrastructure, especially in underserved areas, to increase digital connectivity nationwide.
According to the National Broadband Plan 2020-2025, Nigeria aims to increase broadband
penetration to 70% by 2025 (National Communications Commission, 2020). If achieved, this
will have a transformative impact on the economy.
2. Promoting Financial Inclusion: Promoting financial inclusion through digital banking
solutions is essential. Mobile banking and digital payment systems have the potential to reach
millions of unbanked Nigerians, particularly in rural areas where traditional banking
infrastructure is lacking. Financial technology (fintech) startups, which have seen explosive
growth in recent years, can drive this change by providing mobile money, digital loans, and
payment solutions. A concerted effort to expand digital financial services, coupled with mobile
banking, could add $8 billion to the Nigerian economy annually. If 50 million unbanked
Nigerians are brought into the financial system through mobile money and fintech solutions, it
could significantly boost consumption, savings, and investment. Furthermore, financial
inclusion can contribute 1% to Nigeria’s GDP, equating to an additional $10 billion per year
(McKinsey & Company, 2022). By making financial services accessible to youths, the
economy will become more resilient and dynamic.
3. Digital Literacy and Skill Building: The foundation of an inclusive digital economy is a
workforce equipped with the necessary skills to engage in the digital economy. To foster an
inclusive digital economy, it is imperative that the Nigerian government, alongside private
sector players, invests in comprehensive digital literacy programs. These programs should not
only teach basic digital skills but also include advanced courses in fields such as data science,
coding, and digital entrepreneurship. Digital literacy initiatives targeted at marginalised groups;
such as women, people with disabilities, and those in rural areas, can significantly enhance
economic productivity. By allocating $500 million annually to digital literacy programs,
Nigeria could produce a digitally skilled workforce that drives innovation and supports the
growth of the tech sector. In terms of economic impact, this investment could generate $5
billion annually in increased productivity and job creation in tech-related fields by 2030.
Moreover, enhancing digital literacy could increase Nigeria’s GDP by 1.5%, contributing
approximately $15 billion annually. A more skilled workforce would not only benefit existing
industries but also enable the growth of new digital sectors, positioning Nigeria as a regional
leader in the digital economy.
CONCLUSION
Empowering an inclusive digital economy offers Nigeria a transformative pathway to youth
development and sustainable growth. By addressing structural barriers such as the digital
divide, gender inequality, and infrastructural deficits with strategic investments in
infrastructure, education, and entrepreneurship, Nigeria can position itself as a leader in
Africa’s digital transformation, ensuring that its digital revolution benefits all, including the
most marginalised youths. This is not just a strategy for development; it is a blueprint for a
sustainable, inclusive, and prosperous future.
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