Lagos, Nigeria – The National Information Technology Development Agency (NITDA) has projected that the digitalization of Micro, Small, and Medium Enterprises (MSMEs) in Nigeria could contribute an impressive $50 billion to the country’s Gross Domestic Product (GDP). Mr. Kashifu Inuwa Abdullahi, the Director-General of NITDA, shared this insight during his visit to the GIZ/Digital Transformation Centre in Lagos.
Abdullahi emphasized that the digital transformation of MSMEs is vital for economic growth. Recent research suggests that MSMEs that undergo digital transformation can increase their revenue by 26% and reduce costs by 22%. In 2018, digitally transformed enterprises worldwide contributed $13.5 trillion to the global GDP, and projections indicate that by 2023, this figure could exceed $53.3 trillion, accounting for more than 50% of the global GDP.
Given these prospects, Abdullahi believes that digitalizing Nigerian MSMEs could potentially add 26% to the country’s GDP, equivalent to $53 billion. Currently, MSMEs already contribute 43% to Nigeria’s GDP, amounting to approximately $205 billion. Unlocking the digital potential of MSMEs would propel economic growth and open up new opportunities across various sectors.
Abdullahi emphasized that the Nigerian government is fully committed to digitally transforming the economy through a comprehensive strategic roadmap and action plan. He emphasized that government regulations are aimed at fostering innovation and unlocking opportunities rather than stifling businesses. NITDA has implemented regulations that safeguard the market, encourage innovation, and enhance service delivery.
The strategic action plan focuses on supporting MSMEs and creating an enabling environment for startups. Additionally, NITDA places great importance on digital literacy and skills development, as a knowledge-based economy relies on human capital as its most valuable resource. NITDA aims to achieve 90% digital literacy by 2030, ensuring that every Nigerian can effectively use digital devices and access digital services. As part of this initiative, NITDA plans to train one million developers by 2022, with over 219,000 Nigerians already trained in various technology-related fields. NITDA has also provided digital literacy training to more than three million Nigerians through multiple channels.
The visit to the GIZ/Digital Transformation Centre, Nigeria, highlighted the partnership between GIZ, NITDA, and other stakeholders in bridging the digital divide. These collaborations aim to co-create solutions and empower MSMEs through digitalization. Mr. Bunmi Kunle-Dawodu, the State Manager of the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), commended the partnership, stating that technology-driven business models enable entrepreneurs to showcase their businesses effectively. SMEDAN has actively supported MSMEs through policy implementation and is working with GIZ and DTC to explore digital solutions for businesses.
The Techmybiz Pitch-a-thon, an event organized in collaboration with the Innovation Support Network (ISN), serves as a platform for Nigerian innovators to present digital solutions tailored to MSMEs. The event aims to identify and showcase innovative technologies that can drive digital transformation within the sector.
As Nigeria strives to harness the potential of digitalization, the collaboration between NITDA, SMEDAN, GIZ, and other partners underscores the importance of technological advancements for the growth and success of MSMEs in the country.
