Every $1 invested in digital technology generates $8 for Nigerian economy – Research

Google, governments  and stakeholders have called for collaborative effort to advance Nigeria’s digital economy and support businesses facing economic headwinds.

The stakeholders on Tuesday  emphasised  the importance of working closely with the government while investing in technology and digital skills development to bridge the talent gap.

According to the West Africa Director for Google, Mr Olumide Balogun, technology holds the power to transform lives and economies.

Balogun in a statement  said that Google believed that by working together across government, business and communities all could unlock the immense potential that Nigeria’s digital economy holds for the future.

According to him,  as Nigeria stands on the threshold of significant economic change, the country faces both complex challenges and vast potential.

The director said with a rapidly growing tech sector and a young, dynamic population, Nigeria was poised to become a leader in digital innovation across Africa.

“Digital transformation is essential for boosting economic growth, increasing productivity, and improving living standards.

“Research shows that for every $1 invested in digital technology, $8 is generated for the Nigerian economy—underscoring the immense value of embracing the digital shift.

“A survey conducted by Africa Practice revealed that 46 per cent of businesses reported revenue declines due to inflation and macroeconomic pressures.

“Yet, in spite these hurdles, 70 per cent of business leaders are actively looking to digital solutions to adapt, innovate, and fuel future growth’’, he said.

Balogun  said that this widespread adoption of digital tools signals a strong readiness among Nigerian businesses to embrace technology as a transformative force.

He said that Google  was committed to exploring local payment solutions through partnerships, ensuring greater access to digital tools for businesses across Nigeria.

Mr Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, expressed excitement  for the private and public sector forum because of the opportunity to ideate.

Oyedele, who believed strongly in working together, said that the private sector would not thrive without carrying along the public sector.

He said that  digital transformation should be mobilised within government as foundation, and by beginning this dialogue and continuing momentum, much would be achieved.

Mr Laoye Jaiyeola, Former Chief Executive Officer of the Nigerian Economic Summit Group, said that policy formation was only as effective as the effort behind it.

Jaiyeola  said that over the years, the NESG through its Digital Economy Policy Commission, provided a platform for the private sector to make meaningful contributions in advancing digital solutions.

The stakeholders,  however,  highlighted  challenges  of financial constraints, insufficient infrastructure, and limited access to foreign currency to have remained key barriers to adoption of digital economy.

The stakeholders  from the public sector pledged to fast track the digitisation of public services, improve cross agency collaboration, and address fiscal barriers to support digital transformation.