Nigeria’s digital infrastructure deficit will limit economic growth – US
The digital infrastructural deficit will limit Nigeria’s economic growth, the United States has disclosed.
The world’s number one economy noted that lack of access to high-speed Internet and information across the country would impact the potential of the country’s economy.
It further stated that building the right digital infrastructure in the country would help other sectors of the economy boom.
The US Deputy Secretary of Treasury, Wally Adeyemo, stated that at a recent forum with business leaders at the Lagos Business School in Lagos.
Speaking on the country’s economic growth potential, Adeyemo, said, “In order for that to be successful, you must invest in digital infrastructure.
“Ultimately, if there is no access to high-speed internet and information across the country, it is going to limit the potential of the economy to grow. So, in addition to investing in companies and helping them grow, we want to make sure that Nigeria has the infrastructure it needs both physical and digital to be able to benefit from entrepreneurs and creativity in the economy.”
The Deputy Secretary of Treasury had earlier explained that the US was through its developmental finance corporation investing in Nigeria and supporting its tech industry.
He highlighted that many American tech firms were setting up offices in the country to tap into its growing tech sector.
He stated, “In addition to our government, our companies are investing here in Nigeria because they see a true opportunity. From Meta to Microsoft to Google, to Netflix they are setting up offices here, they are making investments in Nigeria because they know that ultimately it is good for their business.
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“This is also good for Nigeria too, from our standpoint. What we want to do is make sure that the investments we are making through the United States government are useful in unlocking growth and potential in the Nigerian economy. We are seeing this great deal of potential because the private sector from the US and around the world wants to come here to do business.”
Adeyemo, who visited Nigeria as part of the President Joe Biden administration’s commitment to deepening the US-Africa economic and trade relationship, stressed that a proper digital infrastructure would improve every other sector of the economy, including the creative, and banking sectors.
He further revealed that the US was investing in the country’s digital infrastructure to ensure that every sector in the economy could benefit from digital transformation.
He expanded, “A big part of this for the US is helping to invest in that digital infrastructure, through things like our investment finance corporations, which make investments here in Nigeria to fintech, and also into financial firms, and also into other firms that are helping to build out an infrastructure that will allow Nigerian firms, be that creatives, SMEs, to benefit from the digital transformation that is helping here.”
Adeyemo also remarked that expanding digtialisation to the government would reduce friction between businesses and the government and will increase their ability to provide services to people.
He added, “A big piece for us is making sure that we work with your government and also the private sector to make investments in the digital infrastructure in the future.”
Recently, the World Bank disclosed that Nigeria’s digital and financial infrastructure was inadequate to support a seamless transition to a cashless economy.
It noted that that was one of the reasons the Central Bank of Nigeria’s naira redesign policy failed.
The global bank said, “The lack of adequate digital and financial infrastructure and processes to support a swift transition to a cashless economy— coupled with the fact that only 40 per cent of adults have a bank account—further exacerbated the situation.”
