Digital technology – A bright spot in Nigeria’s economy
Nigeria’s fast track to the future
According to Bloomberg Businessweek, there are 4billion people connected to the internet globally. In high-income countries, 4 out of 5 people are online. Even developing economies have an internet penetration of over 45%. The rise in internet use is evidence that digital technology has now become a global necessity.
Nigeria must not be left out from the rising number of internet subscribers. Internet penetration in Nigeria has soared to over 60million in the last decade. This is not surprising as the country is a big consumer market with a growing middle class. Nigeria’s digital economy is on the radar of not just international investors but also of the FGN. It has renamed the Ministry of Communications the Ministry of Communications and Digital Economy. But, it takes more than a name change to achieve ICT effectiveness. To improve Nigeria’s digital technology competitiveness, there is need for massive new and smart investment.
OPEC is stuck between a rock and a hard place
The fears of the next recession in 2020 may have eased but the world is facing a major risk next year, which is oil supply glut. The supply gap is a result of a slowdown in oil demand growth because of the effect of trade wars on global GDP growth.
An oil supply glut could depress prices to as low as 10%-15% below the 2019 average of $64pb. Nigeria is currently one of OPEC’s cheat, producing 6.5% above its quota at a time when OPEC is tightening its grip on non-compliant member countries. If Nigeria is sanctioned for non-compliance and its production quota reduced, the revenue shortfall could trigger a fiscal and monetary crisis.
In this edition of the FDC Bi-Monthly publication, the FDC Think-Tank analyzes the issues and implications on businesses and the economy at large.
Enjoy your read.