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The National Information Technology Development Agency (NITDA) has emphasized that the digitization of Micro, Small, and Medium Enterprises (MSMEs) in Nigeria has the potential to increase the country’s Gross Domestic Product (GDP) by $53 billion.
During a visit to the GIZ/Digital Transformation Centre in Lagos, the Director-General of NITDA, Mr. Kashifu Inuwa, highlighted the economic growth that could be achieved through the digital transformation of MSMEs. Recent research has shown that digitally transformed MSMEs can increase their revenue by 26% and reduce costs by 22%.
In 2018, digitally transformed enterprises globally contributed $13.5 trillion to the GDP, and it is projected to reach $53.3 trillion by 2023, accounting for more than 50% of the global GDP.
Mr. Inuwa projected that if MSMEs in Nigeria undergo digital transformation, it could add 26% to the country’s GDP, equivalent to $53 billion. Currently, MSMEs contribute 43% to Nigeria’s GDP, which amounts to approximately $205 billion.
The Federal Government is committed to digitally transforming the economy through a seven-point strategic roadmap and action plan. Mr. Inuwa emphasized that government regulations aim to unlock opportunities for businesses using technology rather than stifling them. The regulations are designed to protect the market, promote innovation, and enhance service delivery.
NITDA’s strategic action plan supports MSMEs and aims to create an enabling environment for startups. The plan focuses on digital literacy and skills development as digital transformation requires a knowledgeable workforce. NITDA aims to achieve 90% digital literacy by 2030, providing every Nigerian with the ability to access digital services. The agency has already trained over three million Nigerians on digital literacy and more than 219,000 on various aspects of technology.
NITDA collaborates with the GIZ/DTC Nigeria initiative, funded by the German Government and the European Union, to bridge the digital divide. The partnership aims to co-create solutions and empower entrepreneurs to leverage technology for business growth.
Mr. Bunmi Kunle-Dawodu, State Manager of the Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), highlighted the assistance provided to entrepreneurs through policy implementation and specific programs tailored to meet the needs of MSMEs. The partnership with GIZ Nigeria and DTC has facilitated digitalization, enabling entrepreneurs to showcase their businesses and operate more efficiently.
The digital transformation of MSMEs is a crucial step towards unleashing Nigeria’s economic potential and fostering inclusive growth in the country.
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