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Driving Growth Through Digital Economy

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Nigeria's Digital Economy

By Ayomide Oriade

The outbreak of COVID-19 and preventive measures enforced by authorities across global borders has further extolled the importance of technology-based connection and communication between people, businesses, organizations and processes; a convergence that makes up a digital economy.

At the last World Economic Forum, global economic leaders predicted that by the year 2022, over 60% of the world economy will be digital, while it was also projected that about 70% of new value created in the economy in the next decade will be based on digitally-enabled platforms.

This signals the fact that those saddled with economic policy formulation and implementation in different countries of the world are focusing on the digital economy as the next growth driver. Nigeria also stands a good chance of boosting economic growth by leveraging the potential of the digital economy.

In 2019, the World Bank stated that Nigeria is uniquely positioned to benefit from the digital economy, with half of the 200 million population of the country being below the age of 30.

Commendably, figures released by the National Bureau of Statistics in May 2020, showed that the digital economy is already making a significant contribution to Nigeria’s economic growth. Non-oil sectors combined contributed over 90% to Nigeria’s GDP in the first quarter of 2020, with ICT accounting for 14.07%.

In what could be seen as a move towards actualising the digital economy projection, a National Digital Economy policy was recently initiated by the Federal Ministry of Communication and Digital Economy.

According to the Minister of Communications and Digital Economy, Dr Isa Pantami, the policy is aimed at developmental regulation; digital literacy and skills; solid service infrastructure; promotion of digital services; software infrastructure; digital society and emerging technologies.

Reports have it that the federal government is set to receive a loan of N127 billion from the China Exim Bank for telecoms infrastructure development. While there is an urgent need for investment in solid and service infrastructure in the ICT sector to further drive digital growth, the crucial space occupied by e-commerce in the digital economy cannot be overlooked.

In the thick of lockdown and movement restrictions, firms and businesses with digital presence were having a field day. It was a period of business boom for telecommunications companies and internet service providers.

The online marketplace gained prominence like never before, even on the African continent. The sector was arguably what was left of the economy during the lockdown.

Those doubting the feasibility cum viability of e-commerce on the continent must be having a rethink after seeing the exploits of Jumia, Konga, Jiji, and the likes during the period. Hence, it is pertinent that the aspect of the policy that concerns the promotion of digital services is given the needed attention.

From all indications, one of the ways to a robust national digital economy is to encourage more entrepreneurs to bring their business online, and Nigeria already has existing platforms to serve as a springboard. Thanks to the activities of e-commerce platforms, Jang in Plateau is able to put his wares in the face of an audience based on Imo State. The tailor in Onitsha and Shoe Cobblers in Abeokuta are able to sell to customers in Kogi.

Sellers and customers are already connecting in a virtual marketplace courtesy of these online stores. All needed is enabling and supportive policies to bring more customers and sellers to this space.

More so, some digital offerings of e-commerce platforms will help to further drive some policies and could also be a revenue collection avenue for the government.

For instance, the e-commerce industry leaders in Nigeria, Jumia and Konga have fintech solutions that enable customers to pay seamlessly for purchases made on their platforms. With JumiaPay, customers can also pay electricity bills, Pay TV subscription, and mobile recharge. These fintech products will help drive the cashless policy of the government and also make VAT collection and remittance easier.

Government promoting digital services will also help to entrench healthy market competition, competitive pricing and customer relations needed for improved services and economic vibrancy. When the market is made attractive, there will be more investment in the sector. These will most likely spring stronger competition among online stores, product manufacturers and sellers.

“We are always informing our sellers on why they need to provide value to customers with competitive pricing. What customers want especially at this period is best deals at affordable prices. They will go for products that help them save more, and one of the advantages of online stores like Jumia is to provide a wide range of assortments to customers at the best market prices possible,” said Operating Officer, Jumia Nigeria, Omolola Oladunjoye.

Another crucial reason why promoting digital services should be prioritized is the immense spiral impact it will have on the logistics business. Many people will agree that an average delivery agent became a lifesaver during the pandemic. People became more conscious of the crucial role of logistics, and this is mostly down to an upward trend of e-commerce activities.

A good example of this is the sudden surge in logistics investment in most commercial cities of Nigeria. Investments of e-commerce players such as Jumia, Konga, Jiji have further opened up the space and is also initiating employment opportunities.

It is thus not surprising that Jumia Logistics and Konga’s Kxpress have grown beyond servicing only businesses on their platform.

“In 2019 we were able to achieve 25% of deliveries in rural areas through a network of direct agents. What this means is that we can accomplish even greater success by opening up our logistics services to the public. We have the right infrastructure people, partnership and technology required to help third parties and partners,” said Jumia Nigeria CEO, Massimiliano Spalazzi.

According to Konga CEO Prince Ekeh, the company has built its logistics platform working with local people to empower them to deliver to the last mile.

“This is where you add value by providing service open to the entire industry,” he said.

The pandemic has no doubt shown the importance and inherent potential of a digital economy to national growth.

For Nigeria to achieve the digital economy projections and be part of the emerging global economic trend, the pivot role of e-commerce in the chain needs to be properly addressed and fully harnessed.

Ayomide, a Public Relations Executive, writes from Lagos

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Okowa’s Financial Aid to Mission Schools

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Ifeanyi Okowa Delta State

By Jerome-Mario Chijioke Utomi

The recent decision by the Governor of Delta State, Ifeanyi Okowa, to provide financial aid to 40 schools it returned to religious missions in 2011 again underscores the time-honoured belief that leaders must learn the art of management, an art of engineering and skill to absorb and mater success in their mission. As there is no hard and fast rule but involves a lot of practical wisdom and prudence in one’s functioning style and performance.

Speaking at the thanksgiving service to mark the end of the 16th Synod of Asaba Diocese, Church of Nigeria (Anglican Communion), held at the Cathedral Church of St. Peter, Asaba, Okowa, who read the first lesson, congratulated the new Bishop of the diocese, the Rt. Rev. Kingsley Obuh, on his consecration and enthronement.

Acknowledging that the running of mission schools is difficult given the current economic condition of the nation, the governor commended the church for drawing his attention to the plight of the schools, especially his promise to ensure that grants were given to missions to assist them in giving a firm standing to the schools that had been returned to them. This, he explained, became necessary to assist the schools in running effectively, particularly in view of the prevailing harsh economic situation in the country.

Indeed, from the above comment by the Governor, it is evident that he is not taking success in leadership for granted or attributing the same to a function of luck and destiny but achievable through effective planning, genuine efforts and technique followed sincerely and scrupulously in their mission.

By his latest action, it is now evident that the Governor considers education as the bedrock of development. More than anything else, his promise to ensure that grants were given to missions to assist them in giving a firm standing to the schools demonstrates a leader with an understanding that with sound educational institutions, a country is as good as made -as the institutions will turn out all rounded manpower to continue with the development of the society driven by well thought out ideas, policies, programmes.

Secondly, it is a sign that he recognizes the challenges of perennial underfunding bedevilling the education sector not just in missionary schools in Delta State but across all the privately and government-owned schools across all the states of the federation.

This challenge has as a consequence brought upon the nation an astronomical increase in the rate of out of school children, especially in the northern part of Nigeria, to swell in number, even when it is obvious that the streets are known for breeding all forms of criminals and other social misfits who constitute the real threat in the forms of armed robbers; thugs, drunkards, prostitutes and all other social ills that give a bad name to the society. This underfunding challenge has also visited the sector with a state of affairs where a number of Nigerians are in school but are learning nothing; as schooling, according to UNICEF, does not always lead to learning.

“In Nigeria, there are more non-learners in school than out of school,” UNICEF concluded.

More specifically, aside from being in the best interest of the state government that those schools returned to the missions are supported to stand because they provide a space for study for some of our children across the state, Okowa’s current gesture reinforces the belief that we all have reasons not only to feel worried but collectively work hard to deliver the nation’s education sector in ways that will bring to an end the reign of thoughtless demand for fees of varying amounts/ proposed by the school authorities-a development that is financially squeezing the life out of the innocent students and their parents.

There exist more concrete reasons as to why Governor Okowa’s present move needs to be applauded.

At the most fundamental levels, it refreshes the minds of Nigerians of the passionate plea by the United Nations for government-private sector collaboration for sustainable development.

For instance, there was a veiled agreement among stakeholders at a recent gathering in Lagos that the government at all levels in Nigeria is shirking the traditional but universal responsibility of provision of educational, economic and infrastructural succour to the citizenry which the instrumentality of participatory democracy and election of leaders confers on them.

Essentially, participants at that event were unanimous that the 2030 sustainable agenda has partnership and collaboration at its centre. It was clearly stated that the scale and ambition of this agenda call for smart partnerships, collaborations, ecosystem thinking, co-creation and alignment of various intervention efforts by the public and private sectors and civil society.

The conference, which had as a theme Partnership for Sustainable Development and Innovation, was among other goals aimed at finding an ‘urgent need for creative and innovative thinking by all strata of the society-public and private sector and civil society-to promoting sustained and inclusive economic growth, social development and environmental protection’.

To further buttress the imperativeness of this needed commitment from all the parties in tackling the agenda, the conference stressed that the partnership is at the very centre of the sustainable development agenda as it is both a means to an end since it is a crucial enabler for the attainment of the other goals and an end to in itself since Goal 17 is a means of implementation and revitalised global partnership’.

Very instructive also, finding a solution to the societal problems, particularly providing access to adequate and quality education for the youths of this nation will in some ways help solve the youth unemployment challenge and develop a climate of sustainable future and innovation among our youths.

Talking about youth unemployment in Nigeria, a report recently put it this way: “We are in a dire state of strait because unemployment has diverse implications. Security wise, the large unemployed youth population is a threat to the security of the few that are employed. Any transformation agenda that does not have job creation at the centre of its programme will take us nowhere”

Youths’ challenge cuts across, regions, religions, and tribes, and has led to the proliferation of ethnic militia as well as youth restiveness across the country. This may, in turn, hamper the peace needed if handled with levity.  But this threat has become more pronounced in the oil-rich region of the country with the chunk of the proponents spearheaded by the large army of professionally trained ex-militants currently without a job. Proper management of these teaming youth is the panacea for determining the success or otherwise of the 2030 sustainable agenda, it is only by engaging these teeming youths through employment creation that the incessant youth restiveness can be abated.

One fact we must acknowledge is that the 2030 Sustainable Development Goal was formulated to among other aims promote and carter for people, peace, the planet, and poverty but nurturing to bear the premeditated result will depend on not just the private sector but our government.

To, therefore, move this nation forward, we need to like Governor Okowa, recognize that a sound educational sector and sustained infrastructural development remain the spine. We must learn that nations such as the Jews progressed because they possessed a tradition of education combined with social and political action. They enthroned education and sacrificed to get it.

We must as a nation make quality but subsidized education a human right that will be accessible to all Nigerians irrespective of tribe/ethnicity, sex, religion or creed. And develop the political will to fund education in compliance with the United Nations Educational Scientific and Cultural Organization’s (UNESCO) budgetary recommendation.

Jerome-Mario Chijioke Utomi is the Programme Coordinator (Media and Public Policy), Social and Economic Justice Advocacy (SEJA), Lagos. He can be reached via jeromeutomi@yahoo.com/08032725374

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Tips for Building a Low-code Strategy

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Low-code Development

By Hyther Nizam

Over the last few years, businesses have been racing to digitise their processes and offerings. Whether you’re working from home, banking online, or doing a quick grocery order, you’ve likely noticed a significant rate of transformation. Given that every aspect of a consumer’s daily life is connected to the digital world, the challenge of digital transformation may be daunting. Traditional ways of developing consumer and internal applications are time-consuming and usually require a large number of development resources.

Fortunately, low-code/no-code (LCNC) development platforms empower businesses to quickly create cross-platform applications without writing thousands of lines of code. Low-code/no-code not only simplifies development but also saves time and money. Low-code is not a new concept, but demand for it has increased as a result of the pandemic and the necessity for businesses to speed up their digital transformation initiatives.

The advantages of low-code/no-code 

LCNC platforms provide a visual environment for building applications. As they provide snippets of pre-built code in a simple drag-and-drop user interface, people with little to no programming experience can also build custom web/mobile applications. However, it’s crucial to take the time to identify the most effective LCNC platform for your business before diving headfirst into app building.

The LCNC platforms help teams develop applications faster and with fewer errors than traditional coding. Because the platforms provide standard components such as forms, report templates, and ready-to-use code snippets, months of development time can be saved. By eliminating some of the more complex aspects of the application development process (such as creating frameworks and linking databases), these platforms empower people across the organisation to get involved in application development and bring their business ideas to fruition, without having to depend on IT assistance.

Zoho Creator, Zoho’s low-code platform, aims to facilitate efficient app development and effective collaboration. It uses pre-built integrations to connect with hundreds of systems and cloud services to make app development quicker and easier. Organisations can seamlessly integrate Creator with other Zoho applications and third-party platforms like QuickBooks, Zapier, and PayPal. To facilitate effective collaboration, Creator gives organisations the power to assign roles to users and grant them access to information relevant to their jobs. Role-based access controls help ensure the application development process is both streamlined and secure.

Now that digital transformation is an ongoing imperative for most businesses, agility and collaboration are critical. Our research shows that 40% of organisations are involving their business teams in their digital transformation processes. This indicates a growing understanding that digital transformation affects the whole business—not just IT teams.

Considerations for using LCNC strategies

First, and potentially most important, your business must know what to look for in LCNC platforms. Besides the visual modelling and drag-and-drop interfaces that make these platforms easier to use, your LCNC platform should be secure. It should have the required security framework certifications in place and espouse data confidentiality measures. It’s important to avoid using software that potentially opens the door to hackers.

Your LCNC platform should be equipped for multi-device deployment (meaning that you only have to create an app once for it to be accessible on any device), and scalability so you can add more users to your application as your organisation grows.

Once you’ve identified the right platform, it’s time to start cross-organisational planning for the digital experiences your organisation will provide, and the ways low-code can be leveraged to create those experiences. Remember, one of the major strengths of a good low-code platform is that it allows for collaboration. People across the organisation need to be exposed to the platform to understand what it can do for them.

The time is now

There has never been a better time for your business to embrace an LCNC strategy, as the world is undergoing an unprecedented rate of digital transformation. It is essential, however, to combine the correct platform with a strategy that enables your entire company to realise the benefits of low-code development. This is the most effective way to put your business ahead of the competition.

Hyther Nizam is the President of MEA at Zoho Corp

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B2B e-Commerce: Fostering Sales, Distribution with Data Analytics

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Data Analytics

The informal sector is a major source of economic growth and productivity globally. According to both the World Bank and the International Labour Organisation (ILO) statistics, more than 2 billion people representing 61% of the world’s employed population work in the informal sector.

Of the number, 93% are reportedly in emerging and developing countries. Around 86% of employment in Sub-Saharan Africa is in the informal sector, while 80% of household retail distribution is said to be delivered via informal retailers.

Nigeria is reputed to have a huge informal sector that makes up 50% of the country’s Gross Domestic Product (GDP) and accounts for over 90% of employment. The informal retail market value is estimated at US$100bn out of which the food and consumer goods retail segment is worth over $40bn.

B2B e-commerce firm Alerzo’s CEO, Adewale Opaleye, described the informal sector as a major source of economic growth, productivity and competitiveness.

Despite the importance of the sector, informal retailers face complex challenges that impede their business growth, financial and income stability and service quality. The challenges include limited inventory due to high demands, meaning the market is underserved; and limited access to funding which sometimes leads them to stock low-quality products.

The retail market is also clustered; products are often overpriced because prices are largely unregulated. Distance to market especially those in hard-to-reach locations; opportunity costs; dangers of travel; inadequate logistics such as transport to move purchased goods also impact informal retailers adversely. The unstructured nature of most retail businesses is another setback.

The challenges faced by consumers at the base of the pyramid also represent another key issue in the retail market. Often, lack of access to reliable product information, quality products and services, and low purchasing power deny consumers access to everyday essentials such as food, medicine, hygiene and household products.

The fallout of the challenges in the retail market segment is that manufacturers and distributors are often unable to track data on informal retail sales, regulate quality or access BoP customers for research, marketing or the delivery of social mission goals.

As a strategic pivot for national GDP growth, reforming Nigeria’s informal trade is a key to unlocking socio-economic prosperity for the citizens, and improving the lives of the retailers themselves including their families, and the communities in which they operate.

Hence, initiatives that remove barriers in the Factory-to-Retail distribution chain for consumer goods companies are most welcome. The role of e-Commerce, in particular tech-driven B2B e-Commerce platforms, is pivotal in this regard.

“Our mission is to empower these informal retailers through our ecosystem of digital products, so they are equipped to run profitable and sustainable businesses. We strongly believe that technology has the potential to transform the way informal retailers conduct their businesses, by using it to facilitate – with just a click of a button – fast and easy access to a wide assortment of consumer products at zero delivery cost to the retailers,” Alerzo CEO, Opaleye said.

B2B e-Commerce platforms are beneficial to manufacturers and tier one distributors as enablers of data gathering and market intelligence. By utilising an array of digital technologies to gather market intelligence and analyse data, they arm goods producers with vital information on consumer behaviour to further help them in research and product development. Distributors also use such information to scale up operational efficiency.

The use of customer data significantly fosters sales growth and enhances customer relationships. According to Statista, a 2018 survey in the United States showed that 84% of industry-wide leading firms revealed that data analytics helped to bring greater accuracy to their decision-making. That is, data utilisation and related analytics methods were reported to deliver the most value to firms by reducing expenses and creating new avenues for innovation and disruption.

Data analytics enable manufacturers and distributors to strengthen their business operations. For example, in supply chain management and customer relationship, data analytics can support the personalisation and customisation of sales and customer services to build stronger and more personal relationships with customers.

By deploying data technologies and tools, B2B e-Commerce platforms like Alerzo collect data and market intelligence to identify what customers actually expect from companies and to predict their future demands. In other words, data analytics help to create business knowledge, that is, information and understanding related to business processes and the business environment. It can additionally reveal hidden behavioural patterns.

Furthermore, B2B e-Commerce can provide manufacturers access to real-time data and instant information, creating real-time knowledge of markets, and when properly implemented, can increase sales. McKinsey’s research suggests that a healthy data culture, that is, an organisational culture that accelerates the application of data analytics, is becoming increasingly important for leading and lagging companies. Also, the deployment of data helps to provide accurate and timely information within an organisation.

B2B e-Commerce platforms by utilising their digital solutions can make the collection of data more feasible and cost-effective for manufacturers and distributors. Data analytics as one of the emerging areas in the domain of B2B marketing can even support businesses with access to big data thereby increasing access to quantitative and qualitative information beyond just transaction data such as purchase quantities.

In a nutshell, B2B e-Commerce in so many ways offers solutions that are helping to address the needs in the Factory-to-Retail distribution value chain holistically – at the supply side (manufacturers, top-tier distributors and last-mile retailers), and the consumers (demand) side.

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