The Nigerian Ministry of Communication and Digital Economy has revealed that technology startups are not only the key driver of economic growth, saying global startup economy is worth over $3.8trillion in Ecosystem Value, more than individual GDP of most G7 economies.
The Minister of Communication and Digital Economy, Professor Isa Ali Pantami said this at a two-day TechSummit, on the creative industry and its impact of the economy, in Abeokuta, Ogun state, south west Nigeria.
The Ogun 2022 Summit, tagged ‘Disruptive Innovation: Production and Distribution of Creative Content’ was convened by the Chief Executive Officer of VerveTree Startup, Mr Olaniyi Ayoola.
Professor Pantami, represented by Dr. Abimbola Alale, the CEO/MD of Nigerian Communication Satellite Limited (NIGCOMSAT), noted that apart from the values created by startups, digitally-based companies now dominate the list of largest companies in the world with 7 out of top 10 largest companies from the digital technology sector.
According to Professor Pantami, Augmented and Virtual Reality is projected to grow into $95 billion market by 2025.
He said the projection demand in the creative economy from gaming, live events, film, and video entertainment and retail cannot be overemphasized.
“ Digitalisation is therefore one of the key means by which creative content can be made more visible and accessible to regional and global audiences, and as such digitisation offers great potentials for tapping into traditional and non-traditional markets for creative goods and services”, Professor Pantami said.
The minister stressed that the creative economy is recognised as a major contributor to economic growth as the creative industry had proven to be an important source of growth in the global economy.
On its part, the United Nation Conference on Trade and Development already stated that the global market value for creative goods doubled from $208 billion in 2002 to $509 billion in 2015.
“Technology startups are key drivers of economic growth. A 2021 report by Startup Genome, says the global startup economy is worth over $3.8 trillion in Ecosystem Value, more than the individual GDP of most G7 economies, the UN said”.
“This explains why the use of Augmented and Virtual Reality (AR/VR) is expected to rise exponentially. A foremost Goldman Sachs estimated that AR and VR will grow into a $95 billion market by 2025,” it said.
The Minister also revealed that over 20 policies were developed to ensure that Nigeria rose to a stage where digital innovation and entrepreneurship are utilised to create value and prosperity for all.
Professor Pantami listed the National Digital Economy Policy and Strategy anchored on 8 pillars; Nigeria National Broadban Plan (2020-2035); Nigeria Startup Bill in the process of being forwarded to the National Assembly; as well as the National Digital Innovation and Enterpreneurship, among other policies and programme.
He said over 500,000 Nigerians are being engaged by digital training outlets in partnership with global and indigenous tech companies to upgrade the digital skills of Nigerians.
“The Federal Government of Nigeria is developing policies and initiating programmes to ensure that we build a nation where digital innovations and entrepreneurship are used to create value and prosperity for all.
“We need to empower citizens with the requisite skills that would enable the adoption of digital technologies across industries to be addressed in the 2nd pillar. To this end, we have set up an online training academy, which together with other digital training outlets have led to the up-skilling of about 500,000 Nigerians.
“We also developed the Nigerian National Broadband Plan (2020-2025) to ensure that our citizens have access to, and can afford quality broadband connectivity. The Plan seeks to deliver data download broadband speed across Nigeria at a minimum of 25Mbps in urban areas, and 10Mbps in rural areas.
“With effective coverage available to at least 90 per cent of the population and penetration rate of 70 per cent by 2025 at a price not more than N390 per 1GB of data. We have already experienced a significant drop in cost of 1GB of broadband, “he said.
At the event, the Director of Technical Standards and Network Integrity, Nigerian Communications Commission, NCC, Mr. Bako Wakil lauded the organisers of the two-day event for display of talent and creativity, saying that the Commission had no regret supporting the programme.
“With the events of the last two days, we are right by supporting this program and NCC would continue to do so. I want to thank the organisers of Ogun TechSummit for this display of talent and creativity that is embodied in our youths”, Wakil said.
“The NCC would continue to provide necessary infrastructure across the country. Of course, you need the internet to be very effective in what you do, either as a tech or creative talent. NCC is one of the leading implementing agencies for the national broadband plan. Our plan is to make the broadband available, accessible and affordable to all Nigerians”.
“We have actually auctioned the 5G sector. This is another step towards achieving the goal of the national broadband plan. Perhaps, before the end of the year, we would witness some activities in the deployment of 5G.”
The Convener, Mr Ayoola, said the purpose of the Summit was to expose emerging creative and content creators to all sorts of opportunities in the industry, pointing out that Ogun State is more blessed with talented young people.
“Ogun State is blessed with the largest Higher Institutions in the country and there are no reasons why we cannot turn the space around into money-making state via technology and creative contents.”
The two-day Ogun TechSummit allows participants to Network with key stakeholders including tech corporates, investors, leading start-ups, regulators and industry stakeholders driving business and investment forward.
Dominica Nwabufo
