Internet To Contribute $300bn To Nigeria’s GDP

Nigeria’s Minister of Communication Technology, Dr Omobola Johnson has said the Internet will contribute $300 billion to the Gross Domestic Product (GDP) of Nigeria and those of other countries in the Sub-Sahara Africa, even as there are predictions that mobile Internet use in Africa will increase 20- fold in the next five years.

The Minister, who disclosed this on Friday while delivering an address at the DEMO Africa 2014 staged in Lagos, said the federal government has committed $9 million (N1.4 billion) as seed capital to fund software innovation development in the country to be managed by EchoVC.

She further noted that with the Demo Africa 2014, the country is on its way to making its first investment in a number of Nigerian/African tech start-ups. Quoting a report, Johnson informed that mobile subscriptions in sub-Saharan Africa are forecast to exceed 635 million by the end of this year, and predicted to rise to around 930 million by the end of 2019.

The forum is a programme hosted by the country to provide a platform for young tech start-ups in the African continent to showcase their business ideas and solutions to the investment community. For this year, 40 start-ups with 20 being from Nigeria, were participating in the event

The Minister said the increase in the number of mobile subscribers has fuelled increases in mobile Internet use in Africa and “we are considered to be at the cusp of a mobile Internet revolution.” According to her, “Predictions are that mobile Internet use in Africa will increase 20- fold in the next five years. This is double the estimated growth rate in the rest of the world.”

She stated that lower priced devices, particularly smartphones and tablets; increase investment in network infrastructure and increase in availability of spectrum for mobile broadband, were among the factors that will drive this growth. “One report that highlights this potential predicts that the Internet can contribute up to 300 billion United States dollars to Africa’s GDP by 2025; and this is from an estimated $18 billion in 2013.

Johnson submitted that this translates directly to opportunities to generate income, to create wealth, to create jobs, new business opportunities, economic expansion and so on. The DEMO Africa event is billed to end in Lagos today.

According to the Minister, “Over the next two days we will witness 40 African start-ups pitch their solutions to these great opportunities and challenges with a hope to secure funding and support to take their ideas and innovations to the next level.”

She added that alumni had generated over $8 million worth of investments, businesses and partnerships within the two years of DEMO Africa.