By Ibraheem Shelleng
Data is the new oil. This phrase has become a cliché now but it goes without saying that data is the most valuable resource in the 21st century, and it is essential for economic growth and development. Nigeria is a data-rich country, but it is not yet harnessing its data potential to the fullest. What does that mean for the Nigerian economy? Well, put it this way, without having a thorough and objective understanding of the root causes of the socio-economic challenges that persist in the country, policies and strategic assessments will continue to be ineffective. Strategic decision making will continue to be biased and tinged with sentimentality. In short, harnessing data effectively can help Nigeria to achieve its economic goals. Data can be used to improve decision-making, boost productivity, and create new jobs. It can also be used to improve the delivery of public services, reduce corruption, and make the economy more inclusive.
However, Nigeria also faces a number of challenges in harnessing its data potential. For example, it has a shortage of skilled data scientists, and there are a number of regulatory and policy challenges that need to be addressed. The Nigerian government is increasingly recognizing the importance of data. In 2020, the government launched the National Digital Economy Policy and Strategy, which aimed to position Nigeria as a leading digital economy. The policy included a number of initiatives to promote the use of data, such as the establishment of a National Data Center and the development of a National Data Sharing Framework. However, there is still a great deal of work to be done. In this article, we will explore the economic importance of harnessing data in Nigeria, shedding light on how this digital transformation can inspire a brighter future for all.
The Power of Data: A Global Perspective
Before diving into the Nigerian context, let’s appreciate the global significance of data. In the interconnected world we live in today, data is the currency of progress. From Silicon Valley to the bustling streets of Mumbai, data is driving innovation, economic growth, and improved quality of life. Data harnessing is the process of collecting, cleaning, analyzing, and visualizing data to extract insights that can be used to make better decisions. In the context of economic development, data harnessing can be used to:
- Improve decision-making: Data can help businesses and governments make better decisions by providing them with insights into their customers, operations, and the market. It is no secret that developed nations deploy a large amount of resources on intelligence and data gathering. This also provides the basis for predictive analytics.
- Increase productivity: Data can help businesses to increase productivity by identifying areas where they can improve their efficiency. Undoubtedly, this would face a great deal of kick back in any society that thrives on shortcuts and “laggardism”.
- Create new jobs: Data can help businesses to create new jobs by enabling them to develop new products and services, and to expand into new markets.
- Boost innovation: Data can help to boost innovation by providing researchers and entrepreneurs with the insights they need to develop new products and services.
Think about the impact of e-commerce giants like Amazon and Alibaba. Through data analytics, these companies optimize supply chains, offer personalized recommendations, and create jobs not only within their organizations but also in logistics, technology, and customer service.
Beyond economics, data has transformed various aspects of our lives. In healthcare, for example, data-driven advancements have led to personalized treatments and improved patient outcomes. In education, data helps tailor learning experiences, making education more accessible and effective.
Data in Nigeria: Untapped Potential
Now, let’s turn our attention to Nigeria. This vast nation, with a population exceeding 200 million, is at a pivotal moment in its history. There are gold mines of opportunities from analyzing patterns from these number of people. The National Bureau of Statistics (NBS) has done a wonderful job in recent years in revolutionizing the data landscape in Nigeria but there is a lot more work to be done. Numerous government ministries, department and agencies (MDAs) have research and statistics departments that are tasked with collating data and some do actually possess vast amounts of underutilized data. This data is often difficult to access and analyze due to a combination of poor data management practices, cumbersome bureaucracy and fear of exposure.
Men lie, women lie, numbers don’t! ~ Jay Z (Reminder)
However, whilst there are numerous challenges, so too are there opportunities. Harnessing data holds the key to overcoming obstacles and accelerating progress. Through data analysis, we can identify sectors with high growth potential, understand market dynamics, and make informed investment decisions. There are a number of case studies that demonstrate the economic importance of harnessing data. Nigerian e-commerce companies such as Jumia and Konga (*Disclaimer*: This is not an endorsement) use data to improve customer experience and to increase sales. For example, they use data to personalize product recommendations and to target advertising campaigns, whilst also detecting and preventing fraud.
Agriculture, for example, holds immense promise, but its potential can only be fully realized through data-driven practices. Real-time weather data, crop yield information, market insights, and supply chain optimization can empower farmers and agribusinesses alike. Incidentally, there is a Nigerian startup called Agroxchange that is doing some wonderful work in this area (*Disclaimer*: This is not an endorsement).
In the housing sector, there is a key data point that continues to be debated amongst policymakers, economists and practitioners, that is on the housing deficit in Nigeria. Figures range from 17m to 28m housing deficit as of 2023 but these figures are unsubstantiated and based on various extrapolations of surveys carried out over 10 years ago. With an annual population growth of around 3%, it is clear to see how these figures could be largely deviant. The implication of this is that policies aimed at addressing the issue, will largely be ineffective due to the inability to accurately model the investment and resource requirements. Admittedly, my current exposure to the housing and real estate sector through working for the Nigerian Mortgage Refinance Company (NMRC) Plc has provided me an opportunity to work on an ambitious project and engage with other stakeholders in the industry in developing datasets that will feed into the Housing Market Information Portal (HMIP) and help provide more clarity in housing data.
Nigeria has a number of advantages that it can leverage to harness its data potential. For example, it has a large and young population, a growing economy, and a rapidly increasing internet penetration rate. Organizations such as Google are harnessing more data from our teeming population than we care to imagine. By analyzing data on consumer preferences and market trends, Nigerian businesses and government can tailor their products and services to better serve the local population. This not only fosters economic growth but also bolsters the country’s international competitiveness.
Data Challenges and the Path Forward
While the potential of data is immense, Nigeria faces certain challenges on the road to data-driven prosperity. These include issues related to data privacy, infrastructure, and digital literacy.
- Data Privacy and Security: Protecting the privacy and security of individuals’ data is paramount. Nigeria must enact robust data protection laws and regulations to ensure that personal data is handled with care and responsibility. This will build trust among citizens and businesses alike. I dread to think what happens to those awful movement register booklets found at the reception of every major institution in Nigeria once they are full.
- Digital Infrastructure: Access to reliable internet and digital infrastructure is essential for data harnessing. Nigeria must invest in expanding digital infrastructure to reach remote areas and bridge the digital divide. This will enable more people to participate in the digital economy.
- Promoting Data Literacy: To fully realize the benefits of data, Nigeria must invest in data literacy and education. This goes beyond technical skills; it encompasses an understanding of the ethical implications, privacy concerns, and societal impacts of data usage. This includes equipping citizens with the skills to navigate the digital world, understand data, and make informed decisions. This also promotes the capture of more accurate data.
A Data-Driven Future for Nigeria
As we contemplate Nigeria’s future, we find that data is not merely a resource but a beacon of hope. From driving innovation to fueling economic growth, data has become the linchpin of our digital age. However, with great power comes great responsibility. It is incumbent upon us to ensure that data is used ethically, transparently, and inclusively. By harnessing the power of data, Nigeria can overcome challenges, foster economic growth, and improve the lives of its citizens.
“In God we trust. All others must bring data” ~ Dr. W. Edwards Deming
To achieve this vision, Nigeria must embrace data-driven practices, protect data privacy, expand digital infrastructure, and invest in education. As a united nation, Nigeria can lead the way in Africa and inspire the world with its journey toward a brighter, data-driven future. Data isn’t just a collection of ones and zeros; it’s the key to a brighter, more interconnected future. We cannot continue making strategic decisions based on sentiments, biases, vibes and “hopefully” but must tap into the limitless potential of data and write a new chapter of economic progress and prosperity for Nigeria. It is time to harness that value and turn the numbers into Naira.