Navigating Innovation, Growth and Transformation in the Tech Industry (January – August 2024)
As we hit the three-quarter mark of 2024, Nigeria’s tech industry stands at a pivotal juncture, characterised by remarkable progress and evolving challenges. The technology industry has made significant contributions to the Nigerian economy, driving economic growth, job creation, innovation, entrepreneurship, and FDI[1]. This review comprehensively examines the key developments shaping Nigeria’s tech landscape. We shall also examine the impact of government policies, funding trends, and the role of emerging technologies like artificial intelligence and blockchain in shaping the future of the Nigerian tech scene. This review highlights the industry’s challenges. By analysing these factors, we aim to offer a balanced perspective on Nigeria’s tech ecosystem and provide insights into what the rest of the year may hold for investors, entrepreneurs, and technology enthusiasts.
Join us as we explore the current state of Nigeria’s tech industry, celebrate its achievements, and address the hurdles that lie ahead.
ALL EYES ON META
All eyes are on Meta as it develops the metaverse. Specifically, 2024 has witnessed a plethora of novel features introduced by Meta on their social media platforms. Facebook recently rolled out Link History.[2] This feature allows Meta to track the website visits of Facebook users within Facebook’s in-app mobile browsers. Additionally, Facebook has begun incorporating generative AI into Facebook Messenger (Llama 3.1 405B). The company has recently seen a surge in AI-generated engagement bait which has led to significant user interaction.
Hitherto, the only monetised social media platform owned by Meta was Instagram. However, since June 2024, Nigerians have now been allowed to monetise their content on Facebook. We anticipate more groundbreaking innovations from the multi-million dollar company.
AGRI-TECH ROUNDUP
Agricultural technology in Nigeria is a rapidly evolving sector with significant potential to transform the country’s farming practices and food security using precision farming, agric-tech startups, and Government and Policy Support.[3] Some notable advancements made by startups in the agri-tech space in 2024 are :
- Introduction of Precision Agriculture Tools by Crop2Cash[4]
- Expansion of Drone Technology Services by GMX Agri[5]
- Blockchain in Agriculture by AgriLedger
- Sustainable Farming Practices by Releaf[6]
HEALTH TECH ROUNDUP
In 2024, Nigeria has made notable progress in health technology, primarily focused on improving healthcare delivery, enhancing accessibility, and optimising the efficiency of medical services. This growth is evident in the digital health market, which is projected to generate revenue of US$770.30 million by the end of the year, underlining the expanding influence of telemedicine in the country. Some advancements in health tech in 2024 are:
EDUTECH ROUNDUP
In 2024, Nigeria has witnessed significant advancements in education technology (EdTech), driven by the need to improve access to quality education, enhance learning outcomes, and bridge the digital divide across the country. These developments are transforming the educational landscape, making learning more accessible, personalised, and efficient. Some key advancements in edtech in 2024:
SPORTS TECH ROUNDUP
In the first half of 2024, Nigeria experienced significant growth in sports technology, driven by a surge in innovation, investments, and the adoption of cutting-edge tools to improve athletic performance, fan engagement, and sports management. These advancements are reshaping the landscape of sports in Nigeria, from grassroots levels to professional leagues. Some key advancements in sports technology in Nigeria (2024):
- ESports and Gaming eSport[12]
- Data-Driven Scouting, Recruitment Scouting and talent recruitment[13]
- Sports Betting and Tech Integration[14]
GOVERNMENT INTRODUCTIONS INTO THE TECHNOLOGICAL SPHERE
1. Corporate Affairs Commission
The Corporate Affairs Commission (CAC) announced in June 2024, plans to harness Artificial Intelligence (AI) solutions to revolutionise business registration in Nigeria. This innovative approach aims to significantly reduce registration times, bringing them down to mere minutes, in line with global best practices. [15]
2. Nigeria Embraces Digital Transformation in Public Service
The Federal Government has implemented new Public Service Rules aimed at modernising operations and promoting digital infrastructure. This initiative, a key component of the Federal Civil Service Strategy and Implementation Plan 2021–2025 (FCSSIP25), aims to transform the Federal Civil Service into a world-class organisation, recognizing the importance of digitisation in the modern public service landscape[16].
3. Opening of 3rd Mainland Bridge with speed cameras
The Government in 2024 announced its intention to fully open the 3rd mainland bridge with the installation of speed limit cameras in order to ensure that the 80km/per hour speed limit is not abused. This is a drastic turn for the better, as Nigeria’s previous reliance on members of the road safety corp which opened the door to corruption and inefficiency in carrying out duties will be curbed by the total reliance on technology[17].
LEGISLATIVE AND REGULATORY ADVANCEMENTS IN 2024
1. National Digital Economy and e-Governance Bill
This bill, sponsored by Hon. Adedeji Dhikrullahi Olajide, Chairman of the House Committee on Digital and Information Technology, seeks to establish a comprehensive legal framework for Nigeria’s digital economy. The bill addresses key areas such as electronic transactions, data protection, cybersecurity, and digital infrastructure.
2. National Artificial Intelligence (AI) Strategy
On August 2, 2024, the National Information Technology Development Agency’s (NITDA) National Center for Artificial Intelligence and Robotics (NCAIR) released a draft of Nigeria’s National AI Strategy for 2024. The strategy emphasises the role of AI in driving socio-economic development, while also highlighting the risks related to AI technologies, such as bias, transparency, and accuracy.
3. Cybercrime Act Amendments 2024
The Cybercrime (Prohibition, Prevention, Etc.) Act Amendments 2024, signed by President Bola Tinubu on February 2024, updates the 2015 Cybercrimes Act to address new and emerging cyber threats. The amended Act includes stricter regulations for reporting cyber threats, with more stringent penalties for failure to adhere to the regulations.
A controversial aspect of the amendment is the introduction of a cybersecurity levy, which mandates banks to deduct 0.5% from all electronic transactions to fund the national cybersecurity fund. This provision has sparked public protests and a lawsuit against the CBN by the Socio-Economic Rights and Accountability Project (SERAP) and other groups. In response to the backlash, President Tinubu suspended the levy to reduce the economic strain on citizens.
4. Electronic Transaction Bill
This Bill is currently in its second reading and is sponsored by Sen. Saliu Mustapha. The Electronic Transaction Bill aims to facilitate the conduct of transactions through electronic media and services, protect the rights of consumers in electronic transactions, and safeguard personal data. Additionally, the bill seeks to promote the growth of electronic commerce in Nigeria, creating a more secure and efficient digital transaction environment.
5. SEC Accelerated Regulatory Incubation Program Framework (ARIP)
On June 28, 2024, the Nigerian Securities and Exchange Commission (SEC) released its Framework for the Accelerated Regulatory Incubation Program (ARIP). This framework was designed to facilitate the onboarding of Virtual Assets Service Providers (VASPs) and other Digital Investments Service Providers (DISPs). It seeks to streamline the registration process for current and prospective entities, enhancing their compliance with the SEC’s regulatory standards.
6. SEC’s Amendments to Rules on Digital Assets
On March 15, 2024, the SEC also proposed amendments to its rules on the issuance, offering platforms, and custody of digital assets. One of the key amendments introduces additional requirements for VASPs. This move is aimed at increasing transparency and accountability within the digital asset space.
7. Central Bank of Nigeria (CBN) Policies on Foreign Exchange and Remittance
In the first half of 2024, the Central Bank of Nigeria (CBN) introduced several key policies aimed at stabilising the Naira’s exchange rate and managing foreign exchange (FX) transactions. These policies were aimed at the following:
I. Fixed Rate Of Sale Of Foreign Currency To Bureau De Change Operators
ii. Removal Of Spread On Foreign Exchange Transactions
iii. Harmonisation Of Reporting Requirements For Banks’ Foreign Currency Exposures
iv. Prohibition Of The Use Of Foreign Currency Collateral For Naira Loans
v. Disbursement Of Pta/Bta Through Only Electronic Channels
DISPUTES IN THE TECHNOLOGICAL SPHERE IN NIGERIA
1. Whatsapp
WhatsApp owned by Meta Platform Incorporation was investigated for an alleged violation of the Federal Competition and Consumer Protection Act (FCCPA) and the Nigeria Data Protection Regulation (NDPR). WhatsApp was fined after a three-year investigation alleging that the company’s privacy policy was “foisted” on users. It was stated that the regulator found that Meta Parties (WhatsApp) engaged in multiple and repeated infringements of the FCCPA and the NDPR laws. The agency said at the time that: “These infringements included denying Nigerians the right to control their data, transferring and sharing Nigerian user data without authorisation, discriminating against Nigerian users compared to users in other jurisdictions and abusing their dominant market position by forcing unfair privacy policies[18].
2. Social Media Handle Collection by Financial Institutions
On May 16, 2024, a Federal High Court in Lagos upheld the CBN Customer Due Diligence Regulation issued in 2023, requiring financial institutions to collect customers’ social media handles as part of their Know Your Customer (KYC) procedures. The case, Chris Eke v Central Bank of Nigeria, challenged this regulation as a potential violation of privacy rights. However, Justice Dimgba ruled that the regulation did not infringe on customers’ privacy, affirming the CBN’s authority to enforce such due diligence measures in the financial sector[19].
IMPACT OF THE TECHNOLOGICAL SPHERE IN NIGERIA
1. Job Creation:
Technological advancements in Nigeria have opened doors for innovation, entrepreneurship, and economic growth. Startups and tech companies have emerged, providing employment opportunities and contributing to the nation’s GDP. There is a significant impact on job creation, as remote and hybrid jobs are on the increase, this makes workers in Nigeria remotely work for companies and industries situated in other countries.
2. Economic Growth
In August 2024, The National Bureau of Statistics (NBS) disclosed that activities in Technology contributed 19.78% to Nigeria’s real Gross Domestic Product (GDP) in the second quarter of 2024. This shows a marginal increase in contribution when compared to the 19.54% recorded in the same period last year, and a significant increase with technology contributing 17.89% to the real GDP in the first quarter of 2024, based on the data collected by the National Bureau of Statistics.[20]
3. Rebirth of Ka Esi Le Onye Isi Oche – gwo gwo gwo ngwo
Also, technology has prominently played a pivotal role in promoting an old Igbo folklore, gwo gwo gwo ngwo, which was released in 1983 by the great and talented Mike Ejeagha. Now, in 2024, the song, which is a popular Nigerian hit, has experienced a significant surge in popularity due to the impact of technology. The advent of digital music platforms and viral challenges on social media contributed to the song’s widespread recognition and popularity.
TRAGEDIES
The year has seen several losses in Nigeria’s tech space; some of the notable losses in the industry include:
1. Microsoft
A Microsoft development centre is shutting down in Lagos, where hundreds of staffers had nursed high hopes for training opportunities and the prospect of a good job in the high-tech industry. Just two years ago, the Development Center was opened with much fanfare. It was the company’s first engineering office in Lagos and Nairobi, Africa.
The centre had over 200 engineers, mainly Nigerians, who were producing “wave-making digital solutions touted to have the capability of changing the African narrative
2. GlaxoSmithKline, GSK Plc
In 2024, we saw a rise in the price of drugs after GSK, a multinational pharmaceutical and biotechnology company with headquarters in the UK, announced that it would cease operations in Nigeria.
3. Bolt Food
Bolt’s food delivery service was recently shut down in Nigeria, but the parent company is still operational. The public can still make use of other services offered by the company.
4. Binance
Binance stopped all transactions and trading in Nigeria’s local currency in March 2024 due to a nationwide crackdown on crypto exchanges.
Notable Data Breach Incidents in 2024:
1. Data Harvesting Websites: In March 2024, an online media outlet exposed a private website that had access to and was selling the personal data of Nigerian citizens for profit[21]. A subsequent investigation uncovered another site that had been operating since November 2023[22], engaging in the commercial distribution of sensitive information. This data included National Identity Numbers (NIN), Bank Verification Numbers (BVN), driver’s licences, international passports, company details, Tax Identification Numbers (TIN), Permanent voter cards (PVC), and phone numbers. Shockingly, these personal details were being sold for as little as ₦100 (approximately $0.14) per request.
Currently, no tangible steps have been taken to apprehend the culprits or address the growing data privacy crisis. This highlights the urgent need for government agencies to strengthen their data protection measures to prevent further breaches.
2. Fidelity Bank: On August 22, 2024, Nigeria’s data privacy watchdog fined Fidelity Bank 0.1% of its 2023 revenue, amounting to $358,580, for violating data protection laws during the opening of a customer account. This fine marked the NDPC’s largest penalty to date for a data breach. The NDPC’s investigation found that Fidelity Bank had illegally collected personal data to open an account for a customer. Fidelity Bank, however, denied any wrongdoing.[23]
CONCLUSION
In 2024, the Nigerian tech industry has experienced a transformative phase marked by increased private sector engagement and a diversification of focus beyond traditional tech hubs. This year, we have seen the emergence of innovative startups across various sectors, showcasing the growing entrepreneurial spirit among Nigerians. Notably, several tech companies and government institutions have begun to operate with sustainable business models, leveraging community support to drive their success. The anticipated passage of the National Digital Economy and e-Governance Bill in 2024 is poised to create a more conducive environment for growth, aligning with the National Digital Economy Policy. This legislation promises to bolster private sector investment and enhance Nigeria’s position as a key player in the global tech landscape, marking a crucial step in our collective journey toward a competitive and robust tech industry.
[1] New Opportunities in Nigeria’s Booming Tech Industry, Business Sweden, <https://www.business-sweden.com/insights/articles/new-opportunities-in-nigerias-booming-tech-industry/> accessed 11th September, 2024
[2] New Social Media Features 2024 April 5, 2024 <https://meerkatmediagroup.com/blog/new-social-media-features-for-2024> (accessed 16th August)
[3] Digital agriculture: Transforming the landscape in Nigeria <https://farmingfarmersfarms.com/2023/12/digital-agriculture-transforming-the-landscape-in-nigeria/#google_vignette> (accessed 10th September)
[4] Crop2cash Simplifying agriculture for a brighter future <https://www.crop2cash.com.ng/> (accessed on 3rd September 2024)
[5] AARSE How A Drone Helped Plan Irrigation On A Remote 7,400-Acre Rice Farm In Nigeria <https://africanremotesensing.org/how-a-drone-helped-plan-irrigation-on-a-remote-7400-acre-rice-farm-in-nigeria/> (accessed on 10th September 2024)
[6]Agriculture That Benefits The Planet And The People Growing It
<https://www.releaf.africa/sustainability> (accessed on 10th September 2024)
[7] Daily Post, Reliance HMO Leverages Telemedicine to Bridge Healthcare Gap in Northern Nigeria https://dailypost.ng/2024/07/25/reliance-hmo-leverages-telemedicine-to-bridge-healthcare-gap-in-northern-nigeria/ (accessed 11th September 2024)
[8]George Georgallides (2024) Personalized Health Risk Assessment: Complete Guide 2024 < https://basis-health.webflow.io/blog/personalized-health-risk-assessment-complete-guide-2024> ( accessed on 25th August 2024)
[9] Diagnostic World Team (2024) Trendspotting: What’s Coming for Diagnostics in 2024<https://www.diagnosticsworldnews.com/news/2024/01/03/trendspotting-what-s-coming-for-diagnostics-in-2024> (accessed on 20th August 2024
[10] Oluwadara Adetula (2024)
uLesson Named 2024 Technology Pioneer by World Economic Forum! <https://ulesson.com/blog/ulesson-named-2024-technology-pioneer-by-world-economic-forum/> (accessed on 9th September 2024)
[11] Gradely Empowers Children at STEM Africa Fest 2024 <https://thesun.ng/gradely-empowers-children-at-stem-africa-fest-2024/> (accessed on 9th September 2024)
[12] This Day Newspaper, Paradigm Shifts Driving Nigeria’s Evolution from Casual Gaming to eSports <https://www.thisdaylive.com/index.php/2024/09/12/paradigm-shifts-driving-nigerias-evolution-from-casual-gaming-to-esports/>
[13] Ike Ume AI and Football: Revolutionising the beautiful game <https://www.businessamlive.com/ai-and-football-revolutionising-the-beautiful-game/>
[14] PM News, How Technology Is Transforming Nigeria’s Gambling Landscape https://pmnewsnigeria.com/2024/09/06/how-technology-is-transforming-nigerias-gambling-landscape/ (accessed, 11th Septembe, 2024)
[15] Abraham Adekunle, Cac Adopts Ai Tech To Ease Biz Registration <https://asknigeria.com/cac-adopts-ai-tech-to-ease-biz-registration/> (accessed, 11th Septembe, 2024)
[16] Punch Newspaper, Nigerian Civil Service in a digital age <https://punchng.com/nigerian-civil-service-in-a-digital-age-yemi-esan/> (accessed, 11th Septembe, 2024)
[17] Lydia Ngwakwe, FG Fully Opens the 3rd Mainland Bridge With Speed Cameras <https://nannews.ng/2024/04/04/fg-fully-opens-third-mainland-bridge-with-speed-cameras/> (accessed, 11th Septembe, 2024)
[18] https://punchng.com/whatsapp-may-exit-nigeria-over-220m-fine/ accessed 24th August 2024
[19] Abubakar Nur Khalil, Nigerian Court Upheld Ruling For Banks To Require Social Media Handles <https://www.forbes.com/sites/digital-assets/2024/05/31/nigerian-court-upheld-ruling-for-banks-to-require-social-media-handles/> (accessed, 24th August 2024)
[20] Samson Akintaro, ICT’s contribution to Nigeria’s real GDP hits 19.78% in Q2 2024 – NBS <https://nairametrics.com/2024/08/26/icts-contribution-to-nigerias-real-gdp-hits-19-78-in-q2-2024-nbs/> (accessed 11th September 2024)
[21]<https://fij.ng/article/alert-xpressverify-a-private-website-has-access-to-details-of-registered-nigerians-and-is-making-money-off-it/> accessed on the 9th August 2024
[22]<https://paradigmhq.org/major-data-breach-sensitive-government-data-of-nigerian-citizens-available-online-for-just-100-naira/> accessed on the 9th August 2024
[23] Camillus Eboh, Nigerian data agency fines Fidelity Bank for breaches <https://www.reuters.com/business/finance/nigerian-data-agency-fines-fidelity-bank-breaches-2024-08-22/#:~:text=ABUJA%2C%20Aug%2022%20(Reuters),(NDPC)%20said%20on%20Thursday> (accessed 11th September 2024)
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