How 5G can spur Nigeria's economy

Nigeria is on the cusp of a digital revolution as Airtel Africa joins the ranks of MTN Nigeria and Mafab Communications in the 5G spectrum space. The move is poised to spur the nation's economy to greater heights by harnessing the opportunities presented by enhanced connectivity and technological advancements. Ikemesit Effiong, the Head of Research at SBM Intelligence, provided valuable insights into the impact of this significant development on Nigeria's growth trajectory in a recent CNBC Africa interview. Effiong highlighted the positive implications of 5G technology, emphasizing the importance of increased connection speeds, the facilitation of high-end offerings, and the seamless execution of financial transactions. Moreover, the deployment of 5G infrastructure is expected to attract investors and position Nigeria as a hub for expanding into the broader Western and Central African region. With Airtel's proven capacity to swiftly deploy 5G, healthy competition is anticipated in the telecom market, paving the way for innovation and enhanced services. The ICT sector in Nigeria has been a pivotal driver of growth, accounting for approximately 15% of the economy. Effiong projected steady growth in the sector, fueled by rising data consumption and smartphone penetration in the low to middle market segments. However, challenges such as high inflation and pricing pressures could result in a moderation of growth in the coming years. SBM Intelligence's upcoming economic outlook report for 2023 sheds light on key trends and projections for the Nigerian economy. The report anticipates ongoing government subsidies and currency devaluations, while noting the continued reliance on oil revenue amidst fluctuating global prices. Expectations point towards sustained investor interest in Nigerian bonds, although regional economic dynamics and political uncertainties could influence market sentiment. Looking ahead to 2023, Effiong expressed concerns about the government's fiscal sustainability and highlighted potential gridlock in economic policy formulation. With Nigeria's fiscal balance sheet facing challenges, the incoming administration will inherit a complex financial landscape that necessitates strategic decision-making and prudent management of resources. Effiong underscored the importance of cohesive fiscal policies to navigate external shocks and sustain economic stability amidst evolving political dynamics. As Nigeria prepares for a transformative journey in the digital realm, the convergence of 5G technology, ICT innovation, and government policy will shape the country's economic landscape in the years to come. The 5G revolution holds the promise of unlocking new opportunities, driving productivity gains, and fostering inclusive growth across various sectors. With concerted efforts to address challenges and capitalize on emerging trends, Nigeria stands poised to leverage the power of technology to propel its economy to greater heights.