Digital Literacy in Nigeria: Effects on the Nigerian Economy and Tech Sector

Digital literacy is no longer an optional skill but an essential one for survival today. The dominance of technology, internet-connected devices and infrastructures has increased the need for digital literacy. 

We now live in a technologically reliant world. Our daily lives revolve around technology, from the mobile phone or PC you’re reading on to the e-commerce platforms where you buy and sell, among other things. Everything and everyone, directly or indirectly, depends on technology.

What is Digital Literacy?

Digital literacy is the effective use of digital services like mobile devices, software, and other digital infrastructures. It is the ability to communicate across various digital platforms. 

According to UNESCO, “Digital literacy is the ability to access, manage, understand, integrate, communicate, evaluate, and create information safely and appropriately through digital technologies for employment, decent jobs, and entrepreneurship.”

The digital economy is built on digital literacy. It empowers individuals and organizations to leverage digital tools, data, and connectivity, leading to economic growth, innovation, and increased opportunities in the digital world. It is essential for individual empowerment and a country’s competitiveness in the global digital landscape.

Major components of digital literacy include:

• Practical and functional Skills
• Creativity
• Critical thinking and evaluation
• Cultural and social understanding
• Collaboration
• Capacity to curate Information
• Purposeful communication, and
• Cybersecurity.

According to the World Bank Development Report for 2020, over 50% of Nigeria’s population needs to acquire digital skills and, therefore, can not use digital services. To bridge this technological gap, the FG aimed to have 95% of the population digitally literate by 2030. 

Only 38% of the total population has internet access, primarily men. Economic background also contributed to the digital division in the country. 

Read also: Top 10 Sites to Learn Digital Skills in Nigeria

4 Significant Impacts of Digital Literacy on Nigeria’s Economy 

A recent report by GetBundi says that about 80% of Nigerian graduates have zero digital skills. Most graduates’ lack of digital skills makes them unfit for modern jobs that require digital literacy.

With digital literacy, the unemployment rate can be drastically reduced or even totally banished through the following means:

1. Skills development

Digital literacy programs can teach valuable skills in demand in today’s job market. This includes proficiency in using digital tools, software, and online platforms, which are essential in many industries. 

It also extends to financial management skills, helping individuals make informed decisions about their finances and investments.

2. Opportunity to work from home

Digital literacy enables individuals to work remotely and access a global job market. Graduates and non-graduates can offer their skills to international clients or find remote job opportunities, expanding their employment prospects.

Also, graduates can leverage freelance platforms like Fiverr and Upwork, among others, to offer their services globally. These platforms connect skilled individuals with clients seeking specific services, creating income opportunities.

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3. Entrepreneurship and personal development 

With digital literacy, individuals can start their online businesses or freelancing careers. They can market their skills or products to a global audience, reducing their reliance on traditional employment.

It also allows individuals to access online courses and resources for continuous learning and upskilling. Graduates, undergraduates, and even skilled labour can adapt to evolving job requirements and remain competitive in the job market.

4. Networking and access to information

Digital platforms and social media can help people connect with professionals in their field, attend virtual job fairs, and join online communities that provide job leads, internships, and mentorship. 

Being digitally literate also gives people access to a vast amount of information. Individuals can research job opportunities, learn about emerging industries, and make informed career choices.

5 Major Influences of Digital Literacy on the Tech Sector

Digital literacy has a profound and multi-faceted influence on the tech sector. Here are some key ways in which it impacts the tech industry:

1. Produce a competent workforce

Digital literacy is the foundation for a competent tech workforce. Individuals must be proficient in using digital tools, programming languages, and software to contribute effectively to the sector.

2. It drives innovation

Digital literacy fosters an environment of innovation in the tech sector. It empowers individuals to explore new ideas, experiment with emerging technologies, and develop innovative solutions to complex problems.

3. Global collaboration

The global tech sector and digital economy facilitate collaboration and communication across borders. Professionals can work on projects remotely, share code on open-source platforms, and collaborate on international tech initiatives.

4. Rapid skills acquisition

In the fast-paced tech industry, digital literacy skills allow individuals to acquire new skills quickly. Online courses, tutorials, and documentation are readily available, enabling professionals to adapt to evolving technologies.

5. Prioritization of cybersecurity

With the increasing importance of cybersecurity, digital literacy skills are crucial for understanding and implementing security measures to protect digital assets and data. 

Read also: Digital Marketing Vs Traditional Marketing in Nigeria: Which is More Effective?

Other Vital Areas Where Digital Literacy Skills Have a Profound Effect

• Digital economic growth

Countries with a digitally literate population tend to experience higher economic growth. Digital literacy enables individuals to participate in the digital economy, start businesses, and access online job opportunities.

• Education

Digital literacy enhances educational opportunities. It allows for online learning, access to a vast array of educational resources, and the development of digital skills that are increasingly essential in the job market.

• Communication

Digital literacy facilitates communication, both locally and globally. It enables people to connect with others, share ideas, and collaborate across borders, fostering cultural exchange and international relations.

• Improved government services

Digital literacy can improve access to government services and make public administration more efficient. It can also enhance transparency and citizen engagement in governance.

Moreover, digital literacy skills can improve access to healthcare information and telemedicine services, particularly in remote areas. This will lead to better health outcomes and disease prevention.

Read also: How to Start a Digital Marketing Agency in Nigeria 

3 Tech Success Stories in Nigeria as a result of Digital Literacy 

Nigeria has seen the emergence of numerous successful tech startups that owe their success to a digitally literate workforce. Here are a few outstanding examples:

1. Flutterwave

Founded in 2016, Flutterwave is a fintech startup providing payment solutions for African businesses. The company’s success is attributed to its digitally skilled team, which has developed innovative payment technologies. Flutterwave has raised significant funding and expanded its services to several African countries.

2. Paystack

Paystack is a Nigerian fintech startup specializing in online payment processing. Its founders, who possessed solid digital skills, developed a robust payment platform that was well-received by businesses. Paystack was later acquired by “Stripe,” a major global payments company, which highlighted the quality of tech talent in Nigeria.

3. Kuda bank

Kuda is a digital-only bank in Nigeria that offers mobile banking services. The company leverages a digitally skilled team to provide a seamless and user-friendly banking experience through its app. Kuda has gained significant attention and funding due to its innovative approach to banking.

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Conclusion

Digital literacy involves the technical know-how required to use digital services/platforms and the cognitive abilities to understand, create, evaluate, and share information. 

When you stream movies from your favourite streaming platform or create videos on TikTok or YouTube, post on Facebook, and relate to your Twitter feeds, you display digital literacy.

The digital economy depends on the effect of the all-encompassing digital literacy skills, as it transforms every aspect of human life for the better.

Edited by Priscilla Ajayi.

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Olateju Oluwatomisin

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