By Adedapo Adesanya
Top technological firm, Google, says Nigeria has a high return on investment in its digital economy sector as every $1 invested contributes $8 to the country’s economy.
This was contained in a new report released on Thursday titled The Digital Opportunity of Nigeria, commissioned by Google and conducted independently by Public First, which underscores the significant economic impact of digital technologies in Nigeria.
According to the study, every $1 invested in digital technology in Nigeria generates over $8 in economic value, an 800 per cent return on investment (RoI).
This emphasises the critical role of digital technology, including connectivity, cloud computing, and artificial intelligence (AI), in shaping Nigeria’s economic future.
The study also found that in 2023 alone, Google’s products and services—including Search, Ads, YouTube, and Cloud—contributed an estimated $1.8 billion in economic activity across Nigeria. This has significantly boosted the productivity of Nigerian businesses, creators, and workers.
In addition, Google’s digital skills programmes, including Digital Skills for Africa and the Career Certificates Programme, have helped millions of Nigerians, with over 1.5 million young adults learning new digital skills in 2023 alone.
The research, shared with Business Post, also indicated that a 1 per cent increase in internet connectivity has the propensity to boost Nigeria’s gross domestic product (GDP) by 5.7 per cent, adding that coupled with Android’s increased affordability, this can accelerate internet access for an additional 5 million Nigerians.
The report also estimates that AI could increase Nigeria’s economy by an additional $15 billion by 2030, with Google’s commitment to responsible AI development set to play a pivotal role.
Speaking on the report, Mr Olumide Balogun, Director, West Africa at Google, “We’re thrilled to see the positive impact that digital technology is having on Nigeria’s economy. This report underscores the importance of continued investment in digital skills and infrastructure to unlock the full potential of Nigeria’s vibrant digital economy.”
On her part, Ms Amy Price, Director & Head of Technology Policy at Public First, added “Nigeria is a digital front-runner in Africa, and tech investment will be a powerful catalyst for further growth and development across the country. This is particularly true when it comes to connectivity, cloud computing, and artificial intelligence.”
The report also provides strategic recommendations for policymakers, advocating for increased cloud-first policies and enhanced digital infrastructure to maximise AI’s potential in Nigeria and highlights the need for stronger STEM education and AI fluency to prepare Nigeria’s workforce for the future.