Ogun Digital Economy: Setting The Pace

Femi Ezekiel

In driving the growth of any economy in the face of global economic challenges, a focus-driven government harnesses available resources at its disposal to open up value chain opportunities for the prosperity of its people.

While other states are still struggling to diversify their economies, on account of their over-dependence on crude oil for survival, and key into realities of other unlocked potential, the recent launch of the “Ogun State Digital Economy Infrastructure Project (OGDEIP)” is, no doubt, a path to success to the burgeoning economy of the Gateway state and the country’s at large.

The state has taken hold of the future by making digital access available to all the citizens and businesses, and it is the most far-sighted action any government can take in the present time.
Ogun State is blazing the trail of excellence as an investment destination of choice. Thus, its proximity to Lagos State, the fifth largest economy in Africa, is a plus to the novel initiative in response to both the pull and push factors, which are by no means a gradual process to attract direct investments to the state.

The benefits of the digital economy infrastructure are numerous. It is an infrastructure that will bring about great economic development; great access to youths and also attract more investments to drive end-results, among others.
The journey to digitise the Gateway State began in 2019, given the clear vision of the helmsman, Prince Dapo Abiodun, inaddition to his robust background in the a private investor, to turn around the economic fortunes of the state on assumption of office.

Bringing his business acumen in the private sector to bear on the economic planning on the state, the governor has not betrayed the trust and confidence reposed in him by the good people of Ogun State that gave him a popular mandate in 2019 to lead them. Arguably, Ogun is the first state to catch up with the realities of digitising its economy and in keying into the critical component of President Muhammadu Buhari’s objectives of “broadband connectivity for all by 2023”.
By and large, Vice-President Yemi Osinbajo, while appraising the benefits underscoring the initiative, noted that digital economy technology is crucial to all aspects of human existence in thefuture, such as business, education, healthcare, governance, security, and the practice of every profession.

Osinbajo said, “Indeed, access to broadband and modern technology tools has become compulsory for any community that seeks meaningful growth, security and prosperity for its people. So, I would like to commend our futuristic, dynamic, innovative and digitally compliant governor, Dapo Abiodun, for credible and relevant initiative, by bringing broadband to homes, businesses and offices in Ogun State. You are opening up Ogun State residences and businesses digitally, not just across Nigeria, but to the entire universe.

“This project is a critical component of Mr. President’s objectives of broad-band connectivity for all by 2023. This ambition, as you know, is now enshrined in our Economic Sustainability Plan and as part of the national commitment to make broadband connectivity available to all. You will recall that, in 2017, the state governors under the auspices of the National Economic Council agreed to harmonise a right of way charge payable by telecommunication companies and related public utility infrastructure on local governments, states and federal highways to encourage co-location of the companies that fibre the cables.

“In another demonstration of the government’s commitment in this regard, the Federal Ministry of Communication and Digital Economy launched a National Broadband Plan which is designed to deliver data downloads units across Nigeria with a minimum of 25A BPS in urban areas and 10 MPPS in rural areas with effective coverage available to, at least, 90 per cent of the population by 2025 at affordable prices.”

Governor Abiodun stated that the expected returns on the marriage of commitment and partnership by the administration is to provide good governance, while partnering with the private sector to bring about corporate and individual prosperity for all the citizens.
Abiodun commended the initiative of the National Digital Economy Policy and Strategy (NDEPS), supervised by the Federal Ministry of Communications and Digital Economy that has made it possible for Nigerians to continue to take advantage of the opportunities offered to be more creative and highly innovative.

According to him, “We all felt and saw the positive effects of the deployment of ICT towards resolving various challenges that have culminated in creating more employment opportunities and poverty alleviation. This was very obvious during the critical period of COVID-19 when many Nigerians had to work from home; where businesses were transacted virtually and payments made online.

“Virtual online meetings became the in-thing as almost every aspect of the economy and personal life and living depended on ICT and got digitised. No doubt, the federal government’s policy of creating a thriving digital economy will enable the people, especially the youths to take advantage of information superhighway and new technologies to become leading players in our globalised world. In fact, it will serve as a viable platform for strengthening the economic diversification, as well as the attainment of many key national objectives of fighting corruption, improving security, job creation and expanding the economy.”

He said the formal launch of the OGDEIP was to formally deepen the various advantages of information technology advancements into all sectors and to make ICT an indispensable point of the economy. The ICT, he said, has continued to account for more than 21 per cent of the state’s gross domestic product (GDP), and hence, continued to provide countless job opportunities for the growing educated and creative citizenry.

Furthermore, Abiodun underscored the importance of the OGDEIP in providing broadband connectivity to every nook and cranny of the state. The project, which is a joint effort between the administration and its technical partner, 21st Century Technologies Limited (21CTL), is to deliver fibre-optic cables and mechanics across all the 20 local government areas within the next two years. Also, the second phase of the project is the establishment of a world class data centre at the Silicon Alley in Abeokuta that will host a variety of ICT services for the public and private sectors, and cyber security scrubbing centres. And this is a stage that will complement the third phase of the project.

He added: “At this point, let me note that OGDEIP is also a culmination of a significant groundwork already undertaken by our administration towards creating an enduring and sustainable digital economy in Ogun State.

“Our administration is taking practical steps towards integrating technology into its practices and businesses. In this aspect, we have begun deploying electronic document management systems, e-procurement tools and digitised revenue collection platforms towards improving the efficiency and reduce leakages in all our Ministries, Departments and Agencies (MDAs).
“I am also to note that the introduction of digital technologies has started to yield positively and improve on justice and the improvement of the system of administration of justice in our far state. Without sounding immodest, the Ogun State judiciary is the first to issue Practice Directions that allowed for virtual hearings of cases after the lockdown, occasioned by the COVID-19 pandemic.

“Without doubt, all these reforms and developments are just a part of the positive impacts of the digital economy in our bid to creating individual prosperity for our people and continued development of our dear state’s economy.”

Notwithstanding, the commitments towards providing focused and quantitative governance, and in creating an enabling environment for industrialisation are parts of the demonstration by the current administration in its commitment towards providing the required infrastructure to boost all aspects of the state’s economy. And these are in the areas of building road infrastructure to link industrial hubs, adjoining states, urban to rural, food baskets to markets for the overall development of the towns and cities.

The construction of the Agro-Cargo International Airport is part of the wholesome strategies towards developing air transport infrastructure, especially to boost the agricultural development agenda. The administration is unfolding the power infrastructural project that will guarantee stable power to most of the cities and industrial clusters. As a result, this digital economy infrastructure is the backbone for ICT revolution. And this will further enhance ease of doing business in the state. Therefore, the provision of a digital economy will not only help to resolve many challenges, both human and economic, but will also provide more opportunities to improve the people’s know-how, productivity and innovations as necessary for nurturing their potential and the continued development of the state’s economy.

Minister of Communications and Digital Economy, Dr Isa Pantami, in his paper, commended the efforts of Governor Abiodun, for his giant stride towards the creation of a robust digital economy for the state.

Pantami, who was represented by Prof. Umar Dambata, noted that expansion of the digital economy of the state would strengthen its existing economy, enable its diversification and create new economic opportunities for the state, thereby improving the quality of life of the people of the state and the country as a whole.

He said, “In today’s world, the digital economy is widely acknowledged as a core driver of global growth. It is the single most important driver of innovation, competitiveness and economic growth. According to a report by Huwaei and Oxford Economics titled, “Digital Spill Over: Measuring the True Impact of the Digital Economy”, the global digital economy in the year 2016 was valued at $11.5 trillion dollars equivalent to about 15.5 per cent of the global gross domestic product (GDP).

“The report estimates a $1.7 trillion boost to this value by 2025, culminating to an equivalent of 24.3 per cent of global GDP. In fact, this report seems to have been overtaken by events of the past year, as recent estimates suggest the global digital economy is already valued at 23 per cent of the global economy. In Nigeria, the digital economy has played a critical role in supporting our national economy and it played an important role in helping Nigeria to exit recession.”

Pantami listed benefits derivable from the digital economy for countries and states that adopt it to include datasification of society, job creation, wealth creation, enhanced government-citizen interaction and digital inclusion and increased innovation.

Going back to memory lane of the evolution of Nigeria’s digital economy journey, the official launch of the project was on October 17, 2019 when President Buhari approved the request to redesignate the Ministry of Communications to the Ministry of Communications and Digital Economy, in line with global best practices and to facilitate the diversification of the country’s economy.

In a bid to adequately position Nigeria as a major player in the growing global digital economy, the government, through the Federal Ministry of Communications and Digital Economy, developed the National Digital Economy Policy for a Digital Nigeria, as a reflection of the approach towards the development of the digital economy.

The policy has eight pillars. These pillars were carefully selected to include all the key aspects that Nigeria needs to focus on in order to actively participate in the global digital economy. The implementation of the digital economy strategy will accelerate the development of a digital economy in the country. Broadband is one of the basic foundations of the digital economy and a key driver of the economic growth.

Meanwhile, Mr Wale Ajisebutu, Managing Director, 21st Century Technologies Limited, stated that the project had come with a lot of benefits, which include youths’ empowerment, a point of contact between the government and the citizens, generation of more revenues to the government’s coffers, making the citizens digitally savvy, among others.
Without mincing words, Ogun State has set the pace. Its determination to grow the economy through digital infrastructure is designed to bring about great economic development and also to attract more investments to drive end results.
––Ezekiel wrote from Abeokuta, Ogun State