Late Adoption of IoT has Hindered the Full Potential of Nigeria’s Digital Tech Space- Ajibola Bello

Despite being Africa’s largest economy and a hub for digital innovation, Nigeria’s slow adoption of Internet of Things (IoT) technologies is limiting the full potential of its tech space. Countries like China have experienced exponential growth over the past two decades by integrating IoT into various sectors, creating a market projected to exceed $400 billion by 2025. China’s investment in smart cities, such as those in Shanghai and Shenzhen, showcases how IoT can be used to manage urban infrastructure more effectively, including traffic management, energy consumption, and public safety. Similarly, Japan has leveraged IoT to enhance industrial automation, with companies like Fanuc and Omron improving machinery efficiency and reducing maintenance costs through IoT integration.

In Nigeria, IoT’s slow adoption is attributed primarily to several challenges. These include the high cost of creating IoT devices and infrastructure which limits the accessibility and availability of IoT devices to Nigerians. There is also a shortage of skilled personnel with expertise in IoT development and maintenance making it difficult to support widespread implementation. The vulnerability of IoT systems to cybersecurity attacks poses a major threat to the data privacy of end users and the country’s unstable electricity supply is another major challenge preventing the adoption of IoT technology across various industries in the Nigerian digital tech space. These factors collectively hindered the early adoption of IoT technologies in Nigeria.

However, Nigeria’s tech sector has made significant strides in other areas, particularly in fintech. Companies like Flutterwave and Paystack have contributed immensely to the economy, with Flutterwave processing 200 million transactions valued at $16 billion for small and medium-sized businesses, and Paystack supporting over 60,000 businesses. The integration of IoT into fintech could further revolutionise the sector, enabling contactless payments via wearables. IoT could also enhance fraud detection and security through biometric checks and multi-factor authentication, reducing fraud risks.

The potential for IoT to transform Nigeria’s digital tech space extends beyond fintech. In healthcare, IoT could help modernise operations by automating patient records, tracking medical supply inventories, and utilising wearable devices to monitor critically ill patients. In agriculture, IoT could help introduce precision farming with soil sensors and drones that monitor soil quality, water retention, and nutrient levels, leading to higher crop yields and reduced losses. For livestock farming, IoT devices could track activity levels and feeding patterns, enabling early detection of health issues.

To fully realise this potential, Nigeria must take an active role in developing its own IoT technology. Establishing research centres and innovation hubs in universities and cities would facilitate the creation of IoT solutions tailored to the country’s specific challenges. These centres could prototype and test locally developed technologies. A portion of the national budget should be allocated to support these research efforts, along with partnerships with private investors to encourage local innovation in IoT.

Nigeria needs to invest in its own IoT hardware manufacturing plants to locally source raw materials and produce its own devices. The government could further boost IoT adoption by implementing investor-friendly policies and ensuring robust cybersecurity measures to protect IoT devices. With these steps, Nigeria’s digital tech space can harness the full potential of IoT across multiple sectors.