September 27, 2021

With January 2022 date set for the rollout of the 5G network (the fifth generation technology standard for broadband cellular network), Political Economist explores the commercial values and socio-political benefits of this genre of technology to the Nigerian economy.

5G is noted for high speed, bigger broadband capacity and ability to impact all aspects of e-life in a manner never before experienced. Already deployed in China, South Korea, United States among others, they make up the 58 countries that have 5G networks as at June 2021. Over one billion users are projected to be captured in the 5G network by 2025.

In Nigeria, experts say 5G will improve financial services especially e-banking, offering banks and clients an unusual interactive experience which will eliminate downtime in accessing accounts, transactions and response to inquiries of clients by banks.

Nigeria currently is grappling with insecurity. Deployment of 5G, many experts predict, would be an elixir to the problem as it would aid surveillance of criminals and other security-related activities.

Nigeria’s e-commerce which is fast growing is yet another industry that will experience a new dawn of positive consumer experience. The Ministry of Industry, Trade and Investment says current e-commerce spending in Nigeria is estimated at about $13 billion per annum and projects it to rise to $75 billion in revenues by 2025.

For this to happen, the e-commerce space will leverage on the power, capacity and speed of 5G. From all indications, the projected size of e-commerce may exceed the $75 billion mark in 2025 if the January rollout date for 5G becomes feasible.

Dr. Evelyn Ngige, Permanent Secretary of the ministry, said at the second National e-commerce Roundtable organised by the ministry in Abuja that e-commerce holds high hopes for Nigeria because of the heavy youth involvement.

“E-commerce in Post COVID-19 Economy, Potential Change in Business Process Outlook and Shifting Domestic and Global Policies on Commodity Trade,” was the theme of the roundtable, meant to widen the scope of development of non-oil sector to generate employment and sustainable revenue earnings.

In a keynote address, the permanent secretary, represented by Mr. Suleiman Audu, Director, Commodities and Export Department (CED) of the ministry, said e-commerce had grown from 14 per cent in 2019 to 17 per cent in 2020.

According to her, the ministry is passionate about the growing investment opportunities in the e-commerce value chain, which are capable of contributing significantly to the country’s Gross Domestic Product (GDP).

“Interestingly, e-commerce provides an alternative to sustain businesses and preserve millions of jobs in the face of COVID-19 challenge.

“For instance, in China, e-commerce companies played a key role in the supply of food and other essential commodities to residents of Wuhan during the knockdown period in 2020,” she said.

Mr. Kingsley Ocholi, a software engineer foretells a leap growth for the nation’s entertainment industry. He singled out Nollywood, Nigeria’s movie industry and music, to be the biggest beneficiaries from 5G deployment in the entertainment ecosystem.

He commended the Nigerian Communications Commission, NCC, for herding Nigeria in the right by making sure “we do not have to wait until every other nation has joined the 5G train.”

He noted that the GSM which Nigeria embraced in 2001 had already been in use in smaller and poorer African nations before Nigeria auctioned the digital mobile licence in January, 2001. This, he said, was not good enough for the reputation of a nation that prides herself as giant of Africa.

He said: “Basically, 5G will give a boost to live streaming and general streaming of movies, videos and music especially with many Nigerians adapting to watching movies on their phones, on the move as against the old tradition of watching on TV. Nigerians should expect a new wave of high quality in entertainment which will translate to more money for the actors and drivers of the entertainment industry.”

An ICT expert, Mr Jide Awe, the Chief Executive Officer, Jidaw Services Ltd, said the 5G network would distinguish countries as it would enable full and productive exploitation of the emerging technologies that were driving and creating the future.

“5G has proven globally with the benefits overweighing any perceived disadvantages; it provides a platform for the creation of new and high value applications and experiences.

“5G rollout will meet the massive and growing demand for mobile broadband and mobile video needs of the demanding digital economy and will also foster the growth of smart initiatives,” Awe said.

He further said that the nation should focus on leveraging the 5G network infrastructure to overcome developmental challenges.

According to him, the policy implementation must be inclusive, relevant and stakeholders driven in a meaningful manner for the purpose of achieving sustainable development.

“The implementation should be in line with the Science, Technology and Innovation Strategy for Africa 2024 (STISA-2024).

“The environment in the entire telecom space for 5G and existing networks should also be one that fosters investment and deployment in view of the huge investment requirements.

“It is also particularly important to determine how 5G networks will work alongside existing older generation networks.”

Awe added that the network would require digital inclusion, acceleration of broadband penetration, while state governments needed to be smart to encourage infrastructure support.

“Meaningful capacity building is also critical to effective 5G adoption because capacities and capabilities will assist in ensuring smooth implementation, sustainable operations and growth.’’

Mr Andrew Abu, Founder, Young Innovators of Nigeria (YIN), said during the COVID-19 pandemic, there was an increase in the use internet.

Abu said: “without any doubt, this would lead to massive improvements and there is no better timing especially after the experience with the COVID-19 pandemic which has pushed the need for critical reliable network connectivity.

“There is increased remote work, online learning and video chats with family and friends which have become the new normal worldwide.

“There’s an overwhelming subscriber appetite for ever-faster speed and greater bandwidth which will continue to drive the importance of 5G network.

“It is only wise to join the move as more of the world countries have adapted.”

He said the development would benefit the public through new services and applications.

Mr Ama Ase, the Managing Partner, Aiivon Innovation Hub, also said that technology was revolutionising human activities and the tech sector in the country was rapidly growing.

Ase cited the technology behind the production of smart wrist watches dependent on an emerging technology, which was the Internet of Things (IoT).

He said that IoT and other emerging technologies would be fully harnessed with the operation of 5G Network, without which the country would not be at par with the international standard of digitalisation.

He added that it would encourage investors to make investments in the country’s IT ecosystem and the 4th Industrial Revolution could be achieved in combination with other networks.

“There is a broad range of innovations from startups and the adoption of 5G network will improve service delivery and make their services easier and faster.

“During the COVID-19 period, there was total dependence on technology; people held online meetings and, then, 4G Network was slow especially connecting with international partners which 5G can correct.

“There is the emergence of virtual realities, new solutions like drone technology, precision agriculture that will be augmented and driven by 5G network,” Ase said.

He, however, urged the authorities to ensure that deploying the network would not pose any adverse effect on the health of the citizens or any challenges.

Mr Isa Pantami, Minister of Communication and Digital Economy, had earlier said that the 5G network will be deployed in Nigeria in January 2022,  and will aid surveillance against vandalism of public assets.

• With additional reports from NAN