Importance of IoT in the Nigerian Economy
Updated: Dec 30, 2021
Nigeria is a country known for its booming oil economy and the number of people it harbors within its borders. With a population of nearly 200 million, it is the most populous country in all of Africa. While the country’s economy continues to expand, the number of people living in poverty continues to grow.
There are several reasons why majorities of Nigerians are still experiencing poverty and recession despite being an oil producing country. As of 2020, 83 million Nigerians (40% of the population) live in poverty. This figure I expected to grow to 47.3% or 98 million Nigerians, who will live in multidimensional poverty by 2022.
How will IoT improve the Economy?
As the digital revolution advances, IoT technology will play, a critical role in improving our society and help developing countries unlock new drivers of economic growth. IoT will also improve quality of life, industrial and personal efficiency, spur higher revenues, higher GDP, and a better digital economy. IoT gives visibility to people and assets that were formally in the dark.
Before we move on, let’s take a look into what IoT is.
IoT (Internet of Things) is the concept of connecting any device to the Internet and/or to each other. This includes everything from cars, doors, factory equipment, electrical appliances, and so on. The video below will simplify this.
At the Nigeria ICT Impact CEO Forum & Africa Digital Awards Hall of Fame themed ‘DATA THE NEW OIL OF THE DIGITAL ECONOMY’, many technology industry giants spoke about the need for proper digitalization of Nigeria's economy.
In attendance were dignitaries such as Mr Lare Ayoola, MD/CEO Tranter IT and IoT Africa Networks Limited; Arakunrin Rotimi Akeredolu, Executive Governor, Ondo State; Dr. Isa Pantami Hon. Minister of Communications & Digital Economy; Prof. Umar Danbatta, EVC/CEO NCC, and so much more.
Lare Ayoola received the award for Most Outstanding IoT Services Provider of the Year, Awarded to IoT Africa Networks Limited. He said, ‘ a few years ago we identified the internet of things as being an extremely important technology that needed to be introduced into Nigeria. We took up that task; we established a subsidiary called IoT Africa Networks and we signed an agreement with sigfox, the foremost global IoT provider in the world; and the rest is history.
He went on to say, “without the internet of things (IoT), the digital economy would not be where it is supposed to be or meant to be".
He went on to explain that "Without IoT the amount of data that we need to collect would not be assessable; without IoT, data acquisition will be expensive; without IoT, smart agriculture, digitization of oil, smart building, and smart logistics would not have been possible.
The internet of things is extremely important. We have put a lot of effort into it, and this is just the beginning. Earning this award is an important milestone, and it encourages us to continue to establish IoT connectivity across Nigeria’.
So how exactly will IoT influence the economy you ask?
IoT will positively enhance almost all industries in the Nigerian economy, such as oil and gas, manufacturing, agriculture, logistics, real estate, etc. According to PwC’s 2020 MSME Survey, business CEOs believe that IoT and Artificial Intelligence will have the most impact on the growth of their businesses in the next 3 years. The report noted that the pace and transformative power of technology mean that Nigerian businesses cannot afford to ignore technological trends. It will create numerous opportunities in Nigeria.
Access to high-quality education and supporting child well-being is a globally-recognized solution to the cycle of poverty. Access to education is one of the most effective tools for lifting people out of poverty. We’ve seen the potential and power of analytics, big data, and IoT connectivity when connecting people. Connectivity allows us to generate more data that affects our everyday lives. When studied and analyzed, this data gives more insights and depth to the topics, courses, and specializations children learn in school.
1. Oil & Gas
IoT will improve infrastructure monitoring in the oil and gas industry. IoT applications in the oil and gas industry include tank level monitoring, pipeline monitoring, and temperature monitoring. IoT tank level monitoring devices will efficiently monitor storage tank levels and reduce overall engineering installation, maintenance, and operation costs.
During our Smart IoT Oil & Gas Webinar tagged Digitizing The Oil & Gas Sector with IoT, Lare Ayoola, the Executive Chairman of IoT Africa Networks Ltd, outlined how oil and gas companies can save 10% to 40% of operational expenses and increase efficiencies upwards of 25% by using real-time data to monitor assets, predict breakdowns and schedule preventive maintenance. Digital Twins for the Oil and Gas industry, in partnership with OleumTech, connects the real and virtual world by collecting real-time data from installed sensors. The information is then analyzed and simulated in a virtual environment to improve the performance of oil and gas assets. Check out our company profile to learn more.
In the agricultural sector, IoT-Connected Smart Agriculture Devices will give farmers a simpler, more cost-effective way to keep tabs and stay in control of the health and growth of their crops, livestock, and agribusiness. The benefits of IoT in agriculture cannot be overemphasized, as it will enable the farmers to increase operational efficiency, reduce waste, improve farmers’ decision making, reduce the risk of crop failure, decrease production costs, and improve the quantity and quality of their yield. According to the World Bank, up to 78 percent of the world’s poor live in rural areas and rely on farming to put food on their tables and make a living.
3. Real Estate
IoT is enabling the commercial real estate sector to evolve rapidly. The industry has been faced with persistent challenges such as rising costs, rising demand for affordable housing, and the recent restriction challenge caused by the coronavirus pandemic. IoT in property management will help home/building owners, tenants, facility managers, asset managers, and real estate agents, by providing them with effective building maintenance and predictive analytics, leading to reduced operational costs, improved productivity, and tightened security, you can learn more in our just concluded IoT Real Estate Webinar, tagged Smart home, Buildings & Cities: Digitizing Nigeria's Real Estate. To watch, kindly click the link below.
1. Supply Chain & Logistics
Containers go missing all over the world and it usually takes months to find them assuming they are ever found. The combination of mobile computing, analytics, and cloud services, all of which are fueled by the Internet of Things (IoT), is changing how delivery and asset management companies are conducting their operations. Wholesalers and retailers are now able to use IoT to improve tracking of their goods while monitoring the conditions of said goods. They will be able to follow their goods in transit from production, to warehouses, and to delivery; all in real-time.
2. Manufacturing & Construction
In the manufacturing space, the internet of things is going to redefine how products are manufactured and delivered. With the efficient monitoring that IoT will bring to the manufacturing industry, manufacturing companies will be assured of cost reduction, mass customization, and improved safety. It will also enable construction companies to reduce theft, increase productivity and control operating costs. This will save Nigerian manufacturing and construction companies millions of naira.
In a recent interview conducted, Mr Lare Ayoola, CEO IoT Africa, spoke on the impact IoT would have on the economy, he said, ‘I think the Nigerian economy should expect a substantial boost. The provision of IoT services and solutions in Nigeria enables improved productivity, minimizes waste, maximizes loss prevention, and makes decision-making much faster by providing a massive amount of data that can be analyzed and presented for decision-makers.
These are just a few of the importance of IoT in our Economy and how it will help drag Nigeria and Nigerians out of life threatening poverty. The internet of things is here to make life easier, improve the quality of life and improve our economic strength.