Internet availability has helped with job creation and the reduction of poverty in African countries like Nigeria, the World Bank has disclosed.
Despite this development, many people are not taking advantage of the benefits of the Internet, according to the global bank.
In its ‘Digital Africa: Technological Transformation for Jobs’ report, the bank said, “These impacts attributable to faster internet are net positive job increases and sizable in magnitude, rather than displacement of jobs from unconnected areas.”
It states that faster internet adoption is skill-biased, meaning internet adoption encourages more-skilled jobs.
The internet has indeed created numerous employment opportunities across the globe, including Nigeria. Through online platforms, remote work, and digital businesses, people have found various job opportunities, contributing to economic growth and empowerment. However, comparing the internet’s impact to that of the Nigerian government’s efforts is a complex matter, as they serve different roles in society. It’s essential to acknowledge that both play crucial roles in shaping the employment landscape and fostering economic development.
Certainly! Let’s dive deeper into how the internet has created more employment opportunities than the Nigerian government.
1. **Remote Work and Freelancing:** The internet has enabled individuals to work remotely for companies worldwide or as freelancers. This has expanded the job market beyond geographical boundaries, allowing Nigerians to offer their skills and services to clients from different countries.
2. **Digital Entrepreneurship:** Online platforms have given rise to a new wave of entrepreneurs in Nigeria. People can start businesses with minimal capital, selling products or services online, and reaching a broader customer base through e-commerce and social media.
3. **Tech and IT Industry:** The growth of the internet has driven the demand for tech-savvy professionals, such as web developers, software engineers, digital marketers, and data analysts. This has opened up opportunities for skilled Nigerians to work in the thriving tech industry.
4. **E-Learning and Online Education:** The internet has facilitated access to education and learning resources. Online tutoring, educational content creation, and e-learning platforms have created employment opportunities for educators and content creators in Nigeria.
5. **Online Services and Gig Economy:** Various online platforms connect individuals seeking services with freelancers or gig workers, such as ride-sharing drivers, delivery partners, and virtual assistants. These platforms have provided flexible earning opportunities for many Nigerians.
6. **Content Creation and Social Media:** Content creators, influencers, and social media managers can now monetize their online presence, contributing to the rise of digital marketing and influencer culture in Nigeria.
While the internet has undeniably created new avenues for employment, it’s essential to recognize that the government’s role remains crucial in fostering an enabling environment for job creation. The government plays a vital role in infrastructure development, education, healthcare, policy formulation, and regulation, which all impact the overall employment landscape. For sustainable economic growth, a balance between private sector opportunities facilitated by the internet and government-led initiatives is essential.
In the report, it was revealed that workers who lack skills are at a disadvantage because of their lack of education.
The report stated, “Some of the increase in jobs is explained by net firm entry (about 23 per cent in South Africa), including a large increase in firm entry and a decrease in the firm exit of a similar magnitude.
“Another part of the jobs increase appears to be due to increased productivity in existing manufacturing firms (in Ethiopia). Enterprises in Ghana, Kenya, Mauritania, Nigeria, Senegal, and Tanzania export more when they have access to faster Internet, communicate with clients more, and train employees more, according to World Bank Enterprise Survey data.”
It said, “The job estimates from Nigeria show that internet availability has positive impacts: labour force participation and wage employment increase by three percentage points and one percentage point, respectively, after three or more years of exposure in areas with internet availability relative to those with no coverage.”
According to it, the Internet-induced improvement in labour market outcomes is especially large for women.
The global bank further stated that Internet availability also caused large and positive increases in household consumption levels. This was due to households with at least one year of mobile broadband availability increasing their total consumption by about six per cent.
The World Bank said, “These effects increase to about nine per cent after three or more years of mobile internet coverage. Mobile internet availability also reduces the proportion of households below the poverty line—a reduction driven by higher food and non-food consumption in rural households.
“The proportion of households below the extreme poverty line decreases by four percentage points after one year of gaining mobile internet availability and by seven per cent after three years.”
According to the bank, Nigeria and other African countries need better and more jobs for their growing population and digital technologies can offer a way out.
They do so by helping all people work better and learn as they work, catalysing the adoption and productivity of complementary technologies, and thereby boosting competitiveness, production, and jobs across the economy.”
In Nigeria and other Sub-Saharan African countries, more than 23 million people (almost 2 million per month) enter the job market.
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