Nigeria has a vibrant and growing tech sector. In a survey of tech firms conducted in 2018, we find that most firms start small but grow quickly, more than doubling their size in the few years since the start of operations. Many are addressing inefficiencies in distribution of goods and services. But firms are still hampered by the business environment, notably unreliable electricity and lack of access to credit. Most suffer significant power outages, forcing them to purchase generators. Few firms have access to financial institutions or venture capitalists, relying instead on family and professional networks. Finally, tech firms employ very few women. While the Nigerian government has made the tech sector a priority, it needs to do more to improve the basics of the business environment. The government and the private sector must also take steps to increase the participation of women in the tech sector.
Fuel Subsidy Reform and Green Taxes: Can Digital Technologies Improve State Capacity and Effectiveness?
Reforming inefficient and inequitable energy subsidies continues to be an important priority for policymakers as does instituting “green taxes” to reduce carbon emissions. The paper outlines how the use of digital technology can help accomplishing those reforms, drawing on four country cases. The technology is only a mechanism; it does not, in itself, create the political drive and constituency to push reform forward.
There are two big questions about modern innovation: Why does it tend to confine itself to only a narrow “vanguard” of the economy in every part of the world? And why does it not provide as big a boost to productivity as expected, especially since the dotcom bust?