The digital economy is also known as the new economy. It refers to an economy in which people use digital computing technology in economic activities. There are over 2 components of the digital economy concept. These are E-business, E-business infrastructure, and E-commerce.
Digital networking and communication infrastructures give a worldwide platform over which people and firms communicate.
Impacts of Digital Economy
As of today, the digital economy is worth trillions of dollars. The growth and development of the new economy have diverse effects on the entire economy. In 2016, the new economy represented over 15% of the world’s Gross Domestic Product. The digital economy has also had a significant effect on retail sales of consumer product stuff.
One impact has been the quick growth of retailers with no physical evidence or presences such as Amazon. Walmart has restructured its enterprises to adapt to a new economy. Some retailers have failed business-wise and are even bankrupt due to their failure to adapt to the new economy.
What is Digital Resources
Digital resources are materials that people have conceived and built digitally or by changing analog content to a digital form.
Pillars of Digital Economy in Nigeria
The 1st pillar is Developmental Regulation. Some regulatory instruments for the growth of a new economy are Guidelines for Nigerian Content Development in ICT and Cybercrime Act 2015. Others include Type Approval Regulations and Ne-GIF. The 2nd pillar is known as Digital Literacy and Skills. A solid infrastructure is the 3rd pillar, and it has several policy objectives.
Other pillars include Service Infrastructure, Digital Services Development, and Promotion, and Soft Infrastructure.
The emerging tech program in the 7th pillar addresses areas such as AI and VR. Other areas include IoTs, Big data analytics, Machine Learning, 3D Printing, Cybersecurity Wireless Power, and Blockchain.
The FG’s Projects to Drive Digital Economy
The Federal Ministry of Communications and Digital Economy said that it has finished over 10 projects to boost its new economic program. Dr. Isa Ali Pantami, the Minister of Communication and Digital Economy said that during the 2nd phase commissioning of Nigeria’s Digital Economy boost. The Nigerian authorities have been pushing the new economy to establish growth and expand economic productivity in Nigeria.
Reporters reported that the Nigerian Communications Commission approved the establishment of a Digital Economy Department. It will be accountable for boosting the digital economic plan of the FG.
These projects are the Emergency Communication Centre in Kwara and Cross River states and School Knowledge Centre in Gombe state. Others are Information Technology Innovation Centre, Tertiary Institution Knowledge Centre, New Neighbourhood Post Office, and Information Technology Capacity Building Centre in Imo state.
The Corporate Event
Dr. Isa Ali Pantami re-highlighted the decision of the Federal Government to continually promote the new economic plan of Nigeria. The Minister said this while giving the main speech of the event at the 1st National Dialogue on Telecoms and ICT sector in Nigeria. It took place at the NAF Conference and Suites. The Associations of Telecommunications Companies of Nigeria planned for the corporate event.
What Professor Umar Danbatta is Saying
Professor Umar is the Executive Vice-chairperson of the Nigerian Communication Commission. The Executive Vice-chairperson has told telecom operators in Nigeria to settle the enormous debts that different industry operators owe.
“The interconnectivity indebtedness valued at more than N70 billion is a huge challenge to infrastructure diversification and inimical to healthy competition.”
Advantages of Digital Economy
The new economy has various advantages. Some of these merits are access to information, saving on time, reduced expenses, lowering barriers to entry, and enables people to work from home. During this coronavirus pandemic, digital technologies have helped the world to avoid further economic decline.