Impact of the Internet in Nigeria by Dalberg Research - Presented on September 30th, 2013 at MobileMonday Nigeria by Robin Miller

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2. The good…
…the bad…
…and the unfulfilled potential
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3. The good…
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4. Access to affordable infrastructure is increasing
75% >30% 1.38%
Mobile penetration in
Nigeria. 63% in Africa –
growing from 0.5% in 1998
to 63% in 2013
of Nigerians are online
and this number is
growing… particularly due
to mobile internet
increase in GDP for every 10%
increase in broadband across
sub-Saharan African countries
“In 10 short years, what was once an object of luxury and privilege, the
mobile phone, has become a basic necessity in Africa”
Paul Kagame
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Source: ITU World Telecommunication/ICT Indicators database

5. Innovation is driving infrastructure investment and further extending access
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6. Social media is creating millions of connections across the continent, particularly
as delivered through mobile enabled devices
Web-based
Phone enabled (through apps)
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7. There is no shortage of innovative ideas and early indications of impact…
Our study surveyed over 1300 businesses across four countries and considered more than 900 deployments of Internet
enabled solutions across six sectors and eight impact areas
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8. Impact is being delivered in both social and economic terms
Access to education:
Digital books are creating access
to reading and learning
>10.1M annual page reads
in Nigeria and over 190,000 readers across
Africa
Access to job opportunities:
Access to financial services:
Correcting information asymmetry eCommerce and payment platforms
related to employment options
Nearly
1M users
No. jobs
facilitated
0.87
80K
N18bn
>40K jobs
transacted by
Mar2013
facilitated by 2013
0.36 million
0.04 million
Total jobs
advertised
Initial
Users after
user base first year of
operation
Users
Sep2013
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9. Public, private and philanthropic investors are making big bets
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10. …the bad…
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11. Challenges related to access, innovation, and policy are holding back growth
1. ACCESS
2. SCALE
3. POLICY & INNOVATION
<35% Internet penetration in
Nigeria
We’re suffering from ‘pilotitous’…
Are policies driving innovation?
Pilots must lead to next wave
growth and large scale impact
Are policies aligned to fully
leverage the information
economy to drive growth?
<10% African businesses online
Technology policy
Sectorspecific policy
Business/
enterprise
policy
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12. Reputation of the ICT and general business environment isn’t great
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13. …and the unfulfilled potential
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14. How do we drive meaningful access? What are the conditions for success?
Two key pillars provide the basis for a well-functioning Internet economy: “core infrastructure” and
“conditions for use”
Core and Usage Index
Environmental
characteristics
Physical
infrastructure
Means to use
Internet
infrastructure
Business
environment
Availability
Accessibility
Usage
Index
Core
Index
Citizen
demographics
Stakeholder
characteristics
Business
demographics
Awareness
Desire to use
Internet
infrastructure
Attractiveness
Countries that wish to reap the Internet’s potential for social and economic gains must
continue to invest in infrastructure and the broader ecosystem for innovation.
Source: Dalberg research and analysis
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15. Continuous investment in infrastructure is critical
Mapping of countries based on conditions for Internet use and core infrastructure
Sub-Saharan Africa is on the right trajectory but, absent a minimum investment in core
infrastructure, countries face a ceiling to progress on usage conditions
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16. Three recommendations for Nigeria
1.
Impact: Look toward payment platforms to unlock the next wave of African
online consumers and translate virtual connections into meaningful
economic value
2.
Access: Continue to invest in infrastructure by looking for opportunities to
align incentives between public and private sector
3. Ecosystem: Invest in creating policy the drives innovation…and explore how
ICT can enable that innovation
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17. Twitter: _robinmiller
Email: robin.miller@dalberg.com17

18. Dalberg is an advisory firm dedicated to global development
Global presence
San
Francisco
New York
Washington DC
Dakar
Bogota
Areas of expertise
Copenhagen
Geneva
Mumbai
Nairobi
Bogota
Johannesburg
Services provided
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Analysis of market needs, gaps and opportunities
Business case development for new initiatives
Creation of innovative financing mechanisms
Entry strategies for products and services to emerging and
frontier markets
Evaluation and performance management
Facilitation of public-private partnerships
Mobile channel strategy and implementation plans
Organizational reform to strengthen accountability,
efficiency and effectiveness
Policy and advocacy support
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Access to finance
Agricultural development
Capital advisory services
Climate change, conservation and energy
Education
Emerging and bottom-of-pyramid markets
Global health
Human rights
Mobile and ICT applications in development
Programs in conflict areas and post-conflict recovery
Sampling of clients served
World Bank
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19. Dalberg’s services address a range development issues, which give us a unique
perspective on the application of technology for development
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