Naira Redesign Policy and the State of Digitalization in Nigeria

Modern development has placed digital technologies at the forefront, giving economies a chance to hasten economic expansion and ease the connection of people to services and employment. The contribution of the service sector continues to grow in most economies and at a faster rate in low and middle-income countries, with digitalization as a driving force. The Nigerian economy is on course as information & communication technology (ICT), and the digital economy contributed  18.44 percent to Nigeria’s Gross Domestic Product (GDP) in Q2 of 2022.  

To take advantage of the gains of the growth in the digital economy, the naira redesign policy, the naira swap programme, and the cashless policy deepened the use of digital means in Nigeria. The Central Bank of Nigeria (CBN), through its mandate of maintaining Nigeria’s external reserves, safeguarding the international value of the naira, promoting and maintaining monetary stability, and a sound and efficient financial system, introduced a policy that resulted in a makeover of the currency. Included in this were ancillary directives that aimed to promote the digitization of transactions and facilitate the measure and control of the money supply. Hence, the reflection on what the naira redesign policy by the Apex bank reveals about the state of digitization in Nigeria.

Objectives of the CBN’s Naira Redesign Policy

In fulfilling its mandate, the Apex bank of Nigeria rolled out the policy to redesign the denomination of the N200, N500, and N1,000-naira notes to achieve specific objectives. The stated objectives of the policy is aimed at addressing identified economic challenges in the country and are in line with the provisions of Section 2b, section 18a, and section 19, subsections a & b of the CBN Act, 2007. The control of money in circulation is one of the objectives behind the naira redesign policy. According to the CBN, as of September 2022, N2.73 trillion of the N3.23 trillion of currency in circulation was held outside the safe deposit boxes of commercial banks in Nigeria (85% of the country's total money supply). These funds are held by the populace for several reasons, including traditional piggy banks, cash hoarding, instances of counterfeit money, fraud, and more.

Implications of Naira Redesign on the State of Digitalization in Nigeria

Increased Pressure on the Digital Infrastructure: The paucity of the new naira notes mounted unprecedented pressure on digital alternatives for transactions in Nigeria. The demand for cash far outstrips the supply of naira notes, as over N1 trillion worth of old notes has been mopped up from the Nigerian economy as of December 2022. Also contributing to this gap is the limited supply of new notes by the CBN through commercial banks and POS operators. Due to the scarcity of naira notes, commercial bank depositors and POS customers were forced to pay 10 to 40 percent premiums to complete cash withdrawals.  The daily limits on cash withdrawals imposed by the CBN also increased dependence on digital channels to facilitate effective demand. Other factors influencing the state of digitalization due to the naira redesign policy include:

  • The digital infrastructure of banks in their present state seems incapable of handling the sharp increase in transaction volume. Due to the unreliable nature of digital services, digital transfers can take up to 48 hours, while customers with failed transactions are given ten working days before their cases can be resolved. Following the high volume of failed transactions and the influx of complaints from bank customers, many banks increased staffing in customer service functions in order to meet the increase in complaints from irate customers and mobilize information technology (IT) departments. The brain drain of valuable IT support staff for more rewarding opportunities abroad contributes to the digital scalability constraints faced by the commercial banks in Nigeria.
  • Telecommunication services are an indispensable component of critical infrastructure in the digital economy. Despite its importance, telecoms are losing liquidity, as banks remain indebted to them to the tune of an estimated ₦80 billion in unstructured supplementary service data (USSD) fees as of November 2022. This marks a significant increase in commercial bank debt to telecoms from ₦42 billion in March 2021. This trend may jeopardize USSD services, which will have a significant impact on the execution of financial services and transactions. Furthermore, it hinders the actualization of the CBN’s cashless policy, as USSD services are used to facilitate financial services and transactions, particularly to the underserved and financially excluded who have unreliable internet connectivity.

Security of Digital Infrastructure: Over 50,000 cases of major harm to telecom infrastructure and facilities were reported nationwide in the five years leading up to 2021. The security of telecommunication infrastructures has an impact on user experience, accessibility, and affordability of digital services. However, legislation is necessary to safeguard the country's infrastructure and is currently being developed.

Migration of Customers from Traditional Banks to Financial Technology Companies: Due to the CBN's naira redesign policy's influence on digitalization, the constraint to commercial banks’ technological scalability is a demerit, leaving depositors to rely on financial technology firms for financial services. Depositors should not be burdened by arbitrary and multi-layered changes because some digital banks offer unlimited free transfers, instant but expensive uncollateralized loans, allow their customers at least 30 free transfers per month, and provide saving options for depositors with excess funds that can earn close to 20 percent interest rate. Although Nigerian youth are the dominant users of financial technology services,  millions of people from other demographics are becoming more tech-savvy and opting for financial services offered by technology-enabled companies. The benefits of  encouraging this trend include a more-reliable alternative to completing electronic transactions and avoiding the lethargy in resolving related issues that is common among conventional banks.

Minimal Digital Services in the Informal Sector of the Nigerian Economy: In Nigeria, the financial inclusion rate was 64 percent as of April 2022, implying that 34 percent of the population did not have access to financial services such as payments, savings, credit, and insurance. The informal sector is characterized by small or ill-defined workplaces, hazardous and unhealthy working conditions, lack of regulation, low skill, and productivity levels, low or inconsistent incomes, lengthy workdays, and restricted access to markets, financing, education, training, and technology.

Given the labor intensity, the naira redesign policy curtailed real demand and plunged producer sales because there are no existing financial and payment solutions to deal with informal transactions in the informal sector, such as using public transportation, shopping at markets, and other similar activities. This had an impact on  people and business operations as financial service systems malfunctioned due to increased pressure.

The CBN's plan to digitally onboard the public at the closest commercial bank branches is not practical for the unbanked and underserved. According to the World Bank, in 2021, more than 50 percent of Nigerians lack basic digital skills (A high level of gullibility among the underserved  may expose them to hackers and those with low digital literacy levels could go bankrupt due to glitches, outages, and unintentional mistakes). In 2022, there were 81 million mobile internet users in Nigeria (over 50% of Nigerians struggle even more because smartphones are the most popular way to conduct digital transactions). More so, the cashless policy is powered by digital technology which is powered by electricity, yet 44.6 percent of Nigerians lack access to electricity.

Conclusion

The naira redesign policy of the CBN is a brilliant idea. It demonstrates the government’s commitment to harnessing the gains of the digital economy. Regardless, the timing, logistics, and overall policy implementation disrupted economic activities due to a lack of digital preparedness for a cashless Nigeria. The policy revealed the deficit in the Nigerian financial and banking sector as significant digital infrastructure and innovations are required for a smooth transition to a cashless Nigeria.

The outcomes and lessons of the CBN's naira redesign policy are digital infrastructure constraints. The digital inefficiencies experienced and its impact on the public and business reliance on digital means since the implementation of the CBN naira redesign policy require all stakeholders from policymakers, the private sector, financial & banking institutions, telecommunication companies, and others, to address the infrastructural gaps  required for the country’s  transition to a digital economy.

Finally, extensive initiatives on digital literacy are pertinent to financially include the public in the digital economy. It is also important to emphasize the importance of data governance, data privacy, and cybersecurity tips to safeguard the public from digital crime and other digital rights concerns.

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Sexual Abuse of Women and Girls in Nigeria: Lessons from the Covid-19 Pandemic

The battle to eradicate the sexual abuse of women and girls has always been heavily reliant on non-governmental organisations (NGOs). However, the evidence indicates that progress has been slow in achieving targets in Nigeria, necessitating a multifaceted approach. Covid-19 reveals the vast gap in the effort toward eradicating Sexual abuse in Nigeria through the widespread cases reported during the period.  Education, legal reforms, community engagement, gender mainstreaming, and humanitarian interventions should all play a crucial role in the fight against the menace. A successful strategy will involve collaboration between all stakeholders to create a society where women are no longer victims of sexual discrimination, abuse, and violence. By implementing these various strategies, we can pave the way toward a future where women can thrive without fear of exploitation, abuse, and harassment.

Introduction

In Nigeria, the unequal power dynamics between men and women foster a society where men may feel entitled to sexually abuse women and girls. This inequality explains why gender disparity perpetuates the sexual abuse of women and girls. The issue has received considerable attention on a global scale, particularly during the Covid-19 epidemic. The issue has been labelled "the shadow pandemic" to indicate a neglected epidemic.

The COVID-19 pandemic caused a considerable increase in global reports of violence and sexual assault against women and girls. A study of 13 nations revealed that nearly half of all women reported experiencing gender-based violence during the pandemic, with Sub-Saharan Africa having the highest prevalence.

According to a survey conducted by the UN Refugee Agency, some NGOs began to support this category of women and girls in Nigeria since the government was overburdened with Covid-19 cases and lacked the man power  to tackle the sexual abuse during the pandemic simultaneously. This raises the question of whether prevention measures are accorded the same priority as treatment efforts. The increase in sexual abuse cases during Covid-19 indicates that Nigeria's preventative strategies for sexual abuse remain inadequate.

Consequently, these beg the following questions, (1) How has Covid-19 altered our knowledge of the problem of sexual abuse among Nigerian women and girls? (2) Are the strategies NGOs deploy to address the problem sustainable? (3) What culturally entrenched local remedies can also aid in solving the issue? (4) What lessons may be drawn from the Covid-19 Pandemic experiences of women and girls? This paper examines these concerns at length. It suggests sustainable routes to adequately address the problem.

Sexual Abuse of women and girls in Nigeria before and during Covid-19

One in three women worldwide experiences physical or sexual abuse in their lifetime. A survey conducted by Positive Action for Treatment Access revealed that over 31.4 per cent of girls had their first sexual encounter through rape or forced sex. This figure is close to the case of Nigeria, where 30% of Nigerian women aged 15-49 have experienced some form of sexual abuse. However, due to the culture of stigmatisation, this data might have been underreported. Gender-based violence against women in Nigeria highlights factors from early marriages to mental, sexual, and physical violence. Several women and girls have been abused or harassed while trading on the streets, in churches and mosques by religious leaders, in schools by teachers,  at home, by household members or close family friends and online. The Federal Ministry of Women Affairs in Nigeria and the UNFP commissioned a study that identified sexual harassment, physical violence, harmful traditional practices, emotional and psychological abuse, and socio-economic violence as the prevalent acts of gender-based violence in Nigeria. Furthermore, socio-cultural beliefs and religious organisations have inured these violent acts towards women and girls. For instance, some religious belief exerts the perception of women being inferior to men and total submissiveness as being features of a virtuous woman, which have thus been used to manipulate and trap women in abusive relationships.

In theory, these factors are captured in Urie Bronfenbrenner’s ecological model of human development in synthesising the causes of violence and sexual abuse against women. The framework categorises several risk factors into four categories: Societal, Community, Relationships, and Individual. These fit well within the identified causes highlighted above.

Nevertheless, the Covid-19 pandemic has meant more variables are now at play. Three new factors worsening the sexual abuse against women and girls during the covid-19 pandemic include Isolation with abusers, movement restrictions, and disserted public spaces. These factors are absent from the ecological framework and thus provide new insight into this subject.

The Lagos State Domestic and Gender Violence response team reported that during the lockdown,  Covid 19 control measures increased Domestic violence in Nigeria by 60%, Sexual violence by 30%, and Physical Child abuse by 10%. Also, statistics show a heightened negative impact of the pandemic on the safety and well-being of women and girls in high-conflict regions in Nigeria. Areas grappling with record levels of violence and insecurity, such as the North-East and North-West regions, where terrorism and banditry have displaced millions of people, making women and girls more vulnerable to sexual exploitation, Abuse, and Harassment.

Are the Strategies Deployed by NGOs Sustainable?

The high rate of sexual violence and abuse of women and girls in Nigeria has attracted the attention of both international and local NGOs in the commitment to curbing the menace from humanitarian funding received through foreign aid donors. The United Nations sexual and reproductive health agency leads and coordinates the sexual and reproductive health sub-sectors in Northeast Nigeria. In 2018, the agency drafted three strategic objectives for sexual abuse prevention strategies for the Northeast. Two of these are  (1) Increasing access to comprehensive and well-coordinated GBV response services, including livelihood support (2) Increasing awareness and enhancing systems for the prevention of GBV, including SEA, through mitigating risk factors and strengthening community protection strategies. These objectives translate to targets for partnering NGOs, which span livelihood support, education/training, awareness, physical and mental healthcare services, and security.

Nonetheless, by the time the pandemic peaked in 2021, sexual abuse had increased by nearly 391%. (NBS 2017 data compared to Amnesty International 2021 data). This then questions the efficacy of the strategies being deployed by the NGOs. Perhaps the solution to the problem should be localised.  

The data released by the United Nations High Commissioner for Refugees (UNHCR) intended for  the impact assessment of Covid-19 on sexual exploitation and abuse in Nigeria reveals some critical insights on this issue. The data placed in table 1 shows that about 59% of women and girls experiencing sexual abuse did not  receive any form of assistance from NGOs, and 37% did not receive it from the government, highlighting the gaps in the support mechanisms available for women in this category

Table 1. Assistance given to Victims of Sexual Abuse During Covid-19

 Assistance from governmentDid not receive assistance governmentAssistance from humanitarian actorsDid not receive assistance humanitarian actors
Cash26%6%24%9%
Food17%16%12%21%
Shelter31%2%29%4%
Non-Food Items23%10%14%19%
Others32%.3%33%.6%

  Source: UNHCR Survey  (2021)

Among those that received support, cash and shelter were the highest, indicating that women who experienced sexual abuse had no homes or means of survival which highlights the lack of viable means of livelihood. This lack of means of livelihood can be attributed to the level of gender inequality that is perpetrated by socio-cultural factors in Nigeria, which limits women’s economic empowerment.  Thus, it is reasonable to suggest that as long as the core reasons are not adequately addressed, livelihood interventions will always fall short, as resources may be insufficient to care for all sexual abuse victims. Consequently, these lessons from Covid-19 should take us on the path of prioritising preventative measures deeply rooted in our society's sociocultural factors.

Charting the course toward Prevention of sexual abuse through Local and culturally Entrenched Solutions

While foreign aid has been an essential funding source for developing nations like Nigeria, its usage in resolving local issues has been under criticism over the past decade as a result of the fact that NGOs frequently overlook culturally aligned solutions.

 It is recognised that culture may influence the acceptance or non-recognition of sexual abuse in many populations.

The widely used confluence model of sexual aggression confirms that masculine ideology may be at the heart of sexual assault perpetration.  This implies that solutions to the problem may lie deep in men's hearts. This can be explained in Hemingway's iceberg theory, where most times, the ideologies and mental models that shape perpetrators actions are submerged in the water (invisible), leaving the minor factors afloat for all to see.

Hence the need for a more socially inclusive effort to address the issue as most gender-based violence is embedded in societal attitudes and religious beliefs. Efforts to eradicate sexual violence against women must be rooted in a comprehensive, multi-faceted approach that addresses the root causes of the problem, which are gender inequality, discrimination, and societal stereotypes. Education is a critical tool for eradicating gender-based violence as it teaches young people of both sexes the importance of consent, respect, and healthy relationships. It also gives women the tools and knowledge to protect themselves and others from sexual violence.

Community engagement can promote positive attitudes towards women by creating safe spaces for victims to seek support, challenge harmful gender stereotypes, and hold perpetrators of sexual violence accountable. Gender mainstreaming could also ensure that all aspects of policy development and implementation are gender equal and that policies and programs are responsive to the needs and experiences of women and girls.

A recent positive step by the Nigerian government in this fight is the increased funding for survivors’ support services through the senate approval of the bill on sexual harassment of students in tertiary institutions in 2020 in furtherance of the legislative agenda to protect women’s rights. The bill with 25 clauses proposes up to 14 years jail term for offenders and seeks to promote ethical standards in tertiary institutions.

Nevertheless, this is still more of a cure than prevention.  Preventive approaches would entail diving below the iceberg to address the root causes culturally embedded in ideologies, values and perceptions towards women.

Conclusion

Sexual abuse in Nigeria requires comprehensive, multi-faceted, and inclusive solutions. Efforts to eradicate the sexual abuse of women and girls must be rooted in education, community engagement, gender mainstreaming, and humanitarian interventions. Moreover, these efforts must be collaborative, involving all stakeholders to create a society where women are free from sexual discrimination and violence.

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Building a more Inclusive Digital Future for Women in the Global South

The advent of digital innovation has revolutionised our world, bringing immense benefits to individuals, societies, and economies. It has boosted efficiency and productivity and fostered opportunities for creativity and expansion. Additionally, it has facilitated connectivity, broken down geographical barriers, and enabled cultural exchange. The development of digital innovation has also unlocked new opportunities, particularly in areas such as artificial intelligence, big data, and the Internet of Things (IoT). These technologies have enormous potential to transform entire industries, paving the way for novel economic growth and value creation.

Despite the far-reaching benefits of the digital revolution, some segments of the world population, notably southern women as compared to women in the Global North, have not been able to leverage these benefits fully. Gender digital exclusion, a phenomenon where women and girls are disproportionately left behind in accessing and using digital technologies and services, is a pervasive problem hindering the realisation of a fully inclusive digital future.

Barriers to Women's Full Participation in Digital Space: Social, Economic, and Cultural Factors

The reasons for gender digital exclusion are numerous and complex. Traditional gender roles, limited access to technology and internet connectivity, online harassment and violence, and a lack of female role models are just a few of the factors that contribute to this issue. Traditional gender roles and societal expectations often constrain women and girls from participating in digital innovation. This Issue emanates from factors such as power hierarchies, gender stereotypes and social views about the internet and technology within the household and society. For instance, in most households in the Global South, gender and age pose as factors which determine who is given priority to use digital tools within the family; elder female siblings had less time to use digital devices as they were given more domestic and care tasks. Yet another social norm – low confidence among women in using digital tools- prevents women and girls from pursuing more complex digital tasks and creates a gender gap in digital literacy that hinders their ability to participate fully in the digital economy.

Gender-based discrimination within the digital industry is another significant factor contributing to gender exclusion in the digital space. Women and girls frequently encounter biases and discriminatory practices, hindering their access to equal opportunities and resources. These include unequal pay, limited job opportunities, and a lack of representation in leadership roles.

Access to technology and internet connectivity significantly limit southern women’s participation in digital space. Many women and girls in the global south still lack access to basic technology and internet connectivity. A report from OECD indicated that South Asia Women are, on average, 70% less likely than men to have a smartphone, while Africa’s estimate is 34 per cent     . One reason for this could be their exclusion from economic activities. This will ultimately make them unable to afford the cost of technology and internet connectivity. The high cost of digital devices and infrastructure can be a significant barrier to access, particularly in rural areas. This limits their ability to use digital services and participate in digital innovation.

There are also issues around online harassment and the lack of female role models. For the former, women and girls are disproportionately affected by online harassment and violence, which deters them from participating in digital spaces and expressing their views online. For

instance, the issue of cyberbullying - women in the global south are often targeted with cyberbullying, which can take many forms, including online hate speech, revenge porn, threats, and harassment. This has a significant impact on women’s mental health and well- being. For the latter, women are underrepresented in the digital industry, indicating few female role models for women and young girls to look up to, thereby limiting their motivation to pursue a career in technology and innovation. These barriers are particularly acute for women in the Global South, where poverty, inequality, and social and cultural norms restrict their access to education, healthcare, and other basic services.

The High Stakes of Gender Digital Exclusion: Consequences for Women and Development

Gender digital exclusion, the unequal access to and use of digital technologies and services, has far-reaching consequences for women and girls. These consequences include limited access to information, affecting their ability to make informed decisions on important issues such as health, education, and employment. The lack of access to digital technology and skills limits women's economic opportunities, perpetuating gender-based economic inequalities and impeding economic growth in the long term. Women excluded digitally face challenges in accessing critical services such as healthcare and education and participating in political processes.

Digital exclusion can have significant implications for women's ability to participate in public life and advocate for their rights and interests. In today's world, digital platforms and technologies have become essential tool for civic engagement, allowing people to express their opinions, organise collective action and socialise. Women who lack access to digital technology and skills may be unable to participate in this digital sphere, limiting their ability to engage in important public debates, advocacy efforts and entertainment. For instance, in Nigeria, digital platforms like Twitter have become critical tools for organising and mobilising social and political movements sharing information and resources related to human and women's rights. Women who lack access to these platforms may be unable to participate in these important initiatives, leaving them marginalised and disempowered. Furthermore, digital technology has become an important tool for political participation, allowing citizens to engage with their elected representatives, share their opinions on policy issues, and participate in political campaigns. Women who lack access to digital technology may be unable to participate in these important political processes, limiting their ability to advocate for policies that reflect their interests and needs.

Finally, exclusion from digital spaces can limit women's ability to contribute to innovation and development in their communities and countries. When women are excluded from digital spaces, their perspectives and experiences are not represented, and this can lead to a lack of creativity and diversity. Creativity and diversity are crucial for innovation because they bring together different ideas, perspectives, and experiences to create new solutions and approaches to problems. Women's unique perspectives and experiences are not considered when they are excluded, limiting innovation and development.

Actions to Address Gender Digital Exclusion

To address this issue and build a more inclusive digital future for women, there is an urgent need to prioritise women's representation and participation and address digital inequality. Southern women must be included in decision-making and given an equal voice in shaping digital policies and programs. This can be achieved through formal mechanisms such as quotas and more informal approaches such as involving women's organisations and networks.

In addition, Southern women in the Global south should be provided with the necessary skills and resources to participate effectively in the digital economy. This can include digital literacy programs, access to technology, and mentorship opportunities. Support networks, such as online platforms and community-based initiatives, can help Southern women overcome the challenges they face in accessing and participating in the digital economy.

To ensure that women and girls across the Global South have equal rights to an open, safe, and free digital space, it is crucial to collaborate with various stakeholders, including governments, the private sector, civil society organisations, and organisations academic institutions. Only by working together can we ensure that the Global South's women are not marginalised and have an equal opportunity to participate in the digital economy. Another way to tackle this is by safeguarding digital rights and liberties by enacting legislation that prohibits cyberbullying. Also, establishing an online law enforcement monitoring unit will help promote digital safety for women.

Building a more inclusive digital future for women is not only a matter of social justice but also critical for achieving sustainable and equitable development. We can unlock their full potential and accelerate progress towards the Sustainable Development Goals by enabling women and girls to access and use digital technologies and services. It is time to act and ensure that the digital revolution benefits everyone, including the most marginalised and vulnerable.

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Changing Perspectives: SSB Tax is key to Addressing Obesity in Nigeria

Obesity is on the rise globally, with 1 billion people predicted will be living with the disease by 2030. Obesity is no longer just a disease of rich countries. The incidence of the disease is now more pronounced in lower and middle-income countries, especially in poorer and more vulnerable communities. Evidence from recent systematic review and meta-analysis shows that as at 2020, there were more than 21 million overweight and 12 million obese ‘persons in the Nigerian population aged 15 years or more, accounting for an age-adjusted prevalence of about 20 percent and 12 percent respectively’. Figure 1 below further shows clearly that the number of people living with obesity (BMI>25kg/m²) in Nigeria is rising steadily. The causal factors for increased body mass index (BMI) include eating patterns, physical activity levels, and sleep routines

The World Obesity Federation (WOF) also shows that the Nigeria has a high national obesity risk with a score of 7.5/10. The WOF also shows that Nigeria’s chance of meeting the UN adult obesity targets for 2025 is very poor (sadly 0%) for both men and women. Failing to meet the obesity target jeopardizes other NCD targets, including the World Health Organization’s target of a 25% reduction of premature deaths from several leading non-communicable diseases by 2025.  

People living with obesity may be at a greater risk of other chronic diseases such as type 2 diabetes, cardiovascular disease, many types of cancers, and premature death. Obesity increases the risk of certain mental disorders such as depression. The disease is also associated with cognitive decline, enhanced vulnerability to brain impairment and accelerate age-related diseases of the nervous system. Moreover, childhood obesity can severely affect children’s physical health, social, and emotional wellbeing, academic performance and self-esteem. Obese children also more likely to experience respiratory problems such as asthma, sleep disorders such as difficulty breathing while asleep (sleep apnea), high blood pressure and elevated blood cholesterol.  …..

Obesity has significant impact on the Nigeria economy. Data from the global obesity observatory shows that in 2019, the economic impact of overweight and obesity in Nigeria was estimated to be over N1 trillion (US$2.37 billion). This is equivalent to US$12 per capita and 0.5% of GDP. Direct costs and indirect costs made up 20.2% and 79.8% of total costs respectively. By 2060, the cost implication of obesity, including healthcare and reduced productivity, among others, will amount to over US$35.38 billion. Without urgent intervention, the continuing increase in adult and childhood obesity will overwhelm the already precarious health care system of Nigeria and increase the high risk of lost productivity in the Nigerian economy. Therefore, the need for substantial policy interventions to prevent the rise of obesity in the nation cannot be overemphasized.

Currently, Nigeria’s health policies, interventions and actions aimed at reducing the prevalence of obesity include promoting breastfeeding, pre-packaged food (labelling) regulations, food-based dietary guidelines and the recent tax on sugar–sweetened beverages. Excess sugar consumption, especially from sugar-sweetened beverages has been consistent linked to increased risk of overweight and obesity in children, adolescents, and adults. Moreover, the World Health Organization (WHO) recommends taxation of sugar-sweetened beverages (SSB) to address obesity.

In 2021, Nigeria joined more than 54 other countries that have introduced taxes on SSBs. The SSB tax which is embedded in the Finance Act of 2021, levies a ₦10 tax on each litre of all non-alcoholic and sugar sweetened carbonated drinks. Recent development shows that the federal government commenced the implementation of the SSB tax on 1st June 2022.

Global evidence has consistently revealed that taxation of sugar sweetened beverages is an effective policy tool for reducing their consumption and consequently reducing the prevalence of sugar induced diseases including obesity. For example, a modelling study shows that the United Kingdom’s tax on soft drinks could potentially save up to 144,000 persons from obesity annually, prevent 19,000 cases of type 2 diabetes and avoid 270,000 incidences of decayed teeth. In South Africa, a 10% tax on SSBs was predicted to avert 8,000 type 2 diabetes’ related premature deaths. Similarly, in Indonesia, empirical evidence shows that SSB tax can help to reduce the number of overweight and obese and prevent over a million cases of diabetes. In addition, numerous empirical studies shows that that effective taxes on SSBs can lead to significant reductions in Disability Adjusted Life Years (DALYs). 

It is therefore evident and plausible to conclude that taxation of SSB in Nigeria has the potential to reduce the health and economic burden of obesity in the country. However, greater public support for the policy measure is needed in Nigeria, and the fiscal revenue should be earmarked for improving the healthcare system and as well as providing healthy alternatives such as safe drinking water.  

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Unlocking Africa's Digital Potential: The Role of EU-Africa Collaboration

Introduction

The digital economy is on the exponential rise due to its capability to transform and revolutionise economies and societies,  influencing how we work, live, and interact. Otherwise known as digitalization, the digital economy refers to economic activities facilitated by digital technologies and digital data in businesses and organizations. One of the sundry blessings of globalisation, as it relates specifically to the thrust of this article, is its ability to necessitate a strategic cross-border collaboration between nations or/and continents in the digital space. It is well-documented that countries such as the United States, China, Singapore, and Chile have developed strategies to integrate their data governance and policy frameworks to drive the growth and development of their digital markets. This trend does not exclude continents like the European Union (henceforth represented in this article as the EU) and Africa.

This article examines the potential benefits of digital collaboration for the sustainable growth and development of Africa's digital economy. It explores the potential outcomes of this collaboration for Africa, such as the integration of data policy and frameworks for economic growth, closing the gender gap, fostering innovation-driven digital entrepreneurship, establishing data governance across Africa, and promoting the adoption of the EU's data model for protecting digital rights. In addition to attracting public-private investment and promoting digital inclusion. The article concludes by identifying the steps that Africa must take to harness the potential of the EU-Africa digital collaboration fully.  

The EU-Africa Digital Collaboration – An Exegesis

Precisely on the 22nd of April, 2015, history was made in the faraway Brussels, where the College of the European Commission hosted the College of the African Union Commission for their annual meeting. The EU is never a stranger to Africa. For decades, it has been Africa’s biggest trading partner. Statistics, according to United Nations Conference on Trade and Development (UNCTAD), 2022, claim that almost a fifth of global Foreign Direct Investment (FDI) flows in Africa come from EU companies. The meeting in April 2022  provided these two strategic partners, who share common visions, aspirations and challenges globally, with the opportunity to formally design a political framework of partnership that would yield enduring benefits for each other. Christened the Joint Africa-EU Strategy (JAES), the framework for the EU-Africa partnership, popularly regarded as the first and only intercontinental partnership strategy ever, was aimed at tackling together  issues of common concern such as peace and security, democracy, good governance and human rights; human development; sustainable and inclusive developmental growth and continental integration, and other global and emerging issues.

Meanwhile, today, the EU-Africa partnership has extended beyond the scope of the afore-listed concerns. It has birthed a strong and effective digital cooperation  aimed at transforming and developing Africa’s digital economy. On different occasions, the continents have demonstrated strong commitment towards promoting exchanges and partnerships with the private sector, civil society organisations, enterprises, and data policy experts in the digital field. For instance, in 2018, both partners launched the EU-AU Digital Economy Task Force (DETF) to identify tangible policy recommendations and propose bona fide steps towards tackling significant barriers and enhancing cooperation in the digital field.The policy recommendations identified by the EU-AU Digital Economy Task Force are mirrored in the AU Digital Transformation Strategy for Africa 2020 – 2030. Some of these policy recommendations include but are not limited to the development and implementation of regional and continental digital strategies, the development and implementation of data protection and privacy policy and regulation in line with the Malabo Convention, the promotion of regional/continental licensing mechanisms to facilitate establishment of regional/continental operators’ networks and service providers, and the facilitation of policy coherence for the achievement of digital transformation in Africa The European Data Strategy mentions EU-Africa cooperation on data, stating, “the EU will support Africa in creating a data economy for the benefit of its citizens and businesses”.

With technological capabilities and dependable workforce (in terms of the concentration of digital policy experts) that can drive the realisation of an innovative digital economy, the EU holds an enviable position as a formidable agenda setter for digital business and digital governance on the global front. It boasts as the world’s most advanced digital regulatory framework. The EU has set notably high  data protection and privacy policy standards through its adoption in 2016, General Data Protection Regulation (GDPR) after which most countries, especially in Africa, modelled their respective national data protection standards. Highly committed to the protection of personal data and privacy as a fundamental right of every data subject, the EU understands that setting high standards contributes in no small measure towards ensuring trust in the digital economy. Obviously drawing on the intercontinental appeal of its GDPR, the EU is currently setting an enviable agenda  to promote and regulate the Digital Single Market for the next decade. This agenda includes proposals like the Data Governance Act, Digital Markets Act, the Digital Services Act and the Artificial Intelligence Act (the most recent addition).Interestingly, the EU’s  data sovereignty provision has helped shape and strengthen its policy space.

Although moving at its own pace, which is considered somewhat slow when compared to that of the EU or other fast-paced digital economy, Africa is still making efforts to boost its digital economy on the global level. But if Africa, like the EU, the US and China, wants to catch up with the rest of the world, coordinated efforts  must be made to bring about its digital transformation, which is being constrained by continent-wide challenges that range from connectivity issues, a crisis of capital to poor data protection regulatory framework. Currently, Africa’s domestic digital economy is being strategically leveraged for economic development. The method for implementing region-wide approaches, to create an enabling environment for digital transformation, is being  developed. In line with the European Data Strategy, the EU has expressed its readiness to support Africa in creating a data economy to benefit its citizens and businesses. This reinforcement will give a fillip to the actualisation of the EU-Africa cooperation on data. As expected, the African Union (AU) is genuinely open to a sustainable collaboration with the EU, characterised by respect, transparency and equal opportunity. In the following section, the potential positive effects of the EU and Africa’s digital collaboration on Africa’s journey towards experiencing massive digital transformation in the next  decade are discussed.

  1. Integrating the EU and Africa’s digital markets for economic growth

The EU-Africa digital collaboration proffers a great opportunity for the integration of the continents’ digital markets. This development is, indeed, the pathway to unlocking a chain of economic values for the two continents. However,  Africa stands to derive a welter of benefits from this collaboration, which cannot help but accelerate its pace towards the much desired digital transformation. The greatest of these benefits is the integration of all the digital markets across all the African member states to create a single digital  market. This is enabled by the creation of  legal frameworks, the harmonisation of regulations across countries and the strengthening of the institutions that are required to sustain the digital transformation. There is no gainsaying that, given the potential of this EU-Africa digital collaboration, the goal of inaugurating the African Continental Free Trade Area (AfCFTA) will be accomplished. It is projected that the EU-Africa digital collaboration, by the year 2025, will have grown Africa’s internet economy to $180 billion. African businesses, while engaging with the EU’s technological firepower that is a spinner of accelerated growth and development, would be repositioned to gain strategic access to a large consumers base in the world’s third-largest economy.

  1. Bridging the gender divide in the African digital space

Findings from evidence-based research revealed that, in Africa today, the men use digital technologies more than the women do, thus bringing about a manifest gender digital divide. It is claimed that, as gender inequality pervades the physical world, so it does in the digital world. In Sub-Saharan Africa, there is a wide gap in women’s digital access when compared with men’s. Also, the digital penetration rate for the women is by far lower than for men.  Many women in Africa either use simpler feature phones that do not support mobile internet use or do not have any. Women have been discovered to be much less likely than men to own a smartphone. Given their ownership of smartphones, African men have far more access to digital platforms and services than African women do. This development is not unconnected with the glaring disparities between both genders in terms of digital literacy and economic attainment. The EU-Africa digital collaboration will steer African organisations, businesses and governments towards building a shared digital future that promotes high digital inclusion and adoption, thus bridging the manifest gender digital divide in Africa’s digital space. When men and women have equal digital adoption, women will have access to the same diverse opportunities as men do.

  1. Boosting digital entrepreneurship and innovation (growth of digital SMEs)

One of the four pillars upon which the aspiration of the EU-AU Digital Economy Task Force for the transformation of Africa is anchored is innovation-driven digital entrepreneurship. The other three are access to affordable broadband connectivity, digital infrastructure, digital skills, and e-services, which include e-government, smart cities, e-commerce and e-health. The EU-Africa digital collaboration will help create the required environment for entrepreneurs and businesses to thrive, as well as encourage innovation that will generate many socio-economic opportunities for the development of each African nation and the continent as a whole. A development such as this will promote small and medium-sized businesses, protecting them from digital-related threats which constantly put their operations in harm's way.  

  1. Capacity building and job creation

With the improved and affordable internet broadband connectivity, which will be one of the  benefits of the EU-Africa digital collaboration, Africa will greatly benefit from improved internet connectivity for teaching students and learning in African training institutions. Access to virtual or online training, which will boost capacity, will be enhanced. This development will help Africa  catch up with the developed nations, given its ability to pioneer groundbreaking research in the areas of science, technology and even humanity, all of which will attract growth and development to the continent. Also, job opportunities will be created as a result of accelerated digital infrastructural development, which will enhance employment and productive engagement of citizens.

  1. Unlocking data governance in Africa

Today, the EU, alongside other global digital market giants like the US and China, is a model for digital governance. It has succeeded in making its mark in the global digital economy. The EU’s approach to governing the digital market and the regulatory legislation it has enacted to manage cross-border data flows is enviable. As earlier noted, the EU’s GDPR is so effective that most countries of the world have adopted it as their national standard of the regulatory framework of managing cross-border data flows in order to prevent data-related harms. This amazing digital capability of the EU, if it were to be adopted by Africa, would result in the  latter having an effective data governance framework which would guarantee strategic digital transformation in the continent. Further, Africa will be stimulated to steer its states towards harmonising their disparate legislations into central or regional data legislation which ensures effective data protection in all the states.

Conclusion: Making the EU-Africa digital collaboration count

Given the aforementioned benefits that Africa stands to derive from its digital collaboration with the EU, Africa must do its utmost to ensure that this collaboration is successful. It must put in place strategic measures that will enable the collaborative efforts to yield the desired result. Hence, the hands of all the major stakeholders in Africa’s digital market must be on deck. Both  policymakers and the private sector players in Africa’s digital space must demonstrate commitment towards creating a digital transformation-enabling environment that promotes the stakeholders’ dialogue; strengthens the standards for regional data use and cross-border data flows. Africa’s digital collaboration with the EU would undoubtedly be seen as a step towards a great economic boom for the continent, given the EU’s high global standing for having an advanced regulatory framework for data protection. Therefore, it is crucial for Africa to embrace this golden opportunity to truly become the next frontier for digital revolution.

This article was written by Kunle Balogun

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