World Bank Report: Internet Access Fuels Significant Poverty Reduction in Nigeria and Tanzania

A recent report from the World Bank titled “Digital Transformation Drives Development in Africa” reveals that improved access to internet coverage over the past three years has contributed to a seven percent reduction in extreme poverty in Nigeria and Tanzania.

The World Bank’s flagship report highlights the positive impact of internet exposure, indicating a seven percent decline in extreme poverty and an increase of up to eight percent in both labor force participation and wage employment.

Andrew Dabalen, the World Bank Chief Economist for Africa, emphasized the untapped potential for inclusive growth in Africa due to the underutilization of mobile internet. He stated, “Closing the uptake gap would increase the continent’s potential to create jobs for its growing population and boost economic recovery in a highly digitalized world.”

Over the last five years (2016-2021), sub-Saharan Africa has witnessed a remarkable 115 percent increase in internet users, contributing to economic growth, innovation, and job opportunities. However, Dabalen pointed out that digital infrastructure coverage, access, and quality in the region still lag behind other parts of the world.

While 84 percent of people in sub-Saharan Africa lived in areas with 3G service availability and 63 percent had access to 4G mobile coverage by the end of 2021, only 22 percent were actively using mobile internet services. Additionally, there is a significant gap between broadband coverage and usage, with 61 percent living within broadband range but not utilizing it.

In response to these findings, Nigeria’s Minister of Communications and Digital Economy, Bosun Tijani, has unveiled plans to enhance internet accessibility in the country, backed by an estimated $2 billion fund. According to industry statistics from the Nigerian Communications Commission, broadband penetration in Nigeria remains strong, with 93,472 subscriptions as of August 2023, achieving a penetration rate of 45.57 percent. The National Broadband 2020-2030 aims to reach a 70 percent penetration rate in the next two years.