The lack of infrastructure required to generate new products and services, together with inadequate investment in research and development (R&D), have been connected to Nigeria’s underwhelming performance in terms of innovation in the global arena.Â
A capital market professor, Prof. Uche Uwaleke, stated that Nigeria is one of the underperforming nations in terms of innovation due to low investment in R&D, a lack of infrastructure, and a skilled labor force that is necessary to support innovation for business development and the commercialization of new products and services. The conference was held in Lagos over the weekend with the theme “Navigating Nigeria’s Economic Realities: The Transformative Power of Technology in the Capital Market.”
The top three innovation economies in the region, in his opinion, are Senegal, Botswana, and South Africa. He pointed out that the average amount spent by Nigeria and many other African nations on R&D is about 0.4% of GDP. He emphasized that in order to spur economic growth and increase employment opportunities for the populace, the nation must become more innovative.
“The needs of clients are evolving together with the world at a quick pace. Companies who can create new goods and services to satisfy these shifting demands will have an advantage in unpredictable times.”
He stated, “Businesses that can adopt new technologies early will be able to gain a competitive advantage and improve their efficiency, productivity, and customer service.” New technologies are continually appearing.
Ade Bajomo, the President of the Fintech Association of Nigeria, also spoke at the event. He stated that the nation faces a wide range of issues, including high rates of inflation, which have an impact on the cost of living and are currently at 25.8%, youth unemployment, which is at 53.44 percent, income inequality, which is still a major concern, and differences in wealth distribution, among others. He made the argument that widespread use of technology can be a revolutionary force for good, helping to address these economic problems and bring about constructive change.
Technology has been a key factor in each of these markets, enabling traders to operate from any location, acquire funds, and reach a larger client base easily. Near real-time trading is also possible on mobile devices.
“By utilizing less sophisticated technologies with maximum impact, these changes have not only extended to the commodities market but have also been limited to the main markets,” he stated.
Speaking on the topic of “Empowering Market Participants Through Education and Capacity Building,” Dayo Obisan, Executive Commissioner of Operations at the Securities and Exchange Commission (SEC), stated that market participants contribute significantly to the provision of investment management, advisory services, trading, research, and other functions in addition to helping to mobilize savings to productive sectors of the economies.
As a result, he emphasized how important it was for participants to comprehend the relevant legal framework that should uphold moral behavior, particularly with regard to upholding moral standards, protecting client privacy, and acting honorably in financial transactions. He went on to say that keeping the integrity and effectiveness of the financial markets depends critically on the education of market intermediaries.
