President Muhammad Buhari in his campaign has promised to provide free internet for even the

poorest Nigerians when re-elected in 2019. What are the likely effects that this will have on
business?

In a 2016 research, reported by the Observer Research Foundation and co-funded by the Ford
Foundation, some scholars attempted to study the ‘perceived’ impact of internet use on individuals in
rural India.
As a fellow developing nation with similarities, Nigeria can learn some lessons from their study which
could help us answer the above question. It is no news that the Internet has greatly influenced the way
Nigerians socialize, create and exploit economic opportunities and knowledge resources.
Rural communities in Nigeria have very poor or non-existent internet infrastructure due to ‘multiple
factors’ but primarily we can summarise this based on 2 theoretical approaches: i.e. the Social Capital
(Economic)Theory and the Social cognitive (Knowledge & beliefs) theory. Rural areas are generally
not economically viable to the largely profit-driven private sector dominated network providers.
The research results showed that 3 key areas were greatly impacted in rural India as a result of improved
internet access and availability:
1. Improved scope of work: It was observed that there was a significant growth in business and a
desire for professional growth. Fueled by new skill enhancement and selling of new products,
increase in business, new opportunities, improved geographical market and customer reach
especially for farmers and SMEs (raw materials supply chain network), reduction in travel time,
availability of new improved information, improved pricing (competition), efficiency, reduction
in waiting time and lower capital expenses.
2. Empowerment: Information is power. The increase in information catalyzed by the internet has
a ripple effect on almost all aspects of the rural dwellers lives. Improved communication and
networking drives cooperation and integration at an inexplicable rate which was another key
revelation of the study. A lot of security and conflict situations are averted with proper and
improved information management which the internet conveys. Finally, knowledge creation and
cognitive development especially the young and inquisitive populace implies greater prospects
for future development and sustainability. Access to Education & learning is positively
improved.
3. Improved Transactional Efficiency: E-banking, e-marketing, and trading have improved rural
dwellers access to better banking services and more banks are forced to put-up ATMs and e-
platforms to cater for the new ‘demand’ which in general drives development and slows down
rural-urban migration.

Reference:
Dara, R., Jhala, S., Mishra, S., & Tatwadi, K. (2016, July 21). Perceived Impact of Internet Use on
Individuals in Rural India. Retrieved December 3, 2018, from
https://www.orfonline.org/article/perceived-impact-of-internet-use-on-individuals-in-rural-india/