The Federal Executive Council (FEC), on Wednesday, approved the renaming of the Federal Ministry of Communications as Federal Ministry of Communications and Digital Economy.
Isa Pantami, Minister of Communications, disclosed this while briefing State House correspondents after the Federal Executive Council (FEC) meeting presided over by Vice President Yemi Osinbajo at the Presidential Villa, Abuja.
He said the digital economy had become a global trend and was making meaningful contribution to Nigeria’s Gross Domestic Product (GDP).
“I am here to convey the message to Nigerians that the Federal Ministry of Communications which I supervise has been renamed and re-designated as the Federal Ministry of Communications and Digital Economy; so that the amendment is the that digital economy should be added to the name.
“We came up with the proposal knowing that digital economy today is about to dominate the world and even in Nigeria, if you look at it critically, the contribution of ICT to Gross Domestic Product(GDP) is increasing by the day.
“If you look at the second quarter of 2019, you will find out that oil and gas contributed 8.82 per cent to our GDP while non-oil sector collectively contributed 91.18 per cent while ICT contributed 13.85 per cent to our GDP.
“So, even the contribution of oil and gas as only 8.82 while ICT 13.85 per cent.
“Now, the global practice is that nations are moving into digital economy and we felt leaving digital economy as just a peripheral in our country will not be for our economy particularly in order to give more priority to the priorities of the administration of President Muhammadu Buhari and Vice President Yemi Osinbajo.
“There is need for us to have a ministry that will supervise the development and implementation of digital economy in Nigeria; most importantly, with regard to our economic recovery and growth plan.’’
Pantami said that in order to be in alignment with the global best practice, many nations in the world were coming up with new ministries as ministries of digital economy.
He said that in the European Union, a commissioner had been assigned with the mandate of digital economy while Scotland has also appointed a Minister of Digital Economy.
The minister said more so, that Thailand had a minister of digital economy while in Africa, Bukina Faso had also appointed a minister of digital economy.
He said that the move was to make sure that digital economy was not a peripheral aspect of Nigerian economy but a central one.
“In Nigeria, looking at the contributions of ICT and secondly, looking at how our population, most importantly, youths are addicted to ICT; they are naturally inclined to ICT; so, I feel it is very important.
“No one will argue with me that if you look at the richest people today in the world, they come from that aspect of digital economy.
“For example, Jeff Bezos, the founder of Amazon.com; he came up with that idea of Amazon in 1994; up to the 2003, he couldn’t get any profit; by 2004, he got his first profit and by 2017, 2018, 2019 constantly, he became the richest person in the world.
“What he did only significantly was to come up with that platform of Amazon.com; he doesn’t own any shop where you go and buy property but one that will provide that digital platform so that you will be able to connect potential buyers and sellers and that platform alone catapulted him to be the richest person in the world.’’
He said that Nigeria had advantages in terms of population and resources; therefore, should harness digital economy as a global trend to improve its economy.
Meanwhile, FEC also approved the conversion of natural gas to methanol in order to address the environmental challenge caused by gas flaring in the country.
Minister of Science and Technology, Dr Ogbonnaya Onu, briefed State House correspondents after the meeting.
He said the gas flaring, which had constituted a problem over the years, would be addressed by converting natural gas to methanol which could be used in many sectors on the economy.
“The Federal Ministry of Science and Technology presented a memo to council that requires the utilisation of Methanol in our economy.
“The problem that we have in the Niger Delta where our natural gas is flared and it has created lots of problems; environmental problems; and also problems for fellow Nigerians living around those areas where the gas is continuously flared.
“It is of major concern to this administration and one way to help us to completely solve this problem of gas flaring is to convert the natural gas into Methanol.
“Methanol is a liquid that finds use in virtually all sectors of the economy; you can use methanol for transportation; all those racing cars that they put M85, M100, essentially, that ‘M’ is methanol and then 15 per cent gasoline but for ordinary use, normally the blending will be 15 per cent of methanol so that you don’t need to make any adjustments to your vehicle.
“Then, also, methanol can be used to replace diesel for all these trucks that we find on our high ways because methanol is cheaper and more environmentally friendly.
“So that all the problems associated with the use of diesel can be solved by the use of methanol.’’
According to Onu, women and people in the rural areas can use methanol for cooking so that it will replace kerosene.
He said that when cooking was done with kerosene, it resulted to soot which darkened the pot as well as creating health problems for the users.
The minister said that methanol did not have soot as it was very clean, safe and cheap.
“It is one way that we utilise our gas in our rural areas and it is going to help us in this problem of deforestation; because today, we are losing many of our forests and trees because we are using them for domestic energy use; so methanol will do this.
“Methanol is also useful in generating electricity power plant; many power plants currently use diesel and all that; methanol will be a replacement.
“Once this is implemented, it will help us to create new businesses particularly, micro and small businesses that have the potential to grow into bigger ones and it will help in the creation of jobs,” he said.
Onu said that the conversion of natural to methanol would also help in wealth creation as well as in fighting poverty.
