AI in Informal Trade: Bridging Nigeria’s Digital Divide or Widening It?
In Nigeria’s vibrant economic hub of Lagos, the digital transformation is unfolding not through futuristic infrastructure but through everyday mobile screens and payment applications. Yet, for the vast majority within the nation’s colossal informal economy, this digital future is often marred by inconsistent network connectivity, opaque algorithmic processes, undisclosed data handling practices, and mobile applications that remain largely incomprehensible to the average user. This paradox highlights a significant challenge in how technological advancements truly integrate with the daily realities of millions.
The Digital Divide Within Nigeria’s Informal Economy
Nigeria’s informal workforce constitutes over 85% of its total labour force, encompassing a diverse range of individuals from market vendors and roadside food sellers to skilled artisans operating in bustling commercial centres like Oshodi and Balogun. While smartphones have increasingly become indispensable tools for these micro-businesses, the way these traders interact—or struggle to interact—with the digital platforms behind these devices reveals a growing disparity. This burgeoning gap determines who genuinely benefits from Nigeria’s rapidly expanding digital economy and who is left behind. The challenges extend beyond mere access, delving into issues of usability, transparency, and data privacy. This critical perspective is informed by extensive research, including insights from 42 field responses, direct interviews with prominent market leaders, and expert legal analysis provided by Oladipupo Ige, Director at the Data Privacy Lawyers Association of Nigeria.
The advent of digital tools presents both an immense opportunity for economic inclusion and a risk of further marginalization. While mobile technology can connect informal traders to broader markets and streamline transactions, the underlying complexities of these platforms, coupled with infrastructural deficiencies, threaten to exacerbate existing inequalities rather than resolve them. Ensuring truly inclusive growth requires addressing these foundational barriers, making digital participation equitable and beneficial for all segments of Nigeria’s dynamic informal sector.
Keywords
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