Oyedele Warns Nigeria Against Repeating Oil Economy Mistakes in Digital Sector

Oru Leonard 

The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, has warned that Nigeria could repeat the costly mistakes of its oil-dependent economy if it fails to develop local capacity for data storage, processing and utilisation.

Oyedele said excessive dependence on foreign digital infrastructure could deny the country significant economic benefits, including employment, investment, technical expertise and opportunities for local businesses.

The Minister gave the warning on Wednesday in Uyo, Akwa Ibom State, while delivering the convocation lecture titled “Digital Sovereignty and Ethics: Guarding the Economy for the Next Generation” at the University of Uyo.

He drew parallels between Nigeria’s historical dependence on crude oil exports and imported refined petroleum products, noting that the country must avoid a similar situation in the emerging digital economy.

According to him, Nigeria has an opportunity to generate substantial economic value from its growing digital ecosystem but must first address its dependence on foreign data infrastructure.

Citing figures from the Nigerian Communications Commission (NCC), Oyedele disclosed that the country had more than 157 million active internet subscriptions as of May 2026.

However, he noted that estimates by the Nigeria Data Protection Commission indicated that more than 90 per cent of Nigeria’s data was hosted outside the country.

He explained that this dependence results in foreign exchange losses through offshore data hosting and processing payments, while limiting opportunities for indigenous technology companies and professionals.

The Minister also warned that storing Nigerian data abroad exposes it to foreign laws and jurisdictions, potentially undermining the country’s control over its digital resources.

Oyedele explained that digital sovereignty means having the capacity to determine, within the framework of national laws, how a country’s data is collected, stored, accessed and deployed.

He clarified that the concept does not imply isolation from the global digital economy but rather ensuring that international digital engagements serve Nigeria’s economic and strategic interests.

To address the challenge, he advocated increased investment in local digital infrastructure, stronger regulatory institutions and deliberate efforts to build indigenous expertise and businesses capable of transforming data into commercially valuable products and services.

On the growing influence of artificial intelligence, Oyedele urged graduates to acquire relevant technological skills while preserving critical thinking, creativity, independent judgement, empathy and integrity.

He noted that AI and other emerging technologies would significantly reshape employment opportunities and the skills required to remain competitive in the future economy.

The Minister also cautioned young Nigerians against irresponsible conduct online, stressing that their digital footprints increasingly influence their personal and professional reputations.

He advised graduates to engage constructively in online discussions, disagree respectfully and challenge ideas without attacking individuals.

According to him, online attention should not be mistaken for respect, popularity for credibility or virality for meaningful value creation.

He further warned that artificial intelligence could accelerate the spread of misinformation, impersonation and dishonesty, making ethical behaviour and public trust increasingly essential.

Addressing the responsibilities of universities, Oyedele urged higher institutions to evolve beyond their traditional role of awarding certificates and become centres of innovation, entrepreneurship, ethical leadership and practical problem-solving.

He maintained that universities should be assessed not only by the number of graduates they produce but also by the solutions their graduates develop, businesses they establish and contributions they make to society.

He identified agriculture, energy, healthcare, marine resources, environmental management and digital services as critical sectors where graduates could explore innovation and entrepreneurial opportunities.

The Minister outlined five key responsibilities for graduating students: commitment to lifelong learning, value creation, integrity, responsible digital citizenship and active participation in nation-building.

He stressed that Nigeria’s ability to secure a prosperous digital future would depend not merely on technology and infrastructure but also on the character, choices and capabilities of its citizens.

Oyedele challenged the graduates to become active participants in shaping the country’s future, drawing inspiration from management expert Peter Drucker’s famous statement: “The best way to predict the future is to create it.”