INFLUENCE OF SOCIAL MEDIA ON ECONOMIC DEVELOPMENT IN NIGERIA

BY

UGBODAGA MARY

A TERM PAPER FOR DEVELOPMENT COMMUNICATION CLASS,

DEPARTMENT OF MASS COMMUNICATION, COVENANT UNIVERSITY, OTA,
OGUN STATE, NIGERIA.
INFLUENCE OF SOCIAL MEDIA ON ECONOMIC DEVELOPMENT IN NIGERIA

INTRODUCTION

The introduction of the internet has revolutionized the way we interact with people as well as
in the process of sharing information and knowledge (Sobowale, Amodu, Aririguzoh, and
Ekanem, 2015). Oyero (2007) further explains that the internet has greatly impacted the
society, commerce (businesses) and the government.

A great development of the internet is the advent of Information, Communication and

Technology (ICT). Omojala (2009), asked a question ‘if ICTs are fulfilling the role as a
promoter of socio-economic development?’ The answer to this is that ICTs has enhanced
socio-economic growth and development in both developed nations and developing
countries. According to Amodu (2008, p. 288), the introduction of ICTs in any community or
nation, generally engenders unpresented levels of transformation.

Media outlets have a significant influence in identifying and reporting societal issues that
affect socio-cultural and economic development of any nation (Nelson, Kehinde, Oyero,
Williams and Soola, 2014). Oso (2011) states that one of the requisite of the mass media is
the view that they are seen as the Fourth Estate of the Realm, that is they can contribute to the
development of a nation such as cultural, human, social, political and economic development.
Among these media outlets who facilitate development in an economy is Social Media.

Social media is a platform for acquiring knowledge, attaining information and enabling
communication between people, this has helped human lives in numerous ways. Social media
is seen as a market place of ideas and creativity (Danbatta, 2017).

The implication of social media on humans and the society has gone beyond the exchange of
information but has become a powerful communicative force in politics, economy, religion
and educational realms of the society (Onyejelem, Ude-Akpeh & Uduma, 2015). It is this
economic implication of social media that necessitates the concept of economic development.

This paper, therefore, examines the concept of social media on economic development in
Nigeria, bringing out its elements and considering how it operates in the peculiar realities of
the economy with a view to establishing how social media can promote economic growth.
ECONOMIC DEVELOPMENT IN NIGERIA

The Nigerian economic development is induced by poor infrastructures, poor electricity, low
incentives and inadequate policies that limits private sector development and poor access to
quality education.

This is so because the people and citizens of Nigeria are faced with poverty, unemployment,
insecurity and other issues which has hindered the development of the country. Since our
independence, successive governments have pursued the goal of structural changes in the
economy yet their efforts results into low success or futility.

For Nigeria to become developed like other first world nations, we have to imbibe the engine
of economic development to manufacturing and agriculture rather than solely depending on
oil, we have to create employment, promote technological development and reduce poverty
alleviation.

GROWTH OF SMEs IN NIGERIA THROUGH SOCIAL MEDIA

There is a rise of SMEs in Nigeria as they are important in the diversification and growth of
the economy. SMEs is one of the solution to unemployment in Nigeria. SMEs in Nigeria lack
insufficient funds, therefore, there is a need for investment and employability of low cost
usage and this where the place of social media comes in.

For SMEs to experience growth, expansion and revenue, they need to engage in
communication ads to gain existing and new customers. That is, they need brand awareness
and development to reach potential customers and one way to achieve this is through the use
of social media platforms. How is this so?, social media requires low cost to reach out to the
audience, therefore, the best way to gain customers in order for growth and profit is for SMEs
to engage in the use of social media tools. Some of the social media platforms SMEs can
engage with are Facebook, Twitter, Instagram and Snapchat.

GROWTH OF ENTREPRENEURSHIP IN NIGERIA THROUGH SOCIAL MEDIA

Social media is very important to business owners (entrepreneurs) as it gives these firms
access to markets, ideas, information, opportunities and resources. Entrepreneurs depend on
information, markets and resources to make their enterprise continuously develop and
acceptable to the society. Therefore there is a need for entrepreneurs to dive into social media
usage. Some of the social media platforms entrepreneurs can engage with are Facebook,
Twitter, Instagram, WordPress, YouTube, Myspace, etc. Some entrepreneurs that make use
of social media platforms are Iroko TV, Infoprive, GIGM (God Is Good Motors), Slot,
Wilson’s Juice, etc.

GROWTH OF LARGE FIRMS IN NIGERIA THROUGH SOCIAL MEDIA

Although one may say large firms are already a giant and known locally, regionally and
globally. But for these large firms to be kept in the minds of the people there is a need for
them to engage in social networking platforms. The need for large firms to ride on social
media strategies is for them to retain existing customers and gain new and potential
customers.

Another business that has made tremendous growth and development in Nigeria’s economy is
e-commerce firms in Nigeria such as the likes of Jumia, Dealdey, Yudala, Kaymu, Connect,
Wakanow, Konga, etc.

The importance of e-commerce industries are: it will serve as a means of driving the
sustenance of the economy which will stimulate growth in the non-oil sector; it will create
wealth and distribution as well as job opportunities; and it will create revenue for the
government by increasing the country’s Gross Domestic Product (GDP).

ELEMENTS OF SOCIAL MEDIA THAT INFLUENCES THE ECONOMIC

The following elements characterize social media as an economic force in a nation:

i. Job Creation: Social media creates job opportunities ranging from advertising, trading,
designing, management, etc. Through this, wealth creation, distribution and productivity can
be enhanced in the country.

ii. Marketing/Business Collaboration: Through social media, marketing and collaboration are
achieved among entrepreneurs in various ways. For instance, through a platform like
LinkedIn, individuals connect to professionals and organizations towards enabling these
individuals build and maintain contacts (professionals, organizations) for career growth.

iii. Skill Acquisition: In 2008, the Institute for Prospective Technological Studies established
that users on social media platforms can learn new skills as well as improve their existing
skills by working together with others, particularly colleagues in a given field. One of such
social media platform is LinkedIn.
iv. Boost to Small Capital Investments: Social media offers a cheap medium for reaching out
to clients and customers which helps in boosting small capital investments. The major social
media platforms embraced by SMEs, entrepreneurs, large firms and e-commerce industries is
Facebook, Twitter, Instagram and LinkedIn.

REFERENCES

Amodu, L., O. (2008). The Role of the Internet in Achieving Sustainable Development of
Rural Africa: A Fact or a Farce? Ibadan University Press, p. 285-288. In Mojaye, M.,
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Danbatta, U. (2017). Role of Social Media in Economic, Political and Social Development of
Nigeria. First annual lecture of CKN News in Lagos on June 13, 2017.

Nelson, O., Kehinde, O., Oyero, O., Williams, O., R. & Soola, O., E. (2014). Effective use of
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Omojola, O. (2009). English-oriented ICTs and ethnic language survival strategies in Africa.
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Onyejelem, T. E., Ude-Akpeh, C. E. & Uduma, N. E. (2015). The economic potentials of

social media and the Nigerian developing society: an appraisal. International Journal
of African and Asian Studies, 15, 108-116.

Oso, L. (2011). Mass Media and Society in Nigeria. 2nd Edition, African Books Collective,
Oxford: UK.

Oyero, O. (2007). The implications of internet on the media and the practice of mass
communication. International Journal of Communication, 6 (1), 170-174.

Sobowale, I., Amodu, L., Aririguzoh, S. & Ekanem, T. (2015). The Internet as a Tool for
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