The strength of political will has the potential to bridge the digital divide, democratise access to digital technologies, and pave the way for economic growth and sustainability.

In this context, the perspective on political will in the Global North and the South plays a crucial role in strengthening democratic processes and advancing economic reforms.

By fostering a synergistic approach that leverages the strengths of multiple stakeholders, governments in the Global South can work towards delivering the dividends of democracy to their citizens and driving inclusive economic growth.

One could ask, is political will the key to implementing impactful economic reforms in the digital era? Political will refers to the determination and commitment of government leaders to implement necessary changes and reforms.

In the digital age, where technology rapidly transforms economies and societies, governments must have a strong political will to adapt and respond to these changes.

Effective economic reforms in the digital age require leaders to prioritise policies that promote innovation, investment in digital infrastructure, and skills development for a digital workforce.

This can include investing in education and training programs for digital skills, creating a supportive regulatory environment for digital entrepreneurs, and promoting research and development in emerging technologies.

However, implementing these reforms can be challenging, as they may require difficult decisions and trade-offs.

Therefore, governments must have the political will to push through these reforms despite potential pushback from vested interests or opposition parties.

Political will is also vital for ensuring that economic reforms in the digital age are inclusive and equitable. Governments must be committed to bridging the digital divide and ensuring that all citizens have equal access to the benefits of the digital economy. This may involve policies addressing digital literacy, access to affordable broadband, and digital rights protection.

Centrally, political will is essential for making effective economic reforms in the digital age. Governments that are determined and committed to embracing digital transformation and implementing necessary reforms will be better positioned to thrive in the digital economy and ensure that their citizens can benefit from the opportunities it presents.

Could political will be the key tool in bridging the digital divide and democratising digital access for economic growth and sustainability?

Political will is crucial in bridging the digital divide and democratising digital access for economic growth and sustainability. Governments must demonstrate a strong commitment to addressing disparities in access and skill levels to ensure all individuals have equal opportunities to participate in the digital economy.

Political will can be leveraged in the following ways to bridge the digital divide and promote the democratisation of digital access:

1. Investment in digital infrastructure

Governments must allocate resources to building and expanding digital infrastructure, such as broadband networks and mobile connectivity, especially in rural and underserved areas.

This requires political will to prioritise these investments and work towards closing the gap in access to high-speed internet.

2. Digital skills training

Training and education in digital skills are essential for enabling individuals to participate fully in the digital economy. Governments can show political will by implementing initiatives to promote digital literacy, coding classes, and vocational training in tech-related fields.

3. Regulatory frameworks

Political will is needed to create regulatory frameworks that promote competition and innovation in the digital sector while ensuring consumer protection and data privacy.

Governments can enact policies supporting fair competition, protecting consumers, and incentivising investment in digital technologies.

4. Public-private partnerships

Collaboration between the public and private sectors is crucial for bridging the digital divide. Governments can demonstrate political will by fostering partnerships with tech companies, NGOs, and other stakeholders to expand digital access and promote inclusive growth.

5. Digital inclusion policies

Political will is needed to develop and implement comprehensive digital inclusion policies prioritising marginalised communities, such as women, rural populations, and persons with disabilities.

This may involve targeted initiatives to address specific digital access and adoption barriers.

By demonstrating political will and taking proactive steps to bridge the digital divide, governments can facilitate economic growth, job creation, and sustainable development for all segments of society.

Democratising digital access is a matter of social equity and a key driver of economic prosperity in the digital age.

Exploring the perspectives on political will in Global North and South nations is essential to enhance democratic processes and economic reforms.

The perspective on political will in the Global North and Global South nations varies due to differences in governance structures, socio-economic conditions, and historical contexts. However, both regions face common challenges in strengthening democratic processes and implementing effective economic reforms, which require political will to be addressed.

The Global North, which includes developed countries in Europe, North America, and parts of Asia, generally has greater transparency, accountability, and respect for democratic institutions.

Political leaders in these countries have a higher level of resources and capacity to enact reforms but may also face challenges related to vested interests and the influence of corporate entities.

In the context of digitalisation, there is a need for political will to regulate tech giants, protect data privacy, and ensure fair competition in the digital economy.

In the Global South, comprising developing countries in Africa, Latin America, and parts of Asia, political will is often hindered by issues such as corruption, weak institutions, and lack of resources.

Governments in these regions may struggle to prioritise economic reforms and democratic processes amidst pressing social and developmental challenges. However, there are also examples of strong political will in the Global South, where leaders have taken bold steps to promote inclusive growth, address inequality, and harness the potential of digital technologies for development.

To strengthen democratic processes and economic reforms in both the Global North and South, a few key considerations include:

Building trust and accountability: Political leaders must demonstrate a commitment to transparency, accountability, and good governance to gain the public’s trust and build consensus around reform initiatives.

Engaging stakeholders: Involving civil society, the private sector, and marginalised communities in the decision-making process can help ensure that policies are inclusive, responsive to the population’s needs, and sustainable in the long term.

Investing in capacity-building: Governments in both regions need to invest in building institutional capacity, strengthening regulatory frameworks, and developing human capital to effectively implement reforms and navigate the challenges of digitalisation.

Promoting international cooperation: Collaboration between countries in the Global North and South, as well as with international organisations, can help share best practices, mobilise resources, and support efforts to promote democratic processes and economic development.

Political will is critical in driving change and progress in both the Global North and South. By demonstrating commitment to democratic values, equity, and inclusive growth, political leaders can foster an environment conducive to sustainable economic reforms and social development in the digital age.

Upon close reflection, one could ask, how can we harness the potential for a synergistic approach to understand better the impact of political will in delivering the dividends of democracy, especially in the Global South?

The impact of political will on the delivery of democracy dividends in the Global South can be enhanced through a synergistic approach that leverages the strengths and resources of multiple stakeholders.

By fostering collaboration and partnerships between governments, civil society, the private sector, and international organisations, various synergistic actions can be explored:

Multi-stakeholder dialogue and partnership: Bringing together diverse perspectives and expertise can help to identify common goals, co-create solutions, and mobilise resources for the delivery of democracy dividends.

By engaging all relevant stakeholders in the decision-making process, governments can ensure that policies are inclusive, responsive, and sustainable.

Capacity-building and knowledge-sharing: Investing in capacity-building initiatives and sharing best practices can help to strengthen institutional governance, enhance regulatory frameworks, and build the skills and capabilities of government officials, civil society actors, and community leaders. This can improve the effectiveness and efficiency of democratic processes and service delivery in the Global South.

Advocacy and social mobilisation: Civil society organisations play a crucial role in holding governments accountable, advocating for reforms, and mobilising public support for democratic initiatives. By amplifying the voices of marginalised communities and ensuring their participation in decision-making processes, civil society can help to ensure that democracy delivers tangible benefits to all citizens.

Innovation and technology: Leveraging digital technologies and innovative solutions can help to bridge the digital divide, increase access to information and services, and empower citizens to participate in democratic processes.

By investing in digital literacy, e-governance platforms, and open data initiatives, governments can foster transparency, accountability, and citizen engagement in the Global South.

Cross-border cooperation: International collaboration and regional integration can provide opportunities for sharing experiences, pooling resources, and addressing common challenges in democracy promotion.

By working together across borders, countries in the Global South can leverage their collective strength and amplify the impact of political will in delivering dividends of democracy to their citizens.

Emphatically, a synergistic approach that harnesses the collective efforts and resources of multiple stakeholders is essential for maximising the impact of political will in delivering the dividends of democracy in the Global South.

By fostering dialogue, capacity-building, advocacy, innovation, and cross-border cooperation, governments can build inclusive, resilient, and sustainable democratic systems that benefit all citizens and contribute to equitable economic growth and social development.

In conclusion, the impact of political will in the Global South on the delivery of democracy dividends can be significantly enhanced through a synergistic approach that promotes collaboration, capacity-building, advocacy, innovation, and cross-border cooperation.

By working with governments, civil society, the private sector, and international organisations, nations in the Global South can build inclusive and resilient democratic systems that benefit all citizens. Through dialogue, partnership, and a shared commitment to democratic values, political will can be a powerful tool for driving economic growth, social development, and sustainability in the Global South.

By harnessing multiple stakeholders’ collective efforts and resources, governments can unlock the full potential of political will in delivering tangible benefits to their citizens and advancing the cause of democracy worldwide.

The announcement, which revealed the financial impact of the subsidy removal, was made by Sunday Dare, the Special Adviser on Media and Public Communications to the President.

In a detailed bulletin outlining Tinubu’s achievements in the oil and gas sector, Dare also revealed that the president had signed five new executive orders aimed at boosting investments in the sector. 

These orders are expected to bring about $2.5 billion in new investments, enhancing the country’s energy policy framework.

Dual Pricing Mechanism Introduced

Among the reforms introduced is a dual pricing structure for petroleum products, allowing differentiation between transportation by trucks and by sea. 

This pricing model is expected to enhance logistics efficiency in the oil and gas supply chain while addressing regional price disparities.

The subsidy removal, announced in Tinubu’s inaugural speech, immediately resulted in a dramatic increase in fuel prices, with petrol prices jumping from ₦180 to approximately ₦620 per litre. 

By 2024, the price at retail filling stations had surged to between ₦1,200 and ₦1,400 per litre, depending on the region.

Economic Impact and Reallocation of Resources

The removal of the subsidy has freed up funds, which the government says can now be redirected toward critical sectors such as education, healthcare, and infrastructure development. However, questions about the effective utilisation of these savings are unanswered.

Finance Minister Wale Edun recently stated that the country has saved up to ₦20 trillion since the deregulation of the downstream sector, although this figure has been met with scepticism. 

It’s been argued that the government’s continued reliance on borrowing—such as a proposed $2.2 billion loan to address the 2024 budget deficit—raises doubts about how effectively the savings are being deployed.

Challenges and Full Deregulation

The transition to a fully deregulated petroleum market came with challenges as petrol prices were initially pegged at ₦620 per litre, with the Nigerian National Petroleum Corporation (NNPC) absorbing the implicit subsidy despite rising crude oil prices and the naira’s devaluation. 

However, mounting debts of approximately $6 billion owed to oil traders forced the NNPC to halt its subsidy mechanism, ensuring full deregulation.

This move has been met with mixed reactions from Nigerians, who face increasing economic stress due to inflation and rising living costs. 

While the government touts the benefits of subsidy removal, including the attraction of foreign direct investments and the stabilisation of the oil and gas sector, many citizens are continuously hit with its immediate economic repercussions.

The multilateral institution also urged the federal government to address governance and business regulation bottlenecks to grow the economy at five to eight percentage points annually.

Dr. Christian Ebeke, IMF Resident Representative for Nigeria, gave the advice On Tuesday in Lagos at the “Lagos Chamber of Commerce and Industry (LCCI) International Business Conference and Expo 2024, Invest Nigeria”.

In his presentation, titled, “Nigeria Must Stay the Course on Reform Agenda,” Ebeke stated that the country was faced with acute policy trade-offs that stemmed from inherited imbalances.

He added that Nigeria’s outlook was predicated on strong policies since “higher and durable growth required macro stability and further reforms”.

He said IMF believed that Nigeria’s economy was currently turning the corner, but warned that the country must sustain the bold reforms.

According to him, reforms in governance and business regulations can lift Nigeria’s output by 6.4 per cent in the next three years.

Ebeke said,

“When we look at Nigeria, it is always better to compare it with what it aspires to be, which is to be a large emerging market nation.

“So, we want to compare Nigeria with India, China and Indonesia. We strongly believe that this is where Nigeria should be.

“But you can see that governance and business regulation remain something that needs to address. Compared to other emerging markets, governance remained a challenge in Nigeria. At different levels, it could be corruption, rule of law or other governance indicators. The same thing can be said for business regulation.

“Over the last decade, there has not been enough progress in reducing the gap between Nigeria and other emerging markets in terms of governance and business regulation.

“Governance and business regulation are where more actions are still needed.”

Ebeke asserted that Nigeria could lift its economic output by 6.4 percent if it could do the type of reforms India and other emerging market countries did, simply by reducing the gaps in governance and business regulation by 25 per cent.

He stated, “If you divide this six by three, you will have an additional two percentage points of growth. Right now, Nigeria is growing at three per cent. It means that this country can grow at five per cent by simply reducing the governance bottlenecks and the business regulation bottleneck by just 25 percent only.”

He added that if Nigeria could deepen the reform further to 50 per cent, the country would enjoy much more growth dividend that would be 12 percentage points higher.

The IMF country representative said, “Nigeria needs to grow at least by five or eight per cent every year, above the population growth. This is good for businesses and this is a particular growth in a period when interest and inflation rates are high.

“In our (IMF) recent research that we have done, we see a case for structural reforms. What it has shown is that when you start looking closely at where Nigeria lacks behind vis-a-vis other emerging markets, there are issues, such as governance and business regulation that need to take precedence.

“Closing these gaps will trigger much durable growth acceleration and more inclusive growth also in Nigeria”

According to him, Nigeria faces acute policy trade-offs resulting from inherited imbalances, which informed President Bola Tinubu’s seriousness in reforming the economy.

Ebeke said, “When we look at Nigeria, we have to look at the history at least over the past 10 years. Most of the red indicators are the result of inherited policies that exasperated the balances.

“So, last year was a moment of clarity for policymakers and they rightly took significant reforms to change the path for the economy.”

In his address at the conference, the governor of Lagos State, Mr. Babajide Sanwo-Olu, said his administration had implemented policies and initiatives that would attract investments, create opportunities, and drive growth.

Sanwo-Olu said, “One key area of focus for us is infrastructure development: upgrading and expanding our transportation and logistics networks, telecommunications, healthcare, education and digital ecosystem infrastructure.

“We are well aware that the kind of growth that we seek to unleash will not happen without a solid foundation of infrastructure that is able to keep ahead of our rapidly-growing population.

“As one of Africa’s start-up capitals, we are especially keen to invest in digital infrastructure to power the innovative ideas of our people. Agriculture and food security are also priorities, in line with a national focus on these areas.

“In addition, we are developing our tourism and entertainment sector, with various investments in hospitality, leisure, and cultural infrastructure to showcase the best of Lagos and Nigeria.”

The governor added, “Lagos, Africa’s economic hub, offers a conducive business environment, a strategic location, a vast market, and a pool of energetic talent. Our administration has implemented and continues to implement policies and initiatives to attract investments, create opportunities, and drive growth.”

According to him, the government has also embarked on port rehabilitation at the Apapa and Tin-Can ports, among others, to enhance port efficiency and improve road and rail transport system so as to reduce transportation cost and improve maritime security.

Mr. Gabriel Idahosa, the president of LCCI, aid the conference was pivotal in Nigeria’s journey toward stabilising the economy and driving sustainable economic growth and development through the creation of “an enabling environment that supports business growth, encourages innovation, and ensures that local and international investors feel confident in their investments”.