Paper presented at the 14th National Conference of the School of Management Studies of the Federal Polytechnic, Ilaro

Technological Adaptability and Socio-economic Implications in Nigeria: Navigating the Path to Progress, a paper presented by Opeyemi Alaran at the 14th National Conference of the School of Management Studies of the Federal Polytechnic, Ilaro on the 15th of August, 2023

Good morning esteemed participants, faculty members, and distinguished guests. It is an honor to stand before you as the Keynote speaker at the 14th National Conference of the School of Management Studies of the Federal Polytechnic, Ilaro. Today, we delve into a topic that intertwines technology with the socio-economic dynamics in Nigeria. I invite you to join me in exploring the depths of technological adaptability and its profound implications on our nation’s socio-economic landscape.

Change as the constant:

As we stand on the threshold of the fourth industrial revolution, one thing is clear; change is the new constant. The fusion of technology and society is reshaping how we live, work, and interact. As declared by the late great Nelson Mandela; “Education is the most powerful weapon which you can use to change the world.” Today, we examine how education, innovation, and adaptability form the trifecta of progress in Nigeria.

Insights on Technological Adaptation:

In preparing this paper, I have drawn from my experiences in the field of technology and socio-economic development, and I would like to share insights on the factors that contribute to successful technological adaptation. These insights span policy frameworks; educational reform; collaboration among academia, industry, and government, and showcase our ability to skillfully integrate technology into education and industries and how these concepts shape our competitiveness on a global stage.

Understanding Socio-economic Dynamics:

Ladies and Gentlemen, the conference theme, “Technological Adaptability and Socio-economic Implications in Nigeria,” resonates deeply with the challenges and opportunities we face, as a country. Within this theme, the term “socio-economic”, refers to the relationship between social factors and economic factors and how they influence and shape each other.

Social factors are the various aspects of society, culture, communities, and human interactions. This can include elements such as demographics, education, healthcare, social norms, values, customs, and quality of life. Social factors reflect the well-being, behavior, and interactions of individuals within a community or society.

Economic factors involve the production, distribution, and consumption of resources, goods, and services within an economy. Economic factors encompass employment, income levels, inflation, fiscal policies, monetary policies, market dynamics, trade, investments, and overall economic growth.

When combined, the term “socio-economic” signifies an analytical framework that considers the interplay and interdependence between social and economic factors. It recognizes that economic conditions and activities are deeply intertwined with social circumstances and that changes in one domain often lead to consequences in the other. Socio-economic analysis seeks to understand how economic developments impact various aspects of society and how social conditions, in turn, influence economic outcomes.

Navigating Economic Realities

Bearing this in mind, let us consider the current economic realities in our country, Nigeria. The recent economic indicators in Nigeria have significant socio-economic implications for the nation. These indicators, ranging from inflation rates to policy changes, reflect the current economic situation and can provide insights into the intricate relationship between economic performance and the well-being of the population. For instance;

Inflationary Pressure: The rise in inflation to 23% from 22.4% in the previous month
indicates increased costs of living for Nigerian citizens. This elevated inflation rate affects
purchasing power, making basic goods and services less affordable. Households may need to
allocate more of their budgets to necessities, potentially reducing disposable income for
other important needs.
Income Strain and Wage Stagnation: With inflation outpacing wage growth and a static job market, real income is under pressure. As wages remain stagnant, citizens experience difficulties in maintaining their standard of living. The expectation of upward wage adjustments, coupled with potential policy interventions, aims to alleviate this strain but poses challenges in balancing the inflationary impact.
Investor Sentiments and Market Capitalization: Positive investor sentiments due to pro-market policies have boosted the stock market, increasing market capitalization by ₦2.8 trillion. This surge could stimulate economic growth and job creation, benefiting both investors and job seekers alike.
New Legislation and Socio-economic Impact: The enactment of laws such as the Electricity Act, Student Loan Act, and Data Protection Act addresses critical societal needs. These laws, if effectively implemented, can lead to improved access to electricity, higher education affordability, and enhanced data privacy rights, fostering socio-economic development.
Currency Dynamics and Investment: Foreign exchange policies, including the divergence between official and parallel markets, impact investment decisions and foreign investor confidence. Ensuring foreign exchange stability and harmonization could attract more foreign direct investment, contributing to economic growth.

To summarize, the socio-economic implications of these indicators highlight a complex interplay between economic policies, market dynamics, and the well-being of Nigerian citizens. Therefore, balancing these economic factors will be key to shaping Nigeria’s socio-economic landscape.

Defining Technological Adaptability

From the theme of this conference, the term, “Technological Adaptability”, refers to the capacity
and willingness of individuals, organizations, or societies to effectively and efficiently adjust to, adopt, and integrate new technologies into their existing practices, systems, and processes. It encompasses the ability to embrace, utilize, and harness technological advancements to achieve desired outcomes, enhance productivity, and remain competitive in a rapidly evolving technological landscape.

Technological adaptability involves several key aspects:

Openness to Change: Technological adaptability begins with a mindset that is open to change. It involves recognizing the significance of emerging technologies and being receptive to exploring their potential benefits.
Learning and Acquiring Skills: Adapting to new technologies often requires acquiring new skills, knowledge, and expertise. Individuals and organizations must be willing to invest time and effort in learning how to effectively use these technologies.
Flexibility and Agility: The ability to adapt to different technological solutions and to adjust strategies based on evolving circumstances is crucial. Being flexible and agile allows for quick responses to changing technological trends.
Integration and Implementation: Effective adaptability goes beyond just learning about new technologies. It involves integrating these technologies seamlessly into existing processes, systems, and workflows to maximize their impact.
Problem-Solving and Innovation: Technological adaptability involves leveraging technology to solve problems and innovate. This might include using new tools to streamline operations, enhance products or services, or create new business models.
Risk Management: Adapting to new technologies may involve some level of risk, such as investing resources in untested solutions. Effective technological adaptability includes assessing and managing these risks while pursuing innovation.
Cultural and Organizational Change: In larger contexts, like organizations or societies, technological adaptability requires fostering a culture that values learning, innovation, and the adoption of new tools. It may involve reshaping processes, hierarchies, and communication patterns.
Continuous Improvement: Technological adaptability is an ongoing process. Technologies evolve, and what works today might need adjustments tomorrow. Engaging in continuous learning and improvement is essential to remain adaptable.
Long-Term Vision: While adapting to immediate technological changes is important, having a long-term vision that considers how emerging technologies could shape the future is equally vital.

Having described the concepts of “technological adaptability” and “socio-economic implications”, a review of relevant literature on the subject matter of the impact of technology or technological adaptibility on economic growth and development, provides the following insights:

Literature Review

Acemoglu & Restrepo (2019) discusses how technological advancements, while displacing certain types of labor, also create new tasks and opportunities, leading to overall economic growth and development. They find that technology has a dual effect on labor markets. While it may displace certain types of jobs, it also creates new tasks and opportunities, leading to overall economic growth. The adaptation to new technologies requires the development of new skills and knowledge, which can contribute to increased productivity and improved economic outcomes.

Bloom, Draca & Van Reenen (2016) examines how increased imports from China have induced technological adaptation in firms, leading to innovation, increased productivity, and ultimately contributing to economic growth. They find that increased imports and exposure to foreign technologies, such as those from China, induce technological adaptation within firms. This process leads to innovation, improved productivity, and, consequently, economic growth. The study emphasizes the dynamic relationship between technology, trade, and economic development.

Rodrik (2018) explores the role of technological advancements and adaptability in the context of global value chains, emphasizing how technology can spur economic growth in developing economies. He finds that technological advancements are a crucial driver of economic growth, particularly in the context of global value chains. Developing economies can benefit from integrating technology into their production processes and adapting to new innovations, thereby enhancing their participation in global markets and contributing to economic development.

Bresnahan, Brynjolfsson & Hitt (2002) investigates the relationship between technology adoption, changes in workplace organization, and the demand for skilled labor, highlighting the role of technological adaptability in shaping labor markets and economic outcomes. They find that the adoption of information technology and technology-driven changes in workplace organization lead to increased demand for skilled labor. The interaction between technology and labor markets highlights the importance of technological adaptability in shaping employment patterns and fostering economic growth.

Li & Mohnen (2019) summarizes empirical studies that analyze the impact of technological innovation on productivity, shedding light on how technological adaptability contributes to economic growth. The empirical evidence they present demonstrates a positive relationship between innovation, often driven by technological advancements, and productivity growth. The review of microeconometric studies highlights the transformative impact of technological adaptability on economic growth outcomes.

Keller (2002) examines how international trade facilitates the diffusion of technology, leading to increased productivity and economic growth in recipient countries. He finds that International trade acts as a conduit for the transmission of technology across countries, leading to increased productivity and economic growth. The diffusion of technological advancements through trade channels facilitates technological adaptability and contributes to positive economic outcomes.

In summary, “technological adaptability” represents the ability to embrace and effectively utilize new technologies, encompassing a mindset, skill acquisition, flexibility, integration, problem-solving, risk management, cultural change, and a commitment to continuous improvement. It is a vital attribute in a world here technological advancements play a pivotal role in shaping various aspects of individual lives, business strategies, and societal progress.

Implications for Nigeria

Ladies and Gentlemen, at this juncture, we see that the theme of the 14th National Conference of the School of Management Studies of the Federal Polytechnic, Ilaro, calls us to examine the intricate interplay between technology, labor, and capital and how it shapes the socio-economic landscape, influencing productivity, growth, and the overall well-being of the Nigerian populace.

As established from the literature review, through our ability to adapt to technological advancement, a transformative element is introduced into the production process, acting as a catalyst that enhances the productivity and efficiency of both capital and labor inputs. This has the following implications on the Nigerian economy:

Enhanced Labor Productivity: Technology empowers labor by providing tools, systems, and processes that amplify human capabilities. With the right technological adaptations, workers can achieve higher output levels, reduce manual efforts, and execute tasks with greater precision. This heightened labor productivity translates to increased production capacity, leading to economic growth.
Capital Amplification: Technology has the potential to amplify the impact of capital investment. Capital-intensive industries can leverage advanced technologies to optimize resource utilization, reduce wastage, and maximize returns on investment. In Nigeria, sectors such as agriculture, manufacturing, and infrastructure development can benefit significantly from capital amplification through technological adaptability.
Innovation and Efficiency: The adoption of technology fosters innovation, allowing for the creation of new products, services, and production methods. This not only expands economic opportunities but also enhances efficiency throughout the value chain. As Nigeria adapts technology to its socio-economic context, innovation can drive economic diversification and competitiveness.
Human Capital Development: Technological adaptability necessitates continuous learning and skill development. This, in turn, contributes to the development of human capital, an essential component of productive labor. As Nigeria invests in technology-driven education and training programs, the workforce becomes better equipped to contribute to higher-value economic activities.
Global Competitiveness: Technological adaptability bolsters Nigeria’s position in the global marketplace. By integrating advanced technologies, the nation can produce goods and services more efficiently, improve product quality, and access wider markets. This enhances export potential and foreign exchange earnings, positively impacting the country’s trade balance.
Income Distribution and Inclusivity: While technology can enhance productivity, it’s crucial to address potential implications on income distribution. Ensuring that the benefits of technological advancements are shared equitably among different segments of society is vital for socio-economic inclusivity. Policies that promote skill development, job creation, and equal access to technology can mitigate disparities.
Entrepreneurship and Start-ups: Technological adaptability nurtures a fertile ground for entrepreneurship and start-ups. As barriers to entry decrease, innovative individuals and small businesses can leverage technology to enter markets, disrupt traditional industries, and contribute to economic dynamism.
Infrastructure Development: Technological adaptability often necessitates infrastructural improvements, such as reliable internet connectivity and power supply. Investing in digital infrastructure not only supports the integration of technology but also enhances overall economic productivity.

In essence, “Technological Adaptability and Socio-economic Implications in Nigeria” within the framework of production as a function of capital and labor, with technology as an enabler, signifies a pivotal crossroads. Nigeria’s ability to harness technology to optimize labor and capital inputs holds the key to unlocking higher levels of productivity, innovation, and competitiveness. Effective adaptation requires a multi-faceted approach that encompasses education, infrastructure development, policy frameworks, and a commitment to fostering an environment conducive to technological progress. By strategically embracing technological advancements, Nigeria can pave the way for sustainable socio-economic growth, improved living standards, and an empowered citizenry. In a world driven by innovation, our ability to adapt to new technologies will define our socio-economic trajectory. In the context of Nigeria, a nation rich in potential, it’s imperative that we align our adaptability with our development goals.

I therefore commend the distinguished faculty and dedicated staff of the School of Management Studies of the Federal Polytechnic, Ilaro, for the successful organization of the 14th National Conference. The insightful choice of the theme and accompanying sub-themes reflects a profound understanding of the contemporary challenges and opportunities that our nation faces. Your efforts in convening this conference provide a platform for crucial discussions that transcend the boundaries of academia and resonate with the real-world dynamics shaping our socio-economic landscape. As we look to the future, I recommend that the School of Management Studies continues to play a pivotal role by fostering a multi-pronged approach. This includes establishing interdisciplinary research collaborations to explore technology-driven solutions for local challenges, initiating partnerships with industry leaders to create experiential learning opportunities, integrating technology-focused coursework into the curriculum, and organizing regular seminars and workshops to keep the dialogue on technological adaptability alive. By embracing these actions, the School can champion a culture of innovation, resilience, and adaptability that will steer Nigeria towards sustainable socio-economic progress in this rapidly evolving era.

Conclusion

Ladies and gentlemen, we stand at a crossroads, armed with the knowledge that adaptability is our compass and innovation is our engine. Let’s draw inspiration from the resilience of our nation’s history and channel that spirit into our present endeavors. Through collaborative efforts and a steadfast commitment to learning, we can lead Nigeria into a future where technological adaptability propels us to unprecedented heights of socio-economic prosperity.

Thank you for your attention, and I look forward to engaging with you further during the discussions and networking sessions that lie ahead. Together, let’s script the narrative of a technologically adaptive and socio-economically thriving Nigeria.

References:

Acemoglu, D., & Restrepo, P. (2019). Automation and new tasks: How technology displaces and reinstates labor. Journal of Economic Perspectives, 33(2), 3-30.
Bloom, N., Draca, M., & Van Reenen, J. (2016). Trade induced technical change? The impact of Chinese imports on innovation, IT and productivity. The Review of Economic Studies, 83(1), 87-117.
Rodrik, D. (2018). New technologies, global value chains, and developing economies. In Handbook of Economic Growth (Vol. 2, pp. 263-315). North-Holland
Bresnahan, T. F., Brynjolfsson, E., & Hitt, L. M. (2002). Information technology, workplace organization, and the demand for skilled labor: Firm-level evidence. The Quarterly Journal of Economics, 117(1), 339-376.
Li, Y., & Mohnen, P. (2019). Impact of innovation on productivity: A review of microeconometric evidence. Annual Review of Economics, 11, 159-186.
Keller, W. (2002). Trade and the transmission of technology. Journal of Economic Growth, 7(1), 5-24.