Transcript NIGERIA IT AND DEVELOPMENT
NIGERIA AND IT DEVELOPMENT
Presented by Nigeria’s Country Delegation to India South-South Exchange Program India February 9 th -21 st 2009
Nigeria is situated in the West African Region
Bordered on the south by the Atlantic Ocean and the north by the republic of Niger and Chad
Has a land mass of 923,768 esq.
Estimated population of 140 Million, forming Africa’s most populous nation
Has three major ethnic groups, Hausa, Yoruba and Ibo
Has three major religious groups: Islam, Christianity and Traditionalist
Vibrant private sector and a large domestic market
THIS IS NIGERIA!
ECONOMIC FACTS
7 Largest oil exporter in the world producing 2 Million Barrels a day
Richly endowed with other Natural resources like coal, iron-ore, bitumen, amongst others Nigeria’s GDP (purchasing Power parity) and Official exchange rate stands at $294.8 and $ 126.7 Billion respectively as of 1 st April 2007 Oil accounts for 20% of Nigeria’s GDP, 95% of her foreign exchange and 65% of budgetary revenue Nigeria’s labor force is predominantly adult based
70% of working population servicing the agricultural sector, 10% servicing the industrial sector and 20% servicing the services sector.
An estimated 100,000 students graduate from Nigeria’s higher institution annually and 20% of that number are science and Technical graduates.
MORE ECONOMIC FACTS
Nigeria’s GDP Real Growth rate for the years 2003 – 2007 Nigeria’s Per Capita Income for the years 2003 – 2007 Year 2003 2004 2005 2006 2007 GDP - real growth rate 3.00 % Rank 105 7.10 % 6.20 % 25 44 6.90 % 5.30 % 43 90 Percent Change 136.67 % -12.68 % 11.29 % -23.19 % Date of Informa tion 2002 est.
2003 est.
2004 est.
2005 est.
Year GDP - per capita (PPP) Rank Percent Change Date of Information 2003 2004 2005 2006 2007 $875 $900 $1,000 $1,400 $1,500 210 210 207 199 196 2.86 % 11.11 % 40.00 % 7.14 % 2002 est.
2003 est.
2004 est.
2005 est.
2006 est.
DEVELOPMENT OF IT IN NIGERIA
First electronic digital computer made its first appearance in Nigeria in 1963
ICT revolution started in Nigeria after return to democratic rule in 1999
Federal Government of Nigeria accorded priority status to ICT development by approving the following policies for the major sector of the industry:
National Telecommunication policy;
National Information Technology (IT) Policy
National Space policy and National Bio-technology Policy.
Creation of Galaxy Backbone PLC in 2006 to consolidate and integrate all the disparate existing government networks into a single holistic government wide network.
NIGERIA'S ICT SPENDING MORE THAN DOUBLED IN 5 YEARS
Nigeria's ICT Expenditure (US$ billions )
4
3.5
3 2.5
2 1.5
1 2001 2002
Source: World Bank
2003 2004 2005 2006
NIGERIA’S ICT EXPENDITURE
Steady increase in ICT expenditure, includes expenditures on:
Hardware: Computers; storage devices; printers
Software: Operating Systems; programming tools, applications and internal software development
Computer services: IT consulting, computer and network systems integration, web hosting, data processing services
Voice and data communications services, wired and wireless communications
SOME
IT
ORGANIZATIONS IN
NIGERIA
INDUSTRY ASSOCIATIONS GOVERNMENT ESTABLISHMENTS
Federal Ministry of Science and Technology
Ministry of Information and Communication
Nigerian Communications Commission (NCC)
Galaxy Backbone PLC
National Information Technology Development Agency (NITDA)
Nigeria Computer Society Computer Association of Nigeria Outsourcing Development Initiative Of Nigeria (ODIN) Association of Telecommunications Companies Nigerian Society of Engineers Institute of Software Practitioners of Nigeria
Internet Service Providers Association of Nigeria
IT/ITES ACTIVITIES IN NIGERIA
Creation of a National IT Policy produced by Nigeria Information Technology Development Agency (NITDA)
Approved by the Federal Executive Council in March 2001 and officially launched on May 24 2001
Key strategies outlined in the IT Policy:
Make Nigeria an IT Capable Country in Africa and a key player in the Information Society;
Establishment of adequate institutional framework for IT at the Federal, State and Local Government Levels;
Develop Human Resource capacity through education, awareness and increase the access to Information technology.
IT/ITES ACTIVITIES IN NIGERIA CONTINUED
Establishment of National Information Technology Development Agency (NITDA)
Establishment of National Information Technology Development Fund (NITDF) Creation of IT Parks with the infrastructure, services, training and management necessary to harness power of IT
Restructuring relations between Government, Businesses and General Public through the use of IT
Enhancing the efficiency and effectiveness of Governance, Commerce and the provision of services by utilizing IT
STRATEGIES TO ACHIEVE
IT
POLICY OBJECTIVES
Ministry of Education has made significant progress in planning and implementing the following ICT driven programs and projects:
National Virtual Library project
Educational Management information System (EMIS)
National Open University of Nigeria and Distance Learning program
Computers in Schools Initiative
Nigerian Universities Network and National Teachers Institutes Teachers Training program through Distance Learning
Internet and Broadband Usage in Nigeria
25 20 15 10 Internet Usage per 100 people in 2006
Internet users per 100 Broadband subscribers per 100
5 0 Ghana India Nigeria Egypt South
Source: International Telecommunications Union
Africa China Mexico The use of the Internet in Nigeria has started to take-off recently but remains far behind leading competitors. In 2006, Nigeria had 0.8 internet hosts per 10,000 people
NIGERIA’S IT EDUCATION
Establishment of Federal Universities/Polytechnics of Technology and spread across different regions in Nigeria, such places as: Akure; Owerri; Yola; Minna; Enugu; Lagos; amongst others
Establishment of Departments offering engineering/Technical and IT courses in Universities and Polytechnics across Nigeria
Development and Implementation of IT training and computer appreciation skills in higher institutions of learning in Nigeria
Development of framework for IT education by the Federal Government of Nigeria (NITEF) for the structuring and regulation of the formal and non-formal educational institutions of IT in Nigeria.
NITDA entering into partnership with CISCO to roll out local academies in the institutions of higher learning for training.
NIGERIA’S IT EDUCATION CONTINUED
SOME IT TRAINING INSTITUTES IN NIGERIA
National Institute of Information (NIIT)
CISCO Academy Digital Bridge institute (DBI) Microsoft Training Academy Lagos
First Logic Training Institute New Horizon Training HP Training Institutes
SOME IT CERTIFICATION PROGRAMS IN NIGERIA Web development and Design Certification Programming Certifications IT Security Certifications Database Certifications Microsoft New generation Certifications
Microsoft Windows Network Certifications
CISCO Network Certifications COMPTIA Network+ Certifications
Linux Certifications Project Management Certifications
Wireless LAN Certifications
NIGERIA’S BPO INDUSTRY
Nigeria’s BPO Industry is still mainly in the developmental stages
Few core BPO companies exist in Nigeria (Interra Networks, Customer Contact Solutions etc)
Mainly involved in the lower end BPO value chain, like Back Office functions and Customer Contact/Care and HR Outsourcing
Nigeria has a large English speaking work force
Low labor costs
Highly educated labor force (over 100,000 tertiary institution graduates annually)
Strong contract enforcement laws
NIGERIA’S ATTRACTIVENESS AS A BPO DESTINATION
25 20
Business Environment Cost Structure People Score
Overall Country Analysis for ITES-BPO Attractiveness
5.11
5.42
4.93
15
4.14
3.85
10
4.9
4.08
5
5.25
4.05
0 Nigeria Ghana
4.45
6.33
5.18
5.43
6.16
4.93
7.43
5.29
7.36
8.11
Egypt South Africa Mexico China
5.7
10.07
India
WHAT THE NIGERIAN GOVERNMENT HAS DONE TO PROMOTE BPO
Liberalization of the telecom industry- has led to explosion in number of telephone subscribers (over 35 million in less than 5 years)
Initiation of a National Outsourcing Policy (under the previous regime)
Establishing the National Information Technology Development agency (NITDA) which is aimed towards development of IT in Nigeria
Granting tax relief and concessions for a number of years through the NIPC, to companies involved in ICT
Continuous and increased investments and reforms in the ICT sector
Creation of export processes zones and free trade zones
PROS AND CONS
NIGERIA’S ADVANTAGE
Cheap labor and large and educated work force
Widely spoken English language
Strong contract enforcement laws
Flexible labor laws CHALLENGES
Poor infrastructural base
High tax rates
High cost of bandwidth and connectivity
Inadequate legal/regulatory framework to support BPO
High energy costs
Shortage of skilled labor
Nigeria’s reputation
NIGERIA’S IT PARKS
Nigeria In The Developmental Stages Of Setting Up ICT Parks across the country
Abuja Technology Park Kano ICT Park Afrihub Digital Bridge Institute Enugu Global Village Digital Opportunities Center ,Uyo
Jigawa Informatics Center
LIBERILIZATION & REVITILIZATION OF TELECOMMUNICATION SECTOR
Nigeria’s growth in both mobile and fixed line telephones has outpaced countries like Egypt, Ghana and even India Over $3 billion Investment in sector in last 5 years Licensing of Second National Operator (SNO) Globacom Limited. Presently over 25 telecommunication companies in operation in Nigeria Reviving of First National Carrier (NITEL) Introduction of Global System for Mobile Communication (GSM) in August 2001 Telecommunication sector contribution to GDP (over US$ 72 Billion) more than tripled from 0.37% in 1999 to 1.4% in 2005 Total teledensity has increased from about 2Million to 38Million between 2002 & 2007 and is expected to hit the 56 Million mark by 2011 Price of telephone call to the US has come down dramatically from US$7.15 per three minute call in 2001 to less than US$ 2 in 2005 )
NIGERIA’S RAPID TAKE OFF IN MOBILE AND FIXED TELEPHONY
Telephones per 100 people in 2006 Growth in Telephone Subscribers (2001-2006)
90 80 70
cellular fixed
60 50 40 30 20 10 0 India Ghana Nigeria Egypt China Mexico South Africa
Source: International Telecommunications Union
Nigeria India Ghana Egypt South Africa China Mexico 0 20 40
Source: International Telecommunications Union
60 80 100 Cellular Fixed Line 120 140
TELECOMMUNICATIONS SERVICE OFFERINGS IN NIGERIA
SERVICE OFFERINGS
Telephony Services Global System of Mobile Communication (GSM)
Fixed Wireless Access Wireless Networks Very Small Aperture Terminals (VSAT)
Internet Services Satellite Communication and Switching
Public Payphone Services Prepaid Calling Card Services
Radio Network TOP SERVICE PROVIDERS
MTN Globacom ZAIN (formerly Celtel, V Mobile, Econet) Etisalat Cisco InterCellular Visaphone Starcomm Multilinks Mtel VGC Communications ZOOM (formerly Reltel) MTS First Wireless
POLICIES SUPPORTING PRIVATE SECTOR DEVELOPMENT
Nigeria Investment Promotion Commission (NIPC) grants of Pioneer Status relief to new companies, which gives them tax breaks for a certain duration
Tax Holidays Granted to Telecommunication Operators like MTN, ZAIN, Globacom, Etisalat
Development of Free Trade Zones and Export Processing zones
Public and Private Sector Partnerships (PPP) between Government and Private Sector On developmental Projects
Going Forward
ASSISTANCE NEEDED FROM WORLD BANK
Advocacy and support
Funding/Grants
Capacity Support
International Partnership and Collaboration support
OUR QUESTIONS
Our Questions Are Specific To Institutions and border on how best we can collaborate
BPO-NASSCOM & Similar organizations
ITES-IIIT & others
IT Parks-Similar Organizations
Government -Policy definition and Implementation -Support Of ICT Industry