NIGERIA IT AND DEVELOPMENT

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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

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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)

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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

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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)

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CISCO Academy Digital Bridge institute (DBI) Microsoft Training Academy Lagos

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First Logic Training Institute New Horizon Training HP Training Institutes

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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

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CISCO Network Certifications COMPTIA Network+ Certifications

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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

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Abuja Technology Park Kano ICT Park Afrihub Digital Bridge Institute Enugu Global Village Digital Opportunities Center ,Uyo

Jigawa Informatics Center

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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

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Telephony Services Global System of Mobile Communication (GSM)

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Fixed Wireless Access Wireless Networks Very Small Aperture Terminals (VSAT)

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Internet Services Satellite Communication and Switching

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Public Payphone Services Prepaid Calling Card Services

Radio Network TOP SERVICE PROVIDERS

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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

Thank you!

Questions?