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NIGERIA AND IT DEVELOPMENT

NIGERIA AND IT DEVELOPMENT. Presented by Nigeria’s Country Delegation to India. South-South Exchange Program India February 9 th -21 st 2009. THIS IS NIGERIA!. Nigeria is situated in the West African Region

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NIGERIA AND IT DEVELOPMENT

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  1. NIGERIA AND IT DEVELOPMENT Presented by Nigeria’s Country Delegation to India South-South Exchange Program India February 9th -21st 2009

  2. THIS IS NIGERIA! 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

  3. 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 1st 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.

  4. MORE ECONOMIC FACTS Nigeria’s GDP Real Growth rate for the years 2003 – 2007 Nigeria’s Per Capita Income for the years 2003 – 2007

  5. 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.

  6. 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 2003 2004 2005 2006 Source: World Bank

  7. 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

  8. SOMEIT ORGANIZATIONS IN NIGERIA 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) INDUSTRY ASSOCIATIONS • 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

  9. 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.

  10. IT/ITES ACTIVITIES IN NIGERIA CONTINUED • Establishment of National Information Technology Development Fund (NITDF) • Establishment of National Information Technology Development Agency (NITDA) • 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

  11. 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

  12. Internet Usage per 100 people in 2006 25 20 Internet users per 100 Broadband subscribers per 100 15 10 5 0 Ghana India Nigeria Egypt South China Mexico Africa Source: International Telecommunications Union Internet and Broadband Usage in Nigeria 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

  13. 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.

  14. NIGERIA’S IT EDUCATION CONTINUED SOME IT TRAINING INSTITUTES IN NIGERIA 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 • 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

  15. 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

  16. 25 Business Overall Country Analysis for ITES-BPO Attractiveness Environment Cost Structure 20 People Score 5.11 5.42 4.93 15 5.43 4.45 5.7 4.14 7.36 3.85 10 7.43 6.33 6.16 4.9 4.08 5 10.07 8.11 5.29 5.25 5.18 4.93 4.05 0 Nigeria Ghana Egypt SouthAfrica Mexico China India NIGERIA’S ATTRACTIVENESS AS A BPO DESTINATION

  17. 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

  18. PROS AND CONS NIGERIA’S ADVANTAGE 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 • Cheap labor and large and educated work force • Widely spoken English language • Strong contract enforcement laws • Flexible labor laws

  19. 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

  20. 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 )

  21. Telephones per 100 people in 2006 Growth in Telephone Subscribers (2001-2006) 90 Nigeria 80 cellular India 70 fixed 60 Ghana 50 Egypt Cellular 40 South Africa FixedLine 30 China 20 10 Mexico 0 0 20 40 60 80 100 120 140 India Ghana Nigeria Egypt China Mexico South Africa Source: International Telecommunications Union Source: International Telecommunications Union NIGERIA’S RAPID TAKE OFF IN MOBILE AND FIXED TELEPHONY

  22. TELECOMMUNICATIONS SERVICE OFFERINGS IN NIGERIA SERVICE OFFERINGS 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 • 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

  23. 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

  24. Going Forward

  25. ASSISTANCE NEEDED FROM WORLD BANK Advocacy and support Funding/Grants Capacity Support International Partnership and Collaboration support

  26. 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

  27. Thank you!Questions?

  28. Thank You!

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