Strategies for Implementing the Nigerian eGovernment and ePayment Initiative

1. Strategies for Implementing the Nigerian eGovernment and ePayment Initiative A Presentation at the NITDA eNigeria 2010 International Conference and Exhibition By Dr. Olu Agunloye Executive Vice Chairman National eGovernment Strategies 18-20 May 2010 National eGovernment Strategies

2. Presentation Layout National eGovernment Strategies

3. Part I Introduction … Implications of National Vision 20-2020 …. National eGovernment Strategies

4. The Real Issues • Nigeria takes a stand on National Vision 20-2020 • Natural resources alone may not achieve it • Human resources and systems’ efficiency will play a significant role • This is about National Competitiveness • It is about overtaking other countries • The other countries are not standing still National eGovernment Strategies

5. Implications of Vision 20-2020 in 2007 GDP (nominal) – 2007 Source: International Monetary Fund Compare with other nations It is about overtaking other nations National eGovernment Strategies

6. The Countries to Overtake as at 2009 GDP (nominal) – 2009 Source: International Monetary Fund Compare with other nations National eGovernment Strategies

7. Faring on National Vision 20-2020 National eGovernment Strategies

8. Part II Leveraging eGovernment … the imperatives of eGovernment in context of National Aspirations …. National eGovernment Strategies

9. Grasping the Basics for the Vision- I It is important that Nigeria should be committed to: • the goal of being one of the 20 biggest economies in the world • the implications of being one of the 20 most dynamic and competitive knowledge-based economies in the world by 2020 • the requirements of national competitiveness for sustainable economic growth National eGovernment Strategies

10. Grasping the Basics for the Vision II Knowledge Based Economy (KBE) is an Economy driven by generation, processing and utilization of knowledge as the major input for higher productivity and wealth creation. Critical Pillars of KBE: • Information and Communications Technology, (ICT) (Key Enabler) • Science, Technology and Innovation (STI) (Determinant of Sustainability & Competitiveness) • Human Resource Development, (HRD); (Nucleus) - Zuru (2010) National eGovernment Strategies

11. Towards a Competitive Government • Governments are coming under increasing pressure to promote competitiveness as well as become competitive themselves • They need capacity to steadily improve government quality, and to always strive to serve the public more efficiently and effectively • Competitive government is one that provides services most people and businesses want at affordable tax rates • Competitive government is one of thefundamentals for a competitive economy National eGovernment Strategies

12. Path to National Competitiveness • Productivity Growth makes it possible for an expansion of output, not just without concomitant increases in inputs, but with important reductions in hours worked over the medium term • Productivity Growth makes possible a sustained rise in real incomes leading to Economic Growth • Injection of ICT is a major driver of Productivity Growth • Efficient and responsive Public Service is essential for Productivity Growth • eGovernment is a key factor for increasing competitiveness and generating a responsive public service Therefore, eGovernment propels productivity growth which is needed to achieve sustained economic growth National eGovernment Strategies

13. eGovernment as Driver for Nigeria’s Vision Vision 20-2020 National Competitiveness Productivity Growth Economic Growth Public Sector Efficiency eGovernment National eGovernment Strategies

14. Part III Implementing eGovernment … evoking novel Public Private Partnership s ….

15. Placing eGovernment in Perspectives • eGovernment is about Integration of MDAs & enabling Citizen-Centric Interaction • eGovernment is about Good Governance • It is about the strategies, processes and systems in the provision of citizen-centric Services • It is multi-dimensional and multi-disciplinary • It is about new leaderships and partnerships to build an eNation

16. Nigeria’s March to eGovernment The background to the eGovernment Initiative in Nigeria: • March2001: National IT Policy • March 2003: National Information Technology Development Agency, NITDA • March 2004: National eGovernment Strategies, NeGSt as a Special Purpose Vehicle for eGovernment thru Public Private Partnership National eGovernment Strategies

17. Mandate for eGovernment • NITDA has the Mandate for electronic Government under NITDA ACT 2007 • NITDA has regulatory powers for eGovernment and other IT development and standardisation National eGovernment Strategies

18. Mandate of NeGSt (Section 6, NITDA ACT 2007) NeGSt is a subsidiary of NITDA created through Public Private Partnership, as Special Purpose Vehicle for eGovernment standards and implementation platform National eGovernment Strategies

19. Roles of NeGSt • Develop standards and guidelines for eGovernment implementation on behalf of NITDA • Build and maintain a one-stop platform for the integration and implementation of eGovernment services on behalf of NITDA • Perform any other functions as may be assigned by NITDA in relation to e-government National eGovernment Strategies

20. Nigerian PPP Model for eGovernment • The Nigerian PPP model for implementing eGovernment leverages on Government’s economic and civil service reform processes which include deliberate programme to nurture the private sector. • There are three prominent players in this model - Government, Private Sector and the Citizen. National eGovernment Strategies

21. Explaining the NeGSt PPP Model • Public and Private Sectors invest in Reform Agenda and eCommerce respectively • Public Sector makes ‘profits’ in terms of savings from efficiency, blockage of wastes & reduction of corruption etc • Private Sector makes profits from eCommerce • Public and Private Sectors collaborate to evolve eGovernment processes to sustain the process of making “profits” • Collaboration of Public and Private Sectors leads to provision of Improved Services to Citizens • NeGSt drives model to generate branded better values for citizens from technical solutions, private sector funds and public sector data National eGovernment Strategies

22. Public & Private Sectors collaborate gainfully to satisfy the Citizens Government Gains Public Sector Reforms Improved Services eGovernment Electronic Commerce Citizens Profits Private Sector The Public Private Partnership Model for eGovernment Govt carries out reforms to provide better services and good governance Citizens demand from Govt type of services they enjoy from the private sector Govt teams up with Private Sector for National Development

23. PPPs for eGovernment are Strategic • It is not only about funding, PPP provides an arrangement whereby private investors not only share gross returns or/and profit with Government, but also share losses and risks involved • To mitigate against losses, Private Partners get involved with training of Government staff, general capacity building within the Agencies and transformation of entire Agency. • To ensure sustainability, the terms of the PPPs stipulate that the shares of the Government Agencies in the profits be ploughed back for capacity building for staff and enhancement of back-office resources within the Agencies National eGovernment Strategies

24. Extracting Implementation from the eGovt Model… … a recap of the eGovernment Model is needed here The NeGSt Model FGN GAINS eREFORM PPP eServices IMPROVED SERVICES eGOVT eCOMMERCE Citizens PROFIT Private Sector National eGovernment Strategies

25. NeGSt Values eGovernment Private Sector Funds Technical Solutions Public Sector Data Platforms Programmes Projects Products Partnerships PPP eServices Mechanism of Partnership Operations- II National eGovernment Strategies

26. Building Blocks for eGovernment Partnerships • Unique Model with three component parts: (a) Strategic Partner - to offer eStrategy, (b) IT Agency- to set and monitor policy and mentor project, (c) Private Sector Investor- to provide funds, discipline & drive. • Special Purpose Vehicle - National eGovernment Strategies, NeGSt to facilitate eGovernment programmes at all levels • Partnerships - single or multiple or nested partnerships with solutions providers, infrastructure providers and funds providers. National eGovernment Strategies

27. Pillars of eGovernment Partnerships eStrategy Change Management & Capacity Building Common Gateway/ Central Platform (for Shared Services) Standards and Guidelines (Integration & Interoperability) Back-Office Reorganisation New Organisational Model Vision (Leadership & Commitment) Process Re-engineering Governance NeGSted Partnerships for eGovernment National eGovernment Strategies

28. Key Partners for eGovt Implementation COMMITMENT LEADERSHIP PUBLIC SECTOR DATA Project Owner FUNDING FINANCIAL MANAGEMENT FINANCIAL DISCIPLINE Project Financier SYSTEM DESIGN, CONFIGURATION AND BUILD APPLICATIONS & eSERVICES HARDWARE PROCESS ANALYSIS Project Operator CHANGE MGT, CAPACITY BUILDING & COMPLIANCE INTEGRATION & INTEROPERABILITY SHARED SERVICES PROJECT MGT Project Integrator National eGovernment Strategies

29. eGovt Platform End Product: The eGovernment platform for new Nigeria Applications Shared Services eApp1 eApp2 eApp N Govt Business PKI GovtNets ePayment-eNaira GovtApps Interoperability eProjects eAuthentication Change Management Other Governments eMilitary MDA-01 eState & eLGA MDA-02 eLegislature MDA-K Special Governments eJudiciary Special Agencies CBN ICPC EFCC FRSC Police oNSA National eGovernment Strategies

30. Part IV ePayment with eGovernment … situating ePayment as a shared service within eGovernment platform….

31. What is ePayment? • In a nutshell: ePayment is a cluster of technologies and processes that allow the execution of financial transactions by electronic messages without the necessity of a paper instrument of exchange. The message substitutes for an exchange currency or a signed cheque. • “It means automated processing of transactions, through Information Technology, for the finality of payment without recourse to physical evidencing …” . . . Ibrahim Dankwambo, OON - Accountant General of the Federation National eGovernment Strategies

32. The Presidential Order on ePayment • Oct 2008 Circular directed all government payments (recurrent/capital) through electronic payment with effect from 1 January, 2009. • This means that mandates from MDAs will cause banks to make direct payments electronically to: • Employees • Contractors • Consultants • Creditors and other Service Providers National eGovernment Strategies

33. Technical Implications of the Presidential Order The ePayment order is expected to leverage on: • Existing IT infrastructure of the CBN, other commercial banks and the Switches • Existing Communication infrastructure or backbone • Existing infrastructure at the MDAs • National Platform for eGovt Integration, shared services & interoperability • Adequate Human Capacity at the MDAs National eGovernment Strategies

34. But Are We Ready? • To Manage and Mitigate the Risks? • To Manage and Mitigate the Security Challenges? • To meet up with the Technology Challenge?– at the banks, MDAs • To carry out end-to-end processing? • common platform, standards, interoperability, PKI, Legal and Regulatory frameworks National eGovernment Strategies

35. ANSWER: We are Ready tostart: Salient Points in respect of ePayment We are ready but must note: • For every payment, there is a reason and associated procedure which we may call “procurement process” for convenience. • Payment is a service common to all MDAs irrespective of their core functions • ePayment is one of the shared services on eGovernment platform • There is need for implementation in phases National eGovernment Strategies

36. eNaira Platform eNigeria Platform eLGA Platform eRegistration Platform eProcurement Platform eNigeria Platform eLGA Platform eRegistration Platform eProcurement Platform eNaira Platform Embedding ePayment within eGovernment Platform Interoperable Platforms on eNigeria • eGovt platform, also known as eNigeria Platform, is an integration platform for eServices • The Platform has eProcurement as shared Service • .ePayment is one of the shared services on the Platform • Payment gateway, also known as eNigeria Payment Platform or eNairaPlatform is embedded in the eGovt Platform to facilitate ePayment for eGovt transactions • Other Platforms - eLGA, eRegistration etc are on the eNigeria Platform

37. eNgPP eNaira Platform The eNigeria Payment Platform eProcurement eApplications mobileNaira MDAs 23 ISW Banks Pre-Activated eN Cards/ePINs MDA Networks Pre-Activated Cash Cards Contractors Other Switches Clients/Citizens eMonitoring Payment Tool X CBN National eGovernment Strategies 37

38. Core of the Payment Platform eNgPP Architecture Citizens Contractors MDAs eApps ePay Switches Monitor eGovernment, eCommerce & eServices COLLECTION LAYER PROCESSING LAYER STANDARDS & SECURITY LEGAL & POLICY DISTRIBUTION LAYER eNigeria Platform with PKI National eGovernment Strategies

39. Root Certificate Authority (RCA) Registration Authority (RA) Certificate Authority (CA) Certificate Policy & Certificate PracticeStatement Signed Certificate Signed Message Certificate holder Relying Party Public Key Private Key A General Representation of PKI National eGovernment Strategies

40. Part V Delivering on eGovernment … how far on eGovernment programme ….

41. Summary of eGovernment Implementation Consensus Building • Presidency, Ministers, Associations, NGOs etc • Stakeholders, Alliance Partners of Funds/Solutions providers Briefing • Presidential, Ministerial, Inter-ministerial, NITDA, Board Strategies • Viable PPP Model for eGovernment • Quick Win Model with Multiple Partnerships • 18-Month Buy-In Tours of Government Agencies Projects • Nigerian eGovernment Interoperability Framework, Ng-eGIF • eReadiness Capacity Building in 178 MDAs • Roll-Out of eGovernment Platform with shared services • Roll-out of Vertical eSolutions thru PPP and SaaS* models * SaaS – Software as a Service National eGovernment Strategies

42. Highlights of Accomplishments I • Private Sector Investment in eGovernment • National eGovt Platform: May ‘05 • eRegistration sub-Platform: May 2006 • eForm for all MDAs: August 2006 • eReadiness Capacity Building for MDAs: Oct 2006 6. ePayment Primer for MDAs: Oct 2006 • eImmigration sub-platform: March ’07 National eGovernment Strategies

43. Highlights of Accomplishments III 8. eNYSC sub-Platform: Sept 2007 9. eGovtInteroperability Framework (with World Bank) - June ’08 10. eSUBEB (eEducation) sub-platform- Dec ’08 11. Consensus Building on Framework for eGovernment (with UN)- Feb ’09 12. eLGA Sub-platform & National Summit – Feb ‘09 • eProcurement Platform - Aug ‘09 National eGovernment Strategies

44. Chief Concerns for eGovernment Five Factors which determine successful implementation of eGovernment programmes in Nigeria and areas with similarly low resources and capacities: (a) Government (b) Access to PC & Internet (including energy factor) (c) Contents of eGovernment solutions (d) Partnerships (e) Human Resources National eGovernment Strategies

45. Prerequisite for Sustainability Institutional Framework (including National Advisory Committee on eGovernment, National eGovernment Steering Committee, National eGovernment Working Group) Acquisition of Basic ICT Skills and eReadiness Capacity Building for MDAs Implementing Minimum Standards & Guidelines for eGovernment in MDAs High Level eReadiness Capacity Building Workshops for top Government Functionaries National eGovernment Strategies National eGovernment Strategies 45

46. NATIONAL eGOVERNMENT STRATEGIES * Office of the 18- May -10eAuthenticator Document Reference:eN/2010/EVC/1805/NITDA Authentication Contact: olu.agunloye@negst.com.ng National eGovernment Strategies