Post on 23-Dec-2015
NIGERIA AND IT DEVELOPMENT
Presented by Nigeria’s Country Delegation to India
South-South Exchange Program India
February 9th -21st 2009
THIS IS NIGERIA!
Nigeria is situated in the West African RegionBordered on the south by the Atlantic Ocean and the north by the republic of Niger and ChadHas a land mass of 923,768 esq.Estimated population of 140 Million, forming Africa’s most populous nationHas three major ethnic groups, Hausa, Yoruba and IboHas three major religious groups: Islam, Christianity and Traditionalist Vibrant private sector and a large domestic market
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.
ECONOMIC FACTS
MORE ECONOMIC FACTS
Nigeria’s GDP Real Growth rate for the years 2003 – 2007
Nigeria’s Per Capita Income for the years 2003 – 2007
YearGDP - real growth rate
RankPercent Change
Date of Information
2003 3.00 % 105 2002 est.
2004 7.10 % 25136.67 %
2003 est.
2005 6.20 % 44 -12.68 %2004 est.
2006 6.90 % 43 11.29 %2005 est.
2007 5.30 % 90 -23.19 %
Year
GDP - per capita (PPP)
RankPercent Change
Date of Information
2003 $875 210 2002 est.
2004 $900 210 2.86 % 2003 est.
2005 $1,000 207 11.11 % 2004 est.
2006 $1,400 199 40.00 % 2005 est.
2007 $1,500 196 7.14 % 2006 est.
DEVELOPMENT OF IT IN NIGERIA First electronic digital computer made its first appearance in
Nigeria in 1963 ICT revolution started in Nigeria after return to democratic
rule in 1999 Federal Government of Nigeria accorded priority status to ICT
development by approving the following policies for the major sector of the industry:
National Telecommunication policy;National Information Technology (IT) PolicyNational Space policy and National Bio-technology
Policy. Creation of Galaxy Backbone PLC in 2006 to consolidate and
integrate all the disparate existing government networks into a single holistic government wide network.
NIGERIA'S ICT SPENDING MORE THAN DOUBLED IN 5 YEARS
Nigeria's ICT Expenditure (US$ billions)
1
1.5
2
2.5
3
3.5
4
2001 2002 2003 2004 2005 2006
Source: World Bank
NIGERIA’S ICT EXPENDITURE
Steady increase in ICT expenditure, includes expenditures on:Hardware: Computers; storage devices; printersSoftware: Operating Systems; programming tools,
applications and internal software developmentComputer 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
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
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 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
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
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
Internet and Broadband Usage in Nigeria
Internet Usage per 100 people in 2006
0
5
10
15
20
25
Ghana India Nigeria Egypt SouthAfrica
China Mexico
Internet users per 100
Broadband subscribers per 100
Source: International Telecommunications Union
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
Overall Country Analysis for ITES-BPO Attractiveness
4.055.25 5.18 4.93 5.29
8.11
10.07
4.08
4.96.33 6.16
7.43
7.36
5.7
3.85
4.14
4.45 5.43
4.93
5.42 5.11
0
5
10
15
20
25
Nigeria Ghana Egypt South Africa Mexico China India
BusinessEnvironment
Cost Structure
People Score
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
0
10
20
30
40
50
60
70
80
90
India Ghana Nigeria Egypt China Mexico SouthAfrica
cellular
fixed
Source: International Telecommunications Union
Growth in Telephone Subscribers (2001-2006)
0 20 40 60 80 100 120 140
Mexico
China
South Africa
Egypt
Ghana
India
Nigeria
CellularFixed Line
Source: International Telecommunications Union
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 ForwardGoing 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?