Presentation on theme: "Access to ICT Market: The Challenge of Governance in Nigeria"— Presentation transcript:
1 Access to ICT Market: The Challenge of Governance in Nigeria Prof. Murtala. S. SagagiDean, Bayero Business School, Bayero University,KanoNovember, 2014
2 IntroductionToday’s world is not divided by Ideology but by TechnologyIn the last three decades, technological change has been the primary driver for growth and structural change for nations.Also, ICT is considered critical to increased voice, accountability and economic progressThus, the demand for ICT products would continue to grow as we move into the 21st century and beyond.
3 Nigeria has witnessed modest level of growth in the mobile telecom over the last 2 decades The growth, however, is skewed to urban areasAccess to ICT and the resources to permit ICT utilisation is paramount to IT revolutionVery often, ‘access to market’ and access to ICT product require skills, knowledge and abilitiesThis paper examines the binding constraints to accessing the essential benefits of ICT opportunities and the policy change required to facilitate the development of a true ICT enabled nation.
4 FrameworkMere access to broad ICT supply-chain network is insufficient to achieved meaningful social and economic change unless it is supported by capacity development and policy framework as exemplified by India and South Korea.It has been noted that the real gain of ICT does not trickled down to poor countries, particularly in most African countries (Jani, Abraham and Padmanabha,2008)In Nigeria, many people continuously become isolated from the benefits of industrialisation and globalisation
5 e-business/e-commerce/e-government is today’s reality requiring more inclusiveness
6 Benefit of Increased Access to ICT Markets Additional driver to growth and employment generation: At the moment, around 10% of Nigeria's GDPImprove productivity and competitiveness of firms: exports or new sources of competitive advantage such as cost-savingsCreate new sources of wealth: by leveraging the entrepreneurial capacity of local entrepreneursSupport good governance by empowering people to demand value for moneyBuild domestic capacity-as businesses become more efficient
7 ICT permits Cost saving and enhance efficiency leading to improved business performance and governanceFigure 4: Comparison of running cost(http://www.ecommerce-web-hosting-guide.com/advantages-of-ecommerce.html)
8 For this reason, developing countries found it advantageous to integrate ICT policy in their development strategiesIronically, ICT revolution occur with or without a systematic policy (UNESCAP, 2009)But, good policies tend to expand ICT sector quickly, cheaply and responsiblyICT Policy would help avoid wastages and redirect efforts and resources
9 Access to ICT Core Benefits Typically, certain level of skill is required to benefit from ICT:Semi-skilled:- data entry, accounting, call centres, etc, mainly dominated by AsiansSkilled:- soft and hardware design and development: mainly domiciled in developed countriesProduction skills: mostly in China and in silicon valleys operating with staff mainly from Russia and other eastern European countries.
10 Nigerian Policy on ICTIT policy becomes operational in 2001 by the establishment of National Information Technology Development Agency (NITDA)The Agency is expected to collaborate with relevant stakeholders to increase access and also place Nigeria visibly, productively and responsibly on global ICT mapUnlike in other countries where ICT policy is an integral part of a national development strategy, Nigeria’s ICT policy implementation is bedevilled by numerous challenges associated with governance
11 Access to ICT Market: Key Challenges The National Bureau of Statistics (2011) noted that inadequate infrastructure, especially electricity supply andhigh poverty incidence were the major obstacles to gaining access to Nigerian ICT market and also hinder the effective utilisation of ICT products
13 Poverty and Growth year Poverty Level Real GDP Rates 1980 18.26 5.5 Source: NBS, (2010), UNESCO, (2010), NBS, (2012), CBN, (various issues) Statistical Bulleting & Annual Reports
14 GDP per capita of selected African countries World Bank, 2012
15 Poverty Incidence (PO), Access to Electricity ( (ELEC), Mobile Phone (PHN), and Internet (INT) in selected states (% of population)States PO ELEC PHN INT.AdamawaGombeJigawaPlateauSokotoZamfara o.5Source: NBS-Poverty Profile, 2012; NBS, A.S.E. Report on Access to ICT, 2011, IFC, 2011
16 Poverty Incidence (PO), Access to Electricity ( (ELEC), Mobile Phone (PHN), and Internet (INT) in selected states (% of population)States PO ELEC PHN INTBayelsaLagosNigerOndoOsunRiversSource: NBS-Poverty Profile, 2012; NBS, ASE Report on ICT, 2011, IFC, 2011
17 Others challenges include: Limited potential for collaboration with major global IT playersCapacity for innovationWeak ICT transformation implementation processCyber crime and uncultured ICT materials
18 The Good News The problems highlighted are not exhaustive The challenges they pose are enormous for private sector developmentHowever, each of the problem identified represent a unique source of opportunity to be exploited by IT entrepreneurs which Nigeria has in abundanceThe country represents a huge market.The neighbouring countries are also extension of the Nigeria's market
19 Government Intervention Rapid development of ICT infrastructure – broad band, fibre optic, satellite, etcHuman capacity development (Indian model) including research and development (Korean model)Credible regulatory environment (learning from South Africa)Support for entrepreneurial ICT start upsSupport local innovations and investments (linking universities, industry and financial sector)
20 Reduce social inequality that inhibit access to ICT products Favourable investment climateFoster strategic alliances with global ICT players
21 conclusionWith improved public sector management moving increasingly to e-government, sufficient resources would be available for massive investments into social and economic infrastructure.Unlike in other African countries, Nigerian entrepreneurs do not require handouts from the government in order to provide leadership towards ICT revolution and economic diversificationWhat they require is credible, focused and digitally oriented government to provide the enabling environment.At the moment, ICT should be widely used by all stakeholders to demand better governance.