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Access to ICT Market: The Challenge of Governance in Nigeria

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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. Sagagi Dean, Bayero Business School, Bayero University, Kano November, 2014

2 Introduction Today’s world is not divided by Ideology but by Technology In 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 progress Thus, 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 areas Access to ICT and the resources to permit ICT utilisation is paramount to IT revolution Very often, ‘access to market’ and access to ICT product require skills, knowledge and abilities This 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 Framework Mere 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 GDP Improve productivity and competitiveness of firms: exports or new sources of competitive advantage such as cost-savings Create new sources of wealth: by leveraging the entrepreneurial capacity of local entrepreneurs Support good governance by empowering people to demand value for money Build domestic capacity-as businesses become more efficient

7 ICT permits Cost saving and enhance efficiency leading to improved business performance and governance Figure 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 strategies Ironically, ICT revolution occur with or without a systematic policy (UNESCAP, 2009) But, good policies tend to expand ICT sector quickly, cheaply and responsibly ICT 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 Asians Skilled:- soft and hardware design and development: mainly domiciled in developed countries Production skills: mostly in China and in silicon valleys operating with staff mainly from Russia and other eastern European countries.

10 Nigerian Policy on ICT IT 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 map Unlike 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 and high poverty incidence were the major obstacles to gaining access to Nigerian ICT market and also hinder the effective utilisation of ICT products

12

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. Adamawa Gombe Jigawa Plateau Sokoto Zamfara o.5 Source: 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 INT Bayelsa Lagos Niger Ondo Osun Rivers Source: NBS-Poverty Profile, 2012; NBS, ASE Report on ICT, 2011, IFC, 2011

17 Others challenges include:
Limited potential for collaboration with major global IT players Capacity for innovation Weak ICT transformation implementation process Cyber crime and uncultured ICT materials

18 The Good News The problems highlighted are not exhaustive
The challenges they pose are enormous for private sector development However, each of the problem identified represent a unique source of opportunity to be exploited by IT entrepreneurs which Nigeria has in abundance The 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, etc Human capacity development (Indian model) including research and development (Korean model) Credible regulatory environment (learning from South Africa) Support for entrepreneurial ICT start ups Support local innovations and investments (linking universities, industry and financial sector)

20 Reduce social inequality that inhibit access to ICT products
Favourable investment climate Foster strategic alliances with global ICT players

21 conclusion With 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 diversification What 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.

22 Thank you for listening


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