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
© NeGSt 2010
National eGovernment Strategies
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Presentation Layout
I Introduction
II Leveraging eGovernment
III Implementing eGovernment
IV ePayment within eGovernment
V Delivering on eGovernment
© NeGSt 2010
National eGovernment Strategies
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Part I
Introduction
… Implications of National Vision
20-2020 ….
© NeGSt 2010
National
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eGovernment
The Real Issues
1. Nigeria takes a stand on National Vision
20-2020
2. Natural resources alone may not achieve
it
3. Human resources and systems’ efficiency
will play a significant role
4. This is about National Competitiveness
5. It is about overtaking other countries
6. The other countries are not standing still
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Implications of Vision 20-2020 in 2007
Compare with other nations
Rank Country
GDP
20
Indonesia
432,944
21
Switzerland
423,938
22
Poland
420,284
23
Norway
391,498
24
Taiwan
383,307
25
S/Arabia
376,029
26
Austria
373,943
27
Greece
314,615
28
Denmark
311,905
29
Iran
294,089
30
South Africa
282,630
GDP (nominal) – 2007
Source: International Monetary Fund
31
32
33
34
35
36
—
37
38
39
40
41
Argentina
Ireland
Thailand
Finland
Venezuela
Portugal
Hong Kong (China)
UAE
Malaysia
Czech Republic
Colombia
Nigeria
It is about overtaking other nations
© NeGSt 2010
National eGovernment Strategies
259,999
258,574
245,659
245,013
236,390
223,303
206,707
192,603
186,482
175,309
171,607
166,778
The Countries to Overtake as at 2009
GDP (nominal) – 2009
Compare with other nations
Rank Country
Source: International Monetary Fund
GDP
31
Denmark
309,252
20
Belgium
470,400
32
South Africa
287,219
21
Poland
430,197
33
Thailand
263,889
22
Sweden
405,440
34
Finland
238,128
23
Norway
382,983
35
United Arab Emirates 229,971
24
Austria
381,880
36
Colombia
228,836
25
Taiwan, R.O.C. 378,969
37
Portugal
227,855
26
Saudi Arabia
369,671
38
Ireland
227,781
27
Venezuela
337,295
Hong Kong
210,731
28
Greece
330,780
39
Czech Republic
194,828
29
Iran
330,461
40
Israel
194,825
30
Argentina
310,065
41
Malaysia
191,463
42
Egypt
187,954
43
Singapore
177,132
44
Nigeria
173,428
© NeGSt 2010
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Faring on National Vision 20-2020
Year Countries to overtake
2007
2008
2009
21
19
24
2010
?
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Part II
Leveraging eGovernment
… the imperatives of eGovernment in
context of National Aspirations ….
© NeGSt 2010
National
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eGovernment
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
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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)
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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 the
fundamentals for a competitive economy
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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
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eGovernment as Driver for Nigeria’s Vision
Vision 20-2020
National
Competitiveness
Economic
Growth
Productivity
Growth
Public Sector
Efficiency
eGovernment
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Part III
Implementing eGovernment
… evoking novel Public Private
Partnership s ….
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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
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Nigeria’s March to eGovernment
The background to the eGovernment
Initiative in Nigeria:
• March 2001: 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
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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
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National eGovernment Strategies
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
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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
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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.
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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
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The Public Private Partnership Model for eGovernment
Public &
Private
Sectors
collabora
te
gainfully
to satisfy
the
Citizens
Government
Gains
Govt carries out reforms to
provide better services and
good governance
Public Sector
Reforms
eGovernment
Electronic
Commerce
Profits
Private
Sector
Improved
Services
Citizens
Citizens demand from Govt
type of services they enjoy
from the private sector
Govt teams up with Private Sector
for National Development
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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
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Extracting Implementation from the eGovt Model…
… a recap of the eGovernment Model is needed here
The NeGSt Model
FGN
GAINS
eREFORM
PPP
eCOMMERCE
PROFIT
© NeGSt 2010
eServices
eGOVT
Private
Sector
National eGovernment Strategies
IMPROVED
SERVICES
Citizens
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NeGSt
Values
eGovernment
PPP
Platforms
Programmes
Projects
Products
Partnerships
Private
Solutions
Sector
Funds
Public Sector
Data
Technical
Mechanism of Partnership Operations- II
eServices
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Building Blocks for eGovernment Partnerships
1. 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.
2. Special
Purpose
Vehicle
National
eGovernment Strategies, NeGSt to facilitate
eGovernment programmes at all levels
3. Partnerships - single or multiple or nested
partnerships
with
solutions
providers,
infrastructure providers and funds providers.
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© NeGSt 2010
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Standards and Guidelines
(Integration & Interoperability)
Process Re-engineering
(Leadership & Commitment)
Vision
New Organisational
Model
Back-Office Reorganisation
Governance
Common Gateway/
Central Platform
(for Shared Services)
Change Management &
Capacity Building
Pillars of eGovernment Partnerships
eStrategy
NeGSted Partnerships for eGovernment
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Key Partners for eGovt Implementation
Project Owner
COMMITMENT
LEADERSHIP
Project Financier
FUNDING
FINANCIAL
MANAGEMENT
Project Operator
PROCESS
ANALYSIS
SYSTEM DESIGN,
CONFIGURATION
AND BUILD
INTEGRATION &
Project Integrator INTEROPERABILITY
© NeGSt 2010
SHARED
SERVICES
National eGovernment Strategies
PUBLIC SECTOR
DATA
FINANCIAL
DISCIPLINE
APPLICATIONS &
eSERVICES
CHANGE MGT,
CAPACITY BUILDING
& COMPLIANCE
HARDWARE
PROJECT
MGT
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End Product: The eGovernment platform for new Nigeria
Applications
Shared Services
eApp1 eApp2
PKI
eApp N
Govt Business
GovtNets
ePayment-eNaira
GovtApps
Interoperability
eProjects
eGovt Platform
eAuthentication
Change
Management
Other Governments
eMilitary
MDA-01
eState & eLGA
MDA-02
eLegislature
eJudiciary
Special Agencies
CBN
© NeGSt 2010
MDA-K
Special Governments
oNSA
ICPC
EFCC
National eGovernment Strategies
FRSC
Police
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Part IV
ePayment with eGovernment
… situating ePayment as a shared
service within eGovernment platform….
© NeGSt 2010
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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
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The Presidential Order on ePayment
1. Oct 2008 Circular directed all government
payments (recurrent/capital) through electronic
payment with effect from 1 January, 2009.
2. This means that mandates from MDAs will cause
banks to make direct payments electronically to:
a.
b.
c.
d.
Employees
Contractors
Consultants
Creditors and other Service Providers
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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
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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
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ANSWER: We are Ready to start:
Salient Points in respect of ePayment
We are ready but must note:
1. For every payment, there is a reason and
associated procedure which we may call
“procurement process” for convenience.
2. Payment is a service common to all MDAs
irrespective of their core functions
3. ePayment is one of the shared services on
eGovernment platform
4. There is need for implementation in phases
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Embedding ePayment within eGovernment Platform
1. eGovt platform, also known as
eNigeria Platform, is an
integration platform for
eServices
2. The Platform has
eProcurement as shared
Service
3. .ePayment is one of the shared
services on the Platform
4. Payment gateway, also known
as eNigeria Payment Platform
or eNaira Platform is
embedded in the eGovt
Platform to facilitate ePayment
for eGovt transactions
5. Other Platforms - eLGA,
eRegistration etc are on the
eNigeria Platform
© NeGSt 2010
Interoperable Platforms on eNigeria
eProcurement
eNaira
Platform
Platform
eRegistration
Platform
eNigeria
eLGA
Platform Platform
eNigeria Platform
eLGA Platform
eRegistration Platform
eProcurement Platform
eNaira Platform
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The eNigeria Payment Platform
eProcurement
eApplications
mobileNaira
MDAs
23 ISW Banks
Pre-Activated eN Cards/ePINs
eNgPP
Pre-Activated Cash Cards
eNaira
Platform
Other Switches
MDA Networks
Contractors
Clients/Citizens
Payment Tool X
© NeGSt 2010
CBN
eMonitoring
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37
eNgPP Architecture
Contractors
MDAs
eApps
ePay
Switches
Monitor
eGovernment, eCommerce & eServices
COLLECTION LAYER
Core
of the PaymentLAYER
Platform
PROCESSING
DISTRIBUTION LAYER
eNigeria Platform with PKI
National eGovernment Strategies
© NeGSt 2010
LEGAL & POLICY
STANDARDS & SECURITY
Citizens
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A General Representation of PKI
Root Certificate Authority
(RCA)
Registration
Authority (RA)
Certificate
Authority (CA)
Signed
Certificate Policy &
Certificate Practice
Certificate
Statement
Certificate
Signed
holder
Message
Relying
Party
Private
Public
Key
Key
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Part V
Delivering on eGovernment
… how far on eGovernment programme
….
© NeGSt 2010
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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
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Highlights of Accomplishments I
1.
2.
3.
4.
5.
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
7. eImmigration sub-platform: March ’07
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Highlights of Accomplishments III
8.
9.
10.
11.
12.
13.
eNYSC sub-Platform: Sept 2007
eGovt Interoperability Framework (with
World Bank) - June ’08
eSUBEB (eEducation) sub-platform- Dec
’08
Consensus Building on Framework for
eGovernment (with UN)- Feb ’09
eLGA Sub-platform & National Summit –
Feb ‘09
eProcurement Platform - Aug ‘09
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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
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Prerequisite for Sustainability
1. Institutional Framework (including National
Advisory Committee on eGovernment, National
eGovernment Steering Committee, National
eGovernment Working Group)
2. Acquisition of Basic ICT Skills and eReadiness
Capacity Building for MDAs
3. Implementing Minimum Standards & Guidelines
for eGovernment in MDAs
4. High Level eReadiness Capacity Building
Workshops for top Government Functionaries
© NeGSt 2010
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Authentication
Document Reference:
eN/2010/EVC/1805/NITDA
Contact: olu.agunloye@negst.com.ng
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