Prof. Murtala. S. Sagagi
Dean, Bayero Business School, Bayero
University, mssagagi.bus@buk.edu.ng
Kano
November, 2014
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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.
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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.
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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
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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
Figure 4: Comparison of running cost
(http://www.ecommerce-web-hosting-guide.com/advantages-of-ecommerce.html)
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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
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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.
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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
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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
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year
1980
1985
1992
1996
2004
2010
2012
Poverty Level
18.26
34.73
39.07
67.11
68.70
70.00
71.0
Real GDP Rates
5.5
9.4
3.4
7.10
7.98
6.5
Source: NBS, (2010), UNESCO, (2010), NBS,
(2012), CBN, (various issues) Statistical
Bulleting & Annual Reports
GDP per capita of selected African countries
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World Bank, 2012
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States
Adamawa
Gombe
Jigawa
Plateau
Sokoto
Zamfara
PO
74.2
74.2
74.1
74.1
81.2
70.8
ELEC PHN
47
62
38 75
67
29 33
36
INT.
1.8
1.1
2.0
3.6
0.3
o.5
Source: NBS-Poverty Profile, 2012; NBS, A.S.E. Report on
Access to ICT, 2011, IFC, 2011
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States
Bayelsa
Lagos
Niger
Ondo
Osun
Rivers
PO
47
49
34
46
38
50
ELEC
66
99
66
57
80
PHN
64
86
86
75
92
76
INT
2.0
27
4.4
2.1
8.5
11
Source: NBS-Poverty Profile, 2012; NBS, ASE Report on ICT,
2011, IFC, 2011
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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
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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
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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)
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Reduce social inequality that inhibit access to
ICT products
Favourable investment climate
Foster strategic alliances with global ICT
players
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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.
Thank you for listening