Ministry of Communication Technology
YOUTH DEVELOPMENT, ICT & NIGERIA’S
KNOWLEDGE ECONOMY
presentation made at the:
18th NIGERIAN ECONOMIC SUMMIT
By
THE HONOURABLE MINISTER OF COMMUNICATION TECHNOLOGY
MRS OMOBOLA JOHNSON
Wednesday, December 05, 2012
Outline
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The ICT Industry
Nigeria’s Youth Demographics
Youth and ICT Policy
Youth Entrepreneurship in ICT
The Role of Government
Expected Outcomes
© 2012. Federal Ministry of Communication Technology
2
The Nigerian ICT Industry:
fastest growing sector in the economy
In the third quarter of 2012, one of the ICT industry sector, the Telecommunication & Post
is the fourth highest contributor to the nation’s GDP and is the fastest growing sector in
the Nigerian economy
SECTOR
CONTRIBUTION TO GDP
(Q3, 2012)
Rank
Percentage
Agriculture
1
40.19
Wholesale & Retail Trade
2
19.37
Crude petroleum &
Natural Gas
3
14.80
Telecommunication & Post
4
5.70
Drivers of the Nigerian Economy as at Q3, 2012
Telecommunication & Post
Solid Mineral
Hotel and Restaurants
Building and Construction
Real Estate
Wholesale and Retail Trade
Business and Other Services
Manufacturing
Others
Finance & Insurance
Agriculture
Crude Petroleum & Natural Gas
-5
0
5
15
20
25
30
35
40
Sectoral Growth (%)
equates to N76.3bn
GDP at Current Basic Prices
10
2012 Q3
2011 Q3
Source: “Revised 2011 and Estimates for Q1-Q3, 2012 Gross Domestic Product for Nigeria“ National Bureau of Statistics.
See http://www.nigerianstat.gov.ng/pages/download/87
© 2012. Federal Ministry of Communication Technology
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The Opportunities in the Nigeria ICT Industry
Legend
Converged Services
(Data, voice & media)
Transaction
Services
Value Added
Services
Mobile
Network
Operators
Satellite Operators
Call Center Operations
Software Maintenance &
Support
Software
Installation &
Customization
Software
Sales &
Distribution
Medium growth
Infrastructure
Service Providers
Training & Education
Research &
Development
High growth
Low growth
Device Assembly
Device Sales &
Distribution
Access Provision
Internet Service
Providers
Device
Maintenance &
Repairs
Annual Maintenance & Support
(servers & storage)
Fixed Wire-line
Operators
Equipment
Sales &
Distribution
Fixed Wireless
Operators
Equipment
Assembly
Equipment Maintenance
& Repairs
Support Services
Software Development
© 2012. Federal Ministry of Communication Technology
Infrastructure Services
Business Process
Outsourcing
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ICT Opportunities in 3 Strategic Areas
INFRASTRUCTURE
(Broadband)
BUSINESS
INCLUSIVE
DEVELOPMENT
© 2012. Federal Ministry of Communication Technology
 Job Creation (civil works,
equipment, maintenance)
network
 New e-commerce business, business
innovation, productivity
 E-Health, E-Agriculture, E-Government
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Nigeria’s Youth Demographics
• According to population statistics, 70% (i.e. 116.9 million) of
Nigeria’s 167 million population fall into the youth group (i.e.
ages 18 – 35, according to National Youth Policy).
Unemployment Rate (2011)
Age Group:
15-24
25 – 44
37.7%
22.4%
Source: National Bureau of Statistics
School
Leavers:
Secondary
School
NCE/
OND/ Nursing
BA/BSC/HND
20.1%
20.2%
20.2%
• However, youths are known the world over to be the greatest
consumers of ICT content and creators of ICT businesses.
© 2012. Federal Ministry of Communication Technology
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Youth Entrepreneurship in ICT
• Veda Computers
• Encipher Inye
• Websoft - Vantium
Value
Added
Services
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Infrastructure
Service
Providers
MyPaga
Wakanow
Dealday (online stores)
Konga.com (online stores)
Jobberman
Research &
Development
Access
Provision
Device Sales
& Distribution
Network
Service
Providers
Call Center
Operations
SLOT
Device
Assembly
Device Maintenance &
Repairs
• Computer Village, Ikeja Equipment
Assembly
Oxygen Broadband
Networks
Software Maintenance
& Support
Software
Installation &
Customization
• Co-Creation Hub
Software
Development
Software
Distribution & Sales
© 2012. Federal Ministry of Communication Technology
Support Services
Infrastructure Services
Equipment Sales
& Distribution
Equipment Maintenance
& Repairs
In the first tranche of YouWiN! Business Plan
competition, the ICT sector represented the
sector with the second highest number (11.8%)
of awardees after Agriculture (22.8%)
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The Potential & Possibilities of ICT: India Comparison
• An exemplar of a country that has leveraged ICT in a most strategic
way to create jobs and create wealth through private sector
enterpreneurship
• The IT industry in India employs over 2.54 million professionals,
contributes 6.4% GDP and generates revenue of about US$100
billion.
• Many of the jobs created in India are held by young people
• All of this is in a developing economy like Nigeria with similarities in
youth demographics, high levels of poverty and largely inadequate
infrastructure.
© 2012. Federal Ministry of Communication Technology
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The Potential & Possibilities of ICT: India Comparison
INDIA
NIGERIA
Area
Population
GDP
Per Capita
Poverty Rate
Global Hunger Index
(GHI)
Human Development
Index
Size of ICT Industry
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ICT Jobs
• 2.54 millions
3,287,000 km²
1,210,193,422
US$1.848 trillion USD (2011)
US$1,388
32.7%
GHI Global Rank: 43
GHI: 22.9
Global HDI Rank: 134
HDI: 0.547
US$100 billion
923,768 km²
170,123,740 (2012 estimate)
US$240.7 billion (2011)
US$1,490
62.8%
GHI Global Rank: 18
GHI: 15.7 (2012)
Global HDI Rank: 156
HDI: 0.459
US$13.1 billion
• ~1.3 millions (estimate)
Sources: World Bank, National Bureau of Statistics
© 2012. Federal Ministry of Communication Technology
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National ICT Policy: Youth and ICT
The ICT Policy sets out clear objectives for the Youth:
• To leverage ICT in addressing Youth-specific development and orientation
issues; and
• To ensure that the Youth use ICT responsibly and for positive purposes.
Strategies
• Promote the use of ICTs, in partnership with youth-focused bodies and
relevant MDA’s, to deliver information and content that emphasize national
unity, tolerance and ethical values.
• Support the delivery of programmes designed to ensure that the youth focus
on positive application of ICT.
• Promote incentive and support schemes targeted at youth entrepreneurship
initiatives in ICT.
• Ensure that the youth is protected adequately in cyberspace.
• Promote the incorporation of ICT within the education curriculum at all levels.
© 2012. Federal Ministry of Communication Technology
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Government as an Enabler for Youth Entrepreneurship in ICT
Promote incentive and support schemes targeted at youth
entrepreneurship initiatives in ICT.
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Increased availability of broadband
– Broadband strategy and roadmap (Jan 2013)
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Institutional support for Youth Entrepreneurship in ICT
– IT Incubation Centres
– IT Innovation Fund
– TechLaunch Pad
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Skills and Capacity Development
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Nokia MLab Project
IBM Skills Development and Research Institutes (SDRI)
ACCESS Nigeria
Telecoms Engineering Centres of Excellence
Nigerian Research and Education Network
Student Computer Ownership Scheme / Portal
© 2012. Federal Ministry of Communication Technology
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Expected Outcomes
• Increase the ICT contribution to GDP through a deepening
and broadening of the industry
• Grow Nigeria ICT Industry to become the African hub for
ICT business services provision serving both regional and
global markets, through innovative ICT solutions
• Improve the attractiveness and bankability of businesses in
the ICT sector
• Venture capital
• Foreign direct investment
• Traditional loans
© 2012. Federal Ministry of Communication Technology
12
Ministry of Communication Technology
YOUTH DEVELOPMENT, ICT & NIGERIA’S
KNOWLEDGE ECONOMY
presentation made at the:
18th NIGERIAN ECONOMIC SUMMIT
By
THE HONOURABLE MINISTER OF COMMUNICATION TECHNOLOGY
MRS OMOBOLA JOHNSON
Wednesday, December 05, 2012