NIGERIA AND IT DEVELOPMENT

Presented by Nigeria’s Country Delegation to India

South-South Exchange Program India

February 9th -21st 2009

THIS IS NIGERIA!

Nigeria is situated in the West African RegionBordered on the south by the Atlantic Ocean and the north by the republic of Niger and ChadHas a land mass of 923,768 esq.Estimated population of 140 Million, forming Africa’s most populous nationHas three major ethnic groups, Hausa, Yoruba and IboHas three major religious groups: Islam, Christianity and Traditionalist Vibrant private sector and a large domestic market

7 Largest oil exporter in the world producing 2 Million Barrels a day

Richly endowed with other Natural resources like coal, iron-ore, bitumen, amongst others

Nigeria’s GDP (purchasing Power parity) and Official exchange rate stands at $294.8 and $ 126.7 Billion respectively as of 1st April 2007

Oil accounts for 20% of Nigeria’s GDP, 95% of her foreign exchange and 65% of budgetary revenue

Nigeria’s labor force is predominantly adult based 70% of working population servicing the agricultural

sector, 10% servicing the industrial sector and 20% servicing the services sector.

An estimated 100,000 students graduate from Nigeria’s higher institution annually and 20% of that number are science and Technical graduates.

ECONOMIC FACTS

MORE ECONOMIC FACTS

Nigeria’s GDP Real Growth rate for the years 2003 – 2007

Nigeria’s Per Capita Income for the years 2003 – 2007

YearGDP - real growth rate

RankPercent Change

Date of Information

2003 3.00 % 105  2002 est.

2004 7.10 % 25136.67 %

2003 est.

2005 6.20 % 44 -12.68 %2004 est.

2006 6.90 % 43 11.29 %2005 est.

2007 5.30 % 90 -23.19 %

Year

GDP - per capita (PPP)

RankPercent Change

Date of Information

2003 $875 210   2002 est.

2004 $900 210 2.86 % 2003 est.

2005 $1,000 207 11.11 % 2004 est.

2006 $1,400 199 40.00 % 2005 est.

2007 $1,500 196 7.14 % 2006 est.

DEVELOPMENT OF IT IN NIGERIA First electronic digital computer made its first appearance in

Nigeria in 1963 ICT revolution started in Nigeria after return to democratic

rule in 1999 Federal Government of Nigeria accorded priority status to ICT

development by approving the following policies for the major sector of the industry:

National Telecommunication policy;National Information Technology (IT) PolicyNational Space policy and National Bio-technology

Policy. Creation of Galaxy Backbone PLC in 2006 to consolidate and

integrate all the disparate existing government networks into a single holistic government wide network.

NIGERIA'S ICT SPENDING MORE THAN DOUBLED IN 5 YEARS

Nigeria's ICT Expenditure (US$ billions)

1

1.5

2

2.5

3

3.5

4

2001 2002 2003 2004 2005 2006

Source: World Bank

NIGERIA’S ICT EXPENDITURE

Steady increase in ICT expenditure, includes expenditures on:Hardware: Computers; storage devices; printersSoftware: Operating Systems; programming tools,

applications and internal software developmentComputer services: IT consulting, computer and

network systems integration, web hosting, data processing services

Voice and data communications services, wired and wireless communications

SOME IT ORGANIZATIONS IN NIGERIA

GOVERNMENT ESTABLISHMENTS Federal Ministry of Science and

Technology Ministry of Information and

Communication Nigerian Communications

Commission (NCC) Galaxy Backbone PLC National Information

Technology Development Agency (NITDA)

INDUSTRY ASSOCIATIONS Nigeria Computer Society Computer Association of

Nigeria Outsourcing Development

Initiative Of Nigeria (ODIN) Association of

Telecommunications Companies

Nigerian Society of Engineers

Institute of Software Practitioners of Nigeria

Internet Service Providers Association of Nigeria

IT/ITES ACTIVITIES IN NIGERIA

Creation of a National IT Policy produced by Nigeria Information Technology Development Agency (NITDA)

Approved by the Federal Executive Council in March 2001 and officially launched on May 24 2001

Key strategies outlined in the IT Policy: Make Nigeria an IT Capable Country in Africa and a key

player in the Information Society; Establishment of adequate institutional framework for

IT at the Federal, State and Local Government Levels; Develop Human Resource capacity through education,

awareness and increase the access to Information technology.

IT/ITES ACTIVITIES IN NIGERIA CONTINUED

Establishment of National Information Technology Development Fund (NITDF)

Establishment of National Information Technology Development Agency (NITDA)

Creation of IT Parks with the infrastructure, services, training and management necessary to harness power of IT

Restructuring relations between Government, Businesses and General Public through the use of IT

Enhancing the efficiency and effectiveness of Governance, Commerce and the provision of services by utilizing IT

STRATEGIES TO ACHIEVE IT POLICY OBJECTIVES

Ministry of Education has made significant progress in planning and implementing the following ICT driven programs and projects:

National Virtual Library project Educational Management information System (EMIS) National Open University of Nigeria and Distance

Learning program Computers in Schools Initiative Nigerian Universities Network and National Teachers

Institutes Teachers Training program through Distance Learning

The use of the Internet in Nigeria has started to take-off recently but remains far behind leading competitors. In 2006, Nigeria had 0.8 internet hosts per 10,000 people

Internet and Broadband Usage in Nigeria

Internet Usage per 100 people in 2006

0

5

10

15

20

25

Ghana India Nigeria Egypt SouthAfrica

China Mexico

Internet users per 100

Broadband subscribers per 100

Source: International Telecommunications Union

NIGERIA’S IT EDUCATION Establishment of Federal Universities/Polytechnics of

Technology and spread across different regions in Nigeria, such places as: Akure; Owerri; Yola; Minna; Enugu; Lagos; amongst others

Establishment of Departments offering engineering/Technical and IT courses in Universities and Polytechnics across Nigeria

Development and Implementation of IT training and computer appreciation skills in higher institutions of learning in Nigeria

Development of framework for IT education by the Federal Government of Nigeria (NITEF) for the structuring and regulation of the formal and non-formal educational institutions of IT in Nigeria.

NITDA entering into partnership with CISCO to roll out local academies in the institutions of higher learning for training.

NIGERIA’S IT EDUCATION CONTINUED

SOME IT TRAINING INSTITUTES IN NIGERIA

National Institute of Information (NIIT)

CISCO Academy Digital Bridge institute (DBI) Microsoft Training Academy

Lagos First Logic Training Institute New Horizon Training HP Training Institutes

SOME IT CERTIFICATION PROGRAMS IN NIGERIA

Web development and Design Certification

Programming Certifications IT Security Certifications Database Certifications Microsoft New generation

Certifications Microsoft Windows Network

Certifications CISCO Network Certifications COMPTIA Network+ Certifications Linux Certifications Project Management

Certifications Wireless LAN Certifications

NIGERIA’S BPO INDUSTRY

Nigeria’s BPO Industry is still mainly in the developmental stages

Few core BPO companies exist in Nigeria (Interra Networks, Customer Contact Solutions etc)

Mainly involved in the lower end BPO value chain, like Back Office functions and Customer Contact/Care and HR Outsourcing

Nigeria has a large English speaking work force Low labor costs Highly educated labor force (over 100,000 tertiary

institution graduates annually) Strong contract enforcement laws

NIGERIA’S ATTRACTIVENESS AS A BPO DESTINATION

Overall Country Analysis for ITES-BPO Attractiveness

4.055.25 5.18 4.93 5.29

8.11

10.07

4.08

4.96.33 6.16

7.43

7.36

5.7

3.85

4.14

4.45 5.43

4.93

5.42 5.11

0

5

10

15

20

25

Nigeria Ghana Egypt South Africa Mexico China India

BusinessEnvironment

Cost Structure

People Score

WHAT THE NIGERIAN GOVERNMENT HAS DONE TO PROMOTE BPO

Liberalization of the telecom industry- has led to explosion in number of telephone subscribers (over 35 million in less than 5 years)

Initiation of a National Outsourcing Policy (under the previous regime)

Establishing the National Information Technology Development agency (NITDA) which is aimed towards development of IT in Nigeria

Granting tax relief and concessions for a number of years through the NIPC, to companies involved in ICT

Continuous and increased investments and reforms in the ICT sector

Creation of export processes zones and free trade zones

PROS AND CONS

NIGERIA’S ADVANTAGE Cheap labor and large and

educated work force Widely spoken English

language Strong contract

enforcement laws Flexible labor laws

CHALLENGES Poor infrastructural base High tax rates High cost of bandwidth

and connectivity Inadequate legal/regulatory

framework to support BPO High energy costs Shortage of skilled labor Nigeria’s reputation

NIGERIA’S IT PARKS

Nigeria In The Developmental Stages Of Setting Up ICT Parks across the country

Abuja Technology Park Kano ICT Park Afrihub Digital Bridge Institute Enugu Global Village Digital Opportunities

Center ,Uyo Jigawa Informatics Center

LIBERILIZATION & REVITILIZATION OF TELECOMMUNICATION SECTOR

Nigeria’s growth in both mobile and fixed line telephones has outpaced countries like Egypt, Ghana and even India

Over $3 billion Investment in sector in last 5 years Licensing of Second National Operator (SNO) Globacom Limited.

Presently over 25 telecommunication companies in operation in Nigeria

Reviving of First National Carrier (NITEL) Introduction of Global System for Mobile Communication (GSM)

in August 2001 Telecommunication sector contribution to GDP (over US$ 72

Billion) more than tripled from 0.37% in 1999 to 1.4% in 2005 Total teledensity has increased from about 2Million to 38Million

between 2002 & 2007 and is expected to hit the 56 Million mark by 2011

Price of telephone call to the US has come down dramatically from US$7.15 per three minute call in 2001 to less than US$ 2 in 2005

)

NIGERIA’S RAPID TAKE OFF IN MOBILE AND FIXED TELEPHONY

Telephones per 100 people in 2006

0

10

20

30

40

50

60

70

80

90

India Ghana Nigeria Egypt China Mexico SouthAfrica

cellular

fixed

Source: International Telecommunications Union

Growth in Telephone Subscribers (2001-2006)

0 20 40 60 80 100 120 140

Mexico

China

South Africa

Egypt

Ghana

India

Nigeria

CellularFixed Line

Source: International Telecommunications Union

TELECOMMUNICATIONS SERVICE OFFERINGS IN NIGERIA

SERVICE OFFERINGS

Telephony Services Global System of Mobile

Communication (GSM) Fixed Wireless Access Wireless Networks Very Small Aperture Terminals

(VSAT) Internet Services Satellite Communication and

Switching Public Payphone Services Prepaid Calling Card Services Radio Network

TOP SERVICE PROVIDERS

MTN Globacom ZAIN (formerly Celtel, V-Mobile,

Econet) Etisalat Cisco InterCellular Visaphone Starcomm Multilinks Mtel VGC Communications ZOOM (formerly Reltel) MTS First Wireless

POLICIES SUPPORTING PRIVATE SECTOR DEVELOPMENT

Nigeria Investment Promotion Commission (NIPC) grants of Pioneer Status relief to new companies, which gives them tax breaks for a certain duration

Tax Holidays Granted to Telecommunication Operators like MTN, ZAIN, Globacom, Etisalat

Development of Free Trade Zones and Export Processing zones

Public and Private Sector Partnerships (PPP) between Government and Private Sector On developmental Projects

Going ForwardGoing Forward

ASSISTANCE NEEDED FROM WORLD BANK

Advocacy and support Funding/Grants Capacity Support International Partnership and Collaboration support

OUR QUESTIONS

Our Questions Are Specific To Institutions and border on how best we can collaborate

BPO-NASSCOM & Similar organizations ITES-IIIT & others IT Parks-Similar Organizations Government-

-Policy definition and Implementation

-Support Of ICT Industry

Thank you!Questions?