The Information and Communication Technology (ICT) Industry in Nigeria Roadmap by Mrs Omobola Johnson, Honourable Minister of Communication Technology
A presentation on the Information and Communication Technology (ICT) Industry in Nigeria: Roadmap by Mrs. Omobola Johnson, the Honourable Minister of Communication Technology, Federal Republic of Nigeria at ICT Stakeholders Engagement, Round Table Discussion, on the Digital Economy and Information Society in Nigeria Held on 22nd September, 2011 at the Lagos City Hall.
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On commencing her keynote presentation at the ICT Stakeholders event, the
Minister expressed her desire for robust and interactive contributions at the
roundtable discussions. She stated that the presentation would represent the
views of her ministry. The title of her presentation was “The Information and
Communication Technology (ICT) Industry in Nigeria: A Roadmap”.
Key areas in her presentation were:
• The Mandate of the Ministry
• The Nigerian ICT Industry: Key statistics
• The Nigerian ICT Industry: Structure and characteristics
• The Nigerian ICT Industry (As-Is)
–Growth potential
–Opportunities for job creation
–Challenges and opportunities
–Priority areas for intervention
• Policy Direction and Intervention (2011 –2015)
• The Nigerian Digital Economy (c2015)
• The Nigerian Digital Economy (c2015): Key statistics
• Policy Direction and Intervention: Immediate priorities
• What Role for the Private Sector?
The Minister started her presentation by drawing attention to the mandate of the
ministry. The mandate includes: policy development for the growth of the ICT,
regulation of ICT that is focused, effective, intelligent and sustainable,
consulting and advising government, support for appropriate legislation for ICT,
leading and coordinating Nigeria’s engagement of the international community in
matters of ICT, oversight use and management of scarce national and public
resources and supporting the use of ICTs for efficient, effective and
transparent governance in Nigeria.
She then presented key statistics on the Nigerian ICT industry. Data indicated
the ICT industry contributes 3.5% of GDP, Broadband penetration is 6.1%, Mobile
penetration 58.50 per 100 people, Internet penetration 22.1 per 100 people, 4.7
PCs per 100 people, 350 registered companies, etc. Interestingly, she noted the
glaring absence of data on the number of ICT professionals in the country.
The Minister’s presentation proceeded to examine the ICT Industry’s structure
consisting of Telecommunications, Value Added Services, Infrastructure services,
Equipment suppliers, Devices, Support services, Software, Business Process
Outsourcing and Call Center operations. She observed that Nigeria’s ICT industry
is presently characterized by dominance of GSM companies with very limited
assembly and manufacturing capabilities. Delivery of content is still largely
through traditional methods and not online. Service based industry consists of
small players; growth is also low in manufacturing due to the absence of
essential support infrastructures. Software development is underdeveloped due to
lack of skills, while Research and Development, BPO and Call Center operations
are all very small.
She expressed the desire to change the existing structure of the ICT industry to
make it more representative and balanced and similar to what is happening in
developed parts of the world.
In looking at the present structure and potential for growth, she noted that
though Nigeria does not have the skills and capacity to be in the BPO sector,
there are immense potentials in Call Center operations. Value Added Services,
Devices sale and distribution, Equipment sales and distribution suppliers,
Devices, Support services and Software development were identified as having
high growth potential.
Job creation potential is quite significant - all sectors
have the ability to create jobs, even those with low growth expectations. The
Minister estimates and is interested in creating the potential job market of up
to 1.3 million jobs with ICT contributing 5% to GDP. Her goal is to create 1
million jobs over the next 3 to 4 years.
In addressing the challenges of the Nigerian ICT industry in her presentation,
the Minister assessed the industry as a fragmented one that is not taking
advantage of economies of scale. She observed that though the telecom industry
is seen as a source of revenue, the reality is that some are successful but many
are dead. There is vulnerability as ICT still needs to be treated as essential,
critical infrastructure. A major challenge is the disparate availability and
uncoordinated development of ICT skills and capacity – skills are needed.
To therefore make the desired changes in the ICT industry, she listed Value Added Services, Device sales and distribution, Software development as priority areas for intervention. She stressed that in achieving the mandate of the ministry, policy direction and intervention must be forward looking, creative and innovative.
>> Continued Minister's presentation on the ICT Industry Roadmap (2)
>> ICT stakeholders Engagement Interactive Session and Comments
>> More - Closing the empowerment gap
