A 2001 – 02 analysis of global IT infrastructure ranked Nigeria 75th of 75 surveyed countries. (Centre for International Development) The whole of West Africa suffers from endemic “information poverty” and Nigeria is no exception.
Nigeria obtained its first digital computer in 1963. Installations remained low even after many individual Universities, government departments and public sector undertakings had acquired some amount of computing power towards the end of the 1970s.
While the number of internet service providers (ISPs) and cyber cafes increased, IT development received meagre official stimulus in the last century. In fact Nigeria had no IT policy until 2001, when it instituted the national IT Development Agency with a $28 million grant.
Tasked with making Nigeria “a key player in the information society”, the agency has been widely criticised for ineffectiveness and failure to align with other national policies. Nigeria’s IT potential has been significantly underachieved, and consequently, its efforts to drive rapid enterprise development across sectors have fallen short of expectations. There are over 500,000 businesses operating across the country, engaged in manufacturing, services, retail and wholesale.
Most of these companies stand to benefit from IT products, services, or training. Nigerian software developers, in turn, stand to contribute and gain immensely from this situation. The growth curve for indigenously developed IT is potentially steep. For instance, a 2005 AC Nielson survey found that the online auction and sales site ebay had a “significant impact” on the growth of small business in the USA.
In the first six months of that year, ebay entrepreneurs in the US sold more than $10 billion worth of merchandise. The report goes on to say that over 400,000 American users relied on sales through the web – site as a primary and secondary source of income.
These findings represent an achievable model of small business development for Nigeria, but one that depends vitally on wider access to IT and acquaintance with internet usage.
Nigerian entrepreneurs in diverse economic sectors can develop thriving businesses, generating employment and boosting local economies, by accessing international markets online. Even better inspiration comes from India, where the software industry has outperformed global competition hands down.
The industry grew exponentially from $ 150 million in 1991 to $5.7 billion in 2000, while projected revenue for 2008 stood at $87 billion, or 7.5% of GDP. According to NASSCOM, Information Technology contribution to Indian GDP is from 1.2% in 1998 to 7.5% in 2012.
The sector’s aggregated revenues from 2015 to 2016 is US$ 147 billion and will attract Foreign Direct investment (FDI) of US $ 4 – 5 billion and market capitalisation of IT shares will be around US $ 225 billion. The Indian IT growth spurs successful entrepreneurial development and economic expansion.
Nigeria can take a cue from this internationally acclaimed success story by vigorously tapping into the IT and knowledge industries. Nigeria needs to capitalise on its human resource pool to turn out technically proficient workers who can take the economy to higher rates of growth. The Indian example is strong proof that IT alone can turn around a country’s fortunes.
Nigeria has to undertake several co- ordinated initiatives in order to meet its IT obligations, and more importantly, to drive and capitalise on the digital revolution.
The most pressing initiatives are: Improving the telecommunication infrastructures, upgrading communication techniques and improving the reach of mobile and fixed – line telephone services across rural and urban areas.
Enhancing basic computer skills and advanced IT education through a structured overhaul of the education system; specific focus on tertiary institutions offering Engineering and IT programmes.
The government must realise the importance of developing entrepreneurial capability in the IT sector to ensure inclusive and sustainable growth.
Provided it is suitably adjusted to local realities, a digital revolution facilitates poverty eradication by enabling extensive business development and wealth creation. For more on this, get our book: “The Entrepreneurial Revolution”
