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| Johnson, CommTech Minister |
The
Minister of Communications Technology, Mrs. Omobola Johnson recently declared
open the eNigeria 2012 summit, with the theme: ICT Local content development in
Nigeria in Abuja.
Excerpts
According to the National Bureau of Statistics as at Q1 2012, the ICT
sector contributed 5.83% to GDP making it the fourth highest contributor to
GDP, was growing at just over 30% making it the fastest growing sector in the
Nigerian economy and employed over 2m people. However a closer look at these very
impressive figures paints a potentially worrisome picture. While we do not have
detailed empirical evidence, and we are currently working on gathering and
collating this, it is clear to us that domestic value added or what is now
called local content in the ICT industry is sub-optimal.
“The national ICT policy clearly
recognises this gap and provides a succinct situation analysis of local content
in software and hardware development
specifically and I quote: ‘ICT
local content remains grossly under developed in Nigeria and though many
reasons are adduced for this – including the high cost of production and
scarcity of expertise – the fact remains that there is an over dependence on
foreign importation of software and hardware and this has led to diminished
opportunity for domestic economic empowerment and contributed to limited
capacity building within the context of ICT. In addition, given the quantum of
hadware devices and software
applications imported into and used within Nigeria, there has been a considerable
drain on Nigeria’s foreign exchange. There is therefore the urgent need to boost domestic participation
in the ICT industry by incentivising local hardware and software companies to
increase local content.’
“To expantiate further, encouraging
and nurturing local ICT companies especially those involved in the sub-sectors
that we have identified as having the greatest potential for growth, job
creation and wealth creation – software development, value added services
(training, transaction services), device assembly sales and distribution to
name a few, is critically important for the development of a strong and
globally competitive ICT industry.
“I must commend NITDA who has
convened this summit on behalf of the Ministry of Communication Technology for
identifying very well the key contributors that will enhance the meaningful
participation of Nigerian companies in the Nigerian ICT sector and including
this in the sub themes for discussion in the plenary sessions.
“They include: An enabling environment
for local content development
-
Infrastructure for local content development with particular emphasis on
broadband
-
Human capital development
-
Indigenous software development
-
Innovation and Youth
- IT local content project financing
and wealth creation
-
The participation and role of other sectors in promoting local content
development in the ICT sector – education, health, media, legal
“With this impressive assembly of
experts in various fields I am expecting that the outcome of the deliberations
at the thematic plenary sessions will provide valuable input into the
development of the ICT industry local content plan and guidelines that we are in the process of
drafting. Inputs not only in terms of realistic targets that we should be
setting for ourselves as far as local content participation is concerned but
also clearly articulated strategies of how we will achieve those targets that
will complement the strategies already included in the National ICT policy.
“Your input notwithstanding let me
just intimate you with a few of the intitiatives that the Ministry and her
agencies are pursuing to improve domestic value added and local content
development in the ICT industry:
1. A government circular that
mandates all Federal Government MDAs to
purchase locally assembled computers – a case of putting our money where our
mouth is
2. The launch of a Student PC
ownership scheme that is premised on reasonably priced loans to purchase
locally assembled devices for students in our tertiary institutions in the
first instance
3. The establishment of two pilot
ICT incubation centres to encourage and nurture the development of successful
ICT businesses
4. The launch of a venture capital
fund specifically for ICT enterepreneurs to provide early stage financing of
innovation
5. Innovate IT a one year programme
to be launched in collaboration with the banking and oil and gas industry to
drive the development of indigenous software to support the needs of companies
in these industries
6. Establishment of a Skills and
Research Development Institute by IBM in collaboration with the Digital Bridge
Institute to build technical capacity and drive innovation in the ICT sector
7. Ongoing discussions with the
Ministry of Finance and the Budget Office with a view to ensuring that tarrifs
on imported finished goods and inputs into domestic production of ICT goods and
services create a level and competitive playing field for all participants in
the ICT sector.
“On this note let me also say a few
words about the participation of international firms in the Nigerian ICT
sector. Pursuing a local content agenda is definitely not the same as a
protectionist agenda. There are many significant global ICT firms in Nigeria that are
employing Nigerians, developing Nigerians and adding significant value to the
industry – in fact given the present low levels of Nigerian company
participation , it is these companies that are primarily driving this
impressive growth that we are witnessing
today.
“This is a very big domestic market
with tremendous potential, we therefore need the participation of existing and
new international ICT companies as partners, investors and competitors that
will bring their formidable research and innovation capabilities to bear in the
domestic market, invest in key areas of the industry, partner with local firms
to build capacity and competence and provide the competitive environment to
ensure that we develop an industry that may have local antecedents but is also
world class and globally competitive.
“I wish you all a very successful
deliberation and look forward to receiving the outcome of the summit.
*Being
an address by the Honourable Minister of Communication Technology, Mrs. Omobola
Johnson, at the opening ceremony of eNigeria 2012 held in Abuja recently.
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