Joomla TemplatesBest Web HostingBest Joomla Hosting

In order to view this object you need Flash Player 9+ support!

Get Adobe Flash player
Joomla! Slideshow
Click on the slide!

Agriculture

From Rediscover Nigeria desk

  AGRICULTURE   The wealth of a nation is partially measured by its ability to guarantee its citizenry food security.In…

More...
Click on the slide!

Manufacturing

From Rediscover Nigeria's Desk

Manufacturing in Nigeria concentrates mainly on the production of consumer goods. With a population estimated today at over 156 million…

More...
Click on the slide!

Nigeria! Overview

About rediscovernigeria! >> About us

From Rediscover Nigeria's Desk

Tourism in Nigeria has huge potentials to be a major foreign exchange earner. The Obasanjo administration has created awareness among…

More...
Click on the slide!

Nigeria's Resources

Image taken from the movie "Transformers"

Nigeria's total verified external debts as at December 2010 was US$4.578 billion as against US$3.947 billion in 2009. Total scrutinized…

More...
Frontpage Slideshow (version 1.7.2) - Copyright © 2006-2008 by JoomlaWorks
Rediscover Nigeria Telecommunication & ICT

Telecommunication

Telecommunications is an essential tool in modern business but in Nigeria, it was a luxury until five years ago. The State owned Telecommunications Company (NITEL) in its 100 years of existence had only 400,000 lines out of which 300,000 were fully deployed. Nigeria had one of the lowest tele-density rates in the world.

The de-regulation of the sector which was earlier embraced,  had produced only 100,000 fixed lines by Private Telecommunications Operators (P.T.O's). They were concentrated mainly in the commercial city of Lagos.

TELEDENSITY

Since the year 2000 when the Global System of Mobile Telecommunication (G.S.M) phones were introduced into Nigeria, there has been a phenomenal growth in the telecommunications business making the country the biggest market in Africa and one of the fastest growing in the world. Tele density moved from 0.4 per 100 to 63.11 lines per 100 within 10 years. By International Telecommunications Union Statistics (I.T.U), Nigeria controls above a quarter of all subscription on the African continent. The industry according to the Nigeria Communications Commission (NCC) has grown beyond N2.7 trillion (approx. US$18 billion) in the last eight years. Total Foreign Direct Investment in the sector in Nigeria is over US$12 billion while in addition there is a significant portfolio of domestic investments. The sector accounted for 4.6% of G.DP in 2010.

NIGERIAN TELECOMMUNICATIONS MARKET

Year in review

2006

2007

2008

2009

2010

No. of active fixed wired/wireless lines (‘000)

 

1,673

 

1,580

 

1,308

 

1,481

 

1,050

Active Digital Mobile lines (millions)

 

32.32

 

55.24

 

62.99

 

73.10

 

87.29

No. of National Carriers

2

2

2

2

2

No. of Operating ISPs

117

117

83

Active licensed fixed line operators

26

29

20

22

No. of licensed mobile operators

4

4

9

8

8

Teledensity

24.18

29.98

45.93

53.23

63.11

Cumulative Investment (US$ Million)

8,150

11,500

12,000

18,000

SERVICES AND TARIFFS

Among the key complaints of subscribers are the high tariffs of the companies, high call dropping rates and interconnectivity problems amongst the service providers.

After several public and private parleys with the telecommunications companies and in the face of stiff competition to retain customers, tariffs are falling, different incentives and packages are being offered and generally access costs to services have significantly dropped.

INFORMATION AND COMMUNICATION TECHNOLOGY

Information and Communications Technology sector in Nigeria at present is small and underdeveloped.  It therefore presents plenty of opportunities. In the world today, ICT is a very important ingredient for economic development. In a 2008 analysis of the industry by the World Bank, by 2020, ICT will be the most important ingredient for economic development and the presence of ICT infrastructures will differentiate the developed from underdeveloped economies.

Internet base according to International Telecommunications Union (ITU) moved from 10 million people online in 2007 to 23.9 million users at the end of 2009. With new technology especially mobile broadband becoming more available, internet connectivity will hopefully become cheaper and more popular with time. It is estimated that 70% of the market in the country is still untouched.  Major markets for ICT in the country include mobile phone hardware, software and customized services for big enterprises such as the Nigeria's banking system among others.

Government recognizes its role in the technology take off and appreciates that the sector is very important if it plans to realize its aim of being one of the 20 largest economies in the world by 2020. Government has therefore set up several agencies to ensure that the benefits of ICT are harnessed.  The opening to the 2001 National Policy for IT reads, “An IT policy built on reliable human resources and infrastructure constitutes the fundamental tool and means of assessing, planning, managing development change and achieving sustainable growth”. The National IT Development Agency (NITDA) was created in 2001 and made a part of the Ministry of Science and Technology.  It is mandated to serve as a clearing house for initiatives in the sector. In 2011 this has been upgraded to a full Ministry to underscore government's attachment of importance to ICT.

NITDA is mandated to enunciate ways to apply ICT in

(1) Education
(2) Wealth creation
(3) Poverty eradication
(4) Job creation
(5) Global competitiveness

The agency has 31 general objectives which includes investment incentives and awareness programmes.  Strategies to achieve these goals include connectivity and access.

The policy was reviewed in 2007 and also in 2008 and called ICTA Development Policy (ICT4D). ICT4D has both general goals and sector-specific prescriptions for such areas as Agriculture, Health Education, Human resource development, e-government, Research initiatives and development.

Capacity:  Broadband access is from South Atlantlic3/West African Submarine Cable (SAT-3/WASC) runs from Portugal down to West Africa and continues North East to India and Malaysia, Main-1 Cable from Portugal to South Africa.

The greatest impact will come from the West African Cable system – 14,000km submarine cable, with 12 stops, terminating in UK and  South Africa.  It is estimated to cost $600m and carried out by a consortium of multinational telecommunication experts presently the major buyers/consumers of IT products are the banks, oil companies and government.  Microsoft regional office for West Africa based in Nigeria posts a growth rate of 30-40% in recent years. Major players in the industry with reasonable presence in Nigeria are IBM, DELL, and HEWLETT PARCKAD.  Microsoft regional office is in Nigeria.For Governments and Banks, for instance, deployment of IT will seriously reduce fraud.  In 2007, banks lost about N7.3bn (approx. US$48.6 million) to fraud.

Challenges

  • There is an upswing in the rate of cyber crimes and Federal Authorities are seriously curtailing the activities of such miscreants. The Economic and Financial Crimes Commission has prosecuted a handful of such cases while some are still pending in the law courts.
  • Piracy is equally receiving very serious attention with the Nigeria Copyright Commission confiscating and destroying several of such illegally acquired materials.

OPPORTUNITIES

The increased teledensity of Nigeria and the rapid expansion of the sector creates new opportunities considering the projected target of 50 million subscribers by 2010 was surpassed. Actual subscription base was 87.29 Million. There are therefore opportunities in:

  • Manufacture of Hand Sets and Accessories.
  • Joint ventures in the expansion of fixed wireless service and extension of phones to rural Nigeria.
  • Development, Supply and Maintenance of hardware and software for the Telecoms Industry.
  • Provision of shared infrastructure for the Mobile, Fixed Wireless and Internet Service Providers
  • Manpower Development and Training.

INFORMATION AND COMMUNICATION TECHNOLOGY

There is rapid expansion in access to Information and Communications Technology (ICT) in Nigeria. However, this is largely confined to the cities. While the leap has significantly enhanced the transaction of international business from Nigeria, the impact is yet to spread to rural Nigeria and educational institutions. Only an insignificant number of children in educational institutions have access to ICT.

IMPACT OF TELECOMS AND I.C.T.

Telecommunications alone pulls in more than US$6 billion in revenue for service providers. This is in a country where total revenue available for government expenditure was until recently about US$4 billion annually. The revenue accruing to the telecom service providers is next to Oil and Gas in Nigeria. This implies that in spite of some infrastructural problems in Nigeria, its capacity for highly profitable investment is not in doubt.

 

1089 guest(s) read this Article today!

 
Activity Stream
 
Banner