How ICT development can solve Nigeria’s socio-economic challenges

How ICT development can solve Nigeria’s socio-economic challenges

Introduction

From the Vision 20 2020 transformation agenda to the Millennium development Goals (NDG), Nigeria’s socioeconomic challenges can be summarized as follows: power and energy infrastructure, food security and agriculture, wealth creation and employment, mass transportation,  land reforms,  security, corruption and education. Each of these problems has significant negative impacts on Nigeria’s economy.  In fact, many close watchers of Nigeria hold the opinion that Nigeria’s future depends not on oil but on the quality of her human capital.

Judging from the prevailing circumstances, the country may not have enough money to address all these problems as required. Thus, one shortcut is to diversify the economy using Information and Communication Technology as a major plank. This will address poverty (by creating wealth and employment), build and improve capacity, provide an enabling environment for exposing corruption, reducing our security problems as well as provide a direction for solving our education problems because Nigeria needs  a large pool of ICT-driven manpower if she is to make a headway in this millennium. In the past 10 years, Nigeria’s development strategies and goals have focused more on poverty reduction, wealth creation and employment generation through the development of an enabling environment for growth.

This write-up identifies the Information and Communication Technologies that Nigeria could develop to diversify the economy, reduce poverty, create wealth and generate employment in the short-term. It also discusses the opportunities and challenges.

Information and Communication Technology (ICT)

Webopedia defined Information and Communications Technology as the study and/or business of developing and using technology to process information and aid communications. This is a very broad concept and it is often used as an extended synonym for Information Technology (IT), but it is a more specific term that stresses the role of a unified communication and the integration of telecommunications (GSM, telephone lines and wireless signals), internet, computers as well as necessary software, storage, and audio-visual systems, which enable users to access, store, transmit, and manipulate information. As a business, it can be applied to many sectors such as learning, work, recreation, entertainment and innovation and other areas of human endeavour.

Globally, information is the key enabler of the current information age. ICT is driving the knowledge economy to exploit knowledge from all sectors of the economy. It facilitates the acquisition and absorption of knowledge, offering unprecedented opportunities to change educational systems, improve policy formulation and execution, and widen the range of opportunities for business. It could also support the process of learning, knowledge networking, knowledge codification, tele-working, and science systems. ICT could be used to access global knowledge and communication with other people. ICT altered fundamental methodologies of doing activities and gave rise to e-services in communication, trade, employment, education, government, health and so on.

ICT enables utilization of information in the workplace, in the provision of public services and in the performance of the private sector. Information, knowledge and opportunity epitomize the digital era. This is the age of information. The benefits have made ICT an essential requirement for survival, progress and development since ICT business and services are required across different sectors of the economy.

This is the opportunity that Nigeria can exploit to diversify its economy from oil to knowledge based economy.  There is the need for Nigeria to exploit ICT socioeconomic development and growth by tapping into the benefits derivable from the exploitation and deployment of ICTs.  It should be used to improve competitiveness, service provision, strategic resource management, taxation and gross domestic product (GDP).  This will basically drive diversification and development of the economy and address our socioeconomic needs like poverty eradication, improved healthcare, wealth creation, job creation and education.  In order to derive these benefits from ICT, Nigeria must provide the enabling environment.

Nigeria:  ICT and Inherent Opportunities

 ICT Companies in Nigeria

There are many ICT companies in Nigeria that supply, service and maintain hardware equipment, although 100% of the hardware is imported. Companies like Omatek and Zinox assemble their own brands.   These companies have provided the basic personal computer and laptops, i-pads (and so on) of different brands in Nigeria. Some are brand new while others are still the secondhand market.

Presently, there are many ICT companies in Nigeria providing services like consulting, training, repairs and maintenance, bureau services, software development and implementation and website development.

Telecommunications

Currently, there are companies that provide Global System of Mobile Communication (GSM) services in Nigeria; some are MTN, Airtel, Globacom, Etisalat, Visaphone and Starcomm.   The developments in telecommunications since the advent of GSM technology has led  to tremendous growth not only in the telecom sector but created massive employment generation through telecom enabled services in facets of society – highlighting the linkage between ICT and social and economic development and how ICT enables growth in non-ICT sectors.  Also, there are licensed fixed wireless operators in Nigeria providing GSM, CDMA, VSAT (Very Small Aperture Satellite), telephony, Internet, data and fixed wireless services at national and regional levels.

Internet penetration is still low although significant improvements have been recorded on daily bases. There are three submarine fiber-optic cable networks that will improve the broadband:  the SAT-3 submarine fiber-optic cable network, Glo-1 and Main One.

ICT enabled Applications

Currently in Nigeria, the development in the telecommunication sector have improved internet connectivity and impacted on nearly every sector of the economy- manufacturing, services, commerce, banking, social and education. There is a significant reduction in cost for internet, education, communication, online information gathering and research, e-learning, online transactions and e-banking and Nigerian are deriving significant benefits from them.

Software

Software is the main driver o what is today known as the knowledge economy and it is very important that Nigeria participates fully in this area. In Nigeria, all System software like operating systems, network software, development tools and packaged applications (word processing and spreadsheets) are imported. Although this is nearly the trend all over the world where most System software and packaged applications in use are produced by industry leaders like Oracle, Microsoft, etc

There is also foreign application software like Peachtree, SAP, Globus, Equinox, Rubicon (and so on) that are being used in different sectors of the economy. Most of them are good, but lack local contents and are quite expensive.  There are also some locally developed application software such as accounting, legal, banking (mainly at micro-banking level), human resources, payroll, and games and so on. As at today many business are not computerized (not up to 10%).  Thus, there is enormous opportunities for the local software industry exist in the specialized application development markets – producing software for various sectors and fields such as accounting, legal, banking, financial services, personnel, payroll, information management, games, etc.  However, the local software industry faces the challenge of patronage and growth.

Currently, Open Source Software (OSS) is a good alternative to improve the application of software to business but its local growth and market share is very small. There is the need for Nigeria to develop and grow the Open Source Software because it provides cheap software with source codes that can be updated with local contents. This development can lead to a whole diversification of the Nigeria economy.

In the area of website development, lack of local content and development is a major concern. It can be said that only 5% of our local content is in the web. This has not improved with the availability of telecommunication infrastructure. There is the need to increase the local content and improve activities in the web as a way of encouraging e-business and Net-Entrepreneurs. There is the need for Nigeria to reduce the consumption of foreign software and imported ICT products and services, however, this is only possible is there is a local alternative.

 ICT in Rural Areas

Much of the ICT investment, efforts, activities and infrastructures are concentrated in the urban areas basically for commercial reasons. Therefore, there is a great digital divide between the urban and rural areas of Nigeria.  This is a great business opportunity for ICT in Nigeria.  Although some organizations like NITDA, NCC, FGN and others are making efforts to deploy IT and Internet facilities in rural schools and communities throughout the country.

ICT Education

There are many institutions providing all kinds of ICT education and training. These include private training institutes, polytechnics, universities, etc.  Some of them offer certification programme and some are established and accredited by government to provide some approved certificates like OND, HND, NCE, BSC and so on. Others are just providing computer literacy programmes. All these forms of institution are necessary for they have a role to play in the development and application of ICT to diversify Nigerian economy.

For Nigeria to diversify its economy through ICT, it must have an educational programs/system that will produce the professionals with expertise in high demand areas such as Programming, Technical Support, Engineering, Database, Information Warehousing, Networking, Web Development, Research, Internet and E-Commerce. Since ICT is the infrastructure of the Knowledge economy, such skilled professionals are needed to create, operate, design, maintain, program and deploy information and communication technology solutions.

Hardware and software development and research, will provided by graduates of computer science and engineering from the universities. Since a huge number of our populations are illiterates in computer, there is the need to improve the level of computer literacy to encourage usage and application. This service will be provided by the training institutes that are offering computer literacy courses.

From above, there is a need to improve ICT facilities in our primary and secondary schools as well as our tertiary institutions. If Nigeria is to diversify its economy using ICT, everybody including government at all levels, parents, private and public organization must continue to assist our education system to improve in ICT usage and applications. Finally, teachers should be encouraged to start using ICT in teaching the students.

Information security

The increase in computer and internet literacy, applications of web-based systems , e-payments and application to society (like social networking) has brought about threats and attacks that have led to a lot of unethical issues , cybercrime, misuse and fraud. Technically, efforts are being made to enhance cyber-security. Efforts should be made to improve our legal system. It has become extremely necessary for us to incorporate cybercrime into our legal system. Time has come for our legal system to start accepting digital information as evidences in a case and so on.

ICT Opportunities in Nigeria

The characteristics of ICT usage in Nigeria and challenges can be summarized as follows:

• Hardware importation is 100%, with many companies and individual providing installation, repair and maintenance services
• Inadequate infrastructure: mainly electricity and telecommunication (bandwidth). I do not think that power electricity is a challenge to ICT because many Nigerians are getting to using generators.
• Inadequate hardware mainly due to low GDP and general poverty.
• Low skilled manpower and capacity building,
• Low ICT usage in government institutions mainly at the state and local government’s levels.
• On the software side, there is some local developed software but many of them cannot compete at the international market.
• Local application software utilization is low due to low GDP and little local software that can meet the need of the people.
• Although many private business use Computers for word processing and so on, but there are still many business that are un-computerized. Indeed over 80% of private businesses are not computerized.
• The level e-commerce is extremely low. Although, bank are utilizing the e-payment/banking applications very well.
• On the website development area, there are many Nigerians that are development websites, but Nigeria local content in the internet is extremely low.
• Educationally, many institutions are involved in training but many graduate/trainees are acquiring without required skills to back it up.

A careful look at these challenges are enormous opportunities in Nigeria considering the huge population of 120 million (which is effective demand), spread across many cultures and an extensive landmass and the massive wealth from oil and other natural resources. However, due to the low GDP, weak educational system and a growing telecommunication system there is the need to develop an ICT strategy that is cost effective that both the government and the people can participate quickly.

Technology

Indeed, there are many ICT technologies that could be adopted by Nigeria to diversify its economy. Each of them has its own consequences both on the short-run and on the long –run. And they require different types of resources to achieve the required objective.  Due to the low GDP, weak educational system and low capital investment in OCT, there is the need to develop a cost effective strategy to achieve our objective to diversify the economy. The main areas of opportunity are is software and content management system.  Since, most of the public and private business activities and operation are not computerized. The main software strategy that will assist Nigeria in diversifying its economy at much reduced cost, reduce poverty and unemployment, build capacity, create wealth and increase the GDP is the Open Source Software.

• Open source Software (OSS)

Open-source software (OSS) is computer software with its source code made available with a license in which the copyright holder provides the rights to study, change, and distribute the software to anyone and for any purpose. There are many OSS ranging from operating systems, development tools and programming languages, office automation, databases and application software in nearly all areas of human endeavor.

There are many advantages that Nigeria can benefit from OSS. The major cause of the slow development of our ICT is the cost of hardware, software, personnel and external services.  We can only manage cost of hardware acquisition through effective foreign exchange management because all of them are imported. We can reduce the cost of software acquisition by embracing OSS. The gains from adopting OSS can be used to build local capacity in order to reduce personnel and other services cost.

Annually the Federal Government of Nigeria (FGN) pays millions of dollars to Microsoft and licensing fees to Microsoft and SAP for Windows Operating System, MS Office and SAP ERP. Indeed, if we adopt an open source operating system like Linuxandan OSS Open Office as a policy, we will be making a lot of saving. When this is adopted across FGN, State and local governments there will be a lot of saving and penetration. Also, Nigeria either under NITDA, NCC, CPN, ISPON, etc can empower local software developer to develop some ERP adapted to our local need, activities and operations. It is believe that with appropriate empowerment, some Nigerian companies and software developer can reproduce SAP under Reverse Engineering Principles while  start with an OSS ERP. This will help the government and Nigerian people to get the benefits of OSS which is an effective strategy for providing affordable software that are secured, with high quality, transparent, flexible and with no vendor “lock in”.

If the OSS initiative is adopted by the government, there will easy penetration of OSS into the Nigerian market with all its development and capacity building advantages If this OSS Initiative is properly coordinated by involving all stakeholders in the short-run and as a long term project, Nigeria will start exporting some of the adopted OSS to other countries.

• Technology enabled learning

Most public and private schools and institutions below the tertiary level are not computerized because of high cost of ICT acquisition. It is necessary to state that most of them can computerize their operations and activities with some OSS with minimal amendments and adaptation.

This will form the basis for Technology enabled and/or enhanced learning, which can be in the form of e-learning, mobile learning, online and blended learning and e-textbooks. Each of these trends include the essential components of the learner’s  vision of socially-based, un-tethered and digitally rich learning, that will enable, engage and empower learners/students.

Enabling learners/students to reach their potential through increased access to educational resources and experts that extend learning beyond the capacities or limitations of their school or community.

Engaging students in rich, compelling learning experiences that develop deeper knowledge and skill development especially the problem-solving, creativity and critical thinking skills so highly desired for our world today.

Empowering students to take responsibility for their own educational destinies and to explore knowledge with an unfettered curiosity, thus creating a new generation of lifelong learners. Also, OSS e-learning applications can be used to reduce cost and enhance learning.

• Content Management system (CMS)

Nigeria is a big nation with a large population, tribes, cultures, games, history and tradition, business and landmass. As at today, the Nigeria content in the internet is below 5%. One of the reasons for the slow pace of generating/populating the internet with our content is because most website designers are coding the websites. With some OSS Content Management Systems like WordPress, Joomla, Blender, Plone and so on, it is possible to develop website without requiring programming skills.

An extension of the OSS Initiative discussed in section 5.1 should also apply to website content management system. Any effective strategy designed to populate the internet with Nigeria contents using CMS will create a lot of employment and create wealth. It will enhance and develop e-business and e-commerce.

• Clouding Computing

Cloud computing refers to the use of computing resources, those being hardware and/or software) that reside on a remote machine and are delivered to the end user as a service over a network, with the most prevalent example being the internet. By definition, a user entrusts his data to a remote service, on which has limited to no influence.

There are mainly four models of cloud computing:

Infrastructure as a Service (IaaS): This is the most basic cloud-service model, which provides the user with virtual infrastructure, for example servers and data storage space.

Platform as a Service (PaaS): In this model, cloud providers deliver to the user development environment services where the user can develop and run in-house built applications. The services might include an operating system, a programming language execution environment, databases and web servers

Software as a Service (SaaS): In this model, the cloud provides the user with access to already developer applications that are running in the cloud. The access is achieved by cloud clients and the cloud users do not manage the infrastructure where the application resides, eliminating with this the way the need to install and run the application on the cloud user’s own computers.

Network as a Service (Naas): The least common model, where the user is provided with network connectivity services, such as VPN and bandwidth on demand.

In an environment like Nigeria where cost of hardware and software acquisition, skilled ICT personnel and other ICT services is very high, Cloud Computing is an option for managing the cost, for users, business and even government.  It eliminates the burden support, maintenance, development environment and application from the users.  So that businesses are able to focus on their core business by outsourcing all the hassle of IT infrastructure.

If Cloud Computing is implemented effectively, it can revolutionalize ICT literacy in both public and private primary ansecondary schools.  It will provide a good platform for entrepreneurs who may not have enough capital to invest in ICT and employ ICT qualified manpower. It will stimulate e-commerce and e-business.

• Thin client computing

A thin client network is a server based network where the majority, if not all, of the processing is done by the server rather than by the individual client machine(s). Software applications and programs are held and run on the server, and displayed on the client machine.

This is also a technology that can reduce the cost of ICT. The major weakness of Cloud Computing is that it depends on the internet. In areas where internet connectivity is an issue, Thin Client Computing could be used to reduce cost.  This will also be good model for schools and small businesses to meet their ICT need at reduce cost.

Conclusion.

All the above considered, implementation of these technologies and strategies can diversify Nigeria’s economy and solve our basic socio-economic challenges. However, it requires careful planning, providing the right environment, surmounting some challenges and sincere leadership.

Thank you very much.

Augustus ZEKARYAH

Telephone: +234-803-951-0725,

E-mail: augustus@firstplus,com.ng

About the author

Augustus is a management, banking and business computing professional with over 20 years of documented success in the field. Augustus is recognized for the application of software to solving business problems, Software Project Management, Enterprise Architecture Strategy, and Delivery of learning solutions with focus on adaptability, Development and execution of business plans, General management and administration, Operations management and  Best practice development. Augustus founded and manages FirstPlus Integrated Business Solutions (http://firstplus.ng) as a Software and Business Consulting outfit that specializes in Software development and integration, E-Learning development, Business and Marketing Planning, Consulting and training. Augustus brings to his work a high level of energy, passion, commitment and humour. He is married with children.

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