Professional Documents
Culture Documents
!"#$
Draft
Framework
and
Guidelines
for
Nigerian
Content
in
Information
Technology.
!"#$
Authors
National Information Technology Development Agency (NITDA)
In collaboration with:
Dr. Armstrong Takang
Dr. Adeniyi Onamusi
Mr. David Agogo
Mr. Inye Kemabonta
Contributors
Microsoft Corporation
Oracle Corporation
!"#$
!"#$
!"#$
Authors...................................................... 1
Contributors................................................. 1
Foreword (Honourable Minister, Federal Ministry of
Communications Technology)................................... 6
Foreword (DG, NITDA)......................................... 7
Preface...................................................... 8
1.0 Introduction............................................. 9
1.1 Background ...................................................9
1.2 Stakeholder Analysis of the IT Sector .......................10
1.2.1 Analysis of Supply Side of the IT Sector ..................... 12
1.2.2 Analysis of Demand Side of the IT Sector ..................... 16
1.2.3 Analysis of Regulatory bodies in the IT Sector ............... 19
33
33
33
35
36
37
38
3.4.2
3.4.2
3.4.3
3.4.4
3.4.5
3.4.6
3.4.7
!"#$
43
45
46
47
48
49
50
Bibliography................................................ 64
!"#$
!"#$
!"#$
Preface
This policy document was created through an integrative process that
took into consideration a wide range of stakeholders, global best
practices as well as current realities in the Nigerian IT sector.
The strategies and policies contained in this volume represent a new
direction with potential to create sustainable progress and success
for all stakeholders in the Nigerian IT sector.
The following methodology was used to develop this policy document.
Phase
Tools/Techniques
Desk Research
Stakeholder Engagement
Stakeholder Validation of
Draft Report
Final Report
Executive/Ministerial
Approval
!"#$
1.0 Introduction
1.1 Background
Digital technologies have been the most transformative force in the
world over the latter half of the 20th century. No aspect of modern
life
or
sector
transformative
of
power
business
which
has
has
led
been
to
left
the
untouched
destruction
of
by
its
entire
technologies
have
fanned
the
flames
of
globalization
and
!"#$
developments
in
the
world
of
ICT.
The
presence
of
major
of
these
initiatives
are
being
driven
by
various
MDAs,
stakeholder
Supply-Enabling
analysis
of
the
sector
Environment-Demand(SEED)
is
carried
model
in
out
order
using
to
the
support
IT
sector.
This
allows
us
to
identify
and
determine
the
!"
Supply
(Content
ministries,
Producers):
departments
and
refer
to
agencies
individuals,
of
government
!"#$
organizations
responsible
or
for
as
network
primary
and
categories
hardware
telecommunication
providers,
service
software
providers
and
providers,
professional
services providers.
Enabling Environment (Regulators): refer to groups, organizations or
ministries, departments and agencies of government that carry out the
task of monitoring, managing and controlling the interaction between
content creators and content consumers. The task of regulating the IT
industry is increasingly more sophisticated due to the pace of change
in the sector. To achieve a more cohesive regulatory regime and a
progressive
policy
approach
the
different
agencies
responsible
for
(Content
Consumers):
refer
to
individuals,
organizations
or
!!
!"#$
and services. The demand side of the IT industry includes the retail
consumer
market,
the
enterprise
market
and
the
public
sector/government consumer.
1.2.1 Analysis of Supply Side of the IT Sector
The following sections describe the supply side in more detail and
provide information about the major organizations and stakeholders
active in each area.
Hardware
Providers:
refers
to
companies
involved
in
the
of
currently
the
physical
five
elements
Original
of
Equipment
computer
Manufacturers
system.
There
(OEMs)
in
are
Nigeria
then,
instituted
institutions
there
by
have
various
across
the
been
arms
several
of
country
assisted
government
that
allow
purchase
and
programs
public
Nigerians
to
sector
purchase
flexible
repayment
plans.
Also,
there
have
been
concerted
active
in
this
segment
of
the
industry
include
HP,
Dell, Samsung and Acer which collectively have over 70% of the market
share for computer hardware. A large amount of sales is done through
local partners who retail computers across the country in technology
markets across the country. Available figures for hardware sales in
the market tend not to include the thriving market for used computers
which still flock into the country despite regulations on the control
!"
!"#$
Providers:
refers
to
companies
involved
in
the
local
capacity
for
software
design
and
development,
web
below
35,000
represented
software
companies.
under
the
companies
Warehouse
Group,
large
umbrella
include
of
Allied
SystemSpecs,
number
of
ISPON.
Soft,
these
Some
leading
Progenics,
Infographics,
companies
Socket
are
Nigerian
AC&S,
Works
Computer
and
Chams
reselling
and
servicing
multinational
software
brands.
In
etc.
Some
commonly
cited
reasons
for
this
inability
of
capital
deficiency
to
of
support
qualified
long
term
personnel
development
leading
to
needed,
high
widespread
costs
of
hiring
This
entrepreneurial
bent
does
not
always
serve
the
aggressive
competition
and
high
levels
of
commoditization
of
certain basic skills. Further, the focus on short term gains and the
mad dash for self-controlled businesses among emergent developers is
linked to substandard work, dissatisfied clients and the preponderance
of untested software with grand performance claims but hardly able to
deliver
as
promised.
This
general
absence
of
standards
that
is
!"#$
brands
in
and
other
tested
nations
products
that
industries
which
have
lack
been
actively
many
of
the
that
imports
of
software
may
be
costing
Nigeria
up
to
many
global
software
companies
have
participated
more
This
market
is
characterised
by
high
convergence
between
decade,
situation
that
led
to
the
arrival
of
additional
!"
!"#$
690 dollars for 100 kilobits a second connection and an extremely low
distribution of fixed high speed broadband internet at 0.3 subscribers
per
100
people.
These
conditions
have
led
to
high
degree
of
access
the
internet
primarily
from
their
mobile
phones
area
of
telecommunications
has
seen
much
faster
growth
and
providers
being
multinational
companies.
The
NCC
works
sector,
however,
with
the
growing
convergence
of
these
systems
implementation
and
integration,
support
and
number
!"
of
boutique
companies
owned
and
controlled
by
Nigerian
!"#$
evolving
trends
telecommunications
professional
companies
engaged
to
aid
the
industries,
services
that
in
have
across
presence
market
entry
software,
which
hardware,
ultimately
drive
the
economy.
In
in
Nigeria,
local
and
to
drive
networking
the
local
the
case
need
of
staff
for
foreign
are
sales
and
mainly
while
other
crucial activities in the value chain take place outside the country.
While there is a general recognition of the need to improve the number
of highly trained and capable Nigerian professionals in this space,
the sales focus of many multinationals does not do a lot to grow or
strengthen local capacity.
Similarly in the area of business to business transactions, much more
can be done to improve the capacity of Nigerian companies to serve the
needs of long established multinationals in various sectors, part of
the imperative behind the Nigerian Oil and Gas Development Law 2010.
Another critical local skills gap is the absence of qualified systems
integrators. This often leads to large wastes and failed technology
projects due to the inability of companies to effectively integrate
disparate
technologies
to
meet
unique
local
needs
and
is
partly
consumer
market:
refers
to
the
retail
of
IT
and
digital
products and services for personal use. Some of these products include
!"
!"#$
corollary
from
the
high
demand
for
mobile
devices
and
influenced
media,
entertainment
and
technology.
Analysts
report that almost half of Nigerians above the age of 15 own mobile
phones
with
about
22%
of
mobile
phones
possessing
Internet
access
creation
of
incentives
that
will
drive
Nigerians,
especially
is
the
largest
category
of
consumers
as
many
sectors
and
industries, such as banking and professional services, are heavily ITdependent. Consumers within this space in Nigeria comprise small and
medium
scale
businesses
(SMBs)
as
well
as
large
corporations
and
!"
market.
The
main
consumer
market
procured
from
difference
is
in
the
vendors.
between
economic
Businesses
this
market
value
rely
and
generated
heavily
on
!"#$
the
from
retail
services
information
and
costs
whilst
improving
productivity,
communication
and
packaged
Nollywood
and
the
products,
the
entertainment
retail
banking
industry
can
be
industry
used
and
as
even
proxy
Public
sector/government
consumer:
refers
to
MDAs
and
government
is
the
third
largest
spender
on
IT,
behind
the
enterprise
!"
!"#$
foster
knowledge
based
economy
and
information
society
in
namely:
Information
Nigerian
National
Technology
Communication
Development
Communications
Agency,
Satellite
Commission,
Nigerian
Company
and
National
Postal
Galaxy
Service,
Backbone
Services.
global
$2,090
basis,
billion
Software
at
in
$542
it
is
2013,
forecasted
up
billion
by
(26%
3.3%
of
that
IT
from
$2,023
the
total)
purchases
will
billion
remains
the
in
total
2012.
largest
third
largest
at
$404
billion
(19%),
with
systems
integration
project work having more than two-thirds of this market and strategy
and
other
outsourcing,
!"
consulting
including
services
computer
bit
hardware
less
than
support
one-third.
services,
will
IT
be
!"#$
Nigeria,
billion
the
IT
industry
industry
at
current
is
currently
levels
of
estimated
technology
to
be
$1.3
penetration
and
Hardware:
In 2012, about 750,000 personal computing units were sold in Nigeria
with only 10% sold by Nigerian OEMs. A significant proportion of OEMs
value chains exist outside the country, further reducing the local
impact of this economic activity. It can be projected that there is a
Total Available Market (TAM) in Nigeria of over 3 million computer
units to be harnessed over the next 4 years, valued at about 400
billion naira. Of this market, it is estimated that a third will be
captured by general consumers, another third by school based programs
for
teachers
and
students
and
the
balance
made
up
of
assisted
PC
However,
context
organisations
are
the
pose
infrastructural
challenges
unable
to
to
deliver
challenges
this
peculiar
vital
industry
to
sub-sector
accepted
the
as
service
Software:
!"
!"#$
the
adequate
high
cost
of
foreign
customisation
intellectual
property
to
developed
local
has
left
software,
realities
this
and
market
lax
wide
the
absence
of
regulation
on
open
to
software
software
companies
are
unable
to
effectively
compete
in
the
change
this
by
creating
the
National
Software
Development
Nigerians
connection.
spend
most
Currently,
of
the
their
costs
of
disposable
internet
income
and
on
mobile
services remain extremely high, with the ITU reporting that fixedbroadband costs as a percentage of Gross National Income per capita
sits
at
60.7%
(in
2011),
twice
that
of
Ghana,
12
times
that
of
mainland China, India and South Africa, 120 times that of the USA and
300 times that of Macao, China. This current condition is despite
significant improvements that have occurred in the sector, including
consolidation
!"
among
ISPs,
entrants
of
fixed-wireless
and
mobile
!"#$
one
(Main
One)
in
2010
reduced
the
cost
of
international
bandwidth by 90%, but barely had an impact on the cost burden felt by
the Nigerian customer when consumer prices for broadband in developing
countries have continued fall at an average of 30% annually for the
past five years. There are however concerted efforts in this space by
the NCC and its arms, such as the USPF, notable of which include Wire
Nigeria (WIN), State Accelerated Broadband Initiative (SABI), Backbone
Infrastructure Project (BTRAIN) Pilot Project to deploy 500km of fibre
in the country, the Rural Broadband Initiative (RUBI) as well as the
planned opening up of the 2.5GHz frequency band for internet service
distribution.
that
fulfilling
their
local
regions
demand.
stay
Not
competitive
only
that,
and
but
are
capable
given
the
of
wide
content
aims
to
achieve
the
development
of
local
skills,
through
the
utilisation
of
Nigerian
human
and
material
resources for the provision of goods and services in the ICT industry
within
acceptable
quality
and
standards
in
order
to
stimulate
the
an
indigenous
company
refers
to
any
company
with
reasonable
!!
!"#$
1.4.2 Risks
The creation of a local IT content policy as well as a set of national
guidelines:
!"#$
of
Nigerian
entrepreneurs,
trained
professionals
and
other
companies.
To
this
effect,
this
policy
contains
have
been
adopted
by
many
other
countries
across
the
world
!"#$
and
support
programs
that
will
spur
the
growth
and
!"#$
support
for
innovation
and
new
business
creation
by
to
strengthen
existing
legislations
that
govern
the
IT
industry in Nigeria
6. Support local companies towards the production of high quality
and genuine IT products and services that are suitable for the
Nigerian market
7. Champion efforts that protect the rights of the Nigerian consumer
of IT
8. Support the expansion of existing IT products and services into
native Nigerian languages
9. Support
the
full
inclusion
of
all
underserved
populations
shared
by
Commission,
government
Copyright
organizations
Reform
Expert
like
National
Working
Group;
Copyright
National
of
non-governmental
and
civil
organizations
like
policy document
!"
!"#$
quality,
products
and
original
services
and
genuine
developed
by
information
indigenous
technology
companies
that
creation,
distribution
and
use
of
Information
Technology
within Nigeria
6
Promote
and
welcoming
!"
encourage
to
an
foreign
environment
within
investments
in
Nigeria
that
Information
is
and
!"#$
3:
Support
participation
and
and
the
ensure
survival
technology
of
indigenous
transfer,
companies
indigenous
in
the
ICT
sector
Goal 4: Provide relevant guidelines for the adoption of technology use
in critical sectors of the Nigerian economy
!"
!"#$
developing
Intellectual
Property
the
local
regulation
and
IT
industry
protection
and
establishing
standards,
each
of
which has a set of related strategic goals. These strategic goals form
the basis of specific guidelines that include recommendations for the
restructuring of the industry and actions required by NITDA and other
government MDAs. They also create potential opportunities that local
companies are expected to take advantage of. Further, this document
provides
set
of
appropriate
performance
!"
measures
linked
to
the
!"
!"#$
Policy
Policy
on
!"#$
Strategic Goal
Performance Measures
Real
Indigenous
industry
Innovation
contributing
national
capable
economic
value
of
contributed
to
development
goals
by
the
GDP
Number
and
quality
of
&
Inventiveness
Nigerians
of
and
Nigerian
companies
Policy
on
Lay
the
development of the
for
IT industry
industry
foundations
thriving
that
ICT
can
compete globally
Quality
standards
among
in
chains
the
of
Indigenous companies
Capacity
Building
on
IP
and
Support
technology
transfer,
indigenous
participation
survival
of
and
the
local
Amount
of
funding/support
available for Indigenous
Companies
Amount of Foreign Direct
Investments
in
the
industry
Number
of
Centers/
Excellence
!"
Innovation
Centers
of
Number
!"#$
of
global
Strategic Goal
and
Service
Performance Measures
Provide
guidelines
technology
relevant
to
use
critical sectors
!"
guide
in
Service delivery
E-Government
Transparency and justice
!"#$
!"#$
!"
!"#$
!"
!"#$
!"
!"#$
b) All tiers of government and all agencies under them will host their
websites and other web services mandatorily on the.gov.ng domain as
the only approved domain.
c) All tiers of educational institutions will mandatorily host their
websites and other web services on the.edu.ng as their primary
domain.
d) NITDA in partnership with NIRA will promote the .ng TLD and advocate
for businesses and private organizations to migrate to the .ng
domain.
e) NITDA will work in partnership with CBN, Financial Institutions and
Payment platform companies such as PayPal, Google Wallet, VISA,
MasterCard, Interswitch, Verve, etc. to ensure that Nigerian
merchants and consumers are able to transact and receive payments on
the internet from anywhere in the world.
f) NITDA will promote awareness of the origin, source, paths and
workings of telecommunications, network and internet services being
used by the government, including adequate access to ascertain the
full security of communications being sent through such platforms.
3.1.6 Policy Directives & Strategies: Data & Information Management
a) NITDA and other arms of government will support efforts to improve
local capacity to setup up, maintain, monitor, optimize and access
government data and information as well as meet potential future
information management needs
b) NITDA will promote awareness of appropriate data formats, database
technologies, computer security and other data and information
technologies that will be used by the government and the civil
service in order to achieve the right degree of security
c) NITDA will promote as mandatory the presence of system logs and
other computer data logging technologies to aid in the effective
troubleshooting and forensic investigation of events in government
and civil service systems
d) The Heads of each and every government MDA shall be responsible for
ensuring that reasonable care is taken to adequately secure the data
!"
!"#$
!"
!"#$
to
Reform
work
Expert
Promotion
and
with
the
Working
National
Group;
Acquisition,
as
Copyright
National
well
as
Commission,
Office
with
for
Copyright
Technology
non-governmental
and
of
Nigeria,
etc.
to
intellectual
property
rights
so
achieve
as
to
the
provide
harmonization
an
incentive
of
for
!"
!"#$
!"
!"#$
!"#$
!"
!"#$
to
the
attainment
of
the
objectives
set
forth.
The
IT
policy
local
as
well
content
as
development.
applicable
laws
They
and
are
best
consistent
practice.
with
this
Furthermore,
!"
!"#$
!!
!"#$
The
guidelines
aims
at
creative
means
of
building
environments
that
nurtures
and
aids
the
adoption
of
!"#$
!"#$
!"#$
the
generate
IT
sector
demand
where
for
our
local
processes
products,
are
both
not
as
yet
government
mature.
and
To
industry
will
also
have
to
be
provided
to
private
firms
and
to
lead
and
facilitate
product
demand
generation
!"#$
in
neighbouring
West
African
states
in
order
to
!"
!"#$
!"
!"#$
!"
!"#$
Goals
Impact on the
Contribution to
Nations Economy
GDP
Contribution of Information
Technology sector to GDP
Contribution of IT Hardware
and Manufacturing to GDP
Contribution of IT Service
Industry to GDP
Job Creation
Innovation
Evidence of quality
collaboration between
educational institutions
and industry
Self-Sufficiency
!"
Impact on the
Network Access
!"#$
Coverage of fixed
well-being of
Society
International Internet
bandwidth per capita (bits
per person)
Affordability
Fixed-broadband sub-basket
as a % of GNI per capita
IT Literacy and
Adoption
Cybercrime
Number of prosecuted
cybercriminals
Impact on Public
Service Delivery
Sector and
by government supported by
Governance
IT
Government IT Capability
Maturity Assessment
E-Government
Justice &
Transparency
Citizens perception of
transparency
!"
Impact on ICT
Standards and
Industry and
Quality
Participants
!"#$
Measurements of Consumer
Perception of quality
Local Capacity
!"
!"#$
capabilities
Funding/ Support
Existing
funding
Ventures
Utilization Ratio of
venture capital funding
(Ratio of funding available
to funding issued)
Estimated capitalization of
top 50 indigenous ICT
companies
Foreign Direct
Investments
Innovation /
Number of innovation
Centers of
centers, business
Excellence
Global
!!
!"#$
partnerships for
growth
promotion groups
!"
!"#$
e-Government
One of the greatest impact areas of technology yet to be fully
harnessed in Nigeria is the opportunity to improve the quality of
service delivery by government using online service offerings. As MDAs
across the country move to implement this on varying scales, the
following objectives should be shared:
A. Leverage Information Technology to make government services
accessible to more people
B. Adopt a citizen focused approach to current government wide IT
policies and programs
C. Define and deliver performance increases that matter to citizens
D. Communicate policies within and across agencies
E. Participate actively in the development of standards that can be
replicated at all levels of government
e-Education
Education is critical to the success of this policy. First, it
provides the only way of building skillsets for Nigerians to be active
participants in the sector, it is an environment nurtured to aid the
adoption of information, knowledge and technology at a fast rate and
!"
!"#$
also there have been manifold investments in the sector over the past
decade. E-Education forms one of the pillars of this policy with the
following objectives:
A. Leverage Information Technology to make high quality education
accessible to more people
B. Include teachers and administrators as partners in the design of
e-learning projects in order to achieve the needed level of buy
in
e-Health
One of the more recent interventions of ICTs in critical sectors is
the impact on health service delivery. The potential to replace
physical presence of trained medical personnel with information in
less severe and life threatening situations, with a view to improving
the efficiency of the health care system as a whole is often
classified as e-health. The following objectives must exist for ehealth efforts:
A. Leverage Information Technology to make health services
accessible to more people
B. Define and deliver performance increases that matter to patients
and citizens
C. Leverage Information Technology to make timely health data
available to health practitioners
!"
!"#$
1. Ensure that the voices of key stakeholders are captured early in the
project selection stage
2. Ensure that the project holds significant tangible and intangible
benefits for stakeholders
3. Ensure that the project targets stakeholders that have been
chronically underserved by previous investments
4. Ensure that the investment increases public protection, health,
education, environment, and safety
5. Ensure that the project holds the potential for not only short term
benefits but significant mid-term and long-term benefits for all
stakeholders
6. Ensure that the project is in line with mid to long range strategic
targets of the government, including relevant transformation agendas
such as Vision 20:2020 and international development goals such as
the Millennium Development Goals
In-House projects vs. Outsourcing
The decision to outsource projects to external parties must be made
carefully considering the loss of control and decline in autonomy that
arises from relying on external expertise from private for-profit
organizations. Government has a responsibility to build the needed
capacity technical, human resource, financial, etc - within the
service to deliver on critical services required at all levels. Some
useful guidelines are as follows:
1. Adequate controls should be put in place to protect the success of
the project and ensure that priorities and objectives of
stakeholders, sponsors and implementing partners are shared
2. Efforts should be made to take into account direct and indirect
costs when preparing financial estimates for a project using Total
Cost of Ownership measurements as well as working with multiple
sources to confirm the expediency of taking a particular approach
(making i.e. in-house projects or buying i.e.
outsourcing/contracting)
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Project Planning
1. Extensive definition of roles should be carried out in order to
create room for involvement of all stakeholders
2. There should be a clear definition of needed controls, checks and
balances commensurate with the degree of sensitivity of the project
to aid in a hitch free implementation of project phases
3. In planning the project, implementing partners must be vetted in
accordance with the requirements of this policy document, government
seculars and other applicable regulations as stipulated by the
Bureau for Public Procurement (BPP)
4. Metrics, KPIs and measures to be monitored and controlled should be
determined during the planning phase of the project in line with the
project objectives and scope
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Project Closing
1. A project should not be deemed as closed until an official hand off
has been done to the relevant stakeholder and a reflection process
is carried out. The reflection process may include measuring
implementation success, archiving relevant documentation, reflecting
on future activities and sharing lessons learned for future
reference
2. Project success must be measured against the objectives which were
meant to be achieved and not merely against achievement of project
milestones or completion of work packages and deliverables
3. The performance of implementing partners should be captured and
recorded to inform future decisions to involve them in other
projects
Knowledge Transfer
1. It is the responsibility of organizations sponsoring projects to
institute mechanisms for effective knowledge transfer into their
organizations during and as a result of the execution of projects
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Post-project
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Summer Hamad, Forrester Research Group
Berry, R., and M. Reisman. Policy Challenges of Cross-Border Cloud Computing (2012).
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Group
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Economic and Social Activities (2010), Pyramid Research
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in the Global Industry since 1995 (2009), Anthony Black, Growth and Change Vol. 40 No.
3 pp. 483512
Measuring the Information Society (2012), International Telecommunications Union
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Research Group.
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