Trends in Technology Transfer in Nigeria

TRENDS IN TECHNOLOGY
TRANSFER IN NIGERIA
David A. Okongwu
OUTLINE
1. INTRODUCTION: Clarifications/Definitions What? How? Where? &
When?
2. TRENDS IN NIGERIAs TECHNOLOGY TRANSFER EFFORTS
2.1
2.2
2.3
2.4
1914 -1960
1960 -1981
1981 1999
2000 date
3. Overall Assessment of Technology Transfer Activities

4. Suggestions on What Must Be Done, by Who? , How?
What Role for NOTAP? FMST? The STATE?
Trends in Technology Transfer in Nigeria
15 Dec, 2015, Minna, Niger State
1.
INTRODUCTION:
Clarifications/Definitions What? How?
Where? & When?
a) Technology
b) Technology Transfer
c) Technology Transfer Options
d) Key Pillars For Credible
Technology Transfer
e) Nigeria: 1914 -1960; 1960 1981; 1981 1999;2000
date
1.
INTRODUCTION:
Where? & When?
TECHNOLOGY: Though variously defined, it is now accepted as being much more
than machinery/machines/tools/artifacts and the like. In our current context we
take it in the most general sense simply as Applicable Knowledge, or as per
Galbraith the systematic application of scientific and other organized
knowledge to practical tasks.
TECHNOLGY TRANSFER: Occurs in 3 Broad Folds, namely
Geographical i.e. From one country to another, a.k.a. Horizontal
R&D- based, i.e. From Laboratory to the Market place, Vertical
Sectorial i.e. From one economic sector to another.

We are concerned with i) and ii).
Type I (from country A to country B) Transfer of Technology has been the major
focus of attention in developing countries (in contrast to developed countries)
mainly because it is cheaper in the short term, and our R&D systems are yet to
take root.
Type II (R&D-based) Technology Transfer is globally the main focus, the hot
area, of Technology Transfer activities, especially in developed economies.
1.
INTRODUCTION:
Where? & When?
WHY IS TECHNOLOGY TRANSFER IMPORTANT?
First, the transfer or diffusion of technology is a prerequisite for

humankind progress and development, implicit in the
thermodynamics of economic growth of states, nations and
empires. But more relevant and important for us is that today,
more than at any other time in the history of humans, as
globalization seeks to virtually flatten the globe, the Transfer of
Technology remains the only option for developing nations to
quickly: develop their economies, create wealth, eradicate
poverty, advance the socioeconomic well-being of the populace,
eliminate social strife, create a happy society, and become a
competitive and serious part of humanity. But it has to be
purposely and passionately executed.
1.
INTRODUCTION:
Where? & When?
MAJOR MODES OF TECHNOLOGY
TRANSFER:
1) Importation of Capital goods,
Plants/Machinery, Processes, etc.,
2) FDI.
3) Transnational flow of experts (Returning
Graduates/Diasporas, Foreign experts, Itinerant
experts and philanthropists)
4) Foreign training and On-the-job Training.
5) Study Tours, Trade Fairs, Conferences, and
Industrial Visits.
6) Purchase of Patents, Know-Hows, Designs.
7) Internet, Journals, Magazines, Books, etc.
8) Industrial Espionage
9) Imitation & Copy Technology
10) Technology Promotion Agencies and
Technology Receptor Centers
11) Technology-based Knowledge industry
Unis, Polys, Tech & Craft Schs
12) R&D Commercialization, via TBIs, Industrial
Estates, Industrial Parks,
1.
INTRODUCTION:
Where? & When?
KEY PILLARS FOR CREDIBLE TECHNOLOGY

TRANSFER
1) Political Commitment/Political Will (must see
development as essentially technology-based)
2) Cultural Environment (innovative, ennobling and
technology-inducing, public spiritedness,
nationalism)
3) Human Capital/Technological Capability
(expertise, Entrepreneurialism)
4) Infrastructures and Technological Support
structures (power, comm. TT agencies, R&D,etc)
5) IPR (awareness, support/exploitation,
knowledge as capital/asset, strong IP culture)
6) Market (ready access for products/services)
7) Finance/High R&D Intensity (venture capital,
grants, etc)
8) National Passion*
Note: (1 - 8) All linked up to ensure robust and
effective transfer of technology
Relate to the analogy of a cook pot with stands (support ) and fire (passion)
1.
INTRODUCTION:
Where? & When?
For a quick apprehension of Nigerias
Technology Transfer experience over time, it
is expedient to visualize four epochs,
namely:
(a) Colonial: 1914 -1960
(b) 1960 1981,
(c) 1981 1999, and
(d) 2000 date.
2. TRENDS IN NIGERIAS
TECHNOLOGY TRANSFER EFFORTS
2.1
2.2
2.3
2.4
1914 -1960
2.1.1 Major Technology Transfer Activities
2.1.2 Appraisement
2.1.3 Missing Pillars, Missing Links
1960 -1981
2.2.2 Appraisement
2.2.3 Notable Success Stories
1981 1999
2.3.2 Appraisement
2000 date
2.4.2 Appraisement
2.1 1914 1960
2.1.1 MAJOR TECHNOLOGY TRANSFER ISSUES and ACTIVITIES
Transfer of Technology before and during the colonial

era was unorganized and informal. It proceeded
between communities and societies mainly through
the activities of itinerant craftsmen; good examples
were the Awka blacksmiths, Benin, Ife and Nok bronze
smiths who passed their skills and technologies to
various specialized societies (cartels). Then there were
of course many acknowledged medicine men that
traded their knowledge across communities. The
ranges of their circuits were invariably short, on
account of poor communication networks, their tools
of trade were crude, and their technologies were
shrouded in secrecy as a means of securing
protection. The transfer of their technologies therefore
was very restricted and unprogressive and could
neither be sustained nor could the technologies evolve
beyond the rudimentary.
2.1 1914 1960
2.1.1 MAJOR TECHNOLOGY TRANSFER ISSUES and ACTIVITIES
During the colonial era some transfer of technology, though not a policy
of the colonial masters, was evident from the activities of some
multinational companies, notably Lever Brothers, UAC, and Paterson
Zochonis (PZ), who, operating as trading outposts for the sourcing of raw
materials for the sustenance of European economies, established some
manufacturing and primary industries in the 1940s and 1950s. The
interest of the colonial government was not on development but purely
on administering the colony and extracting raw materials, the so-called
cash crops. There was very little research activity, though the colonial
administration established 1899 in the then Department of Agriculture,
a Federal Department of Agricultural Research which was later (1963)
renamed the National Cereals Research Institute (NCRI), located at Moor
Plantation, Ibadan and is now in Badeggi with many sub-stations. The
Yaba Higher College was set up in 1932 (to train some professions,
notably pharmacy), converted to Yaba Technical Institute 1947, (later
Yaba College of Technology in 1969) and the University College Ibadan in
1948. There were also the Colleges of Science and Technology in
Zaria, Enugu and Ibadan, and the Federal Emergency Science School
Onikan, Lagos.
2.1.2 TECHNOLOGY TRANSFER APPRAISEMENT
Clearly there was very little Inflow or Transfer of foreign
Technology during this epoch. Technology transfer
infrastructures were virtually absent and there was no public
policy or strategy to encourage Transfer of Technology. Thus any
efforts at technology transfer activities were incoherent and
undirected and therefore any transfer of technology could only
had come about by chance. There was little room for major
Transfer of Technology.
Nonetheless through on-the-job training programs, and through
crafts and technical schools, there was transfer of technologies
of small-scale processing of palm oil, groundnuts, rubber and
cocoa in support of colonials export market.
2.1.3 MISSING PILLARS, MISSING LINKS ?

No Political commitment by colonial government.
All Pillars are absent.
No efforts or attempt to link any structure/policy relevant to
technology.
2.2 1960 -1981
2.2.1 MAJOR TECHNOLOGY TRANSFER ISSUES AND ACTIVITIES
This was an era, soon after independence, of great enthusiasm for development. It was marked by
National Economic Development Plans: 1955-1962, 1962-1968(1970), 1970-1974(1975), and
1975-1980(1981).
This epoch witnessed the plans to establish and the establishment of many major industrial projects
by government, of which mention should be made of:
Petroleum Refining: Port Harcourt (I) Port Harcourt (II), Warri and Kaduna;
Automotive assembly plants: Volkswagen (Lagos), Peugeot (Kaduna), Leyland (Ibadan), Steyr
(Bauchi), Mercedes Benz, ANAMCO(Enugu), National Truck (Kano),
Cement plants: Nkalagu, Ewekoro, Sagamu, Sokoto, Ukpilla, Calabar, Yandev, Ashaka,
Electric Power plants: Jebba, Shiroro, Egbin, Sapele, Ughelli, Afam.
Fertilizer plants: Onne, Kaduna,
Iron and Steel: Rolling Mill at Enugu(Nigersteel), Rolling Mills at Jos, Oshogbo and Katsina, 1
million ton/annum Direct Reduction Steel plant at Aladja, Integrated Steel plant at Ajaokuta, as
well as large numbers of private sector investments the Breweries, and in consumer goods
industries, following the promulgation of the Nigerian Enterprises Promotion Decree of 1972.
2.2 1960 -1981
2.2.1 MAJOR TECHNOLOGY TRANSFER ISSUES AND
ACTIVITIES
The period was also an era of massive importation of wide range of machineries,
equipment, technologies, building/construction materials and assorted consumer goods
at huge costs to the nation.(Recall the famous cement armada at the wharf).
There was national enthusiasm to develop. The first set of national S&T policies and
programs were initiated during this period. This included the Agricultural, Industrial,
Medical, and Natural Science Research Councils under the Nigerian Council for Science
and Technology (NCST), later replaced by the National Science and Technology
Development Agency (NSTDA), supervising over twenty (20No.) research institutes.
As part of the industrial policy, many Industrial Development Centers (IDCs), and Industrial
Estates were established in major cities of the country, and the Nigerian Industrial
Development Bank (NIDB) was set up.
Massive human resource development for these industries was put in place to assure the
operations of these plants. Many Nigerians were sent abroad for technical, engineering
and managerial training in West Germany (for the Aladja Steel plant), in Russia (for the
Ajaokuta Steel plant), as well as to other countries supplying the various industrial plants.
There was some considerable inflow of technologies, some key infrastructures.
Unfortunately however, they were not properly linked and no clearly articulated
national strategy for ensuring the transfer of technology. Most critical is the fact
that Nigerians were not involved in the planning, design and installation of each
of these plants. Most of the plants were on turnkey, or on BOT basis. Most of
the industries, including the IDCs and nearly all the industrial estates have all
gone comatose. Only very few have survived and these survivors are virtually
dependent on foreign technology transferors for their operational activities even
at the present time.
This period has been described as the Laissez-faire Technology Transfer era. And
not surprisingly there was actually not much internalization of technology and
therefore little technology transfer.
However it must be noted that there were some very sound research programs of
world class standard at this time in some universities as well as in PRODA and
FIIRO, notably in Chemistry (natural products), Physics (atmospherics),
Biochemistry (malting of grains), Agriculture and Medicine. Some of these R&D
programs led to massive utilization of our local raw materials in industry.
2.2.3 NOTABLE SUCCESS STORIES
Mention must be made of at least two:
Successful Malting of Sorghum and maize (corn) at FIIRO and PRODA;
this led to the replacement of imported barley malt with sorghum malt
in the Brewery industry, following Govt ban on the importation of Barley.
(Read up about the FEMOS beer that demonstrated the good quality of
Sorghum for beer brewing in Nigeria, especially the politics that followed
the initial import ban of barley). The breakthrough and adoption of
sorghum for brewing in Nigeria is a study in itself; and highlights some
issues in the international politics of Foreign Investments and their
subsidiaries.
The successful demonstration of the utility of Nigerian gypsum in the
production of cement led to the utilization of local gypsum in the
cement industry, following Govt ban on the use of imported gypsum.
2.2.4 MISSING PILLARS, MISSING LINKS
Political Will: acquisition of technology not yet a deliberate
national policy.
Cultural environment: not technology-inducing, not ennobling
IPR: little awareness, neither appreciated as innovation booster
nor as an asset.
IDCs not linked to R&D output, nor provided adequate IPR and
technical support.
Infrastructure and Technology support structures: still very
inadequate.
Financial support: unavailable for commercialization of R&D
spin-offs; R&D intensity very low
Human Capital: not equipped and empowered to adequately
capture inflowing technologies.
2.3 1981 1999
2.3.1 MAJOR TECHNOLOGY TRANSFER ACTIVITIES
A major policy initiative by the state to enhance the transfer of technology came at the beginning of this era, in
1981 with the introduction of Decree No.70 of 1979 which created the National Office for Industrial Property
(NOIP), now renamed the National Office for Technology Acquisition and Promotion (NOTAP), as a public agency
to register, monitor and regulate all technology transfer agreements/contracts between Nigerian companies
and their foreign technology transferors mainly to ensure fair and equitable costs and contents/conditions in
the agreements/contracts. The review and approval of all technology transfer agreements, and the monitoring
of their implementation over time became a strong instrument for the acquisition of technology by the
indigenous work force.
This period saw the completion of many strategic industries initiated in the 1960/81 era, notably:
Iron and Steel: Rolling Mills at Oshogbo, Jos and Katsina (1982/83, Direct Reduction steel at Aladja (1982);
(Ajaokuta still uncompleted but now abandoned.
Petrochemical: Eleme Petrochemical and Refineries at Warri, Kaduna and Port Harcourt;
Aluminum smelter at Ikot Abasi;
Electric power plants: Egbin, Sapele, Afam, Ughelli, Jebba, Shiroro;
as well as massive importation of industrial goods and machineries, consumer items and the like.
To further enhance technology transfer and development, the era also saw many changes in the structure and
content of the nations Science, Technology and Innovation system, such as the establishment of the Federal
Ministry of Science and Technology, some specialized universities, [the universities of technology (FUTs), at
Owerri, Makurdi, Maidugiri, Abeokuta, Bauchi, Minna and Akure; and the universities of Agriculture].
Many mission-oriented, subject matter research institutes, training institutes were also set up. For example, the
RMRDC was set up to, among other things, promote small-scale plants for the exploitation of local raw
materials; the National Metallurgical Development Centre (NMDC) Jos, to enhance the use of local raw
materials for iron and steel; the Nigerian Metallurgical Training Institute (MTI) Onitsha, to train junior and
middle level manpower for the steel industry. These were accompanied by many administrative and policy
reversals, all in apparent efforts to enhance development.
The technology transfer infrastructures and support structures still
remain fragile. The internalization of technology has not yet set
in: most of the industries are in a dire strait, the power plants
cannot be maintained and cannot sustain the industries, and
the nation depends virtually on imports, as evidenced by the
following:
Ajaokuta Integrated Steel plant has been abandoned after the
expenditure of massive but as yet undisclosed billions of dollars.
None of the many industrial plants could be replicated or
constructed, even by copy technology, by indigenous technical
expertise, even in the Breweries.
Many of the basic industries have collapsed and been
abandoned, notably Pulp and Paper, the Auto Assembly plants,
Aluminum Smelter (Ikot Abasi), and the Textiles.
No electric power plant or petroleum refinery could be
maintained/refurbished by indigenous experts
Clearly Technology Transfer did not fare well as desired, and the
nation geared up to head back to the drawing board as it were.
2.3.3 SUCCESS STORIES
The intervention of NOTAP in technology transfer agreements/contracts,
with monitoring visits to ensure compliance led to more equitable and
fairer technology transfer conditions:
(a) Substantial foreign exchange savings to the economy through the
reduction of very highly overpriced technology fees, hitherto known to
be sometimes overpriced by as much as up to 100%,
(b) More Local Value Addition (LVA) through increase in local content,
such as in Cement production (gypsum), Breakfast Cereals/Baby Foods
(Soya beans, sorghum, maize) as well as
(c) Management succession for top positions by indigenous staff,
though the Nigerian staff is yet to be given opportunity to prove his
technological expertise.
Political Will on the acquisition technology not fully accepted as state

policy.
Culture of innovation, nationalism, public spiritedness yet to kick in.
IPR regime still weak.
Infrastructure & Technological Support Structure very weak
NOTAP mandate not linked to importation of wide range of machineries.
2.4 2000 2015
As the 20th Century drew to a close (remember all the magic economic
targets of Year 2000 for all Nigerians), Technology Transfer became a
major issue of discourse nationally, especially in the light of our economic
regression vis--vis the economies of Korea, Malaysia, India who though
were at about same economic level with Nigeria in 1960s, but have
become industrialized, and joined the league of emerging nations with
highly developed and globally competitive economies. Nigerias economic
failures were generally attributed to technology transfer failures; even
though politics is known to be the culprit.
2.4 2000 2015
A number of policies, programs, agencies and actions were taken to invigorate Technology
Transfer strategies, prominent among which were the following:
NOTAP had its mandate expanded to include
Commercialization of innovation and R&D results,
Promotion of IPR culture among researchers, inventors and the populace,
Strengthening research-industry linkage,
Establishing Technology Transfer Offices (TTO) at innovation generating institutions Unis,
Polys, RIs,
More TBIs were established, and a supervising Board (NBTI) put in place.
SMEDAN was set up to enhance the development of SMEs.
The entry into High Technology sector by Nigeria with major activities and engagements:
Space projects through NARSDA and NIGCOMSAT, leading to Africas first satellite.
ICT facilitated through NITDA, Galaxy Backbone and NCC
Biotechnology, coordinated by NABDA
The period saw many Technology Transfer activities which resulted,
for example in the establishment of many IPTTOs in innovation
generating institutions, the entry into space activities by Nigeria to
launch Africas first satellite, and the astronomical growth in mobile
telephony and massive internet penetration. But these
notwithstanding, we have a climate of unearned affluence, and
deceitful comfort in an environment of severe socioeconomic
poverty. Technology still appears to be far from taking root. Skilled
artisans and craftsmen have disappeared. We are neither able to
design and build, nor even maintain our power plants, oil
installations, industrial plants, transportation infrastructures, and
the like; apparently because Nigerians have not been challenged to
bring out their best in order to test the credibility of transferred or
acquired technology.
2.4.3 NOTABLE SUCCESS STORIES
There has been some success stories, notable among which are:
The launching of Africas first satellite
IPR awareness is coming into the science and technology culture.
10% Cassava flour bread was approved by Government, after FIIRO had shown suitability of
cassava- based bread, pointing the way to commercial wheat/cassava baked products.
NIGCOMSAT recently won a bid to Carrier Spectrum Management (CSM) and In-Orbit
Testing (ToT) Service for Belintersat-1, a Satellite owned by the Republic of Belarus which
was launched recently, January, 15 2016.
Political Will: Not yet definite and unequivocal

R&D intensity: Very low
Infrastructure: Weak and crumbling
Cultural environment: Not Technology-promoting, rather technology-inhibiting
Market: Anti-domestic production, with preference for foreign goods
3 OVERALL ASSESSMENT OF
Thus, we see the following trends in Technology Transfer efforts in Nigeria:
A) 1914 1960 Very little inflow or transfer of foreign technology; technology transfer
infrastructures were virtually absent and there was no public policy or strategy to encourage it
B) 1960-1981 Some considerable inflow of technologies, some key infrastructures, however they
were not properly linked and no clearly articulated national strategy to ensure the transfer,
C) 1980 -1999 Technology transfer infrastructure and support structures still fragile . The
internalization of technology not yet set in, industries and plants could not be maintained; the
nation continued to depend on import.
D) 2000-2015 Technology Transfer efforts neither proven satisfactory nor successful. Technology
inflows have not been internalized.
There is apparent inability to design/build or maintain steel plants, refineries, power plants,
bridges, dams, etc. This period also revealed the impact of the political cum socio-economic
climate, the market demands, as well as technology support structures on commercialization of
innovations. Virtually none of the attempts at commercialization of innovation during this period
was successful. Recall for example Brown Sugar, AVR (by NOTAP), Shear Butter (by RMRDC),
NICOSAN (by NIPRD/Xechem, Shetco); Compare this situation with the success of Sorghum
malting for the Breweries in the 1980s.Need to carefully examine/study the parameter in the
two eras as guide for future endeavors.
3 OVERALL ASSESSMENT OF
Thus one can conclude that:
The nation appears refractory to all the foreign technologies
purchased at huge costs.
Though the nation has a satellite in orbit, and there have been
some rapid internet penetration into virtually every part of the
country and an expansion of mobile telephony, the technical
support is weak. There is a distressing and scandalous dearth of
skilled artisans and craftsmen.
We now therefore need to seriously reflect and reassess our
efforts so far, and retool as it were, for we must quickly grab the
opportunities offered by technologies that abound globally to
enable the nation jump into the fast rapidly moving global train.
The change mantra in the air offers us an immense opportunity
to do this.
4 REFLECTIONS ON WHAT MUST

BE DONE
It is appropriate and relevant for us to pose the Question: Why is Technology
Transfer yet to blossom in Nigeria? Two factors appear to be implicated here,
Namely a) The Political Will of the state, and b) The pervading culture of the
Nigerian people. With respect to these two, one can learn a lot from the background to the
phenomenal economic transformations experienced by
many nations, notably Japan, China, Malaysia and South Korea.
Please note the following:
Meiji Declaration of Japan in 1868: The 5th Article states, Knowledge
shall be sought from every part of the world for the good of the Empire
The Korean Miracle of 1962 2000, in which a backward, desolate and

poor economy of 1960 transformed into an industrialized prosperous
nation, through Government-led economic strategy.
Chinas deliberate government-led policy of the HIDZs (the High Technology Industrial
Development Zones).
And of course, The value system of the Nigerian nation, - which is absolutely fundamental.
Writing in the TWAS Newsletter 1996, Professor Abdus Salam averred, It is
a political decision on the part of those (principally from the South Hemisphere) who decide on
the destiny of developing humanity if they will
take steps to let the Les Miserables create, master and utilize modern Science and Technology.
4 REFLECTIONS ON WHAT MUST BE

DONE
EXPECTATIONS FROM NOTAP, FMST, AND GOVERNMENT
NOTAP
Take careful look at the objectives of monitoring of TT Agreements as in the
revised guidelines; Monitoring should be more technical, not simply a legal
activity.
Support/Shape the directions of R&D
Relate with RIs, TBIs and IDCs
Forge stronger linkage with sister agencies, especially RMRDC
Strengthen the IPTTOs in Unis, Polys and RIs
Strengthen NOTAP SME interaction
Have ear on the ground about research at Uni Labs and Industry
Identify and encourage Innovation Clusters that abound in the country e.g
@UTC area Abuja, @Onitsha near Tarzan, @Ogbete Coal Camp Enugu, etc
Publish monthly reports of new innovations, with a summary each year.
4 REFLECTIONS ON WHAT MUST

BE DONE
EXPECTATIONS FROM NOTAP, FMST, AND GOVERNMENT
FMST
Maintain Closer Liaison with NOTAP
Source and Build up Funding for Venture Capital for R&D
spin-offs and for Commercialization of major Innovations.
STATE i.e. PRESIDENCY

Adopt the Meiji- type declaration on the acquisition of
Technology.
Challenge the national spirit, by ensuring that some major
design, fabrication/construction of projects are awarded to
credible indigenous Nigerians rather than foreign companies.
Thank you
very much

Trends in Technology Transfer in Nigeria

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TRENDS IN TECHNOLOGY

3. Overall Assessment of Technology Transfer Activities