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The need for effective policy intervention has been identified by experts at a BusinessDay technology conference as the means to make ICT a viable alternative to oil and reinvigorate Nigeria’s economy at a time of slowed growth and continued volatility.
It was emphasised at the conference that governments particularly at the state level, need to encourage ICT businesses by avoiding multiple levies, while also doing away with “right of way claims” which often discourage telecommunication firms, when working to expand infrastructures to boost their operations.
Experts observed that with better connectivity and internet penetration, it would become possible for more Nigerians to take advantage of business opportunities in the ICT sector.
“The ICT sector can and indeed should be a stronger pillar of economic support for the development of our country,” said Frank Aigbogun, Publisher/CEO of BusinessDay.
Aigbogun further observed that an effective policy intervention aimed at addressing the challenges of the telecoms sector would lead to vast improvements, as well as more jobs and government tax revenues. He further stated that failure to do this could cost Nigeria a cumulative N400 billion in unrealised direct and indirect contribution to GDP over the next four years.
Okechukwu Enelemah, minister of Industry, Trade and Investment, stressed the urgency for Nigeria to diversify its sources of revenue and foreign exchange by paying more attention to ICT and its entire value chain, towards maximising the benefits it has to offer the country.
“We can earn more from ICT than oil if we put our hearts to it… don’t make this (just) another talk shop as we are extremely hungry to partner with the private sector” said Enelemah.
ICT diffusion, especially in advanced economies, is now being shown to be a major lever for improving productivity levels and competitiveness and providing an enabling environment for relevant companies to thrive, as well having a multiplier effect on the Nigerian economy.
One of the highlights of government’s efforts in developing ICT in Nigeria, according to Enelemah, includes an industrial revolution plan that will entail the creation of dedicated industrial parks for computer based industries. The clusters of computer entrepreneurs popularly called Computer Village in Ikeja and the “Yabacon Valley,” which many ICT start-ups are using as the base for their operations, will be given special attention to enable them thrive.
Enelemah observed that help beyond oil has emerged in recent years as a catch phrase of some sort, not just in Nigeria, but around the world. The major trends driving it include the drop in prices of mineral resources, which also entail declining oil reserves, while the other has to do with economy diversification.
Enelemah, reiterated that “the primary agent of growth in all the sectors will be the private sector. The government’s role is to provide an enabling environment and spell out clear and consistent policies; create the space for funding and investment.”
Aigbogun also expressed the view that “Nigeria can see another wave of targeted and ground breaking investment coming to the ICT sector if we can get all stakeholders to agree on a way forward and actually commit to making it happen. We have done it before and it can be done again.”
In order for the ICT sector to supplement or replace the Oil and Gas sector, policies which favour the sector must be put in place, he stated.
Olusola Teniola, President, Association of Telecommunications companies of Nigeria (ATCON) emphasised that the petroleum industry which used to be the cash cow for our nation (from a foreign exchange earning perspective) is not doing so well right now and this is a global issue that will take some time to recover. He further observed that the direct implication of this is that Nigeria might not be able to finance its budget without resorting to further government borrowing.
He stressed that ICT has the potential to serve as the new cash cow for the country, provided that the right polices are put in place.
Teniola added that “it is surprising that the Federal Government does not give priority to the ICT sector when planning, despite its huge contributions to the Gross Domestic Product. We all know that more than 70% of ICT components are currently being imported from abroad. It has been established that this sector is contributing circa 8% to our Gross Domestic Product (GDP).”
Olayinka David-West, a senior lecturer at the Lagos Business School, also explained that “As virtually all new mobile customers will be in developing countries, specifically in rural areas, the ICT platform is now extending, even to populations with low income levels and literacy. In consequence, ICT is becoming the largest distribution platform. High speed internet is changing the way companies do business, transforming public service delivery and democratising innovation.”
Experts and participants at the BusinessDay Technology Conference variously emphasised the need for government to go beyond paying lip service to its diversification mantra, to working to create favourable policies that will enable ICT businesses thrive.
Caleb Ojewale
