Transcript prof-sambos-nitda-prese ntation-final

Leveraging on IT Innovations for Economic
Diversification*
By
Prof A. S. Sambo, OON, NPOM
*Keynote Address at the 9th e-Nigeria Conference and Expo
22ndNovember, 2016, International Conference Centre, Abuja
e-Nigeria 2016: Leveraging on IT Innovations for Economic
Diversification
Content
• Introduction
• Potentials of IT in Economic Development
• Leveraging on IT Innovations in Nigeria for Economic Diversification
• Other Challenges to be Leveraged
• Conclusion
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Introduction
• The world economy has been driven by a large scale amalgamation of global markets
and a dramatic growth of Information and Communication Technology (ICT). Two factors
are thought to have contributed to this phenomenon:
 Blend of widening global markets and escalated international competition.
 Delayed impact of a number of technological innovations developed over several
decades.
• In the modern economic perspective ICT is seen as an important production factor by
reason of knowledge-driven economy as:
 Many researches assess that knowledge, innovation and technological changes
become important factors for economic growth
 Modern growth theory highlights the importance of knowledge for economic
growth. This is the basis for investing in ICT.
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Introduction (2)
• Nations of the world that are aware of the global knowledge economy are
flourishing by optimising the benefits of ICT.
• Before independence, Nigeria relied majorly on agriculture for its foreign
exchange earnings. This was gradually taken over by oil which provided the
nation with substantial income but which has recently lost its relevance with
its dwindling price in the international market that has, amongst others, led
Nigeria to recession.
• Time has come for Nigeria to adopt ICT as a catalyst for National Prosperity.
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Introduction (3)
• Simply put – IT can be described as:
“The study or use of systems (computers and telecommunications) for
storing, retrieving, and sending information”.
• IT refers not only to computers and computer networks but it also
includes:
telecommunication technologies
Internet
business phones
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Potentials of IT in Economic Development
• The emergence of ICT has remained at the centre of global socioeconomic transformations as it affects the performance and growth
of any business or organisation.
• Nigeria needs to epitomise the opportunity of globalisation and IT
due to:
Employment and job creation
Creation of massive wealth
International Market
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Potentials of IT in Economic Development (2)
• Increases the Gross Domestic Product (GDP) contribution.
ICTs contribute to GDP directly through the production of ICT
goods and services as well as through continuous advances in ICTproducing sectors.
Increasing applications of ICTs (capital deepening) leads to rising
labour productivity.
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Potentials of IT in Economic Development (3)
• Tremendous productivity and efficiency in other promising sectors such as
Agriculture: predictions and scheduling , Finance: the advent of mobile banking
and Commerce: websites enable business to transact online. This is based on the
following reasons:
 Reduces transaction costs and thereby improves productivity.
 Offers immediate connectivity via Voice, Data, Visual means thereby improving
efficiency, transparency and accuracy.
 Substitutes for other more expansive means of communication and
transactions such as physical travel.
 Increases choices in market places and provides access to hitherto unavailable
goods and services.
 It provides knowledge and information of all kinds to interested parties.
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Potentials of IT in Economic Development (4)
The Path From IT to Economic Diversification
Diversified
Economy
Innovative Products
and Services
Higher Quality Goods
and Services
Larger and More
Efficient Markets
New Research
Tools
More
Jobs
Information Technology
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Leveraging on IT Innovations in Nigeria for Economic Diversification
• Government is the key! For creating an enabling environment for ICT to
thrive through developing sound policies along with pragmatic legal and
regulatory frameworks.
In the new dispensation, the policies would attract the organised private
sectors investment.
Where necessary, public private partnerships (PPP) may be needed.
For ICT to thrive, the relatively high cost of starting ICT businesses has to
be circumvented along with adoption of appropriate tax holidays.
The issue of good ICT policies and incentives are already producing
significant economic benefits to India, Hong Kong and Kenya, among
others.
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Leveraging on IT Innovations in Nigeria for Economic Diversification(2)
• For Nigeria to reap the benefit of ICT innovations, there is need for the
following:
 As many ICT equipment as possible should be produced or assembled in
the country to reduce the cost of importation.
 There is need for adequate numbers of craftsmen, technicians, scientists
and engineers for the entire value chain of the ICT industry.
 To ensure sustainable ICT development and use, a demand and supply
projection of both the numbers of the ICT equipment and manpower
requirements should be kept and constantly updated and reviewed.
 The issue of local production or assembly of ICT equipment should be
mainstreamed in the nation’s overall development plan while the ICT
manpower demand and supply projections should be incorporated in the
National Manpower Plan.
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Leveraging on IT Innovations in Nigeria for Economic Diversification (3)
• Strengthening the enabling environment and mentorship by the
provision of the following:
ICT Incubator
External collaboration e.g. Twitter, Facebook etc.
E-learning, e-commerce, APPs, Cloud services etc.
ICT4D
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Leveraging on IT Innovations in Nigeria for Economic Diversification(4)

Broadband Infrastructure
 Foundational framework for Internet widely known as Enabler for Economic & Social
Growth in digital economy
- Its access is top priority for any govt seeking economic
growth
-
Capable of triggering technological innovation &
empowering people
- Worldwide digital economy generated US$24Trillion
in e-commerce in 2015 .
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Leveraging on IT Innovations in Nigeria for Economic Diversification(5)

Broadband Infrastructure Growth in Nigeria
 Slow Growth Rate
-
-
2011 : 6%
-
2015: 10%
June 2016: 14%
- Govt Instituted Five year Roadmap (
2013-2018) aimed at achieving 30%
broadband penetration
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Leveraging on IT Innovations in Nigeria for Economic Diversification(6)
 Network & Application systems
 e-Governance systems & Networked Applications
- Nigeria ranked 48th in 2016 & 2015. Ghana, Kenya
& South Africa Ranked 47, 46 & 31 respectively.
-
Need for more investment in ICT infrastructure and
systems development
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Other Challenges to be Leveraged
• Other hurdles to be surmounted include;
Poor quality of electricity supply – Government appears committed to
improve the situation through expansion of the energy mix by bringing in
renewable energy and coal in addition to the current gas and hydro power
plants. More efforts are needed to get the owners of the privatised
generation and distribution companies to perform in line with the terms of
the sales agreements.
Poor project quality assurance, management monitoring and mentoring –
significant improvement in quality assurance, supervision and maintenance is
required.
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Conclusion
• Agencies such as NITDA (National Information Technology Development Agencies) and
other interest groups have made good progress in locating and showcasing
start-ups and also in sponsorships but there are more challenges ahead.
• Untapped potentials in IT innovations can generate significant revenue for
Nigeria to reduce the over-dependence on oil as the nation’s sole source of
national income.
• For this to happen there is need for an urgent review of the nation’s IT
policy, legal and regulatory frameworks which will ensure the creation of
more conducive environment for both the public and private sector to
participate actively.
• There is also the strong need for ICT education as well as IT Research &
Development in addition to enhanced support for more IT Innovation
projects.
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THANK YOU
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