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Local software Vs foreign software

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It is for this reason that the Association of Telecommunications Companies of Nigeria (ATCON) recently held a Stakeholders’ Summit on "Nigerian Content Development in the ICT Sector" The event took place at the Golden Gate Chinese Restaurants, Ikoyi, Lagos.

ATCON organized the meeting because it was of the opinion that for the Information and Communication Technology (ICT) sector in Nigeria to develop and level up with leading ICT nations of the world, concerted efforts have to be made towards developing some amount of local contents both in the software and hardware components of ICT infrastructure. It also felt that our local ICT infrastructure providers should be granted some measure of protection against their multinational counterparts whose corporate strength and investment could pose serious threat to the survival of local players.

The Association believes that the establishment of an enabling environment will encourage existing and potential local investors to venture into the development of Nigerian content in our ICT sector. This will eventually register Nigeria in the league of global leaders in the ICT sector.

The summit elicited passionate reactions from experts and stakeholders that came for the event. Of particular reference was the open challenge thrown to foreign software developers by Dr. Chris Uwaje, Managing Director, Connect Technologies Limited to come for an open competition to determine who was better at the job. He was quite confident that Nigerian software developer would not be found wanting nor underdogs.

Experts say that the software industry in Nigeria is worth over 20 billion dollars and over a trillion dollars worldwide.

The industry generally exudes much optimism but there is a pervading air of disillusionment which developers blame on absence of government support for the industry.

Government has never indicated interest in the local industry and it only seems to be interested in IT consumption. The Nigerian computer society with over 15,000 memberships is a strong advocate of government investing in software development in Nigeria. They have also advocated for the establishment of a software research institute.

There are thousands of indigenous software in the Nigeria market but they all get swallowed up as foreign brands. Nigerian made software provide solutions for school management, cyber café management, human resources, banking and micro-finance, the stock market and many other areas of human endeavours. Though a few have enjoyed patronage in the banking sector, stock market, and micro finance institutions. However, they still suffer discriminations when compared to that of their foreign counterparts even as foreign software is still dominant in the market.

Those from abroad get the lion share while local software are still lagging behind.

Foreign solutions practically dominate corporate Nigeria, particularly the banking and oil sector where IT has been remarkably integrated into their operations. Where local applications are in use, they are built into the architecture of the foreign solution as one of several modules. For instance, where the module for personal management of the offshore package does not fit into the local environment, it is replaced with a locally written module that reflects the unique traits of the local business environment.

Several banks in Nigeria are guilty of this practice. This means that the local developers are perpetually relegated to the background while their foreign counterparts take the driver’s seat of the national economy. Our local developers are never part of the major software platform, which drives the economy.

Though, there are areas where local software developers need to improve on their products, as many industry analysts say most local developers are yet to realise that software is both research and business. This is because they lack commitment to the business angle of software development. Also, they complain that most local software is not user friendly as the graphical user interface are not there.

They also complain that some software applications are difficult to understand when compared to those from say India, China or some western countries.

They submitted that developers must know that it is not always how good the software is that matters but how it can easily be understood and used.

Mr. Austin Okere, Group Managing Director, Computer Warehouse Group (CWG) once told his audience at a software forum organised in Lagos that local software developers are either unwilling to run the distance to keep to global standards or they are just being lazy to make their products global. He maintained that there are standards that must be reached if they want their solutions to compete favourably with foreign brands.

"Software has no tribe or race, the man who wants solutions would go for what can solve his problems,"he said.

Others believe that the mortality rate of local solutions is very high. Be that as it may, there are many who believe that there are some local solutions which could compete favourably with their counterparts from anywhere in the world.

Many believe that if our local software developers are encouraged, they would do better that they are doing presently. This is because many Nigerian developers lack the fund and necessary support. Some because of the socio-economic factors in the country are more concerned with their physiological needs than with the exigencies of their profession.

Though, the government have in the past pretended to be doing much to encourage the local software industry but industry watchers see these as just a flash in the pan. For instance, in 2004, the government inaugurated a 16 member task force for the development of software in Nigeria as part of its IT policy implementation strategies, an IT park worth N2 billion to be financed by Zenith bank was also promised. However, four years on, this project is yet to take off. To put it more succinctly, it is as good as gone with the administration that proposed it.

The 16 member committee was to among other things develop a blue print or strategies for promoting software development in the country and creating an enabling environment for software development to thrive in the country. This too still remains a dream which in the typical Nigerian parlance is still in the pipeline.

Dr. Chris Nwannenna, former president, Nigeria Computer Society (NCS) speaking on the challenge confronting software developers in Nigeria, said lack of patronage was one of the greatest problems confronting the industry in Nigeria. "It is only in the last couple of years that Nigerians started patronising the software industry in Nigeria. Software is quite unlike other products. You conceive the product, do the analysis, design, code, package, test, before you even present it to anybody. All these will take a minimum of six months to develop a total commercial appreciation. Sometimes, it takes more. Also, marketing it becomes very difficult because of the economic situation in the country. So all these things discourage people from going into software development. The gestation period is quite long. Also, you need somebody to back up. You need support, so you can concentrate on the job.

He continued: "We have always said that the government can promote the private sector to become more effective. Well, government should come out open to say before any Nigerian agency, ministry or government institution buys any software from outside Nigeria; it must make sure that there is no indigenous equivalent. That will be the first step that will galvanise the Nigerian software industry. This will serve as an impetus to the local software industry.

"We want a clause that will make it difficult for any buyer of software to just purchase anything they see or hear about outside Nigeria without first checking what is available locally. Because you know Nigerians have a penchant for foreign things even when they are not good.

Perhaps if the government at all levels will heed to these wise words of an expert in the industry that as it were has seen it all. The software industry in Nigeria maybe on its way out of the woods and the practitioners may just get a new lease of life that may help them in their line of duty.

It is on record that the Nigerian Information and Communications Technology (ICT) sector has continued to grow beyond bookmakers’ predictions. However, despite the high number of ICT professionals in Nigeria, adequate attention has not been given to the issue of developing and building local contents.


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NELFUND Says UTME, NIN, BVN Mandatory for Student Loans

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Nigerian Education Loan Fund (NELFUND) has said that Nigerian students will need to present their Unified Tertiary Matriculation Examination registration number (UTME); National Identification Number (NIN); and Bank Verification Number (BVN) to access student loans.

NELFUND Says UTME, NIN, BVN Mandatory for Student Loans

Mr Akintunde Sawyerr, managing director of NELFUND, assured that the body would ensure that those he called ‘ghost students’ would not have access to the soon-to-be-launched scheme.

The MD noted that NELFUND has put processes in place to ensure that all applicants and beneficiaries are traceable to prevent the loan from turning into a sort of national cake.

“We are using technology to run the system. The process of application is online and we are limiting human contact as much as possible. Once you have a Bank Verification Number, BVN and National Identification Number, NIN, which are parts of the requirements, we will have access to your data and all your accounts. This will also help us to know if you are qualified or not,” he explained.

He explained further that those who are already in school can apply for the loan at any level of their study, but must be at the beginning of each session. They would also have to provide their admission and matriculation details in addition to BVN and NIN.

According to the NELFUND boss, about 1.2 million Nigerian students in tertiary institutions and government-recognized skill acquisition centres would be among the first batch of beneficiaries. The number may increase as time goes on.

The programme, he noted, will be funded with one per cent of the total annual collectable revenue by the Federal Inland Revenue Service (FIRS), which will amount to N194 billion if the agency meets its projection.

He explained that the loan would be paid in two segments. The first, he said, is the chargeable school fees which would be paid directly to the institutions while stipend would be paid into individual student’s account for day-to-day upkeep.

Mr. Sawyerr stated that the amount individual applicants will access will vary because of the course of study, school fees payable and geographical location of the institutions among others.

On the method of payback, he said, “You don’t start paying back the loan until two years after your National Youth Service Corps, NYSC Scheme and that is, if you have secured a job or business. A beneficiary can defer repayment if he has not secured a job, but if after due diligence, he defaulted, then he becomes a criminal and we will work with every agency that can help us get the money back, for example, EFCC, ICPC etc.”

 


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Sun International Finalizes $14.4M Exit from Nigeria, Sells Interests to RFC

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Sun International Limited, run by Anthony Leeming, South African entrepreneur, has agreed to sell its Nigerian interests to Rutam Finance Company Limited (RFC) for roughly $14.4 million.

Sun International Finalizes $14.4M Exit from Nigeria, Sells Interests to RFC

The move is part of Sun International’s strategy to consolidate operations and focus on key markets. Sun International joined the Nigerian market in 2009, but has struggled in recent years due to a challenging operating climate.

This divestiture is consistent with the company’s strategic objectives and represents a shift in portfolio management.

Sun International, will sell a 43.3 percent ownership investment in Tourist Company of Nigeria PLC (TCN), which manages Lagos’ Federal Palace Hotel, to RFC for $1.875 million.

In addition, the group would pay off its whole $12.675 million credit to RFC, effectively exiting the Nigerian market. The corporation also intends to sell its remaining 6% ownership in TCN in due course.

The transaction, subject to customary closing conditions including as regulatory approvals, is estimated to create a cash inflow of about $14.41 million for Sun International.

These funds will be utilized to reduce debt.

Following the completion of the acquisition, TCN will no longer be included in Sun International’s financial statements.

This will reduce group debt by about $41.82 million, excluding IFRS 16 lease liabilities.

The closing is scheduled for no later than May 28, 2024, provided that all usual closing conditions are met. The Nigerian Competition Authority, the Securities and Exchange Commission, and the Nigerian Stock Exchange have all provided key clearances.

Sun International, founded in 1968 by the late Sol Kerzner, has grown into a renowned gaming and resort company under Leeming’s leadership.

In fiscal 2023, the company’s revenue increased by 7% to $646.14 million, while headline earnings increased by 86 percent to $55.35 million.

This demonstrates Sun International’s resiliency and strategic direction. Sun International’s pullout from Nigeria demonstrates the company’s dedication to streamlining its portfolio and pursuing growth possibilities in key areas.

With a rich history and a focus on the future, this transaction demonstrates the company’s commitment to create wealth for shareholders and stakeholders while also strengthening its position in the gaming and hospitality industries.

 

 


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Sam Darwish, US-Nigerian Businessman Suffers $6m Loss as IHS Shares Plunge

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Sam Darwish, a US-Nigerian telecom entrepreneur, has experienced a huge financial setback in his holding in IHS Holdings following a recent drop in the shares of the top telecom infrastructure company on the New York Stock Exchange (NYSE).

Sam Darwish, US-Nigerian Businessman Suffers $6m Loss as IHS Shares Plunge

Sam Darwish

According to data, Sam Darwish’s investment in IHS Holdings has lost $6 million in market value during the last 13 days. This drop reflects increasing selling pressure among NYSE investors.

From March 12 to 30, Darwish’s investment in IHS Holdings increased from $35.17 million to $49.27 million, resulting in a $14 million gain.

Darwish founded IHS Holdings in 2001, and it has since grown to become the largest telecom infrastructure business in Africa, Europe, Latin America, and the Middle East.

It is renowned for its huge tower count and is the world’s third-largest independent international tower firm.

In the last 13 days, IHS Holdings shares on the NYSE have dropped by 11.72 percent, from $3.67 on April 3 to $3.24 at the time of writing.

As a result, the company’s market capitalization has dropped below $1.1 billion, causing significant losses for stockholders.

As chairman and CEO of IHS Holdings, Sam Darwish holds a critical position in African telecom.

With a strong 4.17 percent ownership holding, equivalent to 13,958,158 ordinary shares, he is a key participant in the global telecom infrastructure business.

The recent double-digit loss in IHS Holdings shares has resulted in a $6 million decrease in the market value of Darwish’s shareholding in the top telecom infrastructure company. His shareholding has decreased from $51.23 million on April 3 to $45.22 million.

Despite this defeat, Darwish remains an important figure in the worldwide telecom business.

IHS Holdings’ extensive tower network and smart acquisitions have secured its position as a major participant in the global telecom infrastructure sector.

 


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