Experts Seek Policy to Address Telcos Forex Demand

The federal government has been urged to come up with a national strategic policy aimed at addressing the huge demand for foreign exchange by telecommunications operators to fund the acquisition of software to drive their networks.

This is on the heels of the recent statement credited to Dr. Umar Bindr, director general, National Office for Technology Acquisition and Promotion (NOTAP) that telecommunications operators are putting enormous pressure on the nation’s foreign exchange as they seek approvals to acquire foreign software to drive their networks.

James Agada, a software expert and chief technology officer, Computer Warehouse Group Plc, called for a better understanding of the operations of the networks of telecommunications operators.

He explained that the major foreign software demands of telcos are meant to drive their switches which according to him are proprietary and will be difficult to be sourced outside of the switch manufacturers.

Nodding in agreement, Pius Okigbo Jnr. President, Institute of Software Practitioners of Nigeria (ISPON), explained that most of the switches of telecommunications operators are foreign made with intellectual property right for the software that makes it difficult to source outside of the manufacturer.

Agada and Okigbo therefore urged government to come up with a national strategic policy that will encourage those foreign companies that manufactures the switches to establish in the country and employ Nigerians to service the telcos who in turn will learn the technology and may as well develop competing products that can serve as alternative to the ones telcos are using.

But Agada cited instance of China which provided loan guarantee for banks to support Huawei that assisted the company to where they are today.

Adding his voice, Lanre Ajayi, president, Association Telecommunications Companies of Nigeria (ATCON) wondered why NOTAP singled out telcos in its accusation as other sectors are also liable of the same practice.

Ajayi stated that such strategic policy canvassed by Agada and Okigbo, should focus more on ensuring that the equipment which requires those software that are procured abroad are manufactured locally with its software written locally as well.