ICT Sector Grows 30%, Johnson Pursues Local Content

Nigeria’s ICT sector contributed a princely 5.83 per cent to national gross domestic products (GDP) making it the fourth highest contributor to GDP, growing at a little over 30 per cent in the first quarter of this year, ministry of Communications Technology, has  said.

Mrs. Omobola Johnson, quoting figures from the National Bureau of Statistics at the annual eNigeria conference in Abuja , said 30 per cent growth figure also shows the ICT sector was the “fastest growing sector in the Nigerian economy and employed over 2m people.”

She however noted that closer scrutiny of the NBS stats reveal some worrisome picture. “While we do not have detailed empirical evidence, and we are currently working on gathering and collating this, it is clear to us that domestic value added or what is now called local content in the ICT industry is sub-optimal.”

Consequently, the Minister stated that the “ICT local content remains grossly under developed in Nigeria and though many reasons are adduced for this – including the high cost of production and scarcity of expertise – the fact remains that there is an over dependence on foreign importation of software and hardware and this has led to diminished opportunity for domestic economic empowerment and contributed to limited capacity building within the context of ICT.
 
“In addition, given the quantum of hadware devices and software applications imported into and used within Nigeria, there has been a considerable drain on Nigeria’s foreign exchange. There is therefore the  urgent need to boost domestic participation in the ICT industry by incentivising local hardware and software companies to increase (local)content”

She noted that the country would encourage and nurture local ICT firms ,especially those involved in the sub-sectors that have been identified as having the greatest potential for growth-job creation and wealth creation – software development, value added services (training, transaction services), device assembly sales and distribution as critically beneficial or the development of a strong and globally competitive ICT industry.

The eNigeria Summit is organized by the National Informational Technology Development Agency (Nitda) to discuss on issues like: an enabling environment for local content development, Infrastructure for local content development with particular emphasis on broadband, human capital development, indigenous software development, innovation and Youth, IT local content project financing and wealth creation, the participation and role of other sectors in promoting local content development in the ICT sector – education, health, media, legal.