Nigeria’s Alarming Software Piracy Rate

Internet scams, identity theft, financial scams and spam are too prevalent in Nigeria.
All of this, along with rampant software piracy, undermines Nigeria’s economic development and ability to attract foreign investment according to findings by Microsoft, software giant.
The seventh annual global software piracy study released recently by the Business Software Alliance (BSA), an international association representing the global software industry, in conjunction with the market research firm IDC, revealed that software piracy rate in Nigeria is 83% underscoring the need for urgent measures to combat the menace.
According to the study, the Nigerian economy lost US$156 million to software piracy in 2009, a $24 million increase compared to 2008.
Since the study was first published in 2005, IDC estimates that the commercial value of software stolen over the past four years is approximately $584 million.
Although the use of unlicensed PC software dropped in nearly half of the 111 economies studied in 2009, the steady piracy rate in Nigeria, according the latest statistics remains among the highest in the world, ranking 19 on the global list.
Undoubtedly, the major problem facing the software and entertainment industries in Nigeria is piracy.
It is estimated that nine out of every ten CDs, VHS and DVDs circulating in Nigeria are pirated.
Piracy impacts negatively on the growth of the creative industry in Nigeria and on the Nigerian economy as a whole.
A visit to the notorious Computer Village, Lagos and Alaba International Market in the suburb of the state speaks volumes of how the illicit trade is carried out with impunity.
Dale Waterman, BSA co-chair, Middle East and Africa warned that the “rise of unlicensed software in Nigeria limits local technology innovation, job creation and economic growth. Furthermore, piracy robs governments of vital tax revenues.”
In addition to the impact on Nigeria’s local economy, piracy has harmful consequences for the consumer.
Counterfeit software is often vulnerable to computer viruses, malware and hackers, leaving consumers and businesses unprotected against data loss or identity theft.
With the increasing sophistication of software pirates and cyber criminals, Microsoft warns Nigerian consumers to avoid the threats to their privacy and security when considering buying cheap counterfeit technology.
Curbing the illegal trade is big task which will begin with mass education and awareness campaign on the dangers.
Also, full scale enforcement is important to curb the growth of large- scale manufacturing and distribution of counterfeit software, which in turn will help check the rise in hard disk loading activities of such software by retailers.
At the same time, software manufacturers must find ways to make the software more pocket-friendlily, especially for non-profit groups such as home users or students.