THE FEDERAL GOVERNMENT OF NIGERIA FEDERAL MINISTRY OF COMMUNICATION TECHNOLOGY INVESTMENT OPPORTUNITIES IN THE NIGERIAN ICT SECTOR presentation made at the: HIGH LEVEL INVESTMENT SUMMIT (HLIS) Tuesday July 31, 2012 MRS OMOBOLA JOHNSON HONOURABLE MINISTER FOR COMMUNICATION TECHNOLOGY
15
Embed
THE FEDERAL GOVERNMENT OF NIGERIA FEDERAL MINISTRY OF COMMUNICATION TECHNOLOGY INVESTMENT OPPORTUNITIES IN THE NIGERIAN ICT SECTOR presentation made at.
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
THE FEDERAL GOVERNMENT OF NIGERIA FEDERAL MINISTRY OF COMMUNICATION TECHNOLOGY
INVESTMENT OPPORTUNITIESIN THE NIGERIAN ICT SECTOR
presentation made at the: HIGH LEVEL INVESTMENT SUMMIT (HLIS)
Tuesday July 31, 2012
MRS OMOBOLA JOHNSONHONOURABLE MINISTER FOR COMMUNICATION TECHNOLOGY
Outline
Nigeria’s Infrastructure Gap The Nigerian ICT Industry FGN Priorities for the ICT Industry Investment Opportunities
– Broadband– End-user Devices– Value-Added Services– Innovation– Broadcast Infrastructure and Devices– Postal Services
The Nigerian ICT Industry:fastest growing sector in the economy
SECTOR CONTRIBUTION TO GDP (Q1 2012)
Rank Percentage
Agriculture 1 35.14
Wholesale & Retail Trade
2 22.92
Crude petroleum & Natural Gas
3 17.18
Telecommunication & Post
4 5.83
Source: “Q1 2012 GDP Report “National Bureau of Statistics. See http://www.nigerianstat.gov.ng/pages/download/69
Drivers of the Nigerian Economy as at Q1 2012
In the first quarter of 2012, the Telecommunication & Postal sector was the primary driver of growth of the Nigerian economy. The sector is the fourth highest contributor to the nation’s GDP
Connecting Nigeria• Speed and Quality of Service (QoS)
Connecting Nigerians• Bridging the Digital Divide
Local Value Added• Domestic Participation in the New Economy
Transparency & Efficiency in Governance & Citizen Engagement
Investment Opportunities:Broadband FGN Policy Focus and Priority:
– Accelerated roll-out of robust, reliable, and cost effective ICT infrastructure to increase citizen access to ICTs.
Market Indicators:– Four undersea fibre-optic cables with combined design capacity of
approx 10 TBps– <100,000km of terrestrial fibre-optic cable– 20,000 base transceiver stations– Average download speed of 3.09MBps– About 52 million Internet users; internet penetration of 33%; – Broadband penetration of 6%
Opportunities exist for entities active in: – Deployment of terrestrial fibre-optic networks (including fibre-over-
powerline)– Deployment of wireless broadband infrastructure– Satellite networks (in particular those providing connectivity to rural
Investment Opportunities:Value-Added Services FGN Policy Focus and Priority:
– Contribute to the scale and scope of the domestic Information Technology Enabled Services (ITES) market (and facilitate its growth)
Market Indicators:– Growing domestic data centre market and emerging position as
regional hub for data centre services in West Africa– Outsourcing market estimated at US$1bn in 2011– Increase in eGovernment services – establishment of Government
Contact Centres– Pilot of Central Bank’s Cashless Nigeria initiative– 16 Mobile Money Operators licensed
Opportunities exist for entities active in: – Data centre deployment and management– Application hosting / Cloud computing– Business Continuity / Disaster Recovery– Internet Service Provision
Investment Opportunities:Innovation and Entrepreneurship FGN Policy Focus and Priority:
– Promote and support innovation and entrepreneurship in the ICT sector – Stimulate and support domestic value-added
Market Indicator:– Market for software in Nigeria estimated to be worth US$6bn– Most new jobs in Nigeria will be created at the intersection of ICTs and
services • ICT businesses represented the second largest number of YouWIN
awardees
– Otigba Computer Village (Lagos State) is largest cluster of ICT traders– Increasing adoption of innovative ICT solutions: Growth Empowerment
Scheme (GES) for distribution of seeds and fertilizers; Mobile Authentication Service (MAS) for verifying authenticity of drugs
Opportunities exist for entities active in: – Incubators/Innovation Hubs– Software Development– Venture Capital/Private Equity Investments
Investment Opportunities:Broadcast Infrastructure and Devices FGN Policy Focus and Priority:
– Partner with the private-sector to ensure that the transition to digital broadcasting is completed within the specified time frame and with minimal disruption to the viewing public.
Market Indicators:– 20 million households estimated to have at least one television set – Current subscription to pay TV is low (<2million); high demand for
low-cost packages aimed at less affluent households– Global timetable and acceptance of the migration presents a captive
market, and the need to secure the rights of citizens to information increases Government’s commitment to the transition
Opportunities exist for entities active in: – Signal distribution– Broadcast equipment suppliers– End-user device manufacturers, installers and after-sale support– Content aggregators, producers, distributors etc.
Investment Opportunities:Postal Services FGN Policy Focus and Priority:
– Reform the postal sector and utilise the Public Postal Operator in achieving social, financial and digital inclusion
Market Indicators:– National Postal infrastructure provides geographic spread and
accessibility that are not matched by any other single public or private institution
• Comprised of over 3,000 physical locations spread across over two thirds of LGAs
– Annual turnover of the courier industry is estimated to be over N350billion (about US$2.2bn)
Opportunities exist for entities active in: – Postal operations– Retail financial services (Post Banks)– Digital inclusion through public access venues