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Monday, 29 September 2014

Ministry projects creation of 25 indigenous software firms by 2017

PLANS are in top gear to ensure that Nigeria
produces about 25 indigenous and sustainable
software firms by 2017.
The modalities for the realization of this agenda
are currently been worked out.
The Minister of Communications Technology, Dr.
Omobola Johnson, who gave this hint in Lagos at
the weekend, noted that the formal launch of the
Nigerian Content Agenda by the ministry will play
huge role in driving this target.
Johnson, who lamented that about 300 Nigerian
firms play at the fringes of the Information and
Communications Technology (ICT) industry despite
its robustness and largeness, noted that the
dominance of the sector is still largely by the
multinationals, “which is actually not bad. But to
further grow the industry, there is need to build
successful local industry.”
The minister observed that Nigerian companies
needed to be more capitalized to be able to compete
favourably well in the global market and rank among
firms including Microsoft; Google; Oracle; SAP and
others.
She explained that the ministry has created
guidelines that will support local companies growth
in the ICT sector including, accelerating the demand
for local ICT products and services; ensuring
procurements through local companies and
partnership with multinational ICT firms.
Painfully, and disturbing to note that currently the
Nigerian software sub-Sector loses about $360
million yearly as capital flight, a fact the minister
recently confirmed in a presentation.
Indeed, various efforts are already being explored
to jumpstart the country’s software and indeed ICT
potential, among which include the National ICT
Incubation Programme taMastgged iDEA (Information
Technology Developers Entrepreneurship
Accelerator). A centre has been put up in Lagos,
while another one is expected to be situated in
Calabar, Cross River State.
The initiative, which was unveiled last year, was
expected to create successful ICT businesses and
catalyse the technology Industry by helping Nigerian
ICT Entrepreneurs create successful businesses.
Johnson at the launch of iDEA last year informed
that the centre will also support the interactions
between software entrepreneurs/start-ups and their
partners, thus developing indigenous skills and
capabilities. It will also act as hubs of innovation
that support the development and maturity of a local
software economy.
The IDEA centre, she added will provide incubates
business and technical training, access to software
development tools at no cost, use of facilities and
computing resources for development purposes,
mentoring, assistance with marketing and promotion
and access to finance.
In addition, the Institute of Software Practitioners
of Nigeria (ISPON) through its yearly software
competition hosted in Tinapa, Calabar also tilted
towards creating software genius in Nigeria.
Only last week, Nigeria presented 14 out of the
about startups for this years DEMO Africa, targeted
also at creating big business out of the country’s ICT
sector.
Meanwhile, the minister has lend her voices to the
calls for more investments in the ICT industry.
Speaking at the ‘Ericsson’s 2015 and Beyond’
forum held in Lagos, stressed that major
investments still required to build out desired
broadband network for Nigeria. She noted that
though the ICT industry has attracted about $32
billion Foreign Direct Investments (FDI) since the
liberalization of the ICT sector, three times more
investments still needed. She called on investors
and telecoms operators to work with government on
the Connect Nigeria initiative.
Johnson, who identified issues of multiple taxation
and levies as impediments to the roll out of
communication infrastructure in Nigeria, stressed
that adequate ICT infrastructure is crucial to good
quality of service and ubiquitous broadband access.
To address the issue of multiple taxes/levies,
impeding infrastructure roll out, she disclosed that
the Ministry unveiled the Smart State initiative
geared at accelerating roll out of critical
communication infrastructure in Nigeria.
The Smart states initiative will also lead to
improved connectivity to un-served and underserved
communities across Nigeria. The expected goal is
for the Smart State initiative to enable roll out of
infrastructure across Nigeria.
Through the Smart State initiative, the Ministry is
in the process of convincing State Governors and the
relevant authorities at the state level to agree to
eliminate multiple-taxation and adopt measures that
will remove arbitrary charges and enhance telecom
service delivery. Other benefits to this agreement
include standardised pricing on right of way, taxes
and levies, thereby increasing the predictability of
cost for infrastructure development in the ICT sector.
The agreement will reduce cost of network
deployment and shorten the period for application
processing.

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