Thursday 7 July 2011

Increasing Local Participation in ICT Sector

The information and communications technologies (ICTs) industry has witnessed a rapid growth in recent years with a number of products, services, the size of the market and foreign direct investment.

It is no gain saying that the industry is the new spring board for reshaping and redefining the Nigerian economy.

The industry is noted to be lucrative in terms of the record profits by companies operating there and also difficult because of the poor operating environment as well as the near absence of concerted regulation.

Regrettably, despite the flurry of activities in the ICT sector, Nigerian content is at abysmal level.

Local content means the development of local skills, technology transfer, use of local manpower and local manufacturing.

For the International Telecommunications Union (ITU), local content is an expression and communication of a community’s locally generated, owned and adapted knowledge and experience that is relevant to the community’s situation.

The reason is the absence of a local content policy to enable local companies’ to participate actively in the sector.

ITU said that the situation is further compounded by limited financial resources of developing countries for content production; inappropriate training opportunities for content creators; lack of access to advanced technology (production units, digital cameras, digital studios); low motivation and commitment at the decision making level to change the situation as well as market forces, which do not encourage diversity.

All these underscore the need for a policy to ensure that local players are not left at the outskirts of the thriving sector.

We believe strongly that local ICT providers require some measure of protection against their multinational counterparts whose corporate strength could extinguish the local players.

Local hardware and software developers, must also be given some kind of support to enable them grow, expand and continue to provide employment to millions of Nigerians.

The local content scheme must be such that requires players in the ICT industry, especially multinationals to obtain domestically a specified minimum percentage of their basic input.

The policy should also include local content quota, cyber security, broadband, consumer protection, Geo-information and ICT, climate change and the environment.

Beyond the issue of job creation for local players, local content also has far reaching implications for technological advancement, long term cost effectiveness.

If this is not done, Nigeria may lose IT personnel and manpower that can take the burgeoning development in the sector to the next level.

BY Nigeria CommunicationsWeek editorial

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