youth development, ict & nigeria’s knowledge economy presentation made at the: 18 th nigerian...
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YOUTH DEVELOPMENT, ICT & NIGERIA’S KNOWLEDGE ECONOMY
presentation made at the:
18th NIGERIAN ECONOMIC SUMMITBy
Wednesday, December 05, 2012
Ministry of Communication Technology
THE HONOURABLE MINISTER OF COMMUNICATION TECHNOLOGY MRS OMOBOLA JOHNSON
Outline
• The ICT Industry• Nigeria’s Youth Demographics• Youth and ICT Policy• Youth Entrepreneurship in ICT• The Role of Government• Expected Outcomes
2© 2012. Federal Ministry of Communication Technology
The Nigerian ICT Industry:fastest growing sector in the economy
SECTOR CONTRIBUTION TO GDP (Q3, 2012)
Rank Percentage
Agriculture 1 40.19
Wholesale & Retail Trade 2 19.37
Crude petroleum & Natural Gas
3 14.80
Telecommunication & Post
4 5.70
Source: “Revised 2011 and Estimates for Q1-Q3, 2012 Gross Domestic Product for Nigeria“ National Bureau of Statistics. See http://www.nigerianstat.gov.ng/pages/download/87
In the third quarter of 2012, one of the ICT industry sector, the Telecommunication & Post is the fourth highest contributor to the nation’s GDP and is the fastest growing sector in the Nigerian economy
equates to N76.3bn GDP at Current Basic Prices
3© 2012. Federal Ministry of Communication Technology
Transaction Services
The Opportunities in the Nigeria ICT Industry
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Mobile Network
Operators
Satellite Operators
Fixed WirelessOperators
Fixed Wire-lineOperators
Internet Service Providers
Device Sales & Distribution
Device Maintenance & Repairs
Device Assembly
Infrastructure Services
Training & Education
Equipment Maintenance & Repairs
Equipment Sales &
Distribution
Equipment Assembly
Call Center Operations
Research & Development
Support Services
Software Development
Access Provision
Business Process Outsourcing
Converged Services (Data, voice & media)
Annual Maintenance & Support (servers & storage)
Software Maintenance & Support
SoftwareInstallation & Customization
Software Sales &
Distribution
Value Added Services
Infrastructure Service Providers
Legend High growth Medium growth Low growth
ICT Opportunities in 3 Strategic Areas
5© 2012. Federal Ministry of Communication Technology
INFRASTRUCTUREINFRASTRUCTURE(Broadband)(Broadband)
INFRASTRUCTUREINFRASTRUCTURE(Broadband)(Broadband)
Job Creation (civil works, network equipment, maintenance)
BUSINESSBUSINESSBUSINESSBUSINESS New e-commerce business, business
innovation, productivity
INCLUSIVE DEVELOPMENTINCLUSIVE DEVELOPMENTINCLUSIVE DEVELOPMENTINCLUSIVE DEVELOPMENT E-Health, E-Agriculture, E-Government
Nigeria’s Youth Demographics
• According to population statistics, 70% (i.e. 116.9 million) of Nigeria’s 167 million population fall into the youth group (i.e. ages 18 – 35, according to National Youth Policy).
• However, youths are known the world over to be the greatest consumers of ICT content and creators of ICT businesses.
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15-24 25 – 44
37.7% 22.4%
Unemployment Rate (2011)
Source: National Bureau of Statistics
Age Group: Secondary School
NCE/OND/ Nursing BA/BSC/HND
20.1% 20.2% 20.2%
School Leavers:
Youth Entrepreneurship in ICT
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Network Network Service Service
ProvidersProviders
Device Sales Device Sales & Distribution& Distribution
Device Maintenance & Repairs
Call Center Call Center OperationsOperationsResearch &
Development
Infrastructure Services
Support Services
Software Software DevelopmentDevelopment
Software Distribution & Sales
Access Access ProvisionProvision
Value Value Added Added
ServicesServices
Equipment Equipment AssemblyAssembly
Equipment Sales & Distribution
Equipment Maintenance & Repairs
Device Device AssemblyAssembly
Infrastructure Infrastructure Service Service
ProvidersProviders
SoftwareInstallation & Customization
Software Maintenance & Support
Oxygen Broadband Networks
• Veda Computers• Encipher Inye• Websoft - Vantium
• Co-Creation Hub
SLOT
• Computer Village, Ikeja
In the first tranche of YouWiN! Business Plan competition, the ICT sector represented the sector with the second highest number (11.8%) of awardees after Agriculture (22.8%)
• MyPaga• Wakanow• Dealday (online stores)• Konga.com (online stores)• Jobberman
The Potential & Possibilities of ICT: India Comparison
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• An exemplar of a country that has leveraged ICT in a most strategic way to create jobs and create wealth through private sector enterpreneurship
• The IT industry in India employs over 2.54 million professionals, contributes 6.4% GDP and generates revenue of about US$100 billion.
• Many of the jobs created in India are held by young people• All of this is in a developing economy like Nigeria with similarities in
youth demographics, high levels of poverty and largely inadequate infrastructure.
The Potential & Possibilities of ICT: India Comparison
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INDIA NIGERIAArea • 3,287,000 km² • 923,768 km²Population • 1,210,193,422 • 170,123,740 (2012 estimate)GDP • US$1.848 trillion USD (2011) • US$240.7 billion (2011)Per Capita • US$1,388 • US$1,490Poverty Rate • 32.7% • 62.8%Global Hunger Index (GHI)
• GHI Global Rank: 43• GHI: 22.9
• GHI Global Rank: 18• GHI: 15.7 (2012)
Human Development Index
• Global HDI Rank: 134• HDI: 0.547
• Global HDI Rank: 156• HDI: 0.459
Size of ICT Industry • US$100 billion • US$13.1 billion
ICT Jobs • 2.54 millions • ~1.3 millions (estimate)
Sources: World Bank, National Bureau of Statistics
National ICT Policy: Youth and ICTThe ICT Policy sets out clear objectives for the Youth:•To leverage ICT in addressing Youth-specific development and orientation issues; and•To ensure that the Youth use ICT responsibly and for positive purposes.
Strategies•Promote the use of ICTs, in partnership with youth-focused bodies and relevant MDA’s, to deliver information and content that emphasize national unity, tolerance and ethical values.•Support the delivery of programmes designed to ensure that the youth focus on positive application of ICT.•Promote incentive and support schemes targeted at youth entrepreneurship initiatives in ICT.•Ensure that the youth is protected adequately in cyberspace.•Promote the incorporation of ICT within the education curriculum at all levels.
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Government as an Enabler for Youth Entrepreneurship in ICT
• Increased availability of broadband– Broadband strategy and roadmap (Jan 2013)
• Institutional support for Youth Entrepreneurship in ICT– IT Incubation Centres– IT Innovation Fund– TechLaunch Pad
• Skills and Capacity Development• Nokia MLab Project• IBM Skills Development and Research Institutes (SDRI)• ACCESS Nigeria• Telecoms Engineering Centres of Excellence• Nigerian Research and Education Network• Student Computer Ownership Scheme / Portal
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Promote incentive and support schemes targeted at youth entrepreneurship initiatives in ICT.
Expected Outcomes
• Increase the ICT contribution to GDP through a deepening and broadening of the industry
• Grow Nigeria ICT Industry to become the African hub for ICT business services provision serving both regional and global markets, through innovative ICT solutions
• Improve the attractiveness and bankability of businesses in the ICT sector
• Venture capital• Foreign direct investment• Traditional loans
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