COUNTRY FOCUS: NIGERIA
O
ver the course of 2015 and
2016 Nigeria’s ICT industry has
developed rapidly on the back
of state-led growth initiatives and also,
increasingly, as a result of rising levels
of private sector activity. According
to estimates compiled by the Federal
Ministry of Communications, in 2015
ICT-related activities accounted for
nearly 11% of GDP, up from 6% in 2012
and less than 1% as recently as 2001.
It is estimated that the ICT industry’s
contribution to GDP makes it the single
fastest-growing sector across Nigeria’s
economy. Given this rate of growth,
many local ICT players expect to see
their industry eventually overtake more
traditional keystone industries, including
energy, construction and media.
However, Nigeria’s ICT industry faces
an array of challenges. In terms of
digital infrastructure, the country lags
behind other nations, both in Africa
and outside. This is in part due to
Nigeria’s size and unique geography.
With 180+ million inhabitants, spread
out over more than 920,000 sq km
of terrain, political boundaries and
underdeveloped transport systems,
extending basic Internet connectivity
and advanced ICT services, to the entire
population remains a unique hurdle.
The local ICT sector has remained
relatively small compared to the
number and size of foreign companies
participating. The Nigerian ICT sector’s
growth has not yet translated into jobs
and wealth for the nation, since local
Nigerian companies lack capacity and
opportunity to participate at many
levels of the ICT value chain. The
government’s primary technology
oversight body is the National IT
Development Agency NITDA, which was
formally established in 2001. NITDA
was initially formed to implement
the government’s 2001 Nigerian IT
Policy, which set targets for a range of
IT-related metrics. In 2007, however,
the state passed the National IT
Development Act, under which NITDA
became the state’s IT planning,
development and implementation arm.
The agency’s mandate was subsequently
broadened to encompass regulation of
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