IT & Telecoms
From The Report: Nigeria 2013
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Over the past decade Nigeria’s ICT industry has grown to become one of the largest and most dynamic in Africa, with total mobile internet subscribers topping 30.9m at the end of the second quarter of 2012, accounting for the majority of the country’s 48.4m internet users. While the government has taken a prominent position on driving basic penetration, private operators have been influential in expanding local content and buttressing demand, particularly on the corporate side. Mobile phones dominate the telecoms sector, with four GSM operators providing services for more than 114m subscribers as of July 2013. Data services are considered a key driver of future growth in the sector, though insufficient bandwidth and low data speeds are challenges. To this end, local operators have been investing in infrastructure to improve quality of service and expand coverage areas.
This chapter contains interviews with Omobola Johnson, Minister of Communication Technology; Pfungwa Serima, CEO, SAP Africa; and Manoj Kohli, Managing Director and CEO International, Bharti Airtel.
Articles from this Chapter
Powering up: With internet uptake rising, local players are increasingly optimistic
Breaking new ground: Developing the indigenous ICT market is a national priorityOBGplus
The creation of a sustainable, local ICT industry is a primary long-term objective of the Federal Ministry of Communication Technology (FMCT), which is working to boost Nigerian participation. Local private involvement is also on the rise, as firms work to tap into the rapid expansion of mobile data subscribers. Both the FMCT and the private sector have focused on a handful of key segments, including development of mobile applications, web content and software. The focus on broadening local…
To your doorstep: Rising internet penetration is making online shopping a viable optionOBGplus
The overwhelming success of the few large malls opened so far testifies to pent-up demand for modern, formal shopping in Nigeria. With 33% of Nigerians having regular internet access according to the World Bank, the potential for e-commerce is significant. Yet Lagos has only three malls of more than 20,000 sq metres compared to 74 in South Africa’s largest city, primarily due to challenges in land access. In the past year a number of online marketplaces have emerged to bridge this gap. With…
Cutting-edge corporates: Demand from the private sector drives innovation and developmentOBGplus
Private sector consumption is widely considered the single largest growth driver in the development of ICT in sub-Saharan Africa. ICT uptake among multinationals and recently established local small and medium-sized enterprises (SMEs) alike has proceeded at a much faster rate than among federal, state and local government entities in recent years. “IT is increasingly being seen as a major business enabler,” Olabode Akinyemi, the CEO of Trading Engineers, told OBG. While the government’s…
OBG talks to Omobola Johnson, Minister of Communication TechnologyOBGplus
Interview:Omobola Johnson How is the government supporting information and communications technology (ICT) infrastructure? OMOBOLA JOHNSON: One of the biggest priorities of our ministry is building out a robust ICT infrastructure network. We make it easier for the private sector to make the needed investments and to overcome challenges to the roll-out of the terrestrial fibre and base stations. The first step was to engage the state governments, helping them understand their critical role…
OBG talks to Pfungwa Serima, CEO, SAP AfricaOBGplus
Interview:Pfungwa Serima How do you view the relative efficiency of private clouds versus public or shared clouds? PFUNGWA SERIMA: Cloud computing offers a range of meaningful opportunities to emerging countries. Users are able to interact with the cloud through mobile phones, tablet PCs and other mobile devices, and it is for this reason that public cloud options are potentially the best option in these economies. The public cloud is also the option of choice due to its lower cost-per-user…
Incubating for success: Tracking efforts to improve prospects for ICT start-upsOBGplus
One key challenge to the development of a vibrant local IT sector in any emerging market is the difficulty small and medium-sized enterprises (SMEs) face in attracting capital, hiring staff and accessing research, and Nigeria is no different in this regard. As in most West African economies, interest rates for commercial loans are well into double digits and SMEs often lack the paperwork to meet the requirements for a loan. In an effort to bridge the funding gap for technology start-ups, Nigeria’s…
Utilising strengths: Operators focus on business process outsourcing solutionsOBGplus
With the largest population on the continent, half of which is below the age of 25, and English as the official language, Nigeria’s demographics are attractive for business process outsourcing (BPO) recruiters. Geographically, its time zone is closely aligned and well suited to servicing much of Europe, a major advantage over outsourcing destinations in Asia. While the country exhibits some core attributes that could make it an attractive investment destination in this lucrative yet highly…
Talk time: Rapid growth in the mobile segment is driving the sector forwardOBGplus
Over the past decade Nigeria has become the largest and one of the most vibrant telecoms markets in Africa, due primarily to rapid growth in the mobile segment. As of July 2013 there were more than 114m telecoms subscriptions in the country, equal to a penetration rate of 82%, according to the Nigerian Communications Commission (NCC), the government regulator. This is up greatly from 2003, when just 4m Nigerians – 3.4% of the population – subscribed to telecoms services. Four GSM operators…
OBG talks to Manoj Kohli, Managing Director and CEO International, Bharti AirtelOBGplus
Interview:Manoj Kohli What role can infrastructure sharing play in terms of bringing down end-user costs in African markets? MANOJ KOHLI: Prices in Africa are relatively high, except in a few countries like Kenya and Tanzania. The only solution to lower end-user costs in Africa is to bring down operators’ cost structure. Currently, the major costs for operators are networks, towers and fibre-optic. If operators commit to sharing infrastructure, those costs should significantly decrease.…
OBG talks to Manoj Kohli, Managing Director and CEO International, Bharti AirtelOBGplus
Interview:Manoj Kohli What role can infrastructure sharing play in terms of bringing down end-user costs in African markets? MANOJ KOHLI: Prices in Africa are relatively high, except in a few countries like Kenya and Tanzania. The only solution to lower end-user costs in Africa is to bring down operators’ cost structure. Currently, the major costs for operators are networks, towers and fibre-optic. If operators commit to sharing infrastructure, those costs should significantly decrease.…
On the block: The government has laid out bidding rounds to release additional spectrum bandsOBGplus
As technological advances drive up demand for wireless telecoms services, including television, satellite and mobile data, the growth of these services is constrained by the amount of radio frequency spectrum available. According to the GSM Association (GSMA), mobile internet accounts for 58% of all web traffic in Nigeria, well above the 10% global average, and as a result of low fixed-line penetration, makes up 90% of total broadband usage. This reliance on wireless places tremendous pressure…
An emphasis on quality: Expanding and upgrading telecoms networks is a key focusOBGplus
More than a decade after Nigeria’s telecoms sector was liberalised in the early 2000s, the provision of high-quality, uninterrupted services remains a major challenge for local operators. Dropped calls and other interruptions have become so common in recent years that many mobile subscribers have taken to carrying more than one SIM card and either a dual-SIM phone or multiple handsets. Improving the quality of service (QoS) on offer is central to both the Nigerian Communications Commission’s…
