NITDA ICT Baseline Study - Nigerian Communications Commission

NITDA ICT BASELINE STUDY
By
Emeka Ezekwesili,
DIRECTOR STANDARDS & REGULATIONS
NATIONAL INFORMATION TECHNOLOGY
DEVELOPMENT AGENCY (NITDA)
1
BACKGROUND
From the global perspective, an up to date
data on ICT Infrastructure and human
capacity is key to successful
implementation of IT policy. NITDA ICT
Baseline Study therefore was carried out
to have a relevant database in ICT on
sectoral use of ICT equipment and
products to serve as a basis for Nigeria’s
ICT initiatives, plans, projections and
targets.
The study was designed to cover the
whole of the Nigerian economy and
2
people.
OBJECTIVES OF THE STUDY
Determine the Nations current computer spread
in terms of computer per 1,000 people
(Compudensity).
Determine the Nation’s current Telecoms spread
in terms of phone subscribers lines per 1,000
people (Teledensity)
Determine the Nation’s current connection
spread in terms of Internet users per 1,000
people.
Determine the size and the list of ICT centers,
companies and establishments.
Determine the size of the Nation’s population 3
employed by the ICT sector.
OBJECTIVES OF THE STUDY
contd.
Determine the Size of IT workforce
characterized by highly skilled labour pool for
IT with respect to global competitive reports.
Determine the size of its workforce and salary
structure.
Determine the average National Revenue
polled by the ICT Sector.
Determine the sectoral growth rate within ICT
(i.e Annual Real Rate of Service, Hardware,
Software)
Determine IT – Related Investment with
Focus on R&D Expenditures in particular.
4
SCOPE OF THE STUDY
The study was primarily designed to
capture amongst other things, data
on the following subject matters:
n
n
n
n
n
Organisation Profile
Infrastructure Available
Personnel/Human Resources
Remuneration
Budget/Income/Expenditure/Expansion
5
SCOPE OF THE STUDY contd.
n
n
n
n
n
n
n
Administration and Security
ICT Operators/service providers
Network Coverage countrywide
Penetration in Rural Areas
Expansion plan
Size of Network
Capacity Building/Organisation Profile
6
SCOPE OF THE STUDY contd.
n
n
n
n
n
n
n
n
Tariffs
Computer Hardware and software services
Internet services
Market share within customer Base
Local support services
Revenue
Constraints/Risk
Other relevant information etc.
7
METHODOLOGY
The entire population was split into 6 Zones,
with Lagos and Abuja extracted from South
West. (SW) and North Central (NC)
respectively to form the 7th Zone represented
in the study as Special Lot. Other issues
were:
n
n
n
n
n
Requirement of the study
identification of basic tools
Brainstorming/training
Interviews/field survey via questionnaire and
Data analysis
8
CLASSIFICATION OF STATES INTO
SEVEN ZONES IN THE STUDY
S/N
CODE
STATES
NE
Adamawa, Bauchi, Bornu, Gombe, Taraba,
Yobe.
2
NW
Jigawa, Kaduna, Kano, Katsina, Kebbi, Sokoto,
Zamfara.
3
NC
Benue, Nasarawa, Niger, Kogi, Kwara, Plateau.
4
SE
Abia, Anambra, Ebonyi, Enugu, Imo.
5
SW
Ekiti, Ogun, Ondo, Osun, Oyo.
6
SS
Akwa Ibom, Bayelsa, Cross River, Delta, Edo,
Rivers.
7
Special
Lot
Abuja, Lagos.
1
9
INSTRUMENTS OF THE STUDY
Samples were randomly selected to cover all
sectors of the Nigerian economy including
Formal and Informal sectors spanning:
n
n
n
n
n
n
Academics
Banking
Government
Oil sector
NGO
Agriculture etc.
10
INSTRUMENTS OF THE STUDY
contd.
The entire population was split into 6
zones while Lagos and Abuja were
extracted from the South West and
North Central respectively to form the
7th Zone.
n
n
About 7,113 Questionnaires were
administered
about 6,000 were retrieved giving a
response rate of 84%
11
COMPUDENSITY
(COMPUTER DENSITY)
It was revealed that Nigeria has about
2,855,500 Computers as at 2003.
The same period Nigeria has a population of
about 130 million people
Computer Density for Nigeria was therefore
22 Computers per 1000 people.
The study further gave the percentage brakedown of 23.5% for Computers used at home
and over two-third of the are utilized in
offices/establishments.
12
INTERNET SPREAD
(INFODENSITY)
600,000
530,720
500,000
Values
4 0 0 ,0 0 0
300,000
200,000
1 2 2 ,4 3 1
100,000
32,060
0
O ffices
P laces
H o m e s
C ybercafes
With a 130 million population as at 2003, our Infodensity was
5 Internet Access Points per 1000 people.
13
INTERNET SPREAD
(INFODENSITY) contd.
The study established that there were over 3 million
people in Nigeria who use the Internet at least two
times a week.
It was also reveals that for dial-up users, about 30%
of the costs were accounted for by the telephone
costs while 50% of the remainder ISP costs go to pay
for International bandwidth.
This highlights the urgency for an Internet Exchange
in Nigeria to minimize the need for large bandwidth
to switch Internet Services outside Nigeria.
Nigeria’s Internet tariff is thrice (3x) over Nigeria’s
per capita income. While the tariff is twice the
charges in Ghana, 3 times that of the charges in
Cameroon, 8 times that of Gabon and Over 20 times
that of South Africa.
14
Internet Point of Presence (POP) – NITEL as at 31
May 2003
7,000
30
6,000
25
5,000
POP Values
20
Dial up User
Equipped
4,000
15
Dial up User
subscirbed
corporate ISP
User equipped
3,000
10
corporate ISP
User utilized
2,000
5
1,000
0
0
Lagos
Abuja
Kaduna
Port Harcourt
Bauchi
Locations
15
LOCAL PC
MANUFACTURE/ASSEMBLY
The four local assembly plants endorsed by
Government had a combined capacity to
produce about 1050 PC’s a day.
In the period 2001-2002, they have produced
and sold less than a combined total of 30,000
PC’s.
It is estimated that there are many more
(about 5 times) clones than branded local
computers being assembled and sold by the
informal market at the period of this study.
Inadequate incentive by way of high import
duty and low patronage even by Government
was said to be responsible for poor sales. 16
Summary Of Computer Density
(Compudensity)
% Distribution
Actual Values
In Home
In Organisations
Total
672,700
2,182,800
2,855,500
Compudensity
76%
100%
22 PCs PER 1000 PEOPLE
Users By Sex:
Users by age:
11-20 Yrs
21-30 Yrs
31-40 Yrs
40+
24%
MALE
70
FEMALE
30
19%
55%
20%
6%
17
TELEPHONE DENSITY
(TELEDENSITY)
In 2003, the growth in telecoms sector
was estimated about 700,000
connected fixed Telephone lines and
another 3.3 million Mobile Telephone
Lines
Nigeria had about 4 million phone lines
in Operation.
This gave a Teledensity of 30 lines per
1000 people
18
Licensed Private Telephone Operators (PTO’s) in
September 2003
S/NO
Operators
Locations
1.
21ST CENTURY
Lagos, Fixed Wired
2.
BOURDEX TELECOM
Aba, Fixed Wireless
3.
CELLCOM
Lagos, Kano, Maiduguri Fixed Wireless
4.
Cyberspace
Lagos, Fixed Wireless Access
5.
DISCOM
Lagos
6.
Electronic Communications Ltd
PNL Regional – Lagos, North Central and South East
7.
EMIS
Lagos Fixed Wireless
8.
GTE
Lagos Fixed Wired
9.
INTERCELLULAR
Lagos, Abuja, Port Harcourt, Maiduguri, Fixed Wireless,
Limited Mobile
10.
ITN
Lagos
11.
IPNX
Lagos, Data Services
12.
Megatech Eng Ltd
Kano, Fixed Wired
13.
MOBITEL
Lagos, Warri, PHC, Fixed Wired + Fixed Wireless
14.
MTS
Nationwide Fixed Wireless, Nationwide Carrier Services
15.
MULTILINKS
Lagos, Fixed Wired Services + Fixed Wireless, FNO.
19
Licensed Private Telephone Operators (PTO’s) in
September 2003 contd.
16.
ODUATEL
South West Fixed Wired + Fixed Wireless
17.
PPC
Lagos Wireless
18.
PRESTEL
Benin, Wireless
19.
RAINBOWNET
Enugu, Aba, Fixed Wireless
20.
RELTEL
Lagos, Fixed Wireless
21.
STARCOM
Lagos, Kano, Maiduguri, Fixed Wireless
22.
STARTECH
Abuja, Fixed Wireless
23.
SWIFT Comm
Lagos, Fixed Wireless Access
24.
VGC
Lagos, PHC, Fixed Wireless Fibre, Fibre to St. copper to
premises, ADSL, DSL
25.
SWIFT COMM
Lagos, Fixed Wireless Access
26.
XPT Links Limited
Regional Telephone services Lagos
20
For an estimated population of about 130 million
people in 2003, the Mobile Teledensity of Nigeria was
2.5% and fixed line 0.6%.
Summary Of Teledensity in Nigeria as at 2003
FIXED TELEPHONES
0.6%
6 PER 1000 PEOPLE
MOBILE PHONES
2.5%
25 PER 1000 PEOPLE
IN HOMES
= 63%
IN ORGANISATIONS
= 37%
21
ICT Sector Employment
It was revealed from the study that there are
about 14,800 organizations in the formal
Nigerian ICT sector. Each of these employs
diverse staff in the areas of programming,
processing and network operations, database
design and analysis, technical support, research
and development, as well as marketing.
ICT sector employed about 446,000 as at 2003.
Some of the establishments engaged in two or
more activities but they deal mainly in IT and
Telecoms.
22
Growth In number of IT Staff from 2000 - 2002
2000
2001
Female
Male
2002
Age Group
Male
Female
Male
Female
Total
835
%
685
%
1012
%
856
%
1368
%
1179
%
1 – 10
776
93
658
96
941
93
813
95
1,259
92
1108
94
11 – 20
34
4
13
2
41
4
26
3
39
3
35
3
21 – 30
8
1
7
1
10
1
13
1.5
13
1
12
1
Over 30
17
2
7
1
20
2
4
0.5
57
4
24
2
Note:
The significant growth was a reflection of the introduction
of GSM Service in Nigeria, which generated small-scale
businesses across the country, as well as the increase in
the activities in the growing number of Cybercafes in the
country.
Employment in IT sub-sector was 329,594 while Telecoms
23
sub-sector was put at 116,406 respectively.
ICT ESTABLISHMENTS BY ACTIVITIES
(Table of Services provided by ICT sector and their % distribution)
% Distribution
Types of Establishments
Computers Assembly (Formal and Informal)
22
Software (Sales & Services)
19
Software Development
13
Network Services
30
VSAT Services (including Operators)
11
Internet Services (ISP)/Cybercafes Services
21
Web Design
21
Web Hosting
11
Paging
5
Leased Circuit
2
Data Services
16
Consultancy
33
IT Exports
4
Research & Development (R&D)
11
Other Services
4
The distribution shows that all the companies are engaged in multiple
24
activities
ICT Manpower Development
S/N
COURSE
UNIVERS
ITY
55 Nos
UNIVE
RSITY
55 Nos
POLYTEC
HNIC
49 Nos
No
%
No
POLYTEC
HNIC
49 Nos
%
COLLEGE
OF
EDUCATIO
N 56
COLLEGE
OF
EDUCATIO
N 56 Nos
No.
%
1
Comms & Computer Sc/IT
21
38
-
-
-
-
2
Computer Science/IT
3
5
-
-
-
-
3
Electrical/Electronic Eng
12
22
34
69
-
-
4
Computer Science & Eng
4
7
4
8%
-
-
5
Computer Science
36
65
2
4%
-
-
6
Computer Eng
12
22
-
-
-
-
7
Electrical/Comp Eng
2
4
-
-
-
-
8
Comp Educ &Agric.
2
4
9
Arabic & Comp Educ
1
2
10
CRS & Comp Educ
-
-
-
-
-
-
11
CRS & Comp Sc
-
-
-
-
-
-
12
Comp Sc Educ
-
-
-
-
4
7
13
Comp Educ & Chem
-
-
-
-
17
30
25
ICT Manpower Development
contd.
14
Comp Educ & Econs
-
-
-
-
12
21
15
Comp Educ & Biol
-
-
-
-
14
25
16
Comp Educ & Accts
-
-
-
-
3
5
17
Comp Educ & Tech Educ
-
-
-
-
1
2
18
Comp Sc & Bus Education
-
-
-
-
3
5
19
Comp. Educ & Maths
-
-
-
-
22
39
20
Comp. Educ & Maths
-
-
-
-
30
54
21
Comp. Educ & English
-
-
-
-
3
5
22
Comp. Education & Physics
-
-
-
-
23
41
23
Comp. Educ & Geography
-
-
7
13
7
13
26
“The
average Aggregate Investment in ICT sector, Budget Expenditure
grew by 12.5% in the three years as against 15.0% in ICT Budget
Income. This implied that ICT secotor investment balance had a
progressive growth of about 12.5% within the period. The result shows
an impressive growth in International sales of 13.0%, Domestic sales
10.0% and 13.5% for Business continuity in ICT. There was also IT
security Budget growth rate of 16.5%, which means IT security
awareness growth within the sector”.
Total Organisation Budget (In Naira)
Budget Class
Year
2000
2001
2002
1 Billion and above
0.9 Billion - 0.500 Billion
0.49 Billion – 0.100 Billion
99 Million - 10 Million
9 Million - 0.5 Million
0.49 Million - 0.2 Million
Below 0.2 Million
9
9
16
227
72
62
65
13
9
25
263
82
74
57
16
17
30
395
117
75
69
No. of Organisations
464
523
719
27
Budget Growth Rate For The ICT Sector
S/N
ACTIVITY
AVERAGE BUDGET IN
(N’m)
GROWTH
RATE (%)
Year
2000
2001
2002
Total Organisation Budget Expenditure
247.2
314. 2
308. 3
24.7
Total Organisation Budget Income
316.2
403. 8
413. 0
30.6
Total IT Budget Expenditure
116.2
150. 8
141. 8
22.0
Total IT Budget Income
148.6
193. 8
190. 0
27.9
3.
IT R & D Budget growth rate
10.5
10. 9
10. 5
0.0
4.
IT Security Budget growth rate
44.0
62. 0
57. 0
29.6
5.
Business Continuity in ICT
28.4
31. 0
36. 7
27.8
6.
Hardware Expenditure
17.7
24. 0
22. 4
26.6
7.
Software Expenditure
7. 9
12. 9
10. 8
36.7
8.
IT Services Expenditure
7. 7
10. 0
4. 4
(42.9)
9.
IT domestic Sales
77. 1
99. 6
90. 4
17.3
IT International Sales
71. 5
94. 2
99. 6
36.5
1 (a)
(b)
2 (a)
(b)
10.
28
UTILISATION OF ICT
SERVICES
The utilization of the Internet between 2000 and
2002 were high but due to poor quality such as
congestions, most users (74%) have switched
between 1 and 3 ISP’s.
About 44% of the respondents use dial-up while 12%
each use Wireless Access and VSAT.
75% of people use the Internet for e-mail while the
proportion of male to female users is 70% to 30%.
The age bracket 21 to 30 years constitutes the
majority (45%) of Internet users.
Most users (75%) access the Internet Via
Cybercafes.
29
BACKBONE NETWORK
CAPACITY
Of the installed 11,275 E1 capacity for national voice
and data services, 6,123 have been used, outstanding
5,152 (54% utilization).
Of the various Satellite/VSAT Systems that can yield
close to 2 GB of capacity only about 200 MB are
utilized.
The SAT-3 International fibre Optic Cable has a
landed capacity in Nigeria of 16 STMs (2GB) with 2
STMs (300MB) currently connected out which only an
estimated 20MB less than 10% is utilized.
NITEL has about 13,600 combined subscriber capacity
in its Internet Points of Presence (POP) at Lagos,
Abuja, Kaduna, Port-Harcourt and Bauchi but only
about 4,922 (36%) are subscribed.
30
NETWORK COVERAGE
The study revealed that in 2003 the
fixed telephone network covered only
211 out of the 774 Local Government
Headquarters
n
n
These was said to cover 264 cities and
31% of the landmass of Nigeria while
Internet Services cover approximately 20%
of the landmass.
ICT Networks and Services predominate in
the Southern part of the Country (63%)
while the North shares the remaining 37%.
31
Zonal Distribution Of Telephone Lines
in 2003.
S/N
Zones
Total No Of Lines
% Distribution
1.
NE
36,660
5.70
2.
NW
68,933
10.72
3.
NC
74,796
11.63
4.
SE
75,092
11.67
5.
SW
79,984
12.44
6.
SS
79,480
12.36
7.
SL
228,155
35.48
643,100
100
Total
32
TARIFF AND EXPENDITURE ON
ICT SERVICES
It was estimated that there are about 680,000
Internet Access Points in Nigeria. About (73%) of
respondents spend about N2,000 every month on the
Internet.
Total Internet Revenue annually amounted to about
N9Billion.
Out of the estimated 680,000 Access Points in the
country, about 70% are in the offices.
Tariff charged for Internet services showed that full
Access for 12 months amounted to N52,000,
Business Website Hosting 10MB/year, N38,000 and
Installation/activation of VSAT access was N1 million.
33
INTERNET TARIFF
The table shows average Tariff Charged for Internet services as at 2003.
OPTION
SERVICE
AMOUNT (N)
A.
Full Access for 12 months
52,000
B.
Full Access for 6 months
33,000
C.
Full Access for 3 months
17,000
D.
E-mail Services for a year
17,000
E.
One year night Internet Access/Email 6pm-8am
34,000
F.
6 months night Internet Access/Email 6pm-8am
21,000
G.
3 months night Internet Access /Email 6pm-8am
12,000
H
One month Internet Access/Email
I.
Domain Name for 2 years
J.
Website Design (from) per page
K.
Personal Web page Hosting 5MB/year
21,000
L.
Business Website Hosting 10MB/year
38,000
M.
Web browsing, surging email
N.
Installation/activation of Wireless Internet
O.
Installation/activation of VSAT Access
6,375
20,000
4,000
150/hour
80,000
1,000,000
34
TELEPHONE TARIFF
The table shows average Tariff Charged for telephone services as at 2003
PRODUCT/SERVICE
INSTALLATION/ACTIVATIO
N
MONTHLY
ACCESS
CHARGES
LOCAL/TRUNK/INTERNATIONAL
Telephone Local
9,000 (NITEL)
500 (NITEL)
Local 4.30 per Min
Trunk
9 to 43 Depending on radial distance
International
34 – 40 per min
To GSM
30 per min
GSM
Appx 40 per min 0.6 – 0.8 per
second
ISDN
50,000
E1 LOCAL
500,000/YR
Telephone Wireless
30,000
E1
SAT-3
Appx $137,000yr
1,500
As per Telephone
1,500 to 2,500
Local – 4.30 per min
National – as per distance
To GSM – 30.00 per min
International – 34-49 per min
35
Internet Prices for 20 hours of local Dial-up use
per month (US$)
$120.0
$100.0
$80.0
$60.0
$40.0
$20.0
$Cambodia
India
ISP charges
$62.4
$3.5
Telephone Call Charges
$24.0
Telephone Line Rental
$10.0
Nepal
Nigeria
a
S Africa
Uganda
Zambia
OECD
$13.0
$33.0
$10.6
$50.0
$25.0
$9.4
$10.2
$6.0
$40.0
$31.5
$52.4
$25.3
$15.1
$4.0
$2.0
$4.0
$10.4
$5.8
$1.3
$12.2
36
Nigeria’s Internet Tariff in
Comparism with other countries
2 times the tariff for Ghana
2 and a half times the tariff for Angola,
Benin Republic and Cote de’Ivoire
3 times the tariff for Cameroon and
Senegal
8 times the tariff for Gabon
Over 20 times the tariff for South Africa
Over 700 times the tariff for USA
37
JOB CREATION IN ICT SUBSECTOR
It was revealed that investments in ICT
sub-sector was growing at an average
of about twenty percent (20%) annually
as at 2003.
Graduate turnout from Nigerian tertiary
institutions was ten percent (10%),
which is lower than the required growth
rate that, could be absorbed by the ICT
industry.
38
AGGREGATE INVESTMENTS
IN ICT INDUSTRY
Total Average annual investment in
ICT for the period 2000-2002 was
estimated at N30 billion.
The average Growth rate for ICT
Budget was 8.7%
Average growth of organizational
budget was put at 6.5%
39
KEY RESULT FINDINGS
% Distribution of ICT by Establishments
17%
Private Sector
Public Sector
83%
40
KEY RESULT FINDINGS contd.
Distribution of ICT Establishments by Type
Telephone/Telecentr
e
19%
45%
36%
Computer
sales/services
Computer
assembly/manufact
ure
41
ICT ESTABLISHMENT BY
ZONE
% DISTRIBUTION BY ZONE
5
7
Locations
26
8.3
Lagos/Abuja
South South
South West
South East
14
North West
North East
13
26.7
North Central
42
RECOMMENDATIONS
There is need for NITDA and NCC as the
main regulatory bodies to jointly and
immediately embark on the next survey with
a view to have a comprehensive database of
ICT development in Nigeria and to update
same on a regular basis.
There is need also to collaborate with private
sector operators in this study.
The next study should be designed to reflect
the ECA recommended ICT indicators.
43
CONCLUSION
From the study, it was evident that the
Nigerian ICT Industry has not matured
sufficiently and the market consciousness of
ICT products and services has not developed
well enough. Internet had been considered the
fastest medium to open up Africa to the world.
This assertion may be true but with the low
take up of the service in Nigeria as a major
component part of Sub-Saharan Africa, the
question is whether the forecast in the long
term will be realized.
44
Thank you.
45