TELECOMMUNICATION AND INFORMATION TECHNOLOGY

Nigeria is the largest telecommunication market in Africa and the Middle East, with more than 140million active telephone subscribers in 2015. Like other developed economies and emerging markets, mobile subscribers accounted for over 99% of this total, with the entire segment being controlled by the country’s four GSM operators: MTN Nigeria, Airtel Nigeria, Globacom and Etisalat Nigeria.

The overall telephone capacity in Nigeria is relatively high with a number of high-capacity submarine cables and major telecoms giants in the country have been able to achieve a threshold of 101.45 tele-density while the data market is still having a gap of 98%. However, connection of this capacity for household use has remained a major challenge especially in the data market.

In the past five years, Nigeria has grown to become one of the largest and most vibrant markets for ICT products and service in Africa, with an ecosystem that ranges from software start-ups to infrastructure firms. According to Google statistics, Nigeria is now more of a software producing country than software consuming country, this implies that most of the software used in Nigeria are developed locally. The Federal Ministry of Information Technology recently confirmed that Nigeria accounts for 29% of the total internet usage in the continent and this figure is expected to rise over the years as trends of e-platform is taking over the commercial system of the country, thereby making Nigeria a big market in the data market.

Investment Opportunities in the Sector

(i)    Broadband:

  •     Deployment of terrestrial fibre-optic networks (including fibre-over-powerline)
  •     Deployment of wireless broadband infrastructure
  •     Satellite networks (in particular those providing connectivity to rural areas)

Market Indicators:

  •     Four undersea fibre-optic cables with combined design capacity of approx 10 TBps
  •     Over 100,000km of terrestrial fibre-optic cable
  •     20,000 base transceiver stations
  •     About 52 million Internet users; internet penetration of 33%
  •     Broadband penetration of 6%

(ii)    End User Device:

  •     Assembly and manufacturing of personal computers, laptops and mobile devices (tablets, phones etc.)
  •     After-sales support (Digital Service Centre)

Market Indicators:

  •     Consumer spending in 2010 was US$115bn; projected to increase to US$167bn by 2020
  •     Personal Computer (PC) penetration of 4.5%
  •     Four PC assembly plants in country; producing an average total of 130,000units. Of all PCs sold in Nigeria in 2011, 30% were assembled/manufactured in the country
  •     Average cost of low-end laptop  is US$310; average cost of low-end mobile phone is US$31
  •     Most mobile phones used in Nigeria are imported

(iii)    Value Added Services:

  •     Data centre deployment and management
  •     Application hosting / Cloud computing
  •     Business Continuity / Disaster Recovery
  •     Internet Service Provision

Market Indicators:

  •     Growing domestic data centre market and emerging position as regional hub for data centre services in West Africa
  •     Outsourcing market estimated at US$1bn in 2011
  •     Increase in e-Government services – establishment of Government Contact Centres
  •     Pilot of Central Bank’s Cashless Nigeria initiative
  •     Licensing of Mobile Money Operators
  •     Increasing number of e commerce platform in the country
  •     Increase in e-Private services

(iv)    Entrepreneurship Development:

  •     Incubators/Innovation Hubs
  •     Software Development
  •     Venture Capital/Private Equity Investments

Market Indicators:

  •     Growing market for software estimated to be worth US$6bn
  •     Most new jobs in Nigeria will be created at the intersection of ICTs and services
  •     Emergence of cluster of ICT traders in cities
  •     Increasing adoption of innovative ICT solutions:  Growth Empowerment Scheme (GES) for distribution of seeds and fertilizers; Mobile Authentication Service (MAS) for verifying authenticity of drugs

(v)    Broadcast Infrastructure and Devices:

  •     Signal distribution
  •     Broadcast equipment suppliers
  •     End-user device manufacturers, installers and after-sale support
  •     Content aggregators, producers, distributors etc.

Market Indicators:

  •     20 million households estimated to have at least one television set
  •     Current subscription to pay TV is low (<2million); high demand for low-cost packages aimed at less affluent households
  •     Global timetable and acceptance of the migration presents a captive market, and the need to secure the rights of citizens to information increases Government’s commitment to the transition

(vi)    Postal Services:

  •     Postal operations
  •     Retail financial services (Post Banks)
  •     Digital inclusion through public access venues

Market Indicators:

  •     National Postal infrastructure provides geographic spread and accessibility that are not matched by any other single public or private institution. Comprised over 3,000 physical locations spread across over two thirds of LGAs
  •     Viable courier industry with an annual turnover estimated to be over US$2.2bn

(vii)    International Call Centre:

  •     An inbound and outbound call center is one in which call center agents make outbound calls to customers on behalf of a business or client. Calls made from the center can includetelemarketing, sales or fund-raising calls, as well as calls for contact list updating, surveys or verification services.

Market Indicator

  •     Absence of International Call Centre to service over 200 million active telecoms subscribers in the entire West Africa (including Nigeria).

VITAL CONTACTS ABOUT YOUR INVESTMENT:

  •     The Executive Secretary/CEO,

Nigerian Investment Promotion Commission (NIPC)
Plot 1181, Aguiyi-Ironsi Street,
Maitama District,
Abuja Nigeria.
Tel: +234 09 2904882, +234 809 770 1606
E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it., This email address is being protected from spambots. You need JavaScript enabled to view it.
Website: www.nipc.gov.ng

  •     The Vice Chairman/CEO

Nigerian Communication Commission
Plot 1180, AguiyiIronsi Street, Maitama District,
Abuja Nigeria
Tel: +234-9-4617000
Fax:  +234-9-4617514
Website: www.ncc.gov.ng

  •     The Honourable Minister

Federal Ministry of Communication Technology
Federal Secretariat Complex
Phase I, Annex III, ShehuShagari Way
P.M.B. 12578 Garki Post Office
Abuja Nigeria

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