NIGERIA Invest in 2012-13 - Newsdesk Media

136
SOCIAL INFRASTRUCTURE
Population with access to
broadband technology
1.45% 2.46%
0.59%
2010
2011
Speaking in 2011, Ross Bateson, GSMA special government
advisor, said: “It is essential that the Nigerian government acts
quickly to support mobile broadband expansion, as failure to
do so could hinder the country’s social and economic growth.
Not only could the country realise as much as N862 billion
($5.55 billion) of incremental GDP, but people of all ages and
livelihoods would benefit from the vast amount of information
and opportunities it can unlock.”
Opportunities for entrepreneurs?
As the whole of Nigeria gets online, the challenge now
is to create wealth and generate high-salary jobs from
home-grown software and hardware.
This has the potential to create real opportunities for
entrepreneurs. “The proliferation of internet and mobile
technologies has provided huge opportunities for computer,
smartphone and accessories suppliers,” says Alim Abubakre,
founding director of social responsibility think tank
These Young Minds.
“Also, internet service providers have taken the
opportunity to provide access via mobile modems,
while bloggers’ websites such as nairaland.com and
bellanaija.com, which are owned by young entrepreneurs,
have taken advantage of people’s access to the internet
by attracting advertisers to their free, well-subscribed,
open-source websites.”
But there is still some way to go in the country, as
Abubakre points out: “The challenge for entrepreneurs
harnessing the huge opportunities of the internet is that
the population has limited access to credit and debit
cards. Furthermore, the unreliability of online financial
transactions in Nigeria has limited their ability to
maximise this huge business opportunity.”
INvEST IN NIGERIA 2012-13
2012
2013
5.78% 6.96%
3.53% 4.63%
2014
2015
2016
10.79%
8.19% 9.47%
2017
2018
2019
12.16%
by 2012
2020
Mobile phone market penetration
53.62%
57.75%
2010
2011
63.17%
68.09%
2012
2013
73.09%
78.18%
2014
2015
83.33%
88.55%
93.86%
99.27%
One example of the opportunities for people wanting to
start up their own business is the flourishing Ikeja Computer
Village in Lagos. Now used by small firms and end users, the
Village’s growth has reflected the increasing popularity of both
internet and GSM-based technologies in the country over the
past decade. Described as the largest IT market in West Africa,
it is home to the major mobile phone, computer and
accessories dealers, giving customers the opportunity to
purchase good-quality products at affordable prices.
Banking and payments
Wireless technologies are making a significant impact on many
industries. In particular, the growth in mobile phone and
internet use is transforming the banking and payments sectors,
opening up new opportunities for the unbanked.
“Mobile networks extend to even the most remote
areas, and almost every Nigerian now has access to a
handset,” says Aletha Ling, chief operating officer of mobile
financial services platform provider Fundamo, a subsidiary
of card giant Visa. “Mobile provides the opportunity to
leapfrog traditional approaches to financial-service delivery,
without compromising any of the security and reliability
principles of traditional financial services.”
One of the most recent advances in this sector is the
Mobile Money service, a joint venture between Guaranty Trust
Bank and MTN Group. Launched at the end of 2011 it enables
subscribers with or without bank accounts to use their mobile
handsets to send and receive money, pay bills and buy airtime.
The venture was one of 11 to be awarded a mobile money
licence in 2012 by the Central Bank of Nigeria.
However, although Nigeria is making rapid progress
in rolling out both technological and banking/payments
initiatives, critics argue that it is behind the curve when
2016
2017
2018
2019
2020
104.2%
by 2012
Frederick S Pardee Center for International Futures