BREAKING NEWS, Oil & Gas
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The Association of Telecommunications Companies of Nigeria want the Nigerian government to pay attention to the development of the information communication and technology sector
| By Anayo Ezugwu | Jul 18, 2016 @ 01:00 GMT |
THE Association of Telecommunications Companies of Nigeria, ATCON, has reiterated the need for the federal government to pay more attention to the development of information technology, IT, sector. Olusola Teniola, president, ATCON, at a technology forum in Lagos, recently, said ATCON had at different events emphasised the urgent need for government to diversify the economy to earn much revenue from both the oil and the information communication technology, ICT, sectors.
An ICT driven economy can replace oil and gas as the prices of crude oil continue to fluctuate in the international market, run the economy, he said, adding that the association was not taken seriously then.
His advice is coming at a time the price of oil in the international market has continued to experience volatility and poses a threat to the country’s economy. This makes it imperative for Nigeria to look for a way out by devising viable policy pathways and economic sectors that will enhance national wealth and create employment for the populace. One of the surest way out is to give due attention to the development of the information and communication technology, ICT, sector.
Teniola cited the experiences of India, China, Singapore and Brazil, Teniola which used ICT as the basis to develop innovative solutions, such as cars that use electric/solar power energy. He, therefore, called on the government to expedite action in developing the Nigeria ICT sector and provide the necessary infrastructure that would boost technology development in the country.
Teniola also called on state and local governments to make ICT a top priority in governance. “It is surprising that the federal government does not give priority to the ICT sector when planning, despite its huge contributions to the Gross Domestic Product, GDP. If more than 70 percent of ICT components are currently being imported from abroad, then the sector will just be struggling to survive without government support.”
According to him, it has been established that the ICT sector is contributing about eight per cent to GDP, yet members can no longer buy US dollars directly from CBN designated banks, a situation, he said, has further pushed the cost of doing business higher.
“Though the recent introduction of flexible FX mechanism is more than welcome, it is already too late for some of our members, who had already gone under due to the harsh business environment. To stem the imbalance in the supply and demand of foreign exchange, what the federal government needs to consider is to encourage the establishment of companies that manufacture these components or assemble them in Nigeria with some incentives and for government to further sponsor ICT parks in the country,” he said.
Teniola called on government to increase budget of ICT and to enact appropriate ICT policies that would enhance technology development in the country. “The federal government should begin to focus more on other alternative means of generating income and their focus should be on increasing government spending and budget allocation to funding the ICT sector for the purpose of making its products and services exportable, thereby allowing it to contribute to our foreign earnings.
“In order for the ICT sector to supplement or replace the Oil and Gas sector, policies that favour the sector must be put in place. It should be emphasised that the petroleum industry which used to be the cash cow for our nation is not doing so well right now and this is a global issue that will take some time to recover. The direct implication of this is that we may not be able to finance our budget without resorting to further government borrowing.”
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