IMPACT OF INFORMATION TECHNOLOGY

ON NIGERIA’S ECONOMYCASE STUDY OF SELECTED FIRMS

ADEYINKA ADEKUNLE TIMOTHY

MATRIC NUMBER NOU144464084

A RESEARCH PROJECT SUBMITTED IN PARTIALFULFILLMENT OF THE

REQUIREMENTS FOR THE AWARD OF MASTER DEGREE (MBA) IN BUSINESS ADMINISTRATION, NATIONAL OPEN

UNIVERSITY OF NIGERIA

JULY 2016

APPROVAL PAGE

This is to certify that, to the best of our knowledge, (Timothy Adekunle Adeyinka), a

Master Degree student with Matriculation Number NOU144464084, carried out this

research satisfactory and as has been accepted as meeting the regulations governing the

ward of Master of Business Administration (MBA) in the School of Management Science,

National Open University of Nigeria.

Prof .Anthony M. Oladoyin Date

Dr. O.O. Pitan Date

External Examiner Date

Dean, School of Management Science Date

DECLARATION

I, TIMOTHY ADEKUNLE ADEYINKA, humbly declare that this work entitled

IMPACT OF INFORMATION TECHNOLOGY ON NIGERIA’S ECONOMY is a result

of my research effort carried out in the School of Management Science National Open

University of Nigeria, under the supervision of Prof. A. M. OLADOYIN.

I further wish to declare that, to the best of my knowledge , it contains no material

previously published or written by another person nor material which to a substantial

extent has been accepted for the award of any other master of in any university or other

institute of higher learning, except where due acknowledgment has been made in the text.

Timothy Adekunle Adeyinka Date

DEDICATION

I dedicated this project to Jesus Christ my Saviour, my mentor and my families.

ACKNOWLEDGEMENTS

I give God the Glory for HIS help, wisdom, Grace to pursue this Master programme. I

would like to thank my supervisor, Prof. A.M. Oladoyin, for the patient, guidance,

encouragement and advice he has provided throughout my time as his student. I have been

extremely lucky to have a supervisor who cared so much about my work, and who

responded to my questions and queries so promptly.

I express my gratitude to the Vice Chancellor National Open University of Nigeria,

Professor Abdalla Uba Adamu, and Dr. O. O. Pitan. I would also like to appreciate all

members of staff National Open University Osogbo Study Centre for their help and

support. My appreciation also goes to the management of National Open University of

Nigeria. In particular, I would like to thank my wife for her continual support and

encouragement, my appreciation also goes to my parents and sibling: Seun Adeyinka, Seyi

Adewale and Sade Adeyinka and my children.

I must express my gratitude my Mr. Olaniyi Olajide, Mrs. Oyedele Taiwo, Mrs.

Oluwafisoye Mary, Mr. Ajobo Joseph .A, Mr. Adegoke Adewale, Mr. Olaniran

Oluwabukola and Mr. Sola Egunyomi for continued support and encouragement.

Completing this work would have been all the more difficult were it not for the support

from my friends Thanks you all.

ABSTRACT

Globalization is changing Nigeria in transformation and diversifies the economy,

especially is creating new opportunities and new challenges through information

technology. Information technology is a fundamental driver of economic growth and job

creation all over the world in both developed and emerging markets. In addition, ICTs are

also increasingly recognized as a key source of innovation that can generate increased

economic growth and new sources of high-value-added jobs. The literature review was

developed to examine the impact of information technology on various sectors of the

economy. The study examined the report on Nigeria, published by the World Economic

Forum has measured the drivers of the ICT revolution using the Networked Readiness

Index , the economics indicator on various sectors of the economy and the challenges

facing ICT operators in the country. The following hypotheses were stated; there was a

positive relationship between information technologies in diversified economy and

Information technology reduces the level of illiteracy and eradicates poverty in the society.

The responses from the questionnaire were analyzed using the percentage analysis method

and chi-square as the statistical tools. The findings of the research were based on the data

gathered from the respondents. From the data collected the alternative hypothesis “there is

a positive relationship between information technologies on diversified economy” was

accepted.

This section naturally contains 4 components namely.

1. Summary of all the objectives plus the justification for setting out to pursue the

objectives.

2. Summary of all the research methods-data collection methods, sampling size,

frame and techniques; and so on and so forth.

3. Summary of major findings in tandem with the objectives of the study. This reflect

must statistical and qualitative results of analysis; and

4. Conclusion not recommendation.

TABLE OF CONTENTS

CHAPTER ONE PAGES

1.1 INTRODUCTION 1

1.2 BACKGROUND 2

1.3 STATEMENT OF THE PROBLEM 7

1.4 OBJECTIVE OF THE STUDY 8

1.5 RESEARCH QUESTION 9

1.6 STATEMENT OF HYPOTHESIS 10

1.7 SIGNIFICANCE OF THE STUDY 10

1.8 JUSTIFICATION OF THE STUDY 10

1.9 SCOPE OF THE STUDY 11

1.10 DEFINITION OF TERMS 12

CHAPTER TWO

2.0 INTRODUCTION 15

2.1 CONCEPTUAL CLARIFICATION 15

2.2 THEORETICAL FRAMEWORK 17

2.3 LITERATURE ON THE SUBJECT MATTER 20

2.3.1 IMPACT OF DIGITAL TECHNOLOGY, INTERNET PROCOTOL

TECHNOLOGY (IPT), AND VOICE OVER INTERNET PROTOCOL

TECHNOLOGY (VOIP) 26

2.3.2 IMPACT OF INFORMATION TECHNOLOGY ON AGRICULTURE 30

2.3.3 IMPACT OF INFORMATION TECHNOLOGY ON COMMERCE

AND INDUSTRY SECTORS 32

2.3.4 IMPACT OF INFORMATION TECHNOLOGY ON EDUCATIONAL

SECTORS 36

2.3.5 IMPACT OF INFORMATION TECHNOLOYG ON GOVERNMENT 38

2.3.6 IMPACT OF INFORMATION TECHNOLOGY ON HEALTH SECTORS 41

2.3.7 IMPACT OF INFORMATION TECHNOLOGY ON ENTERTAINMENT

SECTORS 42

2.3.8 IMPACTOF INFORMATION TECHNOLOGY ON MANUFACTURING

SECTORS 44

2.3.9 ECONOMIC BENEFIT OF BROADBAND TECHNOLOGY 48

2.3.10 BENEFIT OF INFORMATION TECHNOLOGY 50

2.3.11 IMPACT OF INFORMATION TECHNOLOGY ON THE SOCIO-

ECONOMIC 52

2.3.12 THE GLOBAL INFORMATION REPORT 2015 53

2.3.13 MICKINSEY REPORT IDENTIFIES FIVE FACTORS

THAT HAVE BEEN KEYS TO INTERNET GROWTH 62

2.3.14 THE EMERGING TECHNOLOGY AREA AND GROWTH OPPORTUNITY

IN NIGERIA 65

2.3.15 NIGERIA ECONOMIC INDICATORS 66

2.3.16 CHINA IMPORT FROM NIGERIA DATA FORECASTS 70

2.3.17 NIGERIA EXPORT 71

2.3.18 NIGERIA MANUFACTURING PRODUCTION 71

2.3.19 NIGERIA FOREIGN DIRECT INVESTMENT 72

2.3.20 NATIONAL INFORMATION COMMUNICATION TECHNOLOGY (ICT)

POLICY 2012 73

2.3.21 CHALLENGES FACING THE ICT GROWTH IN NIGERIA 75

CHAPTER THREE

3.1 INTRODUCTION 80

3.2 AREA OF STUDY

3.3 RESEARCH METHODS

3.4 SAMPLING SIZES 81

3.5 SOURCESOF DATA 81

3.5.1 PRIMARY DATA

3.5.2 SECONDARY DATA 82

3.6 DATA COLLECTION INSTRUMENTS AND PROCEDURES 82

3.6.1 INTERVIEWS

3.6.2 QUESTIONNAIRES

3.7 METHOD OF DATA ANALYSIS 83

3.8 LIMITATION AND VALIDITY 84

CHAPTHER FOUR

4.0 PRESENTATION OF DATA ANALYSIS AND INTERPRESENTATION 85

4.1 INTRODUCTION 85

4.2 COLLECTION OF RESPONSES

CHAPTHER FIVE

5.0 SUMMARYOF THE FINDING, CONCLUSION, RECOMMENDATION AND

PROSPOSAL FOR FURTHER STUDIES 107

5.1 INTRODUCTION

5.2 SUMMARY OF THE FINDING

5.3 CONCLUSION 109

5.4 RECOMMEDATIONS 110

5.5 PROSPOSAL FOR FURTHER STUDIES

113

BIBLOGRAPHY 114

APPENDICES

LIST OF TABLES

TABLE 2.1: TOP TEN NIGERIAN VISITED WEBSITE 35

TABLE 2.2: EXAMPLE OF E-GOVERNMENT 40

TABLE 2.3: THE NETWORKED READINESS INDEX TOP TEN COUNTRY 54

TABLE 2.4: TABLE SHOW THE NETWORKED READINESS INDEX 2015

RANKINK NIGERIA AMONG THE VARIOUS

PILLARS OF ICT COMPETITIVENESS 56

TABLE 2.5: ITUMOBILE BROADBAND PREPAID HANDSET PRICES 59

TABLE 2.6: DIFFERENCES IN THE SPEED OF INTERNET ADOPTION ACROSS

COUNTRIES (NIGERIA) 60

TABLE 2.7: THE EMERGING TECHNOLOGY AREA AND GROWTH

OPPORTUNITIES 65

TABLE 2.8: NIGERIA ECONOMIC INDICATOR 67

TABLE 2.9: COMPARISM BETWEEN NIGERIA AND CHINA IN GDP AND

UNEMPLOYMENT 69

LIST OF FIGURES

FIGURE 2.1: GROWTH EFFECT OF ICT 48

FIGURE 2.2: NIGERIA GOVERNMENT REVENUES 69

FIGURE 2.3: CHINA IMPORT FROM NIGERIA 70

FIGURE 2.4: NIGERIA EXPORT 71

FIGURE 2.5: NIGERIA MANUFACTURING PRODUCTION 72

FIGURE 2.6: NIGERIA FOREIGN INVESTMENT 73

LIST OF ACRONYMS

NRI: Networked Ranking Index

ICT: Information communication technology

ITU: international technology Union

GDP: Gross Domestic growth

VOIP: voice-over-Internet protocol (VoIP) technology

NTP: National Telecommunication Policy

NBC: National broadcasting Commission

NIRA: Nigeria In internet Registration Association

GSM: Global System for Mobile Communication

BPO: Business Process Outsourcing

IXP: Internet Exchange Point

JAMB Joint Admissions and Matriculations Board

NBC: National Broadcasting Commission

NCC: Nigerian Communications Commission

SMS: Short Message Service

USAID: United States Agency for International Development

GSM: Global System for Mobile communications

ICT: Information and Communication Technology

HSPA: High Speed Packet Access

HSPA+: Evolved High-Speed Packet Access

HSUPA: High-Speed Uplink Packet Access

IG4D: Internet Governance for Development

FMCT: Federal Ministry of Communication Technology

MOOCS: Massive Online Open Courses

UNPAN: United Nation Public Administration Network

GIS: Geographic Information System

NPC: National Population Commission

CDMA: Code Division Multiple

IDA: International Data Access

CHAPTER ONE

INTRODUCTION

1.1 Introduction

Information technology is defined as a collective term for a wide range of software,

hardware, telecommunications and information management techniques, applications and

devices, that are used to create, produce, analyze, process, package, distribute, receive,

retrieve, store, and transform information (Brady et al.,2002).

Information technologies (IT) have the potential to transform economy and diversify in

Nigeria. Information technology communication (ICT) sectors control all information

technology globally .The long-term strategic vision for the IT sector was elaborated upon

in the National Development Plan titled “Nigeria Vision 20:2020”. According to the

document:

The increasing globalization driven by ICT makes it imperative for Nigeria as an

emerging market to irreversibly consider the application and promotion of IT strategy to

facilitate its rapid growth and development. This will involve the development of a vibrant

IT sector to drive and expand the national production frontiers in agriculture,

manufacturing and service sectors. It would also require the application of the new

knowledge to drive other soft sectors: governance, entertainments, public services, media

sector, tourism, et cetera.

Information technologies (ITs) were becoming more powerful, more accessible, and

more widespread. ICT use is a key driver of innovation, especially in advanced economies

where other sources of productivity gains have dried up or produce lower returns. (Draca

el.al.2006). As a general-purpose technology, ICTs have an impact that extends well

beyond productivity gains. ICTs act as a vector of social development and transformation

by improving access to basic services, enhancing connectivity, and creating employment

opportunities. In these ways information technology affect how people live, communicate,

interact, and engage among themselves and with their government.

1.2 Background

Information Technology is a system that optimally allocates resources among competing

needs and encourages interactions among individuals, businesses firms and government in

Nigeria economy in its working permeate and affect every strata of the population. The

transformation of Nigeria’s economy based on IT therefore is the transformation of

Nigeria’s people, organizations and or institutions as technology thinking entities. The

mission statement of the government was to use IT for Education, Creation of Wealth,

Poverty Eradication, Job Creation, and Global Competitiveness.

Sisniega (2009) asserted that the applications of information and communication

technologies (ICT) facilitate ubiquitous and instantaneous communication between

organizations and their stakeholders. Information communication technology enables

people and organizations to achieve a seamless workflow and effective processes through

improved interactions. In 2008, one of the world’s leading in international development

economists, Jeffrey Sachs, wrote that mobile phones and wireless internet will “prove to

be the most transformative technology of economic development of our time. ( Sachs

2008).

Drew and Foster (1994) defined IT as the group of technologies that is revolutionizing

the handling of information. It is taken to embody a convergence of interest between

electronics, computing and communication. Chowdhury (2000) posited that ICTs

encompass technologies that can process different kinds of information (audio, video, text,

and data), and facilitate different forms of communications among human agents, and

among information systems.

Duncombe et al (1999) simplify the definition by describing ICTs as an “electronic

means of capturing, processing, storing, and disseminating information”. When computer

and communication technologies are combined, the result is information technology or

“InfoTech” information technology (IT) is a general term that describes any technology

that helps to produce, manipulate, store communicate and or disseminate information. IT

merges computing with high speed communication links carrying data sound and video e.g

personal computer, but also new forum of telephone, television, appliance and various

hand held devices.

For example, the personal computer or mobile telephone can now receive and transmit

different types of media and services because of enhanced processing power and memory

capacity. The ICT transform sector has proven to be a strong driver of GDP growth in

nations across the world. From developing countries such as India and the Philippines,

Singapore, Finland, Sweden, China to developed nations such as the United States of

America and Ireland, the ICT sector has contributed to the success of each of these

nation’s economies, the advancement of its people skills and capabilities and positioning

the nation as a place for global firms to do business more efficiently.

The ICT sector is socially and economically relevant to Africa in that it has been the

major economic driver in Sub-Saharan Africa over the past de-cade. Although mobile and

internet penetration remains comparatively low in Africa, never before in the history of the

continent has the population been connected as it is today. Spending on ICT within Africa

is roughly in line with the global average, although there is a considerable variation

between countries. For example, Morocco spends 3.5 times its GDP on ICT than Nigeria.

Nigeria is a middle income, mixed economy and emerging market, with expanding

financial, service, communications and technology and entertainment sectors. It is ranked

as the 21st largest economy in the world in terms of nominal GDP, and the 20th largest in

terms of Purchasing Power Parity, Nigeria has the ninth largest gas reserves in the world

and the largest in Africa. It is the largest economy in Africa; its re-emergent, though

currently underperforming, manufacturing sector is the third-largest on the continent, and

produces a large proportion of goods and services for the West African sub region.

Nigeria recently changed its economic analysis to account for rapidly growing

contributors to its GDP, such as telecommunications, banking, and its film industry.

According to a Citigroup report published in February 2011, Nigeria will get the highest

average GDP growth in the world between 2010 and 2050. Nigeria is one of two countries

from Africa among 11 Global Growth Generators countries.

In oil sector, GDP growth posts its worst performance in fifteen years, falling to around

half the level seen over the last decade. Exports fall and the current account, which has

been in a surplus since 1999, dips into a deficit worth around US$20-30bn in 2015. In

2013, the oil sector contributed to 11% of Nigerian GDP, in comparison to a peak of 48%

in 2000, the Real GDP growth 5.4% (2013), 6.3% (2014), 2.5% (2015). (Pwc)

Investors who had previously sought exposure to Nigeria’s high growth potential appear

to be getting nervous. Sovereign bond yields – at 17.3% – hit 7-year highs in February

2015 and the NSE All Share Index has fallen over 30% since July 2014. Although equities

and bonds have staged a partial recovery since the election, both have underperformed

emerging market peers. Longer-term financing is also vulnerable to deteriorating security

conditions. Nigeria’s Country Risk Premium (CRP) our model uses sovereign bond yield

and risk and credit ratings to identify the additional risk of investing in a foreign market

over a ten-year time horizon – has increased by 0.7 percentage points over the last three

quarters. Foreign Direct Investment (FDI) inflows also fell to their lowest level in 7 years

in 2013. And over a third of capital expenditures from projects financed externally in 2014

are attributable to the Coal, Oil and Gas sector. These investments will be particularly

susceptible to cost cutting from global energy majors if low oil prices (the oil price hit low

point of $35/bbl) persist in 2015.

The Nigeria Customs Service (NCS) has generated over N747 billion as revenue

between and January and October, 2015. Nigeria has sizeable amounts of gold, aluminum,

lead, and copper, but the sector is largely informal and is characterized by artisan miners,

medium scale operators and illegal miners. Therefore most of the government income

arises from the quarry, cement and construction sector. The solid minerals audits reveal

that the Government of Nigeria has collected an average of almost US $100 million per

year. This compares to almost US $60 billion received from the oil and gas sector in 2008.

(NEITI)

Furthermore, corporate tax paid by mostly quarry and construction companies accounted

for 95% of collected revenues with royalties representing a further 4%. The mining of

minerals in Nigeria accounts for only 0.3% of its GDP, due to the influence of its vast oil

resources. The domestic mining industry is underdeveloped, leading to Nigeria having to

import minerals that it could produce domestically, such as salt or iron ore.(NEITI report

2015). The growth of large services and agricultural sectors has fuelled economic

development, with active fiscal and monetary policy encouraging this trend. Inflationary

pressure from a depreciating currency exceeds deflationary pressure from lower economic

growth. As a result, inflation rises to levels not seen since 2012, as the price of imported

materials and food rises inflation at 14.0% as 2015, 8.1% (2014), and 8.5% (2013). (Pwc

2015)

The performance of sub-Saharan Africa is particularly poor: 30 of the 31 countries

included in the sample appear in the bottom half of the NRI rankings (Networked

Readiness Index). The only exception is Mauritius, at 45th. The country has progressed

three places since last year and eight since 2012. Among the large economies of the

region, Nigeria drops seven places to 119th. South Africa drops five to 75th—it is now

third in the region behind Mauritius and Seychelles (74th). In contrast, Kenya (86th, up

six) has been slowly improving since 2012. (NRI 2015)

Many sub-Saharan African countries have fully liberalized their ICT markets, including

several Least Developed Countries (LDCs) and fragile economies: Burkina Faso, Cape

Verde, Kenya, Lesotho, Madagascar, Mauritius, Nigeria, Tanzania, and Uganda. This

strategy bodes well for the future, and some countries such as Kenya and Tanzania are

already reaping the benefits of this liberalization in the form of increased investments and

use and the introduction of new business models and services. (NRI)

Information technology created Internet exchange point (IXPs) established with the

direct support of the government (as in Nigeria) or by a group of private ISPs (as in

Kenya). In both cases, governments provide an essential element, either by playing an

active, leadership role in spurring the adoption of this type of technology, or by creating an

enabling, competitive environment and properly regulating the existence and provision of

this type of services. Governments also play a strategic role in developing IXPs through

the construction of Internet backbone networks to connect IXPs to potential users both

domestically and abroad.(IXPs)

In addition, the ICTs are enhancing African regional trade and integration as well builds

a competitive ICT industry to promote innovation, job creation and the export potential of

African companies. The global economic landscape is experiencing rapid changes.

Globalization is changing Nigeria in transformation and diversifies the economy,

especially in creating new opportunities and new challenges through information

technology. Its impact on national economies is driven by significant progress in IT as

exemplified by a plethora of breakthroughs in Biotechnology, Space Research, Energy

Development, and Information & Communication Technology (ICT), among others.

Furthermore, attractive career opportunities have emerged in addition to development of

Made in Nigeria software and computer components that can earn the nation some foreign

exchange. Specifically, IT has successfully aided the following sectors of the Nigerian

economy: the Industrial/Manufacturing, Education, Transportation, Tourism, Health,

Banking, Commerce, Agriculture, Government Services, Defense, Sports, and Rural

Development.

Currently Nigeria has limited locally generated broadband based services. In Nigeria

government have twenty one out of the thirty six ministries running online, while 370 of

the 810 MDAs have some web presence. More government services need to get online and

this should improve with the introduction of the single service portal ‘services.gov.ng’.

States like Lagos, Ekiti, Akwa Ibom, and Rivers are also leading by example having

developed very comprehensive websites. Also more political leaders are using social

media to engage with the polity.

1.3 Statement of the Problem

Hitherto, the dependence of the country’s economy has been on crude oil. This

discovery of oil opened up the oil industry in 1961, bringing in Mobil, Agip and chevron.

However, since the reality has dawned on the country and efforts have been consistently

made to diversify the economy and different sectors are now upcoming and promising, the

effect of information technology is being specially focused. Indeed the study attempts to

decipher the particular impact that ICT has been having on nation’s economy. The

question being posed by this study is whether the impact is positive and quantitatively

significant. This is the impetus driving this research work.

The average internet penetration rate in Africa is 14 percent-vastly lower than the 85

percent rate in North America, according the World Bank. (NRI) The lack of affordable

infrastructure is considered to be a major obstacle, lack of local relevant digital content

and high cost of producing software and hardware, scarcity of expertise and living without

electricity. Not unexpectedly, the results in the Infrastructure and Individual usage pillars

are similar, because a well-developed infrastructure is a pre-condition to ICT adoption.

(NRI)

.1.4 Objective of the Study

The broad objective of the study is to examine the impact of information technology on

Nigeria economy. The specific objectives of this study are to:

i. Examine the strategic role government plays in harnessing the gains of ICT

economic development in Nigeria.

ii. Examine the application of the knowledge information communication technology

to drive sectorial development in Nigeria.

iii. Analyze government initiatives and policies on information communication

technology ;

iv. Assess the challenges facing the application of ICT towards transforming the

diversified Nigeria economy.

1.5 Research Questions

i. The introduction of information technology, Biotechnology research will

boasts agricultural sectors and animal farms produces?

ii. Is government policy and strategies on ICT has positive impact on the private

sector of the economy?

iii. Is there need for strong and dynamic technology adoption in achieving

economic scale?

iv. Did most governments engage in use of internet in their operation and provide

capital incentive for development of information technology?

v. Major challenges facing the country in areas of ICT development include

cybercrime and underutilization of ICT for strengthening overall national

security?

1.6 Statement of Hypotheses

Hypothesis one

H1: (Alternative hypothesis): There is a positive relationship between information

technologies on diversified economy.

H0: (Null hypothesis): There is no positive relationship between information technologies

on diversified economy.

Hypothesis two

H1: (Alternative hypothesis): The information technology reduces the level of illiteracy

and eradicates poverty in society.

H0: (Null hypothesis): The information technology does not reduce the level of illiteracy

and eradicates poverty in society.

1.7 Significance of the Study

The research provides insight into understanding of the impact of information technology

in transforming Nigeria’s economy. The output of this study will be of immense benefits

of the policy and advocacy on ICT and economic development issues in the country. The

outcome of the study will equally provoke new issues and debates that will be of interest

to new and upcoming researchers in the areas of study.

This study signifies the internet remains nonexistent, scare, unaffordable, or too slow in

developing world. At the end of 2013, 81 percent of the population of high-income OECD

countries used the internet. The rate among low-income countries was 10 times less a mere

7.6 percent, which is lower than the penetration rate among OECD countries, was in 1997.

(World Bank)

1.8 Justification of the Study

There is no doubt that information technology had played a crucial part in transforming

the Nigeria economy. Braga (1998) built a case that concludes that the countries with

greater prospects of economic performance in the New Economy are those that can rely on

widespread access to communication networks; the existence of an educated labor-force

and consumers; and the availability of institutions that promote knowledge creation and

dissemination. This may suggest that developing countries are at a disadvantage in

comparison to developed countries.

Nigeria is home to Africa’s largest population (approximately 174.5 million) and the

continent’s biggest economy (more than $500 billion in annual GDP). It is also the center

for wide range of information and communication technology (ICT) activities from policy

to practice many of which are supported by the World Bank. Since the establishment of

the Ministry of communication Technology in 2011, the Nigerian government has made

notable progress in advancing its ICT agenda.

The government has catalyzed significant effort in the area of policy and regulation, with

an ICT policy developed in 2012, a national broadband technology development plan

develop in 2013 and e-government strategy now in the works. They have made a push for

increased use of ICT in government to drive efficiency and service delivery by launching a

Federal e-government service portal, institutionalizing a government wide messaging and

establishing cadres and councils to drive implantation of various ICT initiatives.

1.9 Scope of the Study

The bulk of this research work is to examine the role of information technology as

important tool in diversifying and transforming Nigeria’s economy using some selected

information technology industries within Oshogbo and Ibadan metropolis as the main

areas of research. A total of respondent were sampled and their responses was analyzed

with the aid of simple percentages and chi-square statistical analysis.

1.10 DEFINITION OF TERMS

Information technology: technologies that can process different kinds of information

(audio, video, text, and data), and facilitate different forms of communications among

human agents, and among information systems.

Broadband: is term normally considered to be synonymous with a high speed connection

to the internet?

Internet: a global computer network providing a variety of information and

communication facilities, consisting of interconnecting networks using standardized

communication protocols.

E-Agriculture: E-Agriculture describes an emerging field focused on the enhancement of

agricultural and rural development through improved information and communication

processes.

E-Commerce: E-Commerce is a type of industry where buying and selling of product or

service over electronic systems such as the Internet and other computer networks.

EDGE: Enhanced Data rates for GSM Evolution.

E-Education: E-Education refers to the application of Internet technology to the delivery

of learning experiences.

E-Government: E-Government is digital interactions between a government and citizens.

E-Health: E-Health a term for healthcare practice supported by electronic.

E-learning: E-learning includes all forms of electronically supported learning and

teaching, including educational technology.

E-contract: E-Contract is a contract modeled, specifically executed and deployed by a

software system.

E-signature: E-signature software from the online electronic signature authority right

signature is the e-signature standard.

E-Payments: E-Payments are payments that are made directly to payee from bank

accounts using security features over the Internet to process the transactions.

E-Voting: E-Voting is a term encompassing several different types of voting, embracing

both electronic means of casting a vote and electronic means of counting votes.

END NOTES:

1. See http://www.ixptoolkit.org/. For more information about IXPs, see also Amega-

Selorm et al. 2009.

2. The analysis covers 165 countries for which data on Internet penetration and

population is available for every year over the period 1997-2013. Each country’s

classification by income is from the World Bank (situation as of July 2014). The

breakdown is as follows: 62 high-income countries, 41 upper-middle-income

countries, 37 lower-middle income countries, and 25 low-income countries.

Penetration rates are weight by population. Detailed calculations are available from

the authors.

3. Global Network Readiness Index 2015.

4. Pwc Economic and policy/Nigeria Economy Watch 2016. www.pwc.com

5. Draca el.al. 2006, Cardona el.al. 2013.

6. Thenerveafrica.com/2246/mining-will-important-nigeria-2016.

7. The 2007 NEITI Act mandates NEITI to report on the mining sector on Nigeria.

The EITI Board echoed this when declaring Nigeria as an EIIT Compliant country

in March 2011.

CHAPTER TWO

LITERATURE REVIEW

2.0 Introduction

This chapter consists of the conceptual clarification, theoretical frame work and the

literature on the subject matter, the impact of information technology on digital

technology, IPT and VOIP, impact of information technology in agriculture sector, impact

of information technology in commerce and Industry sector, impact of information

technology in educational sectors, impact of information technology in government,

impact of information technology in healthcare sector, impact of information technology

in entertainment sector, economic benefit in broadband technology, benefit of information

technology, impact of information technology on the socioeconomic, the global

information report, the emerging technology areas and growth opportunity in Nigeria,

Nigeria Economic Indicators, and National Information and Communication Technology

(ICT) Policy 2012.

2.1 Conceptual Clarification

In 2008, the Nigerian government in coordination with the World Bank began

implementing an integrated personnel and payroll information system (IPPIS) to decrease

fraud and increase account ability in payroll administration and Human Resource (HR)

recording. Some estimates say the technological implementation has already saved 12

billion Naira (US$120 million) solely in the pilot phase by eliminating “ghost workers” or

fraudulent payees on the payroll.(ICT AFRICA). Nigeria has also recently partnered with

Intel to increase access to rural healthcare and boost delivery systems via ICT related to

health care providers.

Multiple stakeholders including ethnic leaders, the Ministry of Health, Intel executives

and participating hardware and software vendors have come together to increase

productivity and the IT presence in rural areas. In recent years, a number of

entrepreneurial companies throughout Nigeria have realized the potential opportunity

within the mobile payments space, which could create a new set of mobile entrepreneurs

and new business models with strong value realization in a market of over 90 million

mobile subscribers, a large segment of whom remain unbanked. The impressive growth

recorded in the Nigerian telecommunications market has unfortunately been challenged by

criminal activity and as such, the success of the mobile payments sector appeals to many

Nigerians as it provides a cost-effective solution to authenticate payments and reduce the

overall risk of theft.

Effective mobile payment companies have provided the Nigerian population with an

innovative and detailed payment management process that covers the entire scope of the

value chain across all the participants in the mobile payment system. The recent focus on

initiatives and licensing opportunities in both the mobile and financial industry on mobile

banking and payment services has driven a number of companies to develop innovative

mobile payment solutions to transform Nigeria’s banking landscape.

Nigeria needs first and foremost to address its endemic power issue, one that if left

unaddressed will keep not only the ICT industry but also the country in economic stasis.

Even though Nigeria’s political leaders have promised to solve the crises for years now, it

is still a huge barrier to growth. Multilaterals such as the World Bank and African

Development Bank should galvanize sustainable energy and power experts, issue tenders,

offer financing, and share resources to tackle this problem. In addition to enhancing

infrastructure, Nigeria needs to focus on enabling its people with enterprise-scale

development skills and literacy in ICT via educational initiatives and dedicated training

programs for students and business owners.

2.2 Theoretical Framework

Theoretically, two Schools of Thought explain the relationship between

telecommunications and development. These are the Technophile and the Technophobic

views. The Technophiles believe that ICTs impact positive effects on development. This

perspective argues that in the various communities and sectors of the economy, ICTs will

expand productivity, improve employment opportunities, and upgrade the quality of work

in many occupations. Moreover, ICT will offer many opportunities for small-scale,

independent, and decentralized forms of production. Regarding developing countries,

technophiles envision that technology will aid developing countries to leapfrog stages of

development (Castells 1999; Mansell & Wehn 1998; Nulens & Van Audenhove 1998).

On the other hand, the technophobes regard ICTs as having negative effects on

development and widening the information gap between the rich and the poor, the literate

and the illiterate. While admitting that ICTs could have profound changes on a society,

Van Dijk (1999) believes that applications of ICTs and their transformative nature have

been greatly exaggerated. ICTs may destroy more jobs than they create; the gap between

the rich and the poor may widen. Mansell (1999) saw the huge capital investments

required on ICTs as diverting resources from other sectors of the economy that could have

greater development impacts. On economic level, this perspective forecasts a perpetuation

of the capitalist mode of production, with further managerial control over the means of

production. In most countries, it foresees massive job displacement and ‘de-skilling’.

Nandi, and Dholakia, (1994) established a relationship between investments in telephone

infrastructure and economic development. They examined the connection among a number

of factors such as education, energy, telephones, other physical infrastructures and

economic development. The results of the multiple regressions adopted in the analysis

suggest that simultaneous investment in development inputs such as education;

telecommunications and other physical infrastructures are complementary in the

promotion of economic growth. Saunders, et al (1994) conducted several studies

examining the correlation between the density of telephone lines and economic

development. Madden, et al (1998), also, examined the empirical relationship among gross

fixed investment, telecommunication infrastructure investment, and economic growth for a

sample of transitional countries of Central and Eastern Europe.

The results of the studies show a positive relationship between investment in

telecommunications and national economic growth. Empirical evidences show that

investment in ICTs enhances efficiency of economic activities, and that economic growth

stimulates the demand for telecommunications and other ICTs’ components. Braga (1998)

built a case that concludes that the countries with greater prospects of economic

performance in the New Economy are those that can rely on widespread access to

communication networks; the existence of an educated labour-force and consumers; and

the availability of institutions that promote knowledge creation and dissemination. This

may suggest that developing countries are at a disadvantage in comparison to developed

countries.

Similar sentiments are shared by Mansell & Wehn (1998). Brown (2001) argued that

ICTs are simply tools. He maintained that no single tool can solve a global problem, such

as, poverty and its attendant socio-economic problems, which have such complex and

multiple causes. He stressed the role of educated labour-force in this information age.

Chowdhury (2000) noted that many skeptics have not seen the role of ICTs in efforts

intended to alleviate poverty and bring food security to developing countries. The author

acknowledged that the problem of poverty alleviation is complex. Efficient production

systems and physical infrastructure are a few of the necessities.

According to Bayes, et al (1999), only half of all telephone calls are related to economic

purposes such as discussing employment opportunities, prices of the commodities, land

transactions, and that, the average prices of agricultural commodities were higher in

villages with phones than in villages without phones. The New Economy may offer a new

channel for economic growth that may allow developing countries to catch the

development train faster, and perhaps ensure a more sustainable ride. There had been some

initial concerns about the risk, in some developed economies, that ICTs could accelerate

the delocalization of certain economic activities toward developing countries.

The benefits of ICTs are now widely recognized everywhere as an important source of

efficiency gains for companies that will allow them to optimize their production function

and liberalize resources toward other productive investments. Digitization the mass

adoption of connected digital services by consumers, enterprises, and governments is far

more than a disruptive wave washing over isolated industries. We have long since

recognized that reality. Digitization is a fundamental driver of economic growth and job

creation the world over in both developed and emerging markets. Moreover, ICTs are also

increasingly recognized as a key source of innovation that can generate increased

economic growth and new sources of high-value-added jobs.

This ability to innovate is essential in the current information revolution that is

transforming economic and social transactions in our societies. Today, the world has

undergone massive changes: the Internet bubble has come and gone, and emerging

countries such as China and India have become prominent global users and providers of

ICT equipment and services. Struggling to emerge from the financial crisis, developed

economies are striving to return to higher levels of growth and competitiveness while

fighting stubbornly high unemployment rates, especially among their youth. Both

emerging and developed economies are focusing on innovation, competing globally for

talent, resources, and market shares. Information flows and networks have spread across

borders in ways that could not be imagined before the onset of the Internet, the global

adoption of mobile telephony and social networks, and the rapid growth of broadband.

Business models have been redefined, the workplace has been redesigned, small startups

have evolved into large companies, and entire functions of society (education, health,

security, privacy) are being rethought.

2.3 Literature on the Subject Matter

Nigeria has a population of over 167 million (NPC) people and a land mass of 923,768

square kilometers. The telephone subscriber figure for Nigeria as at the end of February

2013 was 116,601,637 active lines.2 The four active GSM operators have about 96%

market share while the three active 22 CDMA operators have the rest 2G mobile coverage

is at 98% but 3G coverage which is mostly concentrated in urban areas is very limited at

less than 35%. Internet penetration is quoted at 33% and Broadband penetration is at 6%.

(FMCT). Though the internet was first introduced in Nigeria in 1996 no appreciable

uptake was recorded until the further opening of the market since 2001. The slow uptake

of internet has been largely attributed to network infrastructure deficiency among other

factors.

Prior to 1999, development in the ICT sector of Nigeria was generally assessed to be far

below expectation, for a country of its size and resources. For example, total fixed

telephone lines were less than 400,000 while regular internet users were less than 200,000.

(FMCT). From a policy and regulatory standpoint, the Federal Government of Nigeria

adopted the National Telecommunications Policy (NTP) in 2000 to guide the development

of the telecommunications industry in Nigeria. This was followed by the enactment of the

Nigerian Communications Act (NCA) 2003 to give legal effect to the NTP. Previously, the

National Mass Communications Policy recommended the creation of a regulatory body to

regulate Broadcasting and this led to the promulgation of Decree 38 of 1992 that

established the National Broadcasting Commission (NBC).

The promulgation of the indigenization decree in 1977 led to the increase in the number

of indigenous vendors in the computer business, and stimulated more aggressive

marketing by the vendors which in turn resulted in a significant increase in the number of

computer installations and usage in the country. Before 1999, development in the IT sector

of Nigeria was minimal. For instance, regular internet users were less than 200,000 out of

a population of over one hundred and sixty seven million people. The Federal Government

therefore embarked on major reforms in the sector which included:

i. Development and launch of National Policy on Information Technology in

2001 and the establishment of NITDA to implement the policy, co-ordinate,

and regulate information technology development in the country; and

ii. Establishment of the Nigeria In internet Registration Association (NIRA) in 2006

to increase Nigeria’s presence in the cyberspace.

The National Assembly passed NITDA’s enabling Act into law in April, 2007.

According to NITDA Act of 2007, the mandates of the Agency include the following:

i. Creating a framework for the planning, research, development, standardization,

application, coordination, monitoring, evaluation and regulation of Information

Technology practices, activities and systems;

ii. Providing guidelines to facilitate the establishment and maintenance of

appropriate infrastructure for information technology and systems;

iii. Developing guidelines for electronic governance, networking of public and

private sector establishments; and for the standardization and certification of

Information Technology Systems in Nigeria;

iv. Rendering advisory services in all information technology matters to the public

and private sectors and creating incentives to promote the use of information

technology in all spheres of life in Nigeria including the setting up of Information

Technology parks;

iv. Introducing appropriate regulatory policies and incentives to encourage private

sector investment in the Information Technology industry;

v. Determining critical areas in Information Technology requiring research

intervention and facilitating Research and Development in those areas.

There has been tremendous advancement in the development of the telecommunications

(telephony) sector in Nigeria, particularly since the commencement of mobile services use

GSM technology in 2001. Nigeria in recent years has been adjudged as the fastest growing

mobile market in Africa and one of the fastest in the world. The telecommunications

sector is governed by the Nigerian Communications Act 2003 (NCA 2003), and The

Wireless Telegraphy Act, 1990. The NCA 2003 affirms the Nigerian Communications

Commission (NCC) as the independent regulatory authority for the telecommunications

sector. The objectives of the regulator include:

i. Creating an enabling regulatory environment to facilitate the supply of

telecommunications services and facilities;

ii. Facilitating the entry of private entrepreneurs into the telecommunications

market;

iii. Promoting fair competition and efficient market conduct among all players in

the industry; and

iv. Establishing the Universal Service Provision Fund to promote the widespread

availability and usage of network service and application services throughout

Nigeria.

There are five (5) licensees using Global System for Mobile Communications (GSM),

and Eight (8) licensees using Code Division Multiple Access (CDMA) in the country. A

number of other operators also exist in other market segments, including the following;

Interconnect Exchange Houses, International Data Access License (IDA), Fixed Wireless

Networks, amongst others. The current telecommunications sector is highly competitive

though with a huge market share imbalance between the GSM players and CDMA players,

with the market share currently at 91% and 9% respectively.

On the new technology which was Digital technology in broadcasting industry.

Broadcasting plays a very important role in the lives of the citizens worldwide and is the

most effective means of reaching the largest number of people simultaneously. The

Federal, Regional and State governments monopolized broadcasting in Nigeria, until the

promulgation of Decree 38 of 1992 (as amended) which established the National

Broadcasting Commission (NBC) and charged it with the responsibility of regulating and

controlling the broadcasting industry in the country. The law empowers the Commission

to license broadcast stations, allocate frequencies, regulate content and, generally set

standards for quality broadcasting in the country. According to the Act, the Commission’s

Mandate includes the following:

i. Advising the Federal Government generally on the implementation of National

Mass Communication Policy with particular reference to broadcasting;

ii. Receiving and processing applications for the establishment, ownership and

operation of broadcasting stations;

iii. Recommending applications through the Minister to the President, Commander-in-

Chief of Armed Forces for grants of radio and television licenses;

iv. Establishing and enforcing a National Broadcasting Code that contains guidelines

on a variety of issues including licensing, sanctions, etc; and setting standards with

regard to the content and quality of materials for broadcast.

v. Initiating and harmonizing Government policies on trans-border direct

transmission and reception in Nigeria;

vi. Monitoring broadcasting or harmful emission, interference and illegal

broadcasting;

vii. Approving the transmitter power, location of stations, area of coverage; and

viii. Regulating the types of broadcast equipment to be used.

The categories of broadcasting services include:

i. Terrestrial and Satellite free-to-air sound/television;

ii. Satellite subscription direct-to-home sound broadcasting;

iii. Community broadcasting;

iv. Content distribution service (syndication); and

v. Internet broadcast.

The legislative, regulatory and licensing framework for the broadcast sector is transparent

and liberalized, and seeks to regulate broadcasting only in circumstances where market

forces are inadequate to realize public policy objectives. According to the current policy,

broadcast licenses will not be granted to any religious organization or political party.

Private and community interests are encouraged to contribute to the development of the

industry, while foreign interests are also encouraged to invest and assist in developing

broadcast services in the country.

Today, as a result of the deregulation of the Nigerian broadcast industry, the number of

federal, state and private broadcasting stations in operation in the country has, as a 2012,

risen to 291, from less than 30 before deregulation. This comprises of:

i. 100 radio stations;

ii. 147 Television stations;

iii. 35 Cable Retransmission Stations known as MMDS; and

iv. 4 Direct to Home (DTH) Stations

Based on ITU recommendations, Nigeria, along with other countries has committed to

transit from analogue to digital terrestrial broadcasting and broadcasting on the VHF band.

Consequently, the Commission has set a June 17, 2015 deadline for the Switch over from

analogue to digital broadcasting. The advent of digital broadcasting will undoubtedly

increase the number of channels and introduce a diverse range of content. The NBC will

therefore require a more robust approach to the critical content regulation of the broadcast

sectors. (FMCT)

2.3.1 The impact of digital technology, Internet protocol technology (IPT) and voice –

over internet protocol technology (VOIP)

Convergence has far-ranging implications for ICT service providers and users. It changes

business models, expands markets, increases the range of services and applications

available to users, and alters market structure and dynamics. Furthermore, given that ICT

is a critical input to economic and social activities, convergence has an indirect effect on

social and economic development there are also risks and challenges. Most prominently,

convergence may lead to monopolization, allowing larger firms to extend their reach into

new markets or raising entry barriers for new entrants. Hence, policy makers must think

strategically about convergence and its role in their economy in order to enhance its

benefits and contain risks. Changing Business Models for Service Providers Service

providers in both the telecommunications and media sectors have seen convergence as a

powerful way of increasing revenues and reducing costs increased revenues.

By offering a wider range of services, service providers can capture more revenues from

their subscribers. A major U.S. cable TV operator saw its average monthly revenues per

subscriber jump from $42 in 1998 to $102 in 2007, with non-TV services such as

telephony or broadband Internet now contributing one-third of its total revenues (Comcast

2007). In Chile, about 60 percent of VTR’s 853,000 cable TV subscribers also use

telephone or Internet services, increasing the company’s revenues by 44 percent between

2005 and 2007 (Liberty Global 2007).

More recently, telecommunications firms are seeing payoffs from diversification. One

U.S. firm now derives 25 percent of its retail revenues from broadband and video services,

and two of the country’s largest telecommunications firms saw their revenues from video

service quadruple between 2007 and 2008 (AT&T 2008 and Verizon Communications

2008). Reduced costs Service providers also see convergence as a way to cut costs and

operating expenses. BT (2006) expects that its all-IP network will help reduce operating

expenses by £1 billion a year. Savings are expected because this network replaces the

company’s 17 separate networks, including its traditional telephony network, with one—

integrating a number of operational and network management systems (Dow Jones

International News 2008).

Similarly, Verizon expects that migrating its customers to an all-fiber-optic IP network

will save more than $1 billion a year on network maintenance (Providence Journal 2007).

Use of standardized IP networks is also driving cost savings. Telecom Italia cut costs by

60 percent by introducing IP technology for calls between Milan and Rome (The

Economist 2006). Service convergence also cuts costs by increasing network use.

Traditionally, telephone and cable TV networks provided only one service. Today these

networks can carry multiple services, lowering the cost of each. However, such cost

reductions come at a high upfront price. BT’s savings will follow a £10 billion ($16

billion) investment between 2004 and 2011 (Business Monitor Inter-national 2008).

Similarly, Verizon expects to spend about $23 billion building its U.S. network

(Providence Journal 2007). The high capital spending required to offer converged services

creates a new entry barrier that small or new service providers might not be able to

overcome.

Convergence expands consumers’ access to services because it lowers prices, which in

turn increases the addressable market and widens coverage by using multiple

infrastructures, lower prices for consumers. The reduced costs of operating converged

networks and providing multiple services translate into lower prices for consumers. The

starkest examples of this phenomenon come from the voice telephony market, where

voice-over-Internet protocol (VoIP) technology has significantly changed price structures.

VoIP has affected the pricing of international call traffic because it allows carriers to

bypass and compete with traditional call pricing regimes.

In 2007, one-fifth of international voice telephony traffic (in terms of minutes) used

VoIP. In fact, VoIP traffic grew five times faster than did traditional voice traffic

(Telegeography 2007). Services that use the Internet to carry telephone calls offer

significant discounts to consumers. Many service providers also give discounts on

bundles of services, charging less than if subscribers paid for each separately. Such

discounts can be as high as 40 percent (Pyramid Research 2007). Lower prices increase

the addressable market and make some services more attractive to users who are price

conscious or unsure of the usefulness of new services.

In Sweden, for example, a cable TV company offering triple-play services gives

subscribers the least expensive service free (OECD 2006) wider coverage .Convergence

also allows service providers to reach new subscribers. Multiple plays allow new services

to travel over existing networks, expanding the reach of communication services. One

recent report found that telecommunications firms offering IP television (IPTV) have

succeeded in countries with relatively low pay TV penetration but high broadband

penetration (Telecommunications Management Group 2008). The evolution of digital

video broadcasting (DVB) and mobile TV will enable the use of triple play over wireless

networks, further extending the reach of services.

The provision of DVB over cellular networks has recognized potential to increase the

number of TV viewers in countries such as Kenya and the Philippines.4 New broadband

wireless technologies are also raising expectations. For example, in 2005, Kenya Data

Networks began deploying a Wi Max system designed to offer converged services, such as

voice and data (All Africa 2005). Wireless triple play will be especially useful in

developing countries, where mobile phone subscription is far more common than

ownership of personal computers or TVs. Further, network convergence allows any

combination of communication networks to carry services. A lot of nontraditional

infrastructure can now carry telephone services, including cable TV and electricity

distribution networks.

This development can significantly improve coverage, even in low-income countries. In

one set of low-income countries, wire line telephones reach an average of just 7 percent of

households, while 33 percent of households are electrified and 18 percent subscribe to

cable TV. Thus, having a combination of networks to carry communication services can

move countries closer to universal service. Broader Range of Services and Applications

Convergence enables ICT users to access a range of services through a wide variety of

devices, including mobile phones. Some 3.9 billion mobile phones are in use worldwide,

giving these devices enormous potential for providing multimedia services.

Already, 27 percent of U.S. mobile phone users between the ages of 25 and 34 watch

video on their cell phones (Economist Intelligence Unit 2008). South African media

conglomerate Naspers has plans to expand its mobile television services into four new

African markets, after introducing it in Namibia, Kenya, and Nigeria (Reuters 2008).

Similarly, an estimated 66 million mobile phone subscribers in India can access Internet

services (TRAI 2008). A 2005 survey of 4,000 mobile phone users found that nearly a

third was using their phones for e-mail or Internet browsing (OECD 2007,). Thus, if

service providers build service-converged networks, then financial services, public

services, and entertainment applications will be able to reach a far larger portion of the

world’s population. Similar possibilities arise from the mixed use of cable TV, wireless

broadband, and other ICT networks.

Access to high-quality, reliable, affords- able ICT networks can significantly strengthen

governance through e-government applications and provide opportunities for the remote

delivery of health information or education services. Increased demand for content and

applications over converged networks drives significant economic development. For

instance, media and entertainment expansion into mobile telephony is growing rapidly:

mobile gaming is a $4 billion global market, and in 2005 alone, more than 420 million

songs were downloaded onto mobile phones around the world (SSKI Research 2007).

Creation of these new markets drives employment and investment and catalyzes network

growth. Moreover, online services such as blogs, video repositories, and social networking

tools create opportunities for social development. The information and knowledge

channels created allow the exchange of ideas and provide a platform.

2.3.2 Impact of Information Technology on Agriculture Sector

Broadband technology positively impacts agriculture in several ways. It provides farmers

access to timely and relevant information on weather updates, since the quality of crops

and other tasks depend in large part on weather. The proper timing of planting activities in

line with favorable weather conditions often promotes high yield. Fast online access to

websites5 that share best practices makes it possible for farmers to learn about farming

management practices, online marketing options, availability of livestock and seed crops

etc. Also farmers who use broadband to access pricing information online are likely to

gain bargaining power and make more educated marketing or purchasing decisions.

Similarly, broadband internet enables farmers to market their products directly to

consumers. Local farmers have access to new markets when they set up online shops that

offer certain agricultural products to customers worldwide. Nigerian farmers using

broadband to operate and monitor their equipment remotely, eliminating the need for

regular farm visits by technicians. Automatically generated messages can provide an alert

when equipment develops a fault or stops functioning. They can monitor and reset

greenhouse temperatures, humidity, and other settings remotely. All these amount to

significant cost savings amidst improved performance.

With 70% arable land, agriculture is a key sector that creates jobs for the Nigerian

economy. Agricultural communities are typically rural and rural areas are generally the

lack to benefit from infrastructural amenities. Non-availability of broadband in rural

agricultural communities to translate to lost opportunities resulting in significant economic

costs to the nation. It is therefore essential that these rural areas be provided with access to

the kind of broadband services that will truly expand their addressable markets while

increasing knowledge and saving costs.

Application of technology really enhances animal production. Research into physiology

and embryology has provided a basis for the development of technologies that increase

productivity of farm animals through enhanced control of reproductive function.

Progestagens, alone or in combination with luteolysins, are used to control the time of

oestrus in cattle, sheep and pigs, thus permitting better use of artificial insemination,

providing synchronized recipients for embryos and facilitating management strategies.

Treatment with progestagens and pregnant mare serum gonadotrophin (PMSG) or with

gonadotrophin releasing hormone induces breeding activity in sheep and goats before the

commencement of the breeding season and reduces the duration of postpartum anoestrus

in cattle. In pigs, gonadotrophins are used to hasten puberty in gilts, control the time of

oestrus in sows and gilts and reduce the interval between farrowing and oestrus.

Implants of melatonin hasten the onset of the breeding season in sheep and goats.

Success in increasing litter size in sheep and cattle with PMSG has been limited because

of the large variation in response between animals. Likewise, immunization against

steroids has not given consistent results. Immunization against inhibin appears to offer the

possibility of increasing farm animal fecundity. Induction of twinning in cattle by embryo

transfer is practicable, and recent developments suggest that in vitro fertilization may

provide a source of embryos for this purpose. Real-time ultrasonic scanning has proved to

be a reliable method for diagnosing pregnancy in small ruminants and pigs. The

identification of pregnancy-specific proteins in cattle and sheep may provide a cheap and

practical serological test for pregnancy in these species.

Partial segregation of spermatozoa into X- and Y-bearing components has been reported,

but the method is not yet practicable for use in conventional artificial insemination of farm

animals. The sex of bovine and ovine embryos can be determined reliably by DNA probes

specific for the Y chromosome. Monozygous twins can be produced in all farm animal

species by microsurgical bisection of embryos and techniques for cloning from embryonic

cells are rapidly being developed. There is a need to devise strategies to utilise these

clones to best advantage in genetic programmes. Chimeric animals can be produced in the

common farm animal species and will play an important role in genetic engineering,

particularly when embryonic stem cell lines are produced in these species. The Federal

Government should focus on agricultural programs that will boost agricultural produces

and encourage farmers to use technology in animal production.

2.3.3 Impact of Information Technology on Commerce and Industry Sector

The growing levels of internet access and the continued rollout of broadband

infrastructure are driving the growth of e-commerce and m-commerce. Like railroads and

highways that facilitated trade and commerce in the past, broadband is the information

superhighway of the 21st century that is accelerating global commerce at a rate never

imagined before. An online presence increases the ability for businesses to be found,

regardless of their physical location; and enables commerce to occur without having to

physically visit the business premises. Several initiatives have already been developed to

encourage Nigerian businesses to go online and thereby expand their market reach, for

example the ‘Get Nigerian Businesses Online’ initiative has met with very notable

success.(GNBO). Access to the Internet is leveling the playing field between smaller

vendors, SMEs and bigger businesses and offers smaller businesses the opportunity to

achieve operational scale more quickly.

Remarkably, there has been a growing adoption of online consumer purchases

throughout the world’s major economies. Sectors that have grown most in online

commerce include advertising, sale of software, books, entertainment, travel, event tickets,

clothes, and consumer electronics. According to International Data Corporation (IDC), E-

Commerce consumer's spending will grow from United States dollar (USD) 118 billion

worldwide in 2001 to USD 707 billion in 2005.7 Invesp Consulting, a leading provider of

conversion optimization services and software for online retailers, forecasts that this figure

could reach U$D1.4 trillion by 2015.(invesp.com)

Access to the open internet has created exciting new possibilities for entrepreneurs

worldwide. The internet increasingly crosses the digital divide to reach those previously

excluded from economic opportunity. Not only can these new users consume what is

already online, but they can also create, using the internet to improve their education,

research new ideas, raise money, collaborate, and start their own companies’ opportunities

that would be unimaginable for them without access to the open internet.

The explosion of the volume of e-commerce transactions riding over broadband

infrastructure has meant creation of employment and wealth. Many young technology

entrepreneurs are latching into the opportunity, which is permitting businesses of all sizes

to engage in commerce on anytime-anywhere basis. High speed broadband will no doubt

enhance e-Commerce activities in Nigeria. According to Alexa Rankings the top three

international visited sites are Facebook, Google, and Yahoo. Of the top 10 most visited

Nigerian sites, the profile suggests that most popular web destinations are: news

publishing, banking service, job search and e-commerce.

Table 2.1

Top ten Nigerian visited website 12/09/12

RAN

K

CATEGORY WEBSITE ALEXA TRAFFIC

RANK

1 FORUM nairaland.com 1,550

2 PUBLISHING Vanguardngr.com 1,686

3 BANKING/CORPORATE Gtbank.com 3,542

4 PUBLISTING Punchng.com 3,120

5 CLASSFIED/CORPORATE Vconnect.com 4,456

6 CLASSFIED/CORPORATE Jobberman.com 4,906

7 PUBLISTING Linkedln.com 5,507

8 COMMERCE Jumia.com.ng 10,212

9 PUBLISTING Naij.com 6,252

10 PUBLISTING Nationalnewspaper.com 5,704

Source: Nigeria Broadband Plan 2013

In spite of Nigeria’s larges population, end user’s adoption for broadband is low. This is

due to several factors including availability, accessibility, and affordability. Subscription

to the internet has been via a mobile handset, internet dongle, desktop computer or a

business center facility. However, individual subscription to broadband would require

ownership of access devices such as computers, smartphone, and tablets.

2.3.4 Impact of Information Technology on the Educational Sector

The availability of high speed internet in the 21st century has pushed learning beyond the

confines of physical classrooms. A student at home can participate in regular classes using

interactive multimedia technology. Unlike traditional school systems which require face-

to-face encounters between teachers and students, broadband technology makes it possible

to deliver distance learning and the sharing of educational resources. Some learning

platforms are structured to provide meaningful interactive, real-time learning experience.

Even traditional teaching methods benefit from the access to online archival materials

and resources. E-learning and Distance learning have become commonplace as modern

education is no longer restricted to sitting in a classroom and taking notes. Students are

empowered to draw on the richness of the internet to research any subject matter ranging

from historical events to simulations of challenging math problems and other courses. The

improved flow of information has made the markets for education products and services

more competitive at a global scale. As a result, education authorities, institutions and

individuals have more options when seeking high-quality educational products and

services. Interactive Whiteboards and Touchscreens are just few of the multimedia

classroom products generally sourced through the internet. Furthermore, broadband is

helping to popularize access to online education classes and digital books.

For instance, Massachusetts Institute of Technology (MIT) has put all the educational

materials from its undergraduate and graduate level courses online, making them openly

available to anyone anywhere, part of its Open courseware initiative. Another online

initiative, the Khan Academy targeted at secondary school students, has over 3800 videos

on everything from arithmetic to physics, finance and history, and it is freely available.

Another online initiative, the Katha information technology and e-commerce School

(KITES) in heart of the capital city of Delhi in India. In 2001, it opens the Katha

information technology and e-commerce school (KITES) in Govindpuri, the most

deprived areas of Delhi. KITES has transformed the lived of thousands of children as

young as three years old can try out the computer, mouse and keyboard. Once they are 14

or older, they can study for IT certificates. KITES have already award more than 19,000 of

these certificates.

The National Open University of Nigeria and other similar institutions (Obafemi

Awolowo University Distance Learning Program Ile Ife) have benefit from improved and

pervasive broadband connectivity. Increasing broadband technology penetration will

expand access to educational opportunities at all levels. Broadband connects students to

teachers, parents and free educational resources. It also enables the sharing of curricula

and other resources. Several studies suggest that impacts of broadband on education

include:

• Improved effectiveness of instruction and learning outcomes through more engaging,

interactive activities;

• Enhanced access to a wide array of professional development opportunities for

educators and adult learners;

• Enhanced access to distance learning programs, online learning modules and the

availability of relevant content from any location; and

• Facilitation of the collection and analysis of student data to track student performance

more accurately.(Howley et.al).

One of the success stories of internet usages in Nigeria today is that of JAMB going

online. It was discovered that spikes in internet usage coincided with the release of JAMB

result or the beginning of the JAMB registration and JAMB CBT (computer data base test)

examination. Another good example is the America University in Yola which was at one

time responsible for 52% of Nigerian internet traffic, as a result of student having free

access to hardware and high bandwidth. Another good example is the usage of information

technology (internet) in all University and Polytechnic in registration of students and e-

examination in Nigeria. Most university in Nigeria has their website and created portal for

all their students, for students to register and practice online examination.

2.3.5 Impact of Information Technology on Government

Governments are increasingly leveraging broadband technology to provide online service

portals where citizens can receive information and interact with public service

administration. Broadband technology holds the potential to move government processes

online, increasing the speed of service delivery, improve transparency, reduce arbitrariness

and impropriety, and promote cooperation across departments at different levels of

government. The delivery of public services via broadband will not only drive the

improvement of efficiency, it will also serve as an important catalyst for the

‘universalization’ of broadband services. Financial services (e-Payments), health care,

voter registration, land and company registrations are all examples of public services that

will be delivered effectively and quickly online.

The essence of the new approach for delivering government services leveraging broadband

infrastructure is good governance. And the objectives of e-government include:

• Streamlining and standardizing of institutional processes;

• Reducing the hassle for citizens to access government services;

• Optimizing content and speed of service delivery chain by all tiers of government;

• Encouraging wholesome recording and dissemination of information and

knowledge.

Governments have been leveraging broadband to experiment with new ideas and

technologies to extend opportunities for engagement with citizens. Some government

agencies now make their services available 24 hours a day, all year round while

eliminating excessive paperwork. The worldwide trend to shift democratic processes

online is premised on the fact that transparency and accountability are usually enhanced

when citizens have broadband connections and therefore have equal access to information

for decision making resulting in good and accountable governance.

Traditionally, the delivery of government service in Nigeria has been hindered by the

complexity of geography. Points-of-delivery of government services are typically located

in the headquarters of Federal Agencies, Ministries, State Capitals and LGA headquarters.

Under this arrangement, citizens are often compelled to travel from far flung areas to the

nearest points of service. Government should encourage using e-contract and e-signature

for government contract and signing to reduce corruption in awarding government

contracts.

. The developed countries form IG4D in order to encourage undeveloped improve. The

Internet governance for development (IG4D) really means, how developing and other

countries organize and manage their national-level engagement with global Internet

governance in the context of their wider national ICT strategies; and how to take an IG4D

agenda forward in the IGF and other international settings. Internet Governance for

development, IG4D, and Internet Protocol Version 6(IPv6) are forward looking solution

for the countries (Nigeria) to join IG4D. The USA, Europe, China, Taiwan, Korea are

embracing these innovation technologies (IG4D) and Nigeria cannot be left behind. It is

the duty of government to lower the barrier to digitization broadband remains fast growing

telecommunication market segment with double-digit economy growth.

Table 2.2

Example of E-government

Issuance of National Identity Card

Issuance of Travelling Document

(Passport,

Yellow Card, etc.)

Issuance of Driver’s license

Issuance of Tax Clearance

Issuance of Vehicle Number Plate

Issuance of C-of-O

Issuance of industry license, permit, and

authorizations

Issuance of Birth Certificate

Issuance of Marriage Certificate

Issuance of Death Certificate

Payment of Tax

Payment of import duty

Payment of government fines and

sanction

Registration of Land Acquisition

Registration of Vehicle Ownership

Registration of Companies

Registration of Cooperatives

Registration of Associations

Registration of Town Unions

Registration of other legal entities

Registration of Voters

Delivery of Education services

Delivery of Health Services

Delivery of Security & Protection

Services

Delivery of Essential Amenities

Delivery of Justice Administration

Delivery of Law and Order

2.3.6 Impact of Information Technology on Healthcare Sector

In medical practice broadband networks facilitate electronic exchange of information

such as data, images and video. Telemedicine, tele-therapy and advanced diagnostics are

just a few of the capabilities made possible by broadband for the benefit of modern

medical practice. Broadband encompasses technologies that enable video consultations

with specialists in far flung geographic locations, remote monitoring of patients, and

transmission of clinical images in the case of remote radiology. Remote Radiology

requires the transmission of extremely detailed pictures with huge amounts of information,

which can only be done through broadband networks. Real-time transmission of medical

procedures for diagnostic and training purposes in high definition video has become

increasingly common in countries with adequate broadband infrastructure.

A report published in 2008 by World Health Organization in collaboration with Global

Health Workforce Alliance titled: “Scaling up, saving lives (2008), has revealed an

estimated shortage of 4.3 million medical staff worldwide, with the situation being most

severe in developing nations. The report foresees the possibility of mitigating the gaps

through the leveraging of broadband to deliver medical advice and training, as well as,

diagnose and monitor patients. Broadband enabled healthcare solutions offer the potential

to improve healthcare outcomes while simultaneously controlling costs and extending the

reach of the limited pool of healthcare professionals.

Today’s patients in many jurisdictions communicate with their physicians via email, but

a trend is already emerging whereby patients would engage in video consultations with

their physicians. Broadband has ushered the capability wherein Patients can have face-to-

face video chat with doctors at distant locations. Similarly, a practice known as mobile

healthcare is increasingly deployed. Mobile Healthcare emphasizes leveraging mobile

broadband technologies and Smartphone applications to drive active participation by

clinicians and consumers on critical health issues. In Nigeria, government has been saving

lives lately, starting from when it empowered the citizenry with a mobile healthcare

platform that uses SMS to verify fake drugs or the authenticity of their origins.

Government can build on this by setting up a citizen broadcast platform that enables

users to send in images of suspected fake drugs packaging, drug peddlers and illegal

manufacturing plants etc. Electronic records of a patient’s health history including patient

demographics, diagnosis, medications, progress notes, vital signs, medical history,

immunizations, laboratory data and radiology reports can be gathered and stored for easy

and fast access. The availability of such records over a broadband network is likely to help

in quickening medical interventions irrespective of the doctor and medical facility being

approached for treatment. This is even more useful in cases of emergency. Medical

practitioners and their patients are likely to be better equipped to make better decisions,

engage in innovations, become more efficient, and gain prompt understanding about

individual personal health and public health more effectively.

2.3.7 Impact of Information Technology on Entertainment Sector

Nigeria’s Hollywood film industry was ranked third for globally generated revenue in

2011.(business day oct,25). It generated close to N126.4 billion (about U$D800 million) in

the three years spanning 2010- 2012. The two film industries ahead of Nigeria’s are the

US’ Hollywood and India’s Bollywood. The global film and entertainment industry

generated N14.5 trillion (U$D90.6 billion) in 2010. This was projected to increase to

N16.2 trillion (U$D102.7 billion) in 2012. The world has witnessed the increasing

popularity of online media services like YouTube, (South Korean PSY) Netflix, iTunes,

and other media streaming or video-on-demand digital entertainment services but without

broadband, online entertainment as we know it today would not exist.

The largest consumer demands for bandwidth are coming from Music, (December 2012)

Movies, Videos, TV shows and Radio content downloads. The demand to download video

content, such as a movie or TV show, within a short timeframe requires significant

bandwidth. A single video download (typically 400Mb) over the internet is likely to

require not less than 20Mbps in data transfer rates, to ensure fast delivery of less than

twenty five seconds to the end user.

Under such circumstances, narrowband dial-up users are no better off than those without

internet access; in terms of the extent that they can use (or not use) the internet for high

quality, high definition entertainment purposes. With the global phenomenon of the global

movie industry, the demand for video traffic is now more prevalent for mobile TV,

Desktop TV, Cable TV and HDTV watchers. And as more of the world’s populations go

online for entertainment, pressure on internet access infrastructure builds across the world

compelling a phenomenal worldwide shift towards high-capacity broadband networks.

Greater bandwidth capability has become absolutely essential in order to prevent the

networks from becoming congested with this traffic.

Effective broadband infrastructure and distribution networks make this kind of growth

possible, and aside from the impressive revenue that is being realized through the

traditional global entertainment industry, broadband is permitting an enhanced revenue

model for both the established and emerging small artists, and the media advertising

agencies spreading their products and services across it.

2.2.8 Impact of Information Technology on Manufacturing Sector

The world of manufacturing has reached a turning point because of the influence and

impact of Information Technology (IT). Some refer to it as the “New Manufacturing Era”

(Panchak Conquering a World of Change, 1998). Manufacturers must compete in the

global market to be successful today this trend is going to continue. Manufacturing

executives see their role more broadly as creators of value and wealth. The manufacturing

industry is changing to make profits for the company, employees, and the stockholders.

After a decade of downsizing and restructuring, most countries businesses have cut about

all the costs they can (Cohan, 1997). Business owners have come to the conclusion that

long term health will depend on growth achieved through competition. The Key is

innovation companies who excel in innovation can achieve remarkable growth and

profits.

The Old-manufacturing environment consisted of producing a product on an assembly

line for customers the countries. The focus was to build as much as possible in order to

achieve economies of scale to lower costs (Verespej, 1998). Worker-manager relationships

were simple that is managers gave the orders and workers did the work. In not a too

distant past, workers were given full time status of 40 hour per week with overtime

possible, were given benefits (e.g., vacation, holidays, medical insurance, etc.), cost of

living adjustments, and even retirement. Workers expected lifetime job security and got it.

Assembly line manufacturing was prevalent. Goods were produced as they headed down

the assembly line, as in automobile production and other productions. Workers were

generally unskilled and performed repetitive tasks.

The New-manufacturing environment consists of combining technological advances

with strategic management insight to reach a company’s goals and potential. One must

look at the fundamental changes in the workforce. Technology is leading Management to a

decentralized/ flatter organizational structure (Laudon, 2000). Middle management has

been reduced and workers have been empowered to resolve issues themselves. Managers

now identify needed skills and provide workers with the resources to solve problems

rather than give orders. This is the era of the Integrated Product Team (IPT). People

worked in groups with a project leader that may become a team member of another in the

future. Workers in a manufacturing plant manage the production process and decide the

most efficient way to get the job done.

Suppliers are part of the manufacturing process employees, managers, suppliers, and

customers work as a team. Alliances are unfolding customers and suppliers are working

side by side in the same office or manufacturing plant; also, temporary employees are

given as much responsibilities as full-time employees. People are more skilled today than

in the past. Nearly two-thirds of the workplace jobs that were created require education

beyond high school and be tied to the use of Information Technology (IT) (Verespej,

1998). Management is aware that reducing costs is a benefit of IT.

Company’s goals are to automate tasks where appropriate. Companies can control their

inventory and production. Chrysler has used IT to implement Just-In-Time (JIT)

manufacturing and lean production to reduce costs (Lucas 1997). Boeing Company also

claims to have reduced costs as well as improve quality. The new Boeing 777 Airliner

Company was the first “paperless airplane” designed using sophisticated computer aided

design programs (Lucas, 1997). Companies have to move quickly to compete because

with information technology it takes only days to gain or lose a competitive advantage.

Manufacturing information systems today support the production/ operation functions of

companies. Production/operation functions include the activities concerned with planning

and control of the processes used in producing goods and services. Computers are at the

root of these processes. Computer-based manufacturing information systems use several

major techniques to support Computer Integrated Manufacturing (CIM). Computer-

Integrated Manufacturing is an overall process that stresses the goals of computer use for

factory automation and must include the following (O’Brien, 1997):

• Simplify/reengineer production processes, product designs, and factory automation.

• Automate production processes and the business functions with computers and robots.

• Integrate all production and support process using computers and the

telecommunications network.

Engineers use Computer-Aided Engineering (CAE) and Computer- Aided Design (CAD)

systems to help design products. Product designs can be modeled, analyzed, and designed/

drafted using graphical software in 2- dimensional or 3-dimensional views. These types of

systems are frequently responsible for determining standards for product quality (i.e.,

quality assurance).

Additionally, a bill of materials can be a final product of the design process. Furthermore,

Research and Development (R&D) time has been greatly reduced over a laborious non

computerized process. To improve manufacturing processes, Manufacturing Engineers

(MEs) use computerized systems such as Computer-Aided Process Planning (CAPP).

Computers are also used to identify and plan the material requirements needed to produce

a product. This is referred to as Material Requirements Planning (MRP). Integrating MRP

with production schedules and shop floor control functions is referred to as Manufacturing

Resource Planning (MRPII). To aid in the manufacturing of products, Computer-Aided

Manufacturing (CAM) is employed. Computers and robotics are used to fabricate

assemble and package products. Monitoring and controlling production process in a

factory (shop floor control) is accomplished by directly controlling a physical process

(process control), a machine tool (machine control/numerical control), or a machine with

humanistic capabilities (robots).

Artificial Intelligence (AI) may someday have a large impact on the manufacturing sector

(Miller, 1985). AI enables information integration for decision making from conceptual

design, engineering, planning, scheduling, fabrication, testing, shipping, and customer

service (Meyer, 1987). Other AI topics include: Expert Systems, Artificial Vision, Natural

Voice Recognition, and Voice Recognition. Benefits of CIM systems include:

• Increased efficiency through work simplification and automation.

• Improved utilization of production facilities.

• Reduced investment in production inventories using Just-In-Time practices.

• Improved customer service.

These are just some of the ways information technology is be used in the manufacturing

process. With the introduction of the Internet and the World Wide Web, companies have

access to a global market place. The Telecommunications industry is providing a way to

access this technology. The manufacturing industry uses IT to enhance their competitive

edge and more effectively compete in the global market. According to trading economic

market forecast on Nigeria Economics, Nigeria manufacturing industries use IT to

enhance their competitive edges and effective production. According to the forecast,

manufacturing production actual forecast 0.40% December 2015, manufacturing

production increase in 1st quarter 2.3% (2017) and 6.67% (2020).(tradingeconomics.com)

2.3.9 Economic Benefits of Broadband Technology

The economic benefits of investing in broadband are considerable and far reaching. It is

widely accepted that an increase in broadband penetration has positive impact on GDP

growth. A 2009 World Bank study suggests that a 10% increase in broadband penetration

yields an additional 1.38% increase in GDP growth for low to middle income countries

(see chart below)

Figure 2.1 Growth Effect of Information Communication Technology

Sources: Quiag et al,(2009)-World Bank

In the first half of 2013, the FMCT ran a test pilot for a ‘micro-work’ program that gave

3500 otherwise unemployed youths access to freelance crowd sourcing via the internet. In

just two months the pilot reported over $121,163 USD of revenue earned by just over

2000 active registrants serving 42 clients globally. The exercise was a resounding success

showing that access to broadband contributes to job creation and economic growth by

improving productivity and accelerating innovation.

A study by the international Economic Council highlights the immediate tangible benefits

of broadband technology as a major community engagement and revival tool, (Craig

Settles, October 2012) listing below:

i. Attracting new business.

ii. Reviving Business districts

iii. Helping Local Companies grow in reach.

iv. Reviving communities.

v. Helping home business grow.

vi. Booting worker training and e-learning by

∙ Improving job skill and professional development

Helping to transition into a new industry or professional

Making job searching easier

2.3.10 Benefits of Information Technology

We live in a global village where ICT has a direct impact on a Nation’s ability to

improve the economic wellbeing of her people and compete globally. Broadband is an

essential infrastructure of the 21st Century. It enables access to business and job

opportunities, improves healthcare, education and government services, and facilitates

social interactions. Broadband is to the 21st Century Information Age what Electricity was

to the Industrial Age. It has a significant transformative effect on how people live and

work. It empowers the individual user with previously unimaginable capabilities and

global reach.

The Internet is the world’s largest repository of information and knowledge and High

Speed Access is critical to fully harnessing the benefits of the Internet. In 2010, the

internet accounted for US$1,672 billion of the global economy, or an average of 2.9

percent of the total GDP. The contribution from developing or aspiring countries was

small only US$366 billion.(This Countries). Of this amount the BRIC countries (Brazil,

Russia, India, and China) were responsible for US$234 billion, almost two thirds of the

total, while the African countries continent’s share was only US$18 billion.

However, many benefits of ICTs are not accruing to lower-income population because

access and adoption are low. Five policies by actions are recommended to close the access

and adoption gap to increase the positive benefit of ICTs to group at the base of the

economic pyramid:

i. Focus public resources and incentives for building broadband internet access out to

rural and underserved communities.

ii. Connect schools and libraries to broadband internet service and ensure wider

spread connectivity within schools.

iii. Remove excess taxation on devices and access and consider targeted subsides for

certain population.

iv. Develop robust ICT training curricula and programs.

v. Focus on closing the gender gap in ICTs.

2.3.11 Impact of Information Technology on the Socioeconomic

Information technology has created economic opportunities and foster social and

political inclusion, ultimately contributing to shared prosperity. The socioeconomic

benefits brought about by ICTs are precisely what the Impact sub index of the NRI aims to

measure. Information technologies hold the potential for transforming our economies

through multiple channels. They boost productivity and reduce transaction and

information costs. They allow new models of collaboration that increase workers’

efficiency and flexibility for better work life balance. ICTs foster entrepreneurship and

create new business models.

The past two decades have witnessed the emergence of startups that have disrupted

entire industries or created entirely new ones. Some of these startups have since become

corporate giants that are transforming our world. Startup incubators now exist in most

major countries and provide affordable training, mentorship, and resources to those who

wish to start a business. Associated with 3D printing and other technologies, user-friendly,

open-source software and in expensive hardware are contributing to the spread of digital

manufacturing among aspiring entrepreneurs, especially among the youth.

Through crowd funding and equity-crowd funding platforms, ICTs also provide

alternative sources of credit for individuals and entrepreneurs who do not have access to

traditional sources of funding, or even for more established businesses that need to finance

their operations. Online marketplaces, such as Lending Club, allow borrowers and lenders

to connect directly online, while big data makes it possible to compute a credit score for

virtually every human being. ICTs offer significant social benefits, notably by enabling

access to basic services, including financial services and education. Perhaps one of the

best examples of how the mobile revolution is changing financial services is M-PESA, the

mobile-based money transfer system that was launched in Kenya and Tanzania and is now

spreading to the rest of the developing world. In the education arena, the proliferation of

massive online open courses (MOOCS) allows people around the world to upgrade their

skills, train, or re-train more frequently, more flexibly, and more cheaply than through

traditional channels.

Technology is also allowing for a more direct interaction between populations and

governments. Improved government online presence can significantly increase the

efficiency of public administration. The Internet provides new ways for citizens to

participate in the policy and decision-making processes, especially for those whose voice

is usually further from the boardrooms. Open-data initiatives and stronger commitments

by governments to making information available online improve transparency,

governance, and accountability, because citizens and civil society can now monitor more

closely the conduct of civil servants. Most governments have responded more or less

promptly to demand for e-participation and have enhanced the provision of e-information,

the launch of e-consultation initiatives, and the use of e-decision-making. As a result, we

observe significant improvement by most countries in the latest edition of the E-

participation Index compiled by UNPAN.

Widespread ICT use by businesses, government, and the population at large is a pre-

condition for all these benefits and opportunities to materialize, as confirmed by the NRI

results. Reveals the nearly perfect relationship between the Usage and Impact sub-indexes

a linear regression of the latter on the former yields a coefficient of determination. ICTs

will both contribute to ushering in the data revolution and benefit from it. ICTs in all their

forms, such as mobile phones, the Internet of things, satellite imagery and sensors are

revolutionizing the way data are being collected.

Solow paradox in 1987, Nobel Prize winning economist Robert Solow noted, “You can

see the computer age everywhere but in the productivity statistics. Four main mechanisms

dictate the process by which ICTs contribute to macroeconomics growth by affecting

inputs to GDP growth (Jalava and Pohjola 2002;OECD 2003:

i. IT contribute to GDP directly through the production of ICT goods and service as

well as well through continuous advance in ICT producing sectors.

ii. ICTs contribute to total factor productivity growth through the reorganization of

the ways good and service are created and distributed.

iii. ICTs industries generate positive employment effects.

iv. Increasing application of ICT (capital deepening leads to rising labor force).

v. Promoting fair competition and efficient market conduct among all players in the

industry.

2.3.12 The Global Information Report 2015 edition (Networked readiness Index)

As a general-purpose technology, the impact of information and communication

technologies or ICTs extends well beyond productivity gains. As shown in this Report,

ICTs act as a vector of social development and transformation by improving access to

basic services, enhancing connectivity, and creating employment opportunities. Since

2001, The Global Information Technology Report series published by the World

Economic Forum in partnership with Cornell University and INSEAD has measured the

drivers of the ICT revolution using the Networked Readiness Index. For each of the 143

economies covered, it allows areas of priority to be identified to more fully leverage ICTs

for development.

Table 2.3

The networked readiness index 2015 ten top Country

Ran

k

Country/

Economy

Value 2014

(out of

148)

Income level Group

1 Singapore 6.0 2 Hi-OECD ADV

2 Finland 6.0 1 Hi-OECD ADV

3 Sweden 5.8 3 HI-OECD ADV

4 Netherlands 5.8 4 Hi-OECD ADV

5 Norway 5.8 5 Hi-OECD ADV

6 Switzerland 5.7 6 Hi-OECD ADV

7 United State 5.6 7 Hi-OECD ADV

8 United

Kingdom

5.6 9 Hi-OECD ADV

9 Luxembourg 5.6 11 Hi-OECD ADV

10 Japan 5.6 16 Hi-OECD ADV

119 Nigeria 3.2 112 LM SSA

Source: The Networked Reading Index 2015

Note: Income level classification follows the World Bank Classification by income

(situation as of July 2014). Group classification follows the international Monetary

Fund’s classification (situation as of October 2014). Income group: Hi=high-income

economies that are member of the; Hi-OECD=high-income OECD member.

UM=upper-middle-income economies, LM=lower-middle-income economies; LI=low-

income economies; Group: ADV=Advance economies; SSA=Sub-Saharan Africa.

From the table, Singapore, the government is leading the ICT revolution with a clear

digital strategy and one of the world’s best offerings in terms of online services and e-

participation tools, behind only the United Arab Emirates, in the indicator measuring the

impact ICTs are having on government efficiency. Singapore offers the most conducive

business and innovation environment worldwide and ranks 2nd for the quality of its

regulatory framework. Singapore boasts the highest penetration of mobile broadband

subscriptions per capita in the world.

From the table, Finland its education system is outstanding and its workforce highly

skilled, the country boasts an excellent political and business environment and top-level

infrastructure. Sweden, as of 2013, some 95 percent of individuals used the Internet. This

allows ICTs to have a large impact on both the economy and society. Swedish companies

are highly innovative in creating new products and services and are leaders in patenting

ICT-related technology. Almost half of the Swedish workforce is employed in knowledge-

intensive jobs. ICTs also improve access to basic services and government efficiency.

From the table, Nigeria is not rank among the best 10. The divide among the best and

worst performing countries runs the deepest in terms of infrastructure, affordability, and

individual usage.

Table 2.4

Table show the networked readiness index 2015 ranking Nigeria among the various

pillars of ICT competitiveness.

Ranking Values

Impact of ICTs on new service and product 71 -4.3

Impact of ICTs on New organization models 88 3.9

Impact of ICTs on access to basic services 123 3.2

Internet access in school 111 -3.4

ICT use and government efficiency 119 -3.3

Firm level technology absorption 91 4.3

Mobile Broadband absorption 98 10.1

Fixed broad internet subscription 140 -0.0

House with internet access 119 -8.4

Internet Users 87 38.0

Internet & Telephony sectors competition index 43 2.0

Fixed broadband internet tariffs 118 74.7

Secure internet servers 119 1.7

International internet bandwidth 130 3.4

Government procurement of advanced technology

product

108 3.0

ICTs use for business to transaction 88 3.0

Importance of ICTs to government vision of the

future

90 -3.6

Government success in ICT promotion 71 -4.2

Source: report.weforum.org/global-information-technology_report-2015/network

From the table above, NRI ranking base ICT competitiveness on ten pillars, from the

pillars, researcher chooses areas of ICT which consigned on research topic, the Nigeria

position or ranking from 143 countries in world according to global information report.

From the table, Internet access in school, position 111 and values -3.4, this show that there

are NO internet access in most governments and privates primary and secondary schools

in the in Nigeria’s.

From the table, House with internet access position 119 and values -8.4, this show that

that government do not provide internet access to most households in the country compare

to Norway country 95 percent of household are equipped with computer with free access

to the internet. Government success in ICT promotion position 71 and values -4.2, this

show that, Federal and State government do not promote the use of ICT in the country

compare to Netherland one of most conductive business and innovation environment in

the World. It’s is well-developed infrastructure and highly skilled workforce allow for

very high levels of ICT uptake.

According to global information technology report 2015, Nigeria improves by three

places to 124th. Last year’s revision of GDP is reflected in an increase in market size (up

by eight places to 25th), lower government deficit and debt, and decreased national

savings. Improvements in property rights, the efficiency of the legal framework to settle

and challenge disputes, and the accountability of the private sector lift the country’s

institutions up by five places, albeit remaining low overall (124th). The picture is mixed

on efficiency of the goods market (100th), where a less competitive domestic environment

outweighs improvements to encourage foreign competition; the financial market (79th),

where banks are rated as relatively sound but access to finance remains problematic; and

the labor market, which is one of the region’s most flexible (18th) but is dragged down by

an inefficient use of talent (68th) and a comparatively low female participation rate (87th).

Priorities include investment in infrastructure (ranking 133rd and singled out as the most

problematic factor for doing business) and human capital, where poor health in the

workforce (134th) and inefficient higher education (128th) holds the country back from

fulfilling its potential. Nigeria indicator are follows Population 169.3, GDP (US$ billion

286.5, GDP per capital (US$ 1692.26), GDP (PPP) as share (%) of world total 0.55.

Table 2.5 ITU mobile broadband prepaid handset price (500MB) as % of GNI P.C

2012

Reflection the high cost of broadband in the country in 2013 Nigeria was ranked 142 nd out

169 countries by international Telecommunication Union (ITU) for the affordability of the

fixed broadband connection and 99th out 126 countries for a prepared 500mb mobile

broadband connection.

Country ITU mobile broadband prepaid

Handset (500MB Rank)

ITU mobile broadband prepaid

Handset prices 500MB as % of GNI

P.C 2012

Austria 1 0.1

India 67 2.9

Colombia 85 5.8

Kenya 93 8.2

Ghana 96 9

Tanzania 98 11.3

Nigeria 99 13

Uganda 112 23.3

Mozambiqu

e

121 65.9

Source: ITU mobile broadband

From the table, Nigerian is paying more on traffic on broadband than other countries. In

ITU mobiles broadband prepaid on handset prices (500Mb), Nigerian 13% compare to

Austria 0.1% even Africa country like Ghana 9%, Kenya 8.2%. These show that Nigerian

Telecommunication industries are charging higher traffic for Nigerian.

Table 2.6 Difference in the Speed of Internet adoption across Countries (Nigeria)

Speed of diffusion of mobile telephony and the internet by income group

Mobile telephone subscription per 100 inhabitants’ individual using internet (%) Threshold

40 80 120 20 40 60

Share(%)

Time(yrs)

Share(%)

Time(yrs)

Share(%)

Times(yrs)

Share(%)

Times(yrs)

Share(%)

Times(yrs)

Share(%)

Times(yrs)

High income: OECD

100 7.0 100 10.5 56 17.0 100 6.0 100 9.0 94 12.0

High income: non -OECD

100 9.0 97 12.0 65 15.0 97 7.0 97 11.5 87 15.0

Upper-middle income

98 7.0 92 11.0 45 13.0 88 10.0 63 13.5 15 14.0

Lower-middle income

93 8.0 59 10.5 25 11.0 51 11.0 19 13.0 0 _

Low income

72 8.0 19 10.0 6 11.0 4 10.0 0 _ 0 _

Source: Author calculation based on ITU 2015

Share of economics in that income group having reached this threshold. Median

number of years it took to reach this threshold.

Note: The table shows difference in the speed of internet adoption across countries for six

years, the mobile subscription and individual using the internet.

From table above, the countries six years on average for high-income OECD countries to

attain 20 percent penetration. (Diga 2013) In contrast, only half of lower-middle countries

have reaches this mark and it took those almost twice as much time. Furthermore, while 90

percent of high-income countries have exceeded the 60 percent threshold, only 15 percent

of upper-middle income countries and not a single lower-middle-income country have

reached this mark yet. In low-income countries, internet penetration has been growing at

double digit rates, but from a very low base and growth has been slowing lately.

Nigeria is one of the low-income countries where internet penetration is rapid increase

but their no positive affect to economy growth. Kenya internet penetration (39 percent in

2002 and today five times the low-income countries) have created Kenya internet

exchange rate, which led to a dramatic fall in providers operating cost and retail prices and

increased in local content.

The Internet clearly has great potential to foster further economic growth in many

developing countries. Research by the World Bank in 2009 found that for every 10

percentage-point increase in the number of high-speed Internet connections in developing

countries, there was an increase of 1.3 percentage points in economic growth.(World

Bank2009). From 2004 to 2009, for example, it is estimated that the Internet contributed

10 percent or more to total GDP growth in Brazil, China, and India and its impact in those

countries has accelerated.(Mckinsey Global Institute 2011)

The study believes that the Internet could transform agriculture, retail, healthcare, and

other sectors in Africa and estimates that these transformed sectors will contribute up to

US$300 billion of the continent’s annual GDP by 2025 (an enormous leap up from the

US$18 billion generated in 2010). (Mckinsey2013). To enable this growth, Internet

penetration in developing markets must continue to expand. Of the approximately 7.1

billion people worldwide, there are still 4.2 billion non-Internet users, mainly in

developing markets. Various forecasts estimate that at the current trajectory, 500 million

to 900 million more individuals will gain access to the Internet by 2017.

2.3.13 Mckinsey Report Identifies Five Factors that have been Keys to Internet

Growth:

1. Expanding mobile network coverage and increasing mobile Internet adoption: In

the early days of the Internet, access was established over fixed-line networks. It was the

mobile network often the only means of accessing the Internet in developing countries that

facilitated the explosion in the number of subscribers worldwide. Mobile Internet

connections rose from around 200million in 2008 to 2.2 billion by 2013.(ITU 2013).

Looking ahead, mobile networks are expected to continue to be prevalent, but fixed-line

networks will also be extended. Many countries plan to build nationwide fiber networks to

enable higher-speed Internet access. Both technologies will be complemented by public

and private Wi-Fi networks. In addition, developing markets will because they do not have

to upgrade or dismantle old, expensive legacy networks such as fixed copper networks be

able to leapfrog into and benefit from new, cheaper, and more efficient transformational

technologies such as mobile Internet, the Internet of Things, and the cloud, and will be

able to power them with renewable energy.

2. Shrinking device and data plan prices: Internet services tend to become more

affordable over time. Their cost has fallen at the same time as incomes have increased in

many locations. Take mobile phones when introduced, only the privileged could afford

them, but prices have fallen sharply in the course of three decades. Between 2012 and

2013 alone, the average price of a smartphone fell by nearly 13 percent worldwide, to

US$337. The price for mobile data plans has dropped at a similar pace. Fixed-line

broadband service prices are also shrinking, but the drop is slower and they remain higher

than mobile data plan prices in most countries.

3. Urbanization: From 1950 to 2011 the world’s urban population increased fivefold,

from approximately 750 million to 3.6 billion. More than half of the total population

worldwide now lives in urban areas. Proportions vary between regions: Africa and Asia

are on the lower end of the spectrum, with urban dwellers representing, respectively, 40

percent and 45 percent of their total populations.(CNNIC 2014). Not surprisingly, there is

a high correlation between urbanization and Internet penetration, since both basic

infrastructure (electricity, water, transportation) and Internet network coverage are often

better in urban areas. Disposable incomes and education levels also tend to be higher in

cities, factors that correlate with higher Internet penetration.

4. Growing middle class: The middle class, with its rising disposable income, has grown

globally but especially in developing markets, where it expanded to encompass 25 percent

of the total population in 2009 from 5 percent in 2005. Spending by the middle class

worldwide reached more than US$21 trillion in 2009. As affordability of the Internet has

increased, it has promoted further Internet uptake.

5. Increasing utility of the Internet: Although Internet uptake is slower in developing

markets than in developed ones, it is nonetheless beginning to transform society there. An

increasing number of services with content specific to local circumstance are emerging,

and in some respects these markets are ahead of their developed counterparts, particularly

when the Internet is accessed through mobile devices. In financial services, for example,

Internet remittances were pioneered in Africa. Some green technologies, m-learning, and

m-health services have also been tried for the first time in developing markets. The more

affordable Internet access becomes and the more ICT-literate the population is, the greater

the incentive for companies to offer services to these new target groups. All five of these

trends are expected in themselves and in correlation with one another to continue to

expand the reach and uptake of the Internet. But there is reason to believe they will not

extend it far enough.

2.3.14 The Emerging Technology Areas and Growth Opportunity in Nigeria

Table 2.7 The Emerging Technology Areas and Growth Opportunities in Nigeria

Mobile financial

inclusion and

services

The ability to send, save and receives money easily is at the core of

the global economy. However, 2.5 billion people half the world’s

adult population remains unbanked.

Identity The issue of national identification number for all Nigeria, voted

card as the mean of identification, a social and voice, access to

essential services, authentication, privacy, security and advertising

and increasing linked.

Transportation and

delivery

Accessible and affordable public transport service and safe

infrastructures. Bus transportation now use e-register and e-payment

for their customer’s tickets, for non-motorized transport such as

cycling and walking are lacking in most developing countries in

both urban and rural setting.

Learning Open distance learning in some University in Nigerian, the

worldwide market for e-learning may reach US$51.5 billion by

2016. How might we create a business model that is profitable and

sustainable, and bring quality learning content to learners global

Wearable

technologies

In simple terms, wearable electronics are used to make routine

things easier to perform as well as to make life more sophisticated

by offering several computing technology features in various days-

to day application. These work mainly as a result of the integration

of computing and communication devices.

Source: Researcher survey 2016

2.3.15 NIGERIA ECONOMIC INDICATORS

Leading economic indicators highlight that by the end of 2015, Nigeria may be faced with

an economic recession. This development has mostly been attributed to the lack of

decision-makers driving the country, which has caused the economy to come close to a

standstill. Nigeria recently surpassed South Africa to become Africa’s largest economy,

and the 21st largest in the world, following the release of Knoema’s World GDP Ranking

in 2015. In March 2015, Price Waterhouse Coopers forecasted the country to be among

the top 10 in the world, on the condition that Nigeria diversified its economy.

The Nigerian government owes 70 percent of its generated revenues to the sale of oil, and

oil prices fell to a worrying amount of about $40 per barrel May 2016. The Central Bank

of Nigeria is finding it difficult to support the economy due to issues arising from

exceeding money borrowing and lending limits, and its struggle with macro stability. The

country’s current negative per capita growth also sheds more light on its economic

situation.

Table 2.8 NIGERIA ECONOMIC INDICATORS

OVERVIEWS LAST REFERENCE

MONTHY/YEAR

PERIOD

GDP Growth Rate -13.7% March /16 Quarterly

Unemployment Rate 12.1% March/ 16 Quarterly

Inflation Rate 15.6% May /16 Monthly

Interest Rate 12% May /16 Daily

Balance of trade 171,310NGN millions March /16 Monthly

GDP 569 USD Billion December/14 Yearly

Stock Market 29287 point June/16 Daily

GDP per capital Income 1092 USD December/14 Yearly

GDP From Agriculture 3,274,725NGN Million March/16 Quarterly

GDP From Manufacturing 1,522,488NGN Million March/16 Quarterly

GDP from Mining 1391092 NGN Million March/16 Quarterly

Export 282,025NGN Million March/16 Quarterly

Import 453,334NGN Million March/16 Quarterly

Foreign Direct Investment 502 USD Million December/15 Quarterly

Capital Flow -1126 USD million December/15 Quarterly

Crude Oil Production 1506 BBL/D/1K March/16 Quarterly

Business Confidence -12.3 June/16 Quarterly

Industrial Production 15% December/15 Quarterly

Manufacturing Production 0.4% December/15 Quarterly

Government Revenues 747 NGN December/15 Monthly

Government Budget value -146 NGN Billion September/15 Yearly

Government Spending 1483 NGN Billion December/15 Yearly

Corruption Index 26 point December/15 Yearly

Corruption Rank 136 position December/15 Yearly

Corporate Tax Rate 30% December/15 Yearly

Personal Income Tax 24% December/15 Yearly

Sale Tax Rate 5% December/15 Yearly

Source:www.tradingeconomics.com/Nigeria

These tables show the economic indicators of different sectors of economy of Nigeria.

Government revenues in Nigeria decreased to 746.99 NGN Billion in the fourth quarter of

2015 from 994.02 NGN Billion in the third quarter of 2015. Government Revenue in

Nigeria averaged 813.01 NGN Billion from 2010 until 2015, reaching a time high of

1091.75 NGN Billion in the third quarter of 2011 and a record low of 498.54 NGN Billion

in the second quarter of 2015. Government Revenues in Nigeria is reported by the Central

Bank of Nigeria.

Figure 2.2 Nigeria Government Revenues

GDP Growth Rate in Nigeria went down to -13.7 percent in Q1 2016 from 3.1 percent in

Q4 2015. China GDP Growth Rate declined to 1.1 percent in Q1 2016 from 1.8 percent in

Q3 2015. Unemployment rate in Nigeria went up to 12.1 percent in Q1 2016 from 10.4

percent in Q4 2015. China unemployment rate declined to 4.04 percent in Q1 2016 from

4.05 percent in Q4 2015.

2.9 Compares between Nigeria and China in GDP and Employment

NIGERIA LASTEST REFERENCE

Unemployment Rate 12.1 1st Quarter 2016

GDP Growth -13.7 1st Quarter 2016

CHINA LASTEST REFERENCE

Unemployment 4.04 1st Quarter 2016

GDP Growth Rate 1.1 1st Quarter 2016

Source:www.tradingeconomics.com/Nigeria

2.3.16 China Imports from Nigeria Data Forecast

Imports from Nigeria in China increased to 142980 USD in December from 56656 USD

in November of 2015. Imports from Nigeria in China averaged 147380.29 USD from 2014

until 2015, reaching an all-time high of 424013 USD in May of 2014 and a record low of

46346 USD in October of 2015. An import from Nigeria in China is reported by the

National Bureau of Statistics, China.

Figure: 2.3 China Import from Nigeria 2015 Chart

2.3.17 Nigeria Exports Data Forecasts

Exports from Nigeria dropped by 65 percent year-on-year to NGN 282 million in March

2015. Exports in Nigeria averaged 365390.38 NGN Millions from 1981 until 2015,

reaching an all time high of 2648881.76 NGN Millions in December of 2011 and a record

low of 322.93 NGN Millions in February of 1983. Exports in Nigeria is reported by the

National Bureau of Statistics, Nigeria.

Exports of commodities (oil and natural gas) is the main factor behind Nigeria's growth

and accounts for more than 91% of total exports. In 2014, 43% of total sales went to

Europe; 29% to Asia; 13% to America and 12% was last updated on July of 2016. Actual

export 282024.60 million (NGN), Prevous export 695624.40 million(NGN), Hightest

export 2648881.76 million (NGN), and Lowest export 322.93 million (NGN).

Figure: 2.4 Nigeria Export Chart

From the chart shows that oil and gas contributed 91% of the exporting, when other

sectors contributed 9% of the exporting. Oil and gas that contributed major highest

percentage is shifting down, more support and attention focus on other sectors of the

economy.

2.3.18 Nigeria Manufacturing Production

Manufacturing Production in Nigeria increased 1.70 percent in March of 2016 over the

same month in the previous year. Manufacturing Production in Nigeria averaged 7.66

percent from 2007 until 2016, reaching an all-time high of 24.60 percent in the fourth

quarter of 2013 and a record low of -3.80 percent in the second quarter of 2015.

Manufacturing Production in Nigeria is reported by the Central Bank of Nigeria. Actual

data manufacturing 1.7%, previous 0.40%, Highest 24.60%, Lowest -3.80%.

Figure: 2.5 Nigeria Manufacturing Production Chart

From the chart, the manufacturing company data shows that, most of Nigeria

Manufacturing isn’t producing or most manufacturing company was closing down their

company. However there is improvement in the 1st quarter of 2016 1.7% compare to 22.6

July 2013.

2.3.19 Nigeria Foreign Direct Investment

Foreign Direct Investment in Nigeria increased by 887.32 USD Million in the first

quarter of 2016. Foreign Direct Investment in Nigeria averaged 1366.45 USD Million

from 2007 until 2016, reaching an all-time high of 3084.90 USD Million in the fourth

quarter of 2012 and a record low of 501.83 USD Million in the fourth quarter of 2015.

Foreign Direct Investment in Nigeria is reported by the Central Bank of Nigeria. Foreign

Direct Investment Actual 887.32 million (USD), Previous 501.83 million (USD), highest

3084.90 million (USD), Lowest 501.83 million (USD).

Figure 2.6 Nigeria Foreign Investment Chart

From the chart show that foreign investors didn’t have confidents in Nigeria economy.

Investors are losing their investment and their no way out than to remove all their

investment from Nigeria economy. However, there is improvement in 1st quarter 2016

compare to 1943.4 million (USD) in July 2013.

2.3.20 National Information and Communication Technology (ICT) Policy 2012

This National ICT policy aims to produce a framework that will enhance the ability of

the ICT sector to propel the socio-economic development which is critical to Nigeria’s

vision of becoming a top 20 economy by the year 2020.

I. Policy and strategies on ICT Infrastructure

i. Encourage the upgrading and expansion of ICT infrastructure;

ii. Support the accelerated deployment of fiber optic and wireless backbone

infrastructure that ensures high bandwidth availability, and universal access

throughout the country;

iii. Encourage the development and interconnection of all National Databases;

iv. Coordinate the integration of national e-Government network infrastructure and

services;

v. Ensure appropriate security for ICT infrastructure nationwide;

vi. Advocate the acceleration of the ongoing power sector reforms which are critical

to the development of the ICT industry.

II. Policy and Strategies on Local Content in Software and Hardware

Development

i. Encourage indigenous software developers to meet international standards;

ii. Provide incentives and initiatives that will significantly increase the number of

Software developers within the next five years;

iii. Build a strong interface between the software industry, academia and also the

Business world to improve relevance of the end product;

v. Encourage the establishment and expansion of domestic capacity to produce

hardware for the ICT sector.

v. Encourage the local design and manufacture of ICT hardware that conforms

to global standards.

vi Promote the diffusion of ICT knowledge for optimal use of hardware.

III. Policy and Strategies in Research, Development and Innovation

i. Promote collaborative R&D in ICT and encourage stakeholders to support

such efforts in relevant institutions;

ii. Identify R&D focus areas with the involvement of Industry, Academia and

Research institutions by 2013;

iii. Set, review, and implement guidelines for ICT research and development

initiatives;

iv. Ensure development of national ICT standards, as well as contribute to global

standards;

v. Encourage collaborative ICT R&D in hardware and software as well as high-

end computing and socio-economic issues.

2.3.21 Challenges Facing the ICT Growth in Nigeria as Follows:

i. Taxation: Multiple Taxes

It has been suggested that revenue generation has in many cases been the primary

purpose of some public authorities in getting involved in exercising regulatory interest

in the technology industries; thus making technology companies prime targets for

revenue generation and imposition of all kinds of taxes and levies on technology

infrastructure build. Some make deliberate unsubstantiated claims about supposed

health hazards of technology infrastructure only to demand taxes and levies without

proffering any remedial or palliative measures for their claims.

Illegal taxation happens when some public authorities and even private individuals

demand payments, taxes or levies that are not backed by any law and resort to

threatening and oftentimes vandalizing infrastructure in order to compel operators to

make payments.

ii. Unsecure Infrastructures of Technology Industries:

Vandalism, bombing and outright economic sabotage of technology

infrastructure has become a frequent occurrence in the Nigerian ICT sector.

Some operators have reported more than 70 cuts on their respective nationwide

fibre networks on a monthly basis. This is generally caused by theft, willful

damage, or accidental disruption due to road construction or expansion. Often,

the phenomenon is accompanied by widespread service downtime and

economic losses due to unearned revenues not only by the technology firm’s

operators, but also by the vast community of Nigerian business people who use

these networks to conduct their businesses. One operator has reported it spends

about U$D90 million annually to repair technology infrastructures.

iii. Threat of Cyber-Attacks:

Threats of Cyber-attacks and Physical (vandalism, sabotage and theft) attacks

are two broad categories of threats that could adversely affect the nation’s

critical ICT infrastructure. In many countries, legislations have not kept pace

with developments in the cyber world, and legal interpretations of certain

online phenomenon in a borderless global context such as the cyberspace are

not entirely clear.

For instance, in a situation where websites are accessible virtually to anyone

anywhere in the world, it is often difficult to predict where cyber threats can

come from. Businesses and national security infrastructure have been targets of

cyber-attacks from overseas countries where perpetrators are beyond the reach

of conventional national laws. International cooperation is therefore necessary

in fighting cyber threats and attacks. Without a cutting-edge cyber security and

cybercrime law, the traditional legal concept of jurisdiction and arrest warrant

may be difficult to enforce due to the cross-border and transnational character

of the internet. Conventional national laws are increasingly proving inadequate

to address the legal challenges emanating from the cyberspace.

The government shall therefore enact a comprehensive Cyber security Law to

address the liability and criminal risks that may originate from fraudulent and

inappropriate use of internet infrastructure such as cyber-fraud, cyber-intrusion,

cyber-attacks, cyber-bullying, spam, privacy violation, copyright infringement,

online defamation and other forms of cybercrime.

iv. Security of ICT staff:

Security of outdoor technology infrastructure and safety of technical field

staff have become part of the avoidable burdens that have befallen technology

operators in the country. Such phenomenon is among the factors hampering the

deployment and operations of technology infrastructures around the country.

Certain ICT Infrastructure is critical to the National Interest and shall be

protected.

END NOTES:

1. National Population Commission, Aug 2012, BusinessDay Online.

2. Source: NCC Subsriber data, Feb 2013, www.ncc.gov.ng.

3. Source: Federal Ministry of Communication Technology.

4. Source : Information and Communication for Development 2009.

5. At the Demo-Africa 2012 event in Nairobi, Kenya, Mlouma a Senegalese web and

mobile business service that allows farmers and agribusinesses to buy or sell

agricultural products in real time was demonstrated. It connects African vendors

and suppliers via its dedicated platform to farmers in their agricultural and rural

zones. Their mission is to connect and provide reliable agricultural information to

farmers and agribusiness in real time. http://www.mlouma.com/index/nosservices.

6. As at March 2013, about 50,000 businesses had come online via the GNBO

programme.

7. Troy Wolverton, 2001.

8. http://www.invesp.com/blog/ecommerce/how-big-is-ecommerce-industry.html

9. Howley et al, Broadband and Rural Education: An examination of the challenges,

opportunities and support structures that impact broadband and rural education,

2012,ICFInternationalhttp://www.academia.edu/1778808/Broadband_and_Rural_E

ducation_An_Examination_of_the_Challenges_Opportunities_and_Support_Struct

ures_that_Impact_Broadband_and_Rural_Education.

10. http://www.who.int/workforcealliance/documents/Global_Health%20FINAL

%20REPORT.pdf.

11. Source, BUSINESSDAY, Thursday, October 25, 2012, coverpage – Nollywood

ranks third, earns U$D800 million, written by Funke Osae-Brown

12. South Korean PSY’s Gangnam Style hits 1 billion views, December 21, 2012,

Billboard.com http://www.billboard.com/news/psy-s-gangnam-style-hits-1-billion-

views-1008059552.story

13. In December 2012, iROKING part of the iRoko TV group, iRoko Partners

announced it hit 1 million music downloads in less than a year of being in

operations.

14. Moving the Needle Forward on Broadband and Economic Development, Craig

Settles, October 2012.

15. These countries included Algeria, Argentina, Brazil, Chile, China, Colombia, the

Czech Republic, Egypt, Hungary, India, Indonesia, the Islamic Republic of Iran,

Kazakhstan, Malaysia, Mexico, Morocco, Nigeria, Pakistan, the Philippines,

Poland, Romania, the Russian Federation, Saudi Arabia, South Africa, Taiwan

(China), Thailand, Turkey, Ukraine, Venezuela, and Vietnam.

16. McKinsey & Company 2014.

17. McKinsey Global Institute, McKinsey & Company in Africa, and the McKinsey

TMT Practice 2013.

18. World Bank 2009

19. McKinsey Global Institute 2011.

20. ITU 2013.

21. CNNIC 2014.

22. ICT Competitiveness in Africa, www.eTransformAfrica.org

23. www.tradingeconomics.com/nigeriaforecast.

CHAPTER THREE

METHODOLOGY

3.1 Introduction

This chapter is concerned with the general approach and method by which the various

data used for the purpose of this research work were collected. The study focus on; areas

of the study, source of the data, sampling techniques, method of data collection, method of

data analysis, and limitation of the study. Therefore, research methodology is a set of rules

and procedures upon which a research is based and against which claims for knowledge

and assumptions are evaluated for decision making.

3.2 Area of Study

According to Fabohungbe (1999) research design could be described as the blue print that

allows a research to provide solution to the problem of who to study, what to study, when

to study and how to generate data in a research situation. It is the plan for collecting and

utilizing data so that desired information can be obtained. Descriptive survey was adopted

for this research because it involves on empirical research methodology in collection of

data having to manipulate the samples to the research hypothesis. The approach was used

on the sample of the target population. The research was conducted among government

ministries (IT department), telecommunication industries, private and public firm (IT

department). The researcher focus on selected; company directors, chief executive

officers, head of operations, chief software engineers, IT administrator, head of

departments, senior staff officers, IT manager of industries, database management

managers, software operations managers and so on.

3.3 Research Methods

The methodology used in this research involves the collection of quantitative and

qualitative data from both primary and secondary sources. Selected firms and industries

provide the data needed to test the hypotheses that were formulated.

3.4 Sampling and sampling size

The purpose of sampling is to obtain external validity. Samples were obtained from

government agencies, telecommunication industries, private and public firms.

Questionnaires were administered to the company directors, chief executive officers, head

of operations, head of departments, senior staff officers, IT manager of industries,

database management managers, software operations mangers were sampled altogether for

the purpose of this research work. Subjects were sampled based on their operation level

and significance. It was through the administration of questionnaires.

3.5 Sources of Data

All relevant data were collected from the primary and secondary sources. The yardstick

used in selecting a particular source of data relied on its relevance to the research topic. In

other to carry out the study successfully, emphasis will be placed on the relation of both

primary and secondary data.

3.5.1 Primary Data

They are statistical material that are original and corresponds to the objective of the study

in the hand of the investigation for the purpose of enquiry. Examples are observation, oral

interviews, questionnaires .etc. Questionnaires were administered to the company

directors, chief executive officers, head of operations, chief software Engineers

computer, operator, head of departments, senior staff officers, IT manager of industries,

database management managers, and software operations mangers. It is designed to gather

valid and relevant information through the response of the respondent that answers the

planned sequence of questions. Questionnaire are used to obtain facts about past, present

and future events.

3.5.2 Secondary Data

In this research, the following were used for secondary data collection; website, email

service, laptop and desktop, program management software, operation system, department

website, desktop management software, local area network (LAN), wide area networks

(WLAN), data management system, Fax and telephones, File transfer protocol (FIP),

internet security application, department server, telecom services, mobile services, e-

commerce facilities, e-business facilities, hardware component, Geographic Information

System (GIS) support, network management and others.

3.6 Data Collection Instrument and Procedure

3.6.1 Interview

This is described as face to face interaction situation in which a person (the interviewer)

asks another person (the interviewee) the questions which he/she responded to orally. This

method permits the researcher to obtain directly first-hand information about a person’s

knowledge, his/his values, experience as well as their attitudes and beliefs. It is a method

that provides immediate feedback and gives the opportunity to asking question which

arises from other questions.

3.6.2 Questionnaire

These are sets of questions relating to the aims and objectives of the study to which

respondent are required to answer by writing. Questionnaires are used to obtain fact about

past, present and future events, the prevailing conditions and practice and to obtain

information on people attitudes and opinions. Thirty questionnaires were administered

and the entire thirty questionnaires were return completed.

3.7 Method of Data Analysis

Simple percentage and chi-square method were used to analyze the primary data

collected and information gather were presented in a tabular form. Through these methods,

such question would separately be analyzed, based on the answers supplied. This would be

done to foster easy and clear understanding of the work. Chi-square test was used to test

the validity of the hypotheses.

According to Asika (2011) Chi-Square test is applied in the following situation.

1. Where there are two variable drawn from independent sample.

2. Where the data are non-parametric, when the data are expressed in variable. For

instance, these can be categorized in two ways. The following hypotheses were

stated;

H1: (Alternate hypothesis): There is a positive relationship between information

technologies on diversified economy.

HO: (Null hypothesis) : There is no positive relationship between information

technologies on diversified economy.

H1: (Alternative hypothesis): Information technology reduces the level of illiteracy and

eradicates poverty in the society.

H0: (Null hypothesis): Information technology does not reduce the level of illiteracy

and eradicates poverty in the society

X2 = ∑ (0-E) 2

E

Where

∑ - Summation

O - Observation

E - Expected frequency

3.8 Limitation and Validity of Data

Problems were encountered during the process of this research. The correspondent does

not have more time to spend with the researcher for the interview. Although, the

questionnaires were fill and submitted early. Also, some facts were being withheld but

with more effort, it was released, for researcher to work on it in their office. Despite all

these hindrance, results from questionnaire and interview was gathered and recorded.

CHAPTER FOUR

4.0 PRESENTATION OF DATA ANALYSIS AND INTERPRETATION

4.1 Introduction

This chapter discusses the results of this study. It provides a description of the instrument

used in the study and analytical tools adopted. The presentation and analysis represent the

breakdown, order and summary of data collected in a way that answers the research

hypothesis developed for the study. Thirty questionnaires were administered to the

respondents, which were for some selected firms/organization within lbadan in Oyo State

and Osogbo in Osun State metropolis. The entire administered instruments were retrieved

by the researcher.

4.2 Collection of Respondents

Thirty questionnaires were administered and the presence of the researcher helped a lot.

All the questionnaires were answered and returned. The hypothesis proposed earlier was

tested.

TABLE 4.1

4.2.1 Sex Distribution of the Respondents?

SEX RESPONDENTS PERCENTAGE

MALE 18 60

FEMALE 12 40

TOTAL 30 100%

Source: Research Survey, May 2016

Interpretation: From the above table above, more male are into information technology.

TABLE 4.2

4.2.2 Age distribution of the Respondents?

AGE RESPONDENTS PERCENTAGE

UNDER 25 NIL 0%

26-34 8 26.6

35-44 11 36.7

45-Above 11 36.7

TOTAL 30 100%

Source: Research Survey, May 2016

Interpretation: From the table above, the researchers are administered to matured mind.

TABLE 4.3

4.2.3 Education Qualification of the Respondents?

QUALIFICATION RESPONDENT

S

PERCENTAGE

WACE/NECO BELOW 2 6.7

OND/ATS/NCE 4 13.3

BSC/HND 14 46.7

POSTGRADUATE/MASTER/

PROFESSIONAL

10 33.3

TOTAL 30 100%

Source: Research Survey, May 2016.

Interpretation: From the above table, the researchers administered are educated.

TABLE 4.4

4.2.4 Marital Status of the Respondents?

STATUS RESPONDENTS PERCENTAGE

SINGLE 7 23.3

MARRIED 23 76.7

TOTAL 30 100%

Source: Research Survey, May 2016

Interpretation: From the table above, researcher administered are married and single.

TABLE 4.5

4.2.5 Job Title of the Respondents?

JOB TITLE RESPONDENTS PERCENTAGE

DIRECTOR 4 13.3

IT SOFTWARE/ENGINEER

,DATABASE MANAGERS

12 40

CHIEF EXECUTIVE OFFIERS/HEAD OF

DEPARTMENT

5 16.7

STAFF /IT STAFF 9 30

TOTAL 30 100%

Source: Research Survey, May 2016.

Interpretation: from the table, the researcher administered the questionnaire to experienced

and professional in IT sectors.

TABLE 4.6

4.2.6 Number of Employee the Organization Currently Employed?

CATEGORY RESPONDENTS PERCENTAGE

BELOW 10 7 23.3

11-20 10 33.3

21-50 8 26.7

50-100 3 10

101-ABOVE 2 6.7

TOTAL 30 100%

Source: Research Survey, May 2016

Interpretation: from the above table, the era of information technology started in 1999,

most organization have not employed more IT staffs, respondent show that most

organization have few IT staffs.

TABLE 4.7

4.2.7 Number of Years Practices IT in your Organization?

NUMBER OF YEARS RESPONDENTS PERCENTAGE

1-10 25 83.3

10-20 4 13.3

20-30 1 3.3

TOTAL 30 100%

Source: Research Survey, May 2016

Interpretation: From the table above, the era of information technology started in 1999,

most organization had not been practicing IT in numbers of years, and respondents show

that 1-10 years has high percentages.

TABLE 4.8

4.2.8 Major Obstacles of Internet/Broadband in your Department/Organization and

Nation?

OBSTACLES RESPONDENTS PERCENTAGE

LACK OF INFRASTRUCTURE 23 76.7

SCARCITY OF EXPERTISE 7 23.3

LOCAL LANGUAGE 0 0

TOTAL 30 100%

Source: Research Survey, May 2016.

Interpretation: The below table, the respondents state that, major obstacles facing

internet/broadband are lack of infrastructures and scarcity of expertise.

TABLE 4.9

4.2.9 IT Staff devoted to the following IT Functions?

IT FUNCTIONS RESPONDENTS PERCENTAGE

APPLICATION OF DEVELOPMENT

& MAINTENANCE

2 6.7

COMPUTER OPERATIONS 5 16.7

SECURITY ADIMISTRATION 2 6.7

NETWORK MANAGEMENT 7 23.3

HELP DESK/PC SUPPORT 4 13.3

TOATAL 30 100%

Source: Research Survey, May 2016

Interpretation: The table show, network management, computer operator and help desk/pc

support are in high demand in ICT sectors.

TABLE 4.10

4.2.10 Did Organization Utilize outside IT Expert for any of the following IT

Functions?

IT FUNCTIONS RESPONDENTS PERCENTAGE

PROGRAMMING SUPPORT 10 33.3

NETWORK MANAGEMENT 4 13.3

APPLICATION SUPPORT/

DEVELOPMENT

10 33.3

REMOTE

ACCESS ADMINISTRATION

6 20

TOTAL 30 100%

Source: Research Survey, May 2016

Interpretation: From the table above, it shows that most organization consult programming

support and application support development in their ICT department to write programs

and application software. It also shows that students do not have interest in the field

because of it requirement and tasks.

TABLE 4.11

4.2.11 What Type of Network Operating(s) in used?

TPYE OF NETWORKS RESPONDENTS PERCENTAGE

WINDOWS 2000 OR NETWARE 13 43

MIKROTIK OS 12 40

LINUX/MAX OSX 5 16.7

TOTAL 30 100

Source: Research Survey, May 2016.

Interpretation: From the table show, most organization used Windows 2000 or Netware

and Mikrotik OS for their Network Operating System because of his function and easy to

used and security devices.

TABLE 4.12

4.2.12 What Type of Operation System(s) in Used?

TYPES OF OPERATION RESPONDENTS PERCENTAGE

REAL-TIME OPS 1 3.3

SINGLE-USER,SINGLE TASK 5 16.7

SINGLE-USER,MULTI TASK 20 66.7

MULTI-USER 4 13.3

TOTAL 30 100%

Sources: Research Survey, May 2016.

Interpretation: From the table show, most respondents used Single-User-Multi task

operation system e.g Laptop, Desktop in their organization functional activities.

TABLE 4.13

4.2.13 How would you Categorize your Department/Organization IT Infrastructure

Capabilities?

INFRASTRUCTURE CAPABILITIES RESPONDENTS PERCENTAGE

NO COMPUTER 0 0

FEW STANDALONE COMPUTER

USED FOR WORD PROCESSING

2 6.7

FULL NETWORK DEPARTMENT

WITH APPLICATION ON CENTER

SERVERS

28 93.3

TOTAL 30 100%

Source: Research Survey, May 2016.

Interpretation: From the table show that, all departments with full network department

with application. Most organization knows the important of ICT.

TABLE 4.14

4.2.14 Major are Challenges facing the Country in area of ICT Development?

CHALLENGES RESPONDENTS PERCENTAGE

CYBERCRIME 16 53

UNDERUTILIZATION

OF ICT

14 46.7

TOTAL 30 100%

Source: Research Survey, May 2016.

Interpretation: From the table show, most respondents did not understand the differences

between Cybercrime and underutilization of ICT. However, the respondents show that

cybercrime is a major challenges facing ICT development.

From the sample given by the respondents were modified for easier item analysis of the

responses. The column for Strongly Agree and Agree were merging to form a new

column-YES, while the column for Strongly Disagree and Disagree were also form into a

new column-NO. The responses are in the table below:

TABLE 4.2.15a: Respondents views about the relationship between information on

Diversified Economy.

QUESTIONS RESPONDENTS/ RESPONDENTS/

PERCENTAGE

(YES)

PERCENTAGE

(NO)

Did your organization/firm have websites,

email and use internet/internet security

application for operation/activities in various

departments?

26 (86.6%) 4 (13.3%)

Introduction of IT, Biotechnology research

will boost agricultural sector and animal

farms produces?

27 (90%) 3 (10%)

Do you think that rural-urban gap in terms of

internet penetration is larger?

23 (76.7%) 7 (23.3%)

Is there any increase in Nigeria’s GDP

growth for the past years and decline in

exchange rate?

4 (13.3%) 26 (86.6%)

Does most government agencies engage in

use of internet in their operation and provides

capital incentive for the development of

information technology?

8 (26.7%) 22 (73.3%)

Is there any need for strong and dynamic

technologist adoption in achieving economic

scale?

17 (56.7%) 13 (43.3%)

Did your organization maintain database

application and management information

system (MIS) of staffs, clients, and

customers’?

22 (73.3%) 8 (26.7%)

Is government policy and strategies on ICT

has positive impact on the private sectors of

the economy?

18 (60%) 12 (40%)

Did you believe mobile phone wireless

internet will be most transformative

technology of the economic development?

21 (70%) 9 (30%)

Is telecommunication industry provides

services that will improve business profits of

manufacturing sector, agricultural sector, and

oil and gas industry?

25 (83.3%) 5 (16.7%)

Did your organization make use of video

conferencing, fiber-optic IP networks, voice-

over-internet protocol (VoIP) technology,

and IP television (IPTV)

13 (43.3%) 17 (56.7%)

Can you tell us if your firm/organization/

institution are register in Nigeria and IT has

improved your productivity?

24 (80%) 6 (20%)

Is ICT sector had been a strong driver of

GDP growth in the Nations, creating wealth

for people and Job creation?

20 (66.7%) 10 (33.3%)

Sources: Research Survey, May, 2016

Testing of hypothesis (a)

The hypothesis H1 is the ALTERNATIVE HYPOTHESIS which is the positive, while

the hypothesis H0 is known to be the NULL HYPOTHESIS which is the negative

Hypothesis. Hypothesis can be either supported or rejected based on the available sample

data.

The hypothesis formulate earlier would now be tested with the aid of Chi-Square

distribution at 0.05 level of significance. This can be computed using the formula below:

X2 = ∑(Oi - Ei)2

Ei

Where: ∑= Summation, Oi= the frequency observed, Ei = the frequency expected,

4.2.15b Hypothesis one

(Alternative Hypothesis): There is positive relationship between information technologies

on diversified economy.

(Null hypothesis): There is no positive relationship between information technologies on

diversified economy.

To test for this hypothesis, the responses questionnaire 1-6 was used as a basis for

measured it.

TABLE 15b

4.2.15b

QUESTIONS YES NO TOTAL

Does your organization/firm have websites, emails

and internet/internet security application for

operation/activities in various departments?

26 (86.6%) 4 (13.3%) 30

Introduction of IT, Biotechnology research will

boost agricultural sector and animal farms

produces?

27 (90%) 3 (10%) 30

Do you think that rural-urban gap in terms of

internet penetration is larger?

23 (76.7%) 7 (23.3%) 30

Is there any increase in Nigeria’s GDP growth for

the past years and decline in exchange rate?

4 (13.3%) 26 (86.6%) 30

Do most government agencies engage in use of

internet in their operation and provide capital

incentive for the development of information

technology?

8 (26.7%) 22 (73.3%) 30

Is there any need for strong and dynamic

technologist adoption in achieving economic scale?

17 (56.7%) 13 (43.3%) 30

105 75 180

To determine the expected values from the above observed value, the formula illustrated

below was used Ei = rt x ct

N

Where, rt= row total, ct= Column total.

When, rt = 105, ct = 75, N= 180,

Ei = 105 x 30 = 3150 = 17.5

180 180

TABLE 15c

Oi Ei Oi - Ei (Oi – Ei)2 Oi – Ei

Ei

26 17.5 8.5 72.25 4.13

4 12.5 -8.5 72.25 4.13

27 17.5 9.5 90.25 5.15

3 12.5 -9.5 90.25 5.15

23 17.5 5.5 30.25 1.73

7 12.5 -5.5 30.25 1.73

4 17.5 -13.5 182.25 10.41

26 12.5 13.5 182.25 10.41

8 17.5 -9.5 90.25 5.16

22 12.5 9.5 90.25 5.16

17 17.5 -0.5 0.25 0.01

13 12.5 0.5 0.25 0.01

∑ ( Oi – Ei )

=

Ei

53.18

X2 ( tab) = 8.643, df = 22, ∞ = 0.5, X2 (Cal) = 53.18

Tabulated Chi-Square Value (X2 (tab) = 8.643

Calculated Chi-Square Value(X2(Cal)) = 53.18

Decision rule

This tabular chi-square show the positive hypothesis that is “There is positive

relationship between information technologies on diversified economy” the calculated

value 53.18, this is accepted. Since the calculated value 53.18, is greater than the tabulated

value 8.643 at 0.05 level of the significance. There is no positive relationship between

information technologies no diversified economy is rejected (Null hypothesis)

Discussion

The information technologies had played a major role in diversifying all sectors of the

economy; this is a positive impact of information technology. The growing contribution

of ICTs to Agriculture sector, Climate Change Adaptation, Education sector, Financial

Services, Government Services and Health is explored. In addition, the ICTs in enhancing

African regional trade and integration as well build a competitive ICT industry to promote

innovation, job creation and the export potential of African companies. In Nigeria

government, twenty one out of the thirty six ministries have online presence, while 370 of

the 810 MDAs have some web presence. More government services need to get online and

this should improve with the introduction of the single service portal ‘services.gov.ng’.

4.2.15d Hypothesis two

H0: (Null hypothesis): Information technology does not reduce the level of illiteracy and

eradicates poverty in the society.

H1: (Alternative hypothesis): Information technology reduces the level of illiteracy and

eradicates poverty in the society.

The responses of 7-13 in the questionnaire were used a basis for measuring this.

TABLE 15d

4.2.15d

QUESTION YES NO TOTAL

Did your organization maintain database application

and management information system (MIS) of staffs,

client, and customers’?

22

(73.3%)

8

(26.7%)

30

Is government policy and strategies on ICT has

positive impact on the private sectors of the

economy?

18 (60%) 12

(40%)

30

Do you believe mobile phone wireless internet will be

most transformative technology of the economic

development?

21 (70%) 9 (30%) 30

Is telecommunication industry provides services that

will improve business profits of manufacturing sector,

agricultural sector, and oil and gas industry?

25

(83.3%)

5

(16.7%)

30

Did your organization make use of video

conferencing, fiber-optic IP networks, voice-over-

internet protocol (VoIP) technology, and IP television

(IPTV)?

13

(43.3%)

17

(56.7%)

30

Can you tell us if your firm/organization/ institution

are register in Nigeria and IT has improved your

productivity?

24 (80%) 6 (20%) 30

Is ICT sector had been a strong driver of GDP growth

in the Nations, creating wealth for people and Job

creation?

20

(66.7%)

10

(33.3%)

30

143 67 210

To determine the expected values from the above observed value, the formula illustrated

below was used, Ei = rt x ct

N

Where, rt= row total, ct= column

When N = 210, rt = 143,

Ei =143 x 30 = 4290 = 20.4

210 210

TABLE 4.2.15e

Oi Ei Oi - Ei (Oi – Ei)2 (Oi – Ei)2

Ei

22 20.4 1.6 2.56 0.13

8 9.6 -1.6 2.56 0.13

18 20.4 -2.4 5.76 0.28

12 9.6 2.4 5.76 0.28

21 20.4 0.6 0.36 0.018

9 9.6 -0.6 0.36 0.018

25 20.4 4.6 21.16 1.04

5 9.6 -4.6 21.16 1.04

13 20.4 -7.4 54.76 2.68

17 9.6 7.4 54.76 2.68

24 20.4 3.6 12.96 0.64

6 9.6 -3.6 12.96 0.64

20 20.4 -0.4 0.16 7.84

10 9.6 0.4 0.16 7.84

∑ (Oi – Ei)2

=

Ei

25.256

X2 ( tab) =5.892, df = 14, 0.05, X2 (Cal) = 25.256

Decision rule

The tabular of the chi-square show that is “information technologies reduces the level of

illiteracy and eradicates poverty in society is accepted. Since the result showed, chi-square

calculated of 25.256 as against tabulated chi-square of 5.892. The Null hypothesis which

is “information technologies does not reduce the level of illiteracy and eradicates poverty

in society is rejected.

Discussion

Chowdhury (2000) noted that many skeptics have not seen the role of ICTs in efforts

intended to alleviate poverty and bring food security to developing countries. The author

acknowledged that the problem of poverty alleviation is complex. Efficient production

systems and physical infrastructure are a few of the necessities. The Millennium

Development Goal (MDGs) drawn from the United Nation Millennium declaration and

adopted in September 2000, have several specific target using ICT as a tool for reducing

poverty and improving the efficiency of corporate organization.

Conclusion

It was inferred from the open ended questions in the questionnaire that, the responded

express their view on issues on rural-urban gap in terms of internet penetration, most

government engage in use of internet in their operation and provide capital incentive for

developments of information, ICT transform sector has proven to be a strong driver of

GDP growth in the nations, and mobile phone wireless internet will be most

transformative technology of the economic developments. Government have made a push

for increased use of ICT in government to drive efficiency and service delivery by

launching a Federal e-government service portal, institutionalizing a government wide

messaging and establishing cadres and councils to drive implantation of various ICT

initiatives. Moreover, ICTs are also increasingly recognized as a key source of innovation

that can generate increased economic growth and new sources of high-value.

CHAPTER FIVE

v.0 SUMMARY OF THE FINDING, CONCLUSION, RECOMMENDATIONS

AND PROPOSAL FOR FURTHER STUDIES

v.1 Introduction

This chapter present, the summary of the project finding, conclusion,

recommendation and proposal for the further studies.

v.2 Summary of finding

The researches focus on the impact of information technology on Nigeria economy.

The response from the questionnaire were analyzed using the percentage analyzed

method and chi-square as the statistical tools. The findings of the research are based on

the data gathered from the respondents. From the data collected the alternative

hypothesis “there is a positive relationship between information technologies on

diversified economy” is accepted, while Null hypothesis “there is no positive

relationship between information technologies on diversified economy” is rejected.

The Following Finding Were Deduced from Data collected, these are:

1. Policymakers must accelerate liberalization, boost public investment, and work

closely with international and domestic businesses to attract private investment

and encourage innovation. In this effort, connecting rural areas of developing

countries to broadband networks must be a priority. Since those areas lack

other infrastructure and access to public services, the benefits brought about by

ICTs will have especially momentous impact. Improving the framework

conditions and the readiness of the population will also increase the potential of

this impact added jobs.

2. The impact of ICTs on income inequality at the global level and the countries

level exists, more research is needed to explore the interaction among ICTs,

income, and wealth, and to investigate the variable effects of the targeted

intervention to increase the impact of ICTs on poverty alleviation.

3. ICTs key, is to create a large base of online users, generate deep and varied

content, support mechanisms for online advertising and payment, and build a

solid case for businesses to invest in online commerce and capabilities.

4. Innovation is one of the key means to achieve faster economic growth, and

entrepreneurial startup companies are a significant source of innovation,

particularly in the information and communication technology (ICT) sector.

5. Government could focus on creating an enabling environment. Such an

environment would notably include internet access that is widely available,

affordable, and open internet not just within developed region but also

extending to emerging countries.

6. From our earliest research, we gained an initial understanding of the problem

space the world’s poorest people are not able to make the most of their

resources due to lack of access (internet) to learning new skills and healthier

behaviors.

7. ICTs offer enormous opportunity to narrow social and economic inequalities

and support local wealth creation, and thus help to achieve the broader

development goals.

5.3 Conclusion

For the sustainable development and growth in the ICT sector, government has

a critical supporting role to play in establishing good policy and regulatory

framework for the sector. In a country like Nigeria, the largest economies of

the sub-Saharan Africa, Nigeria drop seven places to 119th, South Africa drop

five to 75th – it is now third in the region behind Mauritius and Seychelles

74thin Network Index Ranking in 2014. Government should developed

infrastructure, because it is a pre-condition to ICTs adoption. When designing

for technology for development program and resource-constrained

environments, many factors need to be considered alongside the development

of the technology (both hardware and software); the needs of the target

population-both the users of the tool and the population for which it is

intended, the availability of supplies and support infrastructure for the new

technology, the training for needed for the technology to be used properly, the

power requirements of the technology, the networked capability of the

technology and the ease with which it can be monitored remotely by the

program when necessary, the ability for the technology to be self-sustaining

and enable a business model to allow competitive use, without creating a

monopoly or a concentration of power, and the cost of the technology (both

term of initial outlay and ongoing maintenance costs) relative to alternative,

and the difference in potential impacts between the new technology and the

alternative.

5.4 Recommendations

1. Reduce the cost of access for mobile and broadband: Addressing, the direct cost

challenges will require improving the regulatory and competitive environments for

operator as well as better coordination in developing the infrastructure. There will

be some negative near term effects on largest or incumbent players, since many of

these interventions encourage increased competition. However, the improvement

of the long-term outlook for the ICT sector should benefit operators by expanding

the customers and business base for these services.

One method is to encourage firms billing approaches to lower end-user costs and

drive up usage. Intervention may include allowing for longer period of validity for

pre-paid credit enabling per second billing, nation- wide traffic, low denomination

recharges, and enabling discounts for “friends and family” networks. That said,

there is a potential role for donors to provide limited subsides to jump start ICT

usage in countries with high retail access costs.

2. Support government/private-sector collaboration: While government and the

private sector may not agree on all issues, it is important that the two have an

ongoing, structured dialogue. In order to ensure this, first task would be to create a

vehicle and the expectation for interaction between the two groups. Government

should partnership with private company to provide WI-FI support to the rural

areas in the country. For example, a pilot partnership between a soft drink

manufacture and telecommunication company is doing this in Umtata and

Nelspruit in South Africa for WI-FI support. The Kenya ICT board is an example,

established five years ago to be the implantation arm for ICT policy in Kenya, this

board has played the role of mediator between the government and private sector

and, more importantly, advocate for the sector and its advancement.

3. Improve the e-commerce environment: Government, the private sector and

donor all play a role in improving the e-commerce environment. All three can set

an example by themselves embracing e-commerce in their own operations by

engaging in online (mobile) procurement practices and creating incentives for

companies to go online.

Other methods include launching communication campaigns to promote e-

commerce, adopt model e-contracting/transactions and e-signature legislation for

the countries, develop data and electronic security laws to include data protection

and develop online consumption/supplier protection laws including IP networks.

4. Improve ICTs workers skill levels: Nigeria need to continue to invest strongly in

education as the complexity and competition for vendors in the arena is increasing.

Human capital is a weakness for most African countries and BPO success is

largely predicated on reliable talent. Owing to instance global competition in

virtually every segment of the BPO value chain, Nigeria need to delineate exactly

where they would like to participate (medical, agricultural, finance, transportation,

coding, billing), build up relevant experience in niche areas and improve

infrastructure to execute seamlessly. Methods to develop skill among the local

population include supporting broad primary and secondary education efforts

customizing tertiary schooling efforts to reflect greater context of business and

supporting technical BPO (business process outsourcing) skills development

through incubators and private sectors. For example, Kenya, South Africa, and

Uganda have all established networks and academies to advance skills and

capabilities including BPO certificates supporting global standards. For example,

In Uganda’s Makerere University, a leading computing school in East Africa has

collaborated with Orion Outsource World.

5. Create ICT parks in countries that meet infrastructure requirements: The

development of the ICT sector has been proven to contribute heavily to the growth

of a nation’s GDP, and therefore, expanding that investment in developing

countries in Nigeria would be a strong initiative for the continent and its future

growth. Not all countries, however, are poised to successfully implement, operate

and sustain in ICT Park. However, there are common success factors across the

most successful park from which countries can learn as they determine their own

viability to establish a park.

Some of these success factors include park organizers having very clear and

concise plans to address and mitigate the critical barriers of lack of sponsorship,

availability of skilled labour, weak university curricula, infrastructure challenges

and programming.

Successful parks are, furthermore, located in countries or sub-regions where

literacy rates and Human Development Index (HDI) rating are high, have relatively

stable government and have the right balance of both government and private

sectors interest and sponsorship. For example, the proposed Konza City in Kenya

is being built 60km from Nairobi is Kenya ICT Park. At the same time, it is

building the infrastructure improvements to ensure that this is not a bottleneck e.g

independent power supply incorporating green elements, water management and a

mass-transit transportation model.

6. Support ICT entrepreneurs: Nigeria, Kenya and Morocco have established

themselves in the ICT marketplace, and although there are still many challenges

that each nation faces, they have successfully advanced their journey to offer best

practice to their fellow African nations. In particular, all three have removed

roadblocks and create pathways for ICT entrepreneurs to be successful from which

others may learn.

One example is overcoming the high cost to entrepreneurship, which reduces the

tendency for talent to move into innovation ventures. A solution to this includes

reducing that cost by decoupling business and personal success through the

creation of fellowships and business development programmes.

7. Software and hardware development: The software and hardware industry is a

multi-billion dollar industry. Government should promote software and hardware

development education in country, encourage of software and hardware

development and content for local and export market. The support and promotion

government give to ICT increase local design and manufacture of ICT hardware

and software. Encourage the establishment and expansion of domestic capacity to

produce hardware and software, ensure rapid indigenization and domestication of

high technology ICT products and services.

5.4 Proposal for Further Studies

Information technology in content is wide because the world is growing in

information technology and every sectors developing new methods to solve

problem and approach to way forward. All researchers are encourage to further

exploit and do more on this topic which is more important and relevant to the

world. The researcher believes that there is room for further studies.

\

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Appendices

NATIONAL OPEN UNIVERSITY OF NIGERIA

SCHOOL: SCHOOL OF MANAGEMENT

PROGRAMME: MASTER BUSINESS ADIMINISTRATION (MBA)

TOPIC: IMPACT OF INFORMATION TECHNOLOGY ON NIGERIA’S

ECONOMY

QUESTIONNAIRE

1. What is the Name of your Company?

2. Gender distribution of the respondents? Male ( ) Female ( )

3. Age distribution 0f the respondent? (a) Under 25 ( ) (b) 26-34 ( ) (c) 35-44 ( ) (d)

45 above ( ).

4. Education qualification of the respondents? (a) WAEC/NECO below ( ) (b)

OND/ATS/NCE ( ) (c) Bsc/HND ( ) (d) Postgraduate/Master/Professional ( ).

5. Marital status of the respondents? (a) Singles ( ) (b) Married ( )

6. Job title of the respondents? (a) Director( )(b) IT software/Engineers/Database

Managers ( ) (c)Chief executive officers/head of department ( ) (d) Staff/IT staff (

7. Number of employee the organization? (a) Below 10 ( ) (b) 11-20 ( ) (c) 21-50 ( )

(d) 50-100 ( ) (e) 101- above ( ).

8. Number of years practices IT in your Organization? (a) 1-10 ( ) (b) 10-20 ( ) (c)

20-30 ( ).

9. Major obstacles of internet/broadband in your department/organization and

nation? (a) Lack of Infrastructure ( ) (b) scarcity of expertise ( ) (c) local language

( ) \

10. IT staff devoted to the following IT function? (a) application of development &

maintenance ( ) (b) computer operation (c) security administration ( ) (d) Network

management ( ) (e) help desk/PC support ( )

11. Did organization utilize outside IT expert for any of the following IT function? (a)

programming support ( ) (b) Network management ( ) (c) Application

Support/development ( ) (d) remote access administration ( )

12. What type of network operating(s) in used? (a) windows 2000 or Netware ( ) (b)

Mikrotik OS ( ) (c) Linux/Max OS ( )

13. What type of operation system(s) in used? (a) real-times OPS ( ) (b) single-user,

single Task ( ) (c) single-user, multi task ( ) (d) multi-user ( )

14. How would you categorize your department/organization IT infrastructure

capabilities? (a) No computer (b) few standard one computer used for word

processing (c) full network department with application

15. Major challenges facing the country in area of ICT development? (a) Cybercrime (

) (b) underutilization of ICT ( ).

Strongly

Agree/Agree

YES

Strongly Disagree/

Disagree

NO

16. Did your organization/firm have

websites, email and use

internet/internet security application for

operation/activities in various

departments?

17. Introduction of IT, Biotechnology

research will boost agricultural sector

and animal farms produces?

18. Do you think that rural-urban gap in

terms of internet penetration is larger?

19. Is there any increase in Nigeria’s GDP

growth for the past years and decline in

exchange rate?

20. Do most government agencies engage

in use of internet in their operation and

provide capital incentive for the

development of information

technology?

21. Is there need for strong and dynamic

technologist adoption in achieving

economic scale?

22. Did your organization maintain

database application and management

information system (MIS) of staffs,

client, and customers’?

23. Is government policy and strategies on

ICT has positive impact on the private

sectors of the economy?

24. Did you believe mobile phone wireless

internet will be most transformative

technology of the economic

development?

25. Is telecommunication industry provides

services that will improve business

profits of manufacturing sector,

agricultural sector, and oil and gas

industry?

26. Did your organization make use of

video conferencing, fiber-optic IP

networks, voice-over-internet protocol

(VoIP) technology, and IP television

(IPTV)

27. Can you tell us if your

firm/organization/ institution are

register in Nigeria and IT has improved

your productivity?

28. Is ICT sector had been a strong driver

of GDP growth in the Nations, creating

wealth for people and Job creation?