Telecom
FG Awards over N85Bn Census Contract to Zinox Technologies
Federal Government through the National Population Commission (NPC) has signed a landmark deal with Nigeria’s leading integrated technology brand, Zinox, for the supply of the tech components and other accessories for the 2023 national census project, further justifying President Muhammadu Buhari administration’s commitment on local content promotion.
Chairman, Zinox Group, Leo Stan Ekeh (right) handing over a sample of the Personal Digital Assistant (PDA) device for the 2023 census to the Chairman, National Population Commission (NPC), Hon. Nasir Kwarra during a briefing in Lagos at the weekend
The contract, worth over N85bn, was recently awarded to Zinox after ratification by the Federal Executive Council (FEC).
Zinox, which has already commenced supply of the first batch of about 100,000 units of the Personal Digital Assistants (PDAs) devices required for the nationwide enumeration, emerged the undisputed and preferred technical partners for the exercise after scaling a rigorous bid process involving other local and international competitors.
Feelers from senior sources at the Presidency and within the NPC indicate that Zinox stood out in the intense series of background checks conducted to affirm the capacity, experience, integrity and ethical standing of the bidders, with the technology giant also meeting the rating as an indigenous technology powerhouse with global connections which has consistently enjoyed the confidence of leading Original Equipment Manufacturers (OEMs) and other tech heavyweights the world over.
This, it was learnt, earned it an overwhelming endorsement by the Federal Government for the project. Also, to its credit is the fact that it was Zinox that rescued the nation’s voter registration exercise in 2006 and 2010 when big foreign tech companies contracted by the Independent National Electoral Commission (INEC) could not deliver as scheduled.
Zinox used its Z-Pad smart device to lay the foundation for Nigeria’s digital democracy upon which INEC is building on today. The smooth execution of the over $200m INEC contract in 2010 added impetus to the profile of Zinox as a strong indigenous company with capacity and competence.
Leo Stan Ekeh, Chairman, Zinox Group, said that the company had built a system of integrity and a record of excellence, both in Nigeria and internationally. Further, Ekeh noted that until there was a credible data census figure, the country cannot plan well.
Also, Mrs. Kelechi Okonta, Managing Director, Zinox Technologies, said: “It is a privilege for the Federal Government to consider us among many other companies in the world. They know we have the capacity. We are deploying all our resources to make sure it is successful.”
The 2023 census, scheduled to hold between March and April, will be the fifth to be conducted by the Nigerian government since independence in 1960 and it is coming 17 years since the last edition which was held in 2006 under the administration of President Olusegun Obasanjo.
President Buhari, who has not hidden his desire to bequeath to the next administration a useful, reliable and credible databank which captures Nigeria’s salient socio-economic and demographic information to underpin proper national planning, has thrown his weight behind efforts by the NPC to ensure a successful exercise. To this end, Zinox on Friday, February 3, 2023 hosted a high-powered delegation of commissioners and management team of the NPC led by the Chairman, Hon. Nasir Isa Kwarra, where the first 100,00 units of the digital devices were presented to the commission.
It could be recalled that Zinox introduced automation of Nigerian elections, first with the introduction of the Direct Data Capture (DDC) machines which helped to clean up the nation’s voter register and later the card reader which enhanced credibility of elections in Nigeria in recent years.
Zinox had also executed major projects offshore in Guinea Bissau, The Gambia and the Arab nations through partnerships.
The handover ceremony which was held in one of Zinox’s massive warehousing facilities in Lagos, saw the cutting-edge features of the PDAs unveiled to a mixed audience, including representatives of the NPC and sections of the media. Encrypted with census questionnaire and maps to direct enumerators to assigned enumeration areas, the devices were hailed as key components in the conduct of an exercise that would not only meet global standards but equally ensure accuracy of data collected.
The NPC Chairman noted that the 2023 census would signal a new dawn in housing and human headcount in Nigeria as there would be no over-counting or under-counting, adding that the devices, when commissioned with the forms, maps and other digital enhancements, would ensure that enumerators are unable to go beyond the areas assigned to them. In addition, he commended Zinox for the dedication, commitment and huge capacity displayed in the way it has commenced execution of the contract.
He noted that the software (App) that would be deployed to enable and activate the PDAs was locally developed, thus fulfilling President Buhari’s Executive Order on local content, as well as the National Information Technology Development Agency (NITDA) regulation on Local Original Equipment Manufacturers (OEMs) in the procurement of the PDA devices.
The NPC Chairman said: “With all enhancement that the National Population Commission is provisioning the devices with, e.g, the Mobile Device Management, we can monitor the enumerators on the field and ensure that the data provided by Nigerians are secured and well managed for their privacy.
‘‘The geospatial resources that NPC has acquired will be deployed on the devices. This will ensure that all Nigerians are counted where they are and live. We will also be able to collect statistics on housing type and characteristics for better physical and social planning by government for the nation.
‘‘The homeless will be counted, tied to their usual place of abode, referenced with geo-coordinates; the Special Population: nomads, migrants, people in transit, etc, will be counted with geo-reference to where they are found at the time of the Census. Everyone will be counted because all Nigerians count,” he noted.
A recent Groupe Spécial Mobile Association (GSMA) digital economy report has cast a spotlight on the significant contributions of Nigeria’s telecom sector to the nation’s GDP, highlighting its crucial role in driving economic growth and development.
Released amidst growing interest in the Nigerian telecom landscape, the report provides a comprehensive analysis of the sector’s impact on the country’s economic metrics. Key findings reveal that in 2023 alone, the telecom sector directly contributed 8% to Nigeria’s total GDP. However, when factoring in the wider ICT industries’ value-added contributions, this figure surged to an impressive 13.5%.
Beyond mere numbers, the report delves into the intricacies of the telecom sector’s influence on various economic sectors. It elucidates how the mobile industry’s cumulative contribution to Nigeria’s GDP reached an estimated 20 trillion NGN in 2023, accompanied by substantial tax revenue contributions totalling 2.8 trillion NGN. Such figures further highlight the sector’s role in driving fiscal revenues and national economic stability.
Moreover, the report sheds light on the transformative potential of the telecom sector in enabling digitalisation across key industries. Projections indicate that by 2028, sectors such as agriculture, manufacturing, transport, trade, and government are poised to witness a remarkable GDP increase of approximately 2 percentage points.
This surge is expected to generate an additional NGN 1.6 trillion in tax revenue, marking a significant milestone in Nigeria’s quest for economic diversification and resilience.
“The telecommunications sector is the backbone of the digital economy. We have a strong appreciation of the fact that if we are able to improve the business environment and invest in the sector, we can continue to improve the level of productivity.
A country like Nigeria has significant opportunities to contribute to the world, but this is impossible without diversifying the economy”. Dr. Bosun Tijani, Minister of Communications, Innovation and Digital Economy added.
The report also highlights the vital role of 5G networks in enhancing operational efficiency across sectors through real-time data transmission and remote monitoring.
It spotlights the immense potential of digitalisation in sectors like manufacturing and trade, with the capacity to add trillions in industry value and generate substantial employment opportunities and tax revenues.
Despite these promising revelations, the report also acknowledges the challenges faced by the telecom sector, particularly its capital-intensive nature.
The report’s findings beckon a clarion call for concerted efforts to leverage the telecom sector’s potential as a catalyst for economic advancement. With the right policies and investments, Nigeria stands poised to harness the full spectrum of opportunities offered by its vibrant telecom landscape, driving inclusive growth and prosperity for all.
While the advocacy for tariff increase remains under deliberations, revelations in the latest Groupe Spécial Mobile Association (GSMA) digital economy report have watered the ground for an increased tariff increase advocacy. The report, offering a deep dive into the sector’s dynamics, provides compelling arguments for adjusting tariffs to ensure sustainability and growth.
L-R: Juergen Peschel, Chief Executive Officer, 9Mobile; Dr. Bosun Tijani, Honourable Minister of Communications, Innovation, & Digital Economy; Dr. Aminu Maida, Executive Vice Chairman, Nigerian Communications Commission; Gbenga Adebayo, Association of Licensed Telecommunications Operators of Nigeria (ALTON); Bella Disu, Executive Vice Chairperson, Globacom; Karl Toriola, Chief Executive Officer, MTN; Angela Wamola, Head of Sub-Saharan Africa, GSM Association (GSMA); Ibrahim Dikko, Chief Executive Officer, Backbone Connectivity Networks Nig. Ltd.; at the GSMA Nigeria Digital Economy Report launch in Abuja on May 9 2024.
Highlighted in the report is the telecom sector’s significant contribution to Nigeria’s GDP. In 2023 alone, it accounted for 8% of the nation’s total GDP, a figure that swelled to 13.5% when considering the broader ICT ecosystem. The mobile industry’s overall contribution to GDP was estimated at a staggering 20 trillion NGN, with substantial tax revenues of 2.8 trillion NGN.
The sector’s potential to drive digitalisation across various domains is of paramount importance. The report projects a significant boost in GDP across sectors like agriculture, manufacturing, transport, trade, and government, translating into nearly 2 million jobs and an additional NGN 1.6 trillion in tax revenues by 2028.
The promise of 5G networks is poised to revolutionise operations, particularly in critical sectors like oil and mining, with real-time data transmission and remote monitoring enhancing efficiency. Digitalisation, especially in manufacturing and trade, holds immense potential for value addition and job creation, promising billions in additional tax revenues.
Despite Nigeria’s noteworthy internet usage figures, with 29% of the population regularly online, the sector faces challenges. The country boasts the lowest-cost data baskets in Africa, yet maintaining competitive mobile data network speeds remains essential. With an average speed of 21Mbps, Nigeria’s performance is comparable to neighbouring countries, underscoring the need for sustained investments.
However, sustaining this growth requires recognizing the capital-intensive nature of the telecom sector. Operators must continually invest in network maintenance and expansion, necessitating a conducive regulatory environment that ensures fair returns on investments.
Chairman, Association of Licensed Telecom Operators of Nigeria (ALTON), Gbenga Adebayo, commenting during the report launch, said, “We raised several issues on the state of affairs of the telecom industry, and among the challenges articulated is the return on investment, stability of the infrastructure and the need for pricing rights. As an ecosystem, tariff hike is one of the sensitive issues affecting the telecom sector and has to be addressed by all stakeholders. We need to look at the state of affairs of the industry and examine holistically. There are ongoing obligations to our end users including infrastructure security. Tariff increase is a solution to solve multiple challenges of the telecom industry.“
The GSMA report positions the ongoing tariff adjustment deliberations as a strategic move to secure the sector’s long-term viability. With Nigeria’s digital future at stake, finding a balance between affordability for consumers and sustainability for operators is paramount to ensure continued growth and innovation in the telecom landscape.
Gbenga Adebayo, chairman, Association of Licensed Telecom Operators of Nigeria (ALTON) has said the telecoms sector should not be a palliative to solve economic woes.
Gbenga Adebayo, chairman of ALTON,
He made this call during his address at the Groupe Spécial Mobile Association (GSMA) digital economy report launch which took place in Abuja.
According to Adebayo, the telecom industry faces numerous challenges that hinder its growth and development.
He emphasized the need for sustainable investment, effective regulation, and a conducive business environment to drive progress.
The GSMA digital report, launched May 9th 2024, 2024, highlights the telecom’s 8 percent contribution to Nigeria’s GDP and 13.5% when considering the broader ICT ecosystem.
The report also highlights the significant challenges plaguing the industry including investment challenges, right of way, multiple taxation, and regulation.
Adebayo highlighted the existence of over 45 associated charges and levies on operators, despite the supposed removal of right of way costs.
He said that it creates an unfavorable business environment, discouraging investment and hindering the industry’s ability to deliver quality services.
He also stressed that regulatory interference and the lack of independence for the regulator exacerbate the problem.
The price review should be a simple regulatory process.
The public debate this has gained makes it appear the industry is insensitive to people’s concern.
“While the government tries to provide incentives for the public on account of ongoing macroeconomic headwinds, the telecoms sector should not be used as a palliative to solve the people’s problem. We must price right to sustain the industry; we must price right to have the right investment,” , Adebayo said.
He concluded that the industry must be allowed to operate sustainably, with the right investment and regulation, to deliver quality services and drive economic progress; encouraging stakeholders, including policymakers, regulators, and operators, to work together to address the challenges facing the industry, in order to drive economic growth, and fulfill its potential as a critical sector in Nigeria’s economy.
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