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Enabling Environment for Nigeria Content Development in the ICT Sector (1)

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This is a word that has been misused to the detriment of overall development of indigenous content. Some years back when car and truck assembly plants were still functional in this country, the then national assembly tasked the plants on the need to improve on the input of local content of the vehicles. I remember clearly a particular company touting that they have achieved over 30% local content input. The company then went to list the items supplied locally as cables, car seats, car paints, etc. The company in a sense is right since they sourced those items locally. But the question that needs to be addressed is whether the components were indigenously manufactured in Nigeria? If the government buys a car assembled in Nigeria, can it rightly say it has bought an indigenously manufactured car?

So we must distinguish between local input (content) and indigenous input.

Content Development

This can be viewed as import substitution when some of the intermediate components that go into the manufacture of a product are now indigenously produced using local resources and technology. Let me clarify this. Most casings of laptop computers and mobile phones are made from the by-product of petrochemical refineries. Nigeria is a major crude oil producing and "refining" country, yet these components are still imported. If the downstream sector of the petroleum industry is developed casing and other similar component will produced indigenously.

Enabling Environment

There are many numerous definitions of the enabling environment and they range from all encompassing to narrow. For the purpose of this paper, I shall look at enabling environment as a set of interrelated conditions – such as legal, bureaucratic, fiscal, informational, political, and cultural – that impact on the capacity of investors to engage in investment processes in a sustained, effective and profitable manner.

Introduction:

We were made to understand that after World War II, products from Japan were ridiculed and denigrated by consumers for its presumed sub-standard quality. British made products were preferred. He said they use to derogatorily call it Japanese product: Fabrique au Japan. But today, Japanese products are very much in demand because it is believed to be of the highest quality. If in doubt, take a look through your window and count the number of Japanese cars out there; or do an audit of the household and consumer electronics in your house. If the Japanese government did not put in place favourable policies and create enabling environment that is favourable to investment, the country’s putative steps into manufacturing could have fizzled out.

The above scenario was recreated with Taiwanese, Korean and Singaporean made goods. Today, these countries are industrial powers, producing products that are competing favourably with, (and even surpassing in quality), products from North America and Europe. China, India, Thailand, Malaysia, Indonesia, Philippines, etc, are not far behind. The Asian Tigers are no longer coming; they are at our door steps!

Let’s move half a world away from the Asian Tigers. Nigeria’s Defence Industry Corporation, (DIC) was set up in the early 60s. I understand the Brazilian government following in the footsteps of Nigeria, set up her own equivalent 6 months after Nigeria. Today, the Brazilian own is indigenously manufacturing military hardware such as airplanes, warships, missiles, etc. In fact in the early 80s, many of us present here were eye witnesses to the berthing of Brazilian manufactured submarine at Marina when her Navy paid a visit to Nigeria. Compare this to the feat done by our own DIC. Last year it was announced that Nigerian DIC has started the assembling of AK47 rifles which they ingeniously named OBJ-007. Talk of comparing an airplane with bicycle!

Whither Nigeria? Where lies the problem?

The ICT industry is unique in that we are now in the Information Age with attendant dependence on the Internet for most transactions. Information Societies are emerging changing the ways business is conducted. Under this present scenario, the use of ICT product is pervasive affecting all sectors of a country. Anything that affects the ICT industry affects the entire human society. Any business that refuses to adapt becomes history. This being so, the manufacturers and producers of this business and productivity tool (ICT tool) need to be encouraged to make these tools available to the vast majority of the populace at affordable rate in order to empower the new e-work force. For MDG to be achieved, as many citizens as possible need to be empowered to function optimally in the new Information Society, if Nigeria is to achieve her desire of being among the top 20 economies in the world by the year 2020).

What factors impact Content Development?

From my experience, Nigeria is not an investor friendly country. What is prodding some of us on is the faith that things may get better; that generation unborn will be spared the anomaly that we have experienced; and finally to make a difference in this generation. Business practices in global markets are changing because of international competition and Nigeria has to key into it or risk remaining in the back waters of development. The Nigerian private sector, which consists of small, medium, and micro-sized enterprises (SMMEs) and the informal sector, is widely regarded as a potential engine of growth in the information economy. Government favourable policies will provide opportunities for competent ones to increase their markets and trading potential well beyond the Nigerian borders. This will in turn provide capital that will aid research into indigenous inputs and content development.


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Nigeria CommunicationsWeek believes that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. So since 2007, we have devoted our energy to independent reportage of technology and how they affect lives.

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Electricity Theft in Nigeria: Impact, Strategies and the Way Forward

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By Okoko Chidozie Christian

[email protected]; 09025179984.

Epileptic power supply has been a mainstay of Nigerian society and profoundly impacted communities, undermines the access of individuals to electricity and hampered economic growth.

Electricity Theft in Nigeria: Impact, Strategies and the Way Forward

And, a range of factors have been identified by stakeholders as the root causes including energy theft.

Electricity – essential part of our daily lives is used for powering our homes, offices, businesses and industries. Unfortunately, some people choose to illegally tap into it.

Illegal electricity connections, also known as “power theft” refers to the unauthorized tapping of electric from a power grid, often without the knowledge or approval of electricity providers.

According to source, electric theft is the criminal practice of stealing electric power, and it is nearly as old as electricity distribution.

Accomplished through a variety of means, from methods as rudimentary as direct hooking to a power line, to manipulation of computerized electrical meters endangering the environment.

For instance, if the power consumption in a region increases to a level where the average demand exceeds the rating of transformer or other electrical equipment due to power theft, then power quality problem like voltage collapse or transformer overloading may occur.

Frequent power cuts lead to deterioration in the customer-utility relationship. Illegal connections to the electricity network often transverse roads, fields, footpaths and present a safety risk for communities who must go about their normal daily activities into contacts with live cables and wires that have not been properly installed.

However, bypassing an electric meter co-located with fuses, circuit breakers, residual current earth leakage detection will often lead to risk of electrical faults and excessive use within the house may not be detected.

And, the supply will remain live within the house, increasing the risk of electrocution or fire. Cost of electricity is substantially compared with low income flow and credit constraints in most countries. For examples, more than 70% of Nigerians live on less than US2.0dollars per day. Yet, there is need to pay for the cost of power consumed.

So, it would appear illogical to conclude that residential consumers steal electricity thereby contributing to this loss.

According to the new Electricity Act, offenders to electric theft shall be subject to imprisonment for a term exceeding three years, a fine or both. If the load consumed or used or attempted consumption or use, does not exceed 10 kilowatts, the first conviction shall warrant a fine no less than three times the financial gain resulting from the electricity theft.

In Nigeria today, the Power Distribution Companies, DisCos face several challenges of electricity theft which remain one of the major causes of massive revenue losses thereby increases the debt profile in Nigeria Electricity Supply Industry, hence negatively impacting the nation’s economy.

Recently, Adetayo Adegbemle, executive director of Power Up Nigeria,  expressed that the Senators are out of touch with the realities of the power sector and should seek advice from professionals and experts for accurate information. According to him, electricity is also not a public utility anymore, it is now a commodity.

Energy theft is an international problem and globally estimated in 2022 that consumers spent up to 1.4 billion pounds annually. This costs have to be passed to customers in the form of higher energy charges. The annual worldwide financial losses due to power or electricity theft are estimated to be around US 100billion dollars.

In a recent report by the Director of the Power Sector Advocacy Group in Nigeria; one (1) transmission company TCN, twenty-three(23) generation companies, GenCos and eleven (11) electricity distribution Companies, DisCos operates in Nigeria. Moreover, the plants are managed by generating companies (GenCos), independent power providers, and the Niger-Delta Holding Company.

Unfortunately, the twenty-three (23) power-generating plants connected to the national grid with the capacity to generate 11,165.4MWs of electricity has not been feasible. Despite having a capacity of 22,000 MWs, the country’s power generating peaked at 4,594.6 MWs as of November 2022 has been insufficient for the populace. So, the electricity generated is considerably low for over 200million people.

Although, some anti-theft products can help shield the network and consequently reduce power theft. Just like in United Kingdom, their electrification is made under subsurface about 100meters; not so easy for human to access, study confirms.

So, being a complex challenge, there are some ways to combat the illegalities of energy theft in Nigeria, but the consumers-utility relationship is a key determinant. Improvement of this relationship through local participation in development of renewable energy schemes such as rooftop solar photovoltaic, use of biomass and many more could bring benefit. Also, financing, redesigning of the distribution system and utility company codes and standards, competence in post-installation maintenance.

Strengthening of legal and regulatory framework particularly with larger users, and installing high security tampered-resistant metering systems for commercial consumers may have more effect.

 

 

 


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Clean Technology Hub, FCT Launch Climate and Change Youth Movement in Abuja Secondary Schools

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Clean Technology Hub, renewable energy and climate change advocacy firm has launched a Climate Change and Youth Movement in FCT secondary schools in collaboration with the Department of Science, Technology, and Innovation of the FCT Education Secretariat.

Clean Technology Hub, FCT Launch Climate and Change Youth Movement in Abuja Secondary Schools

Ms Ifeoma Malo, founder and CEO of Clean Technology Hub,

 

The collaborators commenced the Climate and Change Youth Movement recently at the Government Science and Technical College, Bwari, FCT.

The Climate Change and Youth Movement is a platform for students to learn about the environment and contribute to solving challenges linked to climate change starting from their local communities. It aligns with a worldwide effort to raise awareness and educate children and youth about climate change and renewable energy.

Experts say children and youth are potential driving forces in achieving the climate change objectives in the Sustainable Development Goals.

Clean Technology Hubs’ Climate Change and Youth Movement, for public secondary school students and teachers, seeks to support schools in building climate education programs.

CTH says it will implement it by Establishing new environmental clubs (Green Clubs) or partnering with existing ones targeting science and art students and equipping them with a club manual to guide their meetings.

The schools will also participate in the first-ever Nigerian Students Climate Summit billed to commemorate World Environment Day on 6 June 2024.

The program aims to increase awareness, sustainability, and resilience regarding climate change and clean energy, build capacity on the various technical skills required in the clean energy market value chain, and increase understanding of opportunities in the renewable energy sector.

Ms Ifeoma Malo, founder and CEO of Clean Technology Hub, remarked, “The agreement signed with DSTI enables us to launch a pilot program in the Government Science and Technical College, Bwari, which, upon its successful completion, will be replicated in other colleges in Abuja.”

 

 

 


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Dana Air Sacks over 1,000 Workers Weeks after License Suspension

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Dana Air has laid off about 1000 employees, including 583 permanent members of staff and expatriates, following the suspension of its operations by the Nigerian Civil Aviation Authority (NCAA).

Dana Air Sacks over 1,000 Workers Weeks after License Suspension

Though the airline claims this disengagement is temporary,  but emails seen Nigeria CommunicationsWeek,  suggested that it a permanent termination.

A paraphrased email sent to all the disengaged members of staff from the airline’s management read: “We regret to inform you that your service is no longer required effective May 9, 2024. This difficult decision was necessitated by the unfortunate suspension of our AOC/business operations by the Nigerian Civil Aviation Authority (NCAA) and enormous challenges the suspension continues to occasion. We take this oppourtunity to thank you for your contribution to the organisation during your time here with us and wish you the best in your future endeavours.”

Kingsley Ezen, head, Corporate Communications for the airline, in a statement, however blamed the development on the ongoing audit by the Nigerian regulatory authorities.

“In light of the ongoing audit, Dana Air has decided to temporarily disengage some staff members pending the conclusion of the audit,” Ezen said.

“The Management of Dana Air extends its sincere appreciation to all staff members for their resilience and dedication during this period of uncertainty. It recognises the difficulties that staff have had to endure and assures them that every effort is being made to resolve the situation promptly,” it added.

Recall that on April 24, the Nigerian Civil Aviation Authority suspended the Air Operators Certificate of Dana Air 24 hours after the airline’s plane from Abuja landed at the Lagos airport runway and veered off into a nearby field.

Reacting to the development, Festus Keyamo, minister of Aviation and Aerospace Development, said the airline has been operating in an unhealthy status.


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