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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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NIA Questions Legality of Reps’ Financial Probe

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The Nigerian Insurers Association has urged the House Committee on Capital Market and Institutions to respect the constitutional separation of powers as it carries out a probe on over 20 insurance firms.

In a statement on Tuesday night, the Director General/Chief Executive Officer of NIA, Mrs Bola Odukale, said the decision of NIA and the affected firms to approach the court was to seek clarity on the constitutional limits of the House Committee’s probe.

It would be recalled that the House of Representatives on Monday is investigating no fewer than 25 insurance companies operating in the country for various financial infractions spanning financial reporting, claims settlement, premium remittance, and issuance of policies.

The Chairman, House Sub-Committee on Capital Market and Institutions, Kwamoti Laori, during a meeting with the management of the insurance companies at the National Assembly Complex in Abuja, said the meeting was convened following the receipt of a petition on infractions by the insurance companies.

In the statement, Odukale said, “The Association wishes to state unequivocally that all actions taken by the NIA and the affected member companies in response to the Committee’s invitations and pronouncements were based entirely on legal advice by its Solicitors. It was on the firm instruction of legal counsel that recourse was made to the courts.

“The objective of approaching the Court is to seek judicial guidance on the legality, propriety, and constitutional limits of the Committee’s intervention in order to safeguard institutional integrity, uphold regulatory independence, and ensure that legislative oversight remains within the bounds of law.

“The Court action seeks to determine whether the current posture of the Committee reflects an exercise of legislative judgment, which, by constitutional design, is the exclusive province of statutory regulators, such as the National Insurance Commission, Securities and Exchange Commission, Nigerian Exchange, Financial Reporting Council, Nigeria Data Protection Commission, and the National Information Technology Development Agency.

“This raises serious questions about legislative overreach and an erosion of the doctrine of separation of powers, a cornerstone of Nigeria’s constitutional democracy.”

Odukale maintained that the NIA was committed to lawful and constructive engagement with all arms of government, provided that such engagement respects the autonomy of statutory regulators and the boundaries established by the Constitution.

“The NIA will continue to provide its full support to all member companies while upholding the principles of legal compliance and sector-wide integrity,” Odukale concluded.

17 of the companies that went to court were represented by their lawyer, Mr Abimbola Kayode, at the meeting with the committee.


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Horn of Africa Leaders Seek Enhanced Digital Integration for Increased Regional Growth

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Finance ministers and development partners from the Horn of Africa have called for enhanced digital integration to boost trade, drive economic growth and promote regional stability during the 25th Ministerial Meeting of the Horn of Africa Initiative (HoAI).

Held in Nairobi, on July 14, the meeting was co-chaired by the African Development Bank’s Vice President for Regional Development, Integration and Business Delivery, Nnenna Nwabufo and Somalia’s Minister of Finance, Bihi Iman Egeh. Discussions underscored the critical role of digital integration in reducing trade barriers, boosting government service delivery and creating employment — particularly for the region’s youth.

“Digital technologies are shaping today’s economy and tomorrow’s industries. By embedding these technologies into our programs, we can not only improve inclusion but also leapfrog outdated development models,” said Nwabufo.

She called for digital integration a “central enabler” in each of the Horn of Africa Initiative’s pillars – trade, infrastructure, resilience, and human capital,

Learning through experience

Drawing from global and regional success stories, speakers highlighted the transformative potential of technology-led development. The ministers pointed to the Philippines as a strong example, where ICT has generated millions of jobs in business process outsourcing. Similarly, Kenya’s fintech innovation—especially the success of M-PESA—was cited as a model for scaling digital financial services across the region.

Participants urged governments to proactively foster digital ecosystems by capitalizing on the demographic dividend, identifying infrastructure upgrades, tighter regulatory reforms, and digital skills trainings as priorities to enable broader participation in the digital economy.

Minister Egeh reiterated the need for more coordinated regional efforts to create the enabling environment required for accelerated digital integration and expansion. He referenced the HoAI Digital Policy Matrix, adopted in 2023 which provides a blueprint on how to address key obstacles to achieving effective digital integration across the region.

Barack Makokha, Kenya’s Cabinet Secretary for National Treasury, underscored the importance of regionally-aligned public private partnerships and advocated for blended financing to reduce investment risk and expand digital access in underserved areas.

World Bank Vice President for Eastern and Southern Africa, Ndiame Diop, called for a comprehensive multi-pronged approach, combining cross-border coordination, large-scale financing, robust policy support, and digital infrastructure investments. He pointed out that such measures could transform digital integration into, “a powerful engine of economic transformation” for the Horn of Africa—ensuring no one is left behind in the digital era.

The meeting concluded with a shared recognition that sustained political will and the determination to implement a multifaceted approach are essential to unlocking the region’s economic potential and driving long-term growth.

The event also welcomed observers from the East African Community, Agence française de développement, and Shelter Afrique, reflecting strong regional and international backing for the HoAI in the development community.


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CSCS Inaugurates Custodian Portal to Enhance Digital Access, Operational Efficiency

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Central Securities Clearing System Plc (CSCS), Nigeria’s capital market infrastructure provider, has launched its Custodian Portal, a user-centric digital solution designed to optimise custodian operations through intuitive, secure and efficient features.

Haruna Jalo-Waziri, Chief Executive Officer (CEO), CSCS, announced this in a statement on Monday.

The CSCS is a Public Limited Company with a diversified shareholder base, which serves as the Central Securities Depository for the Nigerian Capital Market.

It serves as the Central Depository for Equities, Commercial Papers, Corporate Bonds, Sub-National Bonds, certain Sovereign Bonds like the FGN Sukuk and the FGN Savings Bond, Equity-traded Funds, Real Estate Investment Trusts, Mutual funds and Commodities.

Jalo-Waziri said that the custodian portal offered a streamlined experience for market participants with powerful tools that facilitate comprehensive portfolio and trade management, document tracking, share transfer operations, client symbol search, and real-time access to vital data.

He explained that the portal, designed to operate through a flexible subscription-based model, empowered users to manage their records effortlessly and securely through convenient payment channels such as GTPay and Paystack.

According to him, “Digital transformation remains at the core of our strategy to enhance the efficiency, transparency and accessibility of Nigeria’s capital market services.

“The custodian portal is a significant leap in that direction, offering custodians a centralised platform to manage critical processes in real-time.

“We are excited about the value this innovation brings to our stakeholders, and we will continue to evolve the platform in line with users’ needs and industry trends.”

The CEO also explained that the portal was designed with user experience in mind with feature tools like portfolio viewing and downloads in PDF or Excel format.

He further said that it also featured tracking of stock movements across date ranges, inbox messaging and request tracking, as well as robust user management capabilities including role assignment and status tracking.

Similarly, the Divisional Head, Business Technology and Digital Innovation, CSCS Plc, Tobe Nnadozie, said that the portal aligned with CSCS’s drive to automate the market.

“In addition to the normal features, the platform is a part of an omnichannel platform for custodians, and includes API services.

“It also connects to the market-wide workflow, which CSCS has built to ensure secured communication and approvals across all major stakeholders in the market.

“The platform is well secured with best-of-breed cybersecurity solutions and our SOC,” he said.

The Custodian Portal reinforces CSCS’s commitment to leveraging technology to streamline back-office functions and support a more agile, data-driven capital market ecosystem.

All custodians in the Nigerian capital market have now been successfully on-boarded on the Custodian Portal, marking a significant milestone in CSCS’s ongoing drive to enhance collaboration, standardise operational processes, and promote digital adoption across the market.


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