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Enabling Environment for Nigeria Content Development in the ICT Sector (2)
This summary of the enabling environment and government actions to support it reveals the breadth and complexity of factors that analysts and practitioners have identified as important to putting in place the conditions that can enhance productivity and support content development. However, the table also makes clear that government is not the only actor involved in contributing to an enabling environment. As the governance terminology reflects, societal problem-solving, the production of public goods and social capital formation are not the sole purview of government actors.
Factors that Affect Content Development
Businesses thrive when products and services are produced and finished products marketed profitably. This ensures stock movement, as more goods will be produced and hence healthy return on investment. When the volume of sales is large, then more profit could be made, and some of it ploughed back to research. The product of research into indigenous content, affects content development. Thus any factor that limits the production and profitable marketing of finished goods will impact content development not only in ICT industry but also in other industries. Some of these factors are very apparent while some are opaque. I shall try to list some of them here.
a. Inconsistent Policy
b. Lack of Continuity
c. Infrastructure Development
d. Staffing
e. Finance
f. Multiple Taxation
g. Dumping
h. Lack of Transparency in Government
: Nigeria is a largely a government driven economy, so any hiccup in government affects the ICT industry. A case in point is the ongoing tussle over the over the signing into law the 2008 budget. The country is in a state of economic standstill. This negatively affects all sectors of the economy. Also transparency and accountability in all dealings with government reduces the cost of doing business. : Dumping of subsidised and therefore cheap foreign ICT tools impacts the local ICT industry negatively as a level playing field is lacking. : Multiple taxation from all the tiers of government is stifling return on investment and scaring potential investors. The case of MR. BIGGS and Lagos State Government LAASA is a case in point. Collection of advertisement and Signage fees is constitutionally vested on the Local Governments, but LASG Assembly in her wisdom last year passed a new law vesting it on LAASA – presto the fee became convoluted and quadrupled. : Most financial institutions in Nigeria encourage trade financing instead of investing in the productive sector of the economy – hence they tend toward financing LPOs. Manufacturing industries have long gestation period and thus require long term financing which is rarely available. : We are yet to attain e-workforce hence skills of new employees need to be updated as our institutions do not produce products with requisite skills compatible with the knowledge economy. Considerable resource has to be ploughed into equipping them to be functional. : The decay in the infrastructure in the country is mind bugling. We have to sink our own borehole, generate our own power, bear the brunt of impassable roads with the attendant accelerated wear and tear to vehicles, provide our own security, etc. The list is enormous. Under such conditions our products cannot compete in pricing with products from countries where infrastructure is better. : We are all aware of the reversal of some policies of the previous administration. Though we applaud some of them, especially were some of the transactions were done fraudulently in the first place; but a wrong signal has been sent to both local and foreign investors – your investment in this country may not be safe. : A policy an investor considers favourable for particular industry may lead him to raise capital and invest resources into bringing such industry to fruition after a comprehensive feasibility studies. And in Nigeria, this could be expensive as he has to also invest in so many ancillary sectors that are not directly related to the industry. Any policy reversal may put all in the investment in jeopardy. Leading to great loss. Such an investor will need a lot of convincing to ever venture into any project again in the country.Negative Effects of Such Factors
a. Labour
: No need rehashing that the industry needs skilled force. Educational institutions as presently represented cannot produce the manpower needed in the knowledge economy. So resources are expended to skill these staff.We at Zinox are contributing our own quota in this direction. Zinox:
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Has entered into partnership with Kansas State University in the US to streamline the curricula of two departments in the University of Lagos in line with what obtains in the knowledge economy. The partnership also involves the updating of lecturers skills so that they positively impact their students.
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Has under the Computerise Nigeria Initiative, provided ICT tools to teachers and lecturers of institutions of learning at subsidised prices and favourable payment terms.
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Under the Computerise Nigeria Initiative, the Zinox-Student Computer Ownership Project (Z-Scope) project was conceived to catch the work force young. Under it students are encouraged to own and use computers by providing them with subsidised ICT tools at favourable payment terms.
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Has also under the Computerise Nigeria Initiative been impacting the already employed workforce with by also extending ownership of ICT tools at subsidised rates and favourable payment terms.
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All these initiatives of Zinox involves much expenditure of resources, but the most saddening thing is that we are not encouraged by people defaulting after the initial deposit.
to be continued
We are also encouraging professional associations like NBA, NMA, ICAN, etc to encourage their members to own ICT systems under the terms explained above.
Nigerian Education Loan Fund (NELFUND) has said that Nigerian students will need to present their Unified Tertiary Matriculation Examination registration number (UTME); National Identification Number (NIN); and Bank Verification Number (BVN) to access student loans.
Mr Akintunde Sawyerr, managing director of NELFUND, assured that the body would ensure that those he called ‘ghost students’ would not have access to the soon-to-be-launched scheme.
The MD noted that NELFUND has put processes in place to ensure that all applicants and beneficiaries are traceable to prevent the loan from turning into a sort of national cake.
“We are using technology to run the system. The process of application is online and we are limiting human contact as much as possible. Once you have a Bank Verification Number, BVN and National Identification Number, NIN, which are parts of the requirements, we will have access to your data and all your accounts. This will also help us to know if you are qualified or not,” he explained.
He explained further that those who are already in school can apply for the loan at any level of their study, but must be at the beginning of each session. They would also have to provide their admission and matriculation details in addition to BVN and NIN.
According to the NELFUND boss, about 1.2 million Nigerian students in tertiary institutions and government-recognized skill acquisition centres would be among the first batch of beneficiaries. The number may increase as time goes on.
The programme, he noted, will be funded with one per cent of the total annual collectable revenue by the Federal Inland Revenue Service (FIRS), which will amount to N194 billion if the agency meets its projection.
He explained that the loan would be paid in two segments. The first, he said, is the chargeable school fees which would be paid directly to the institutions while stipend would be paid into individual student’s account for day-to-day upkeep.
Mr. Sawyerr stated that the amount individual applicants will access will vary because of the course of study, school fees payable and geographical location of the institutions among others.
On the method of payback, he said, “You don’t start paying back the loan until two years after your National Youth Service Corps, NYSC Scheme and that is, if you have secured a job or business. A beneficiary can defer repayment if he has not secured a job, but if after due diligence, he defaulted, then he becomes a criminal and we will work with every agency that can help us get the money back, for example, EFCC, ICPC etc.”
Sun International Limited, run by Anthony Leeming, South African entrepreneur, has agreed to sell its Nigerian interests to Rutam Finance Company Limited (RFC) for roughly $14.4 million.
The move is part of Sun International’s strategy to consolidate operations and focus on key markets. Sun International joined the Nigerian market in 2009, but has struggled in recent years due to a challenging operating climate.
This divestiture is consistent with the company’s strategic objectives and represents a shift in portfolio management.
Sun International, will sell a 43.3 percent ownership investment in Tourist Company of Nigeria PLC (TCN), which manages Lagos’ Federal Palace Hotel, to RFC for $1.875 million.
In addition, the group would pay off its whole $12.675 million credit to RFC, effectively exiting the Nigerian market. The corporation also intends to sell its remaining 6% ownership in TCN in due course.
The transaction, subject to customary closing conditions including as regulatory approvals, is estimated to create a cash inflow of about $14.41 million for Sun International.
These funds will be utilized to reduce debt.
Following the completion of the acquisition, TCN will no longer be included in Sun International’s financial statements.
This will reduce group debt by about $41.82 million, excluding IFRS 16 lease liabilities.
The closing is scheduled for no later than May 28, 2024, provided that all usual closing conditions are met. The Nigerian Competition Authority, the Securities and Exchange Commission, and the Nigerian Stock Exchange have all provided key clearances.
Sun International, founded in 1968 by the late Sol Kerzner, has grown into a renowned gaming and resort company under Leeming’s leadership.
In fiscal 2023, the company’s revenue increased by 7% to $646.14 million, while headline earnings increased by 86 percent to $55.35 million.
This demonstrates Sun International’s resiliency and strategic direction. Sun International’s pullout from Nigeria demonstrates the company’s dedication to streamlining its portfolio and pursuing growth possibilities in key areas.
With a rich history and a focus on the future, this transaction demonstrates the company’s commitment to create wealth for shareholders and stakeholders while also strengthening its position in the gaming and hospitality industries.
Sam Darwish, a US-Nigerian telecom entrepreneur, has experienced a huge financial setback in his holding in IHS Holdings following a recent drop in the shares of the top telecom infrastructure company on the New York Stock Exchange (NYSE).
Sam Darwish
According to data, Sam Darwish’s investment in IHS Holdings has lost $6 million in market value during the last 13 days. This drop reflects increasing selling pressure among NYSE investors.
From March 12 to 30, Darwish’s investment in IHS Holdings increased from $35.17 million to $49.27 million, resulting in a $14 million gain.
Darwish founded IHS Holdings in 2001, and it has since grown to become the largest telecom infrastructure business in Africa, Europe, Latin America, and the Middle East.
It is renowned for its huge tower count and is the world’s third-largest independent international tower firm.
In the last 13 days, IHS Holdings shares on the NYSE have dropped by 11.72 percent, from $3.67 on April 3 to $3.24 at the time of writing.
As a result, the company’s market capitalization has dropped below $1.1 billion, causing significant losses for stockholders.
As chairman and CEO of IHS Holdings, Sam Darwish holds a critical position in African telecom.
With a strong 4.17 percent ownership holding, equivalent to 13,958,158 ordinary shares, he is a key participant in the global telecom infrastructure business.
The recent double-digit loss in IHS Holdings shares has resulted in a $6 million decrease in the market value of Darwish’s shareholding in the top telecom infrastructure company. His shareholding has decreased from $51.23 million on April 3 to $45.22 million.
Despite this defeat, Darwish remains an important figure in the worldwide telecom business.
IHS Holdings’ extensive tower network and smart acquisitions have secured its position as a major participant in the global telecom infrastructure sector.
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