General News
Local OEMs Need Support to Create Job, Wealth- Balogun
Tunji Balogun is chief architect of Brian Integrated Systems, manufacturers of world class desktops and laptops as well as other computer accessories. A member of many ICT associations, Balogun started his career in the ICT industry over 30 years ago with NCR Plc. He is also the brain behind Balog Technology, distributors of computer products. Balogun spoke to chike onwuegbuchi and fumni Ilesanmi on a wide range of issues
Differences between Local OEMs, Cloned OEMs and Others
When you talk about original equipment manufacturers that means you must have gone through some set of rigorous test with your systems. There are procedures you are supposed to take in building systems meaning.
You have been certified to have gone through approved procedures in building your systems which are international procedures like the WHQL. This means that you have the knowledge to integrate hardware and software together. It is like communication where if there is any gap you cannot have the marriage, where there is a handshake that means the hardware and the software are not in conflict. Two, adapt both and marry both together. That’s what makes you an OEM. But any body can build a clone system without going through specific specifications and procedures.
Using Clone Systems
It is a matter of choice. For example, you want to buy a brand new system which you know that the manufacturer put his name behind it and gives you warranty that if anything went wrong within a specific period, you are free to bring it back and he would either replace the part or gives you a new system. But in clone, there is no warranty. They are not giving you any warranty, so you are on your own. That is the difference.
Marketing Strategy
It is a matter of information. What we are doing presently is to get awareness out there. Get our products on every table and get the media to know what we are doing so that people can know that there is an OEM that is even better than buying international acclaimed systems. Because one, what we are telling people is that if you buy Brian you realize your warranty without any question asked. So the information needs to get across and then we need to expand the channel of distribution which we are in the process working on and don’t forget all these things cost money. Local OEMs need some encouragement from the government either through import duty waiver or through getting loans from the banks at reduced interest rates. Some of our international partners get all kinds of relief from their base. That reduces the level of awareness, the money we can spend to create that awareness. Although we are doing it we are not there yet, but we know that we are in the process of even doing more than what we’ve been doing.
Government’s Waiver on Knocked down Components
We thought the relief we have been fighting for came but in the same token we didn’t enjoy it before it was withdrawn anyway. It was only said it wasn’t written, it wasn’t documented, so the Customs were not even accepting that. But right now we pay five percent duty on some products and on some products like the monitor we are paying 20 percent duty which is very high compared to our competitors in their home countries; they get all kinds of relief. Like in the US they don’t pay anything duty on ICT for an OEM to encourage business and encourage entrepreneurs to create employment for people in their local environment whereby the incentive or the relief given on duty would pass to expand our businesses but we are not enjoying that.
Challenges
Well, I will say we need a conducive environment to operate in. For any manufacturing outfit to make profit, we must have constant supply of electricity, good roads and other infrastructures, apart from that as an OEM we should be proudly Nigerian. Government needs to have a policy where all the government agencies should not be allowed to make use of foreign made systems, that way we’ll keep money in the country and we’ll be able to employ people in Nigeria and create wealth for the people. Because by buying foreign brands we are encouraging and expanding their employment opportunities in their countries thereby driving away the needed job in Nigeria. But when you encourage local OEMs, they create jobs in return you reduce the number of unemployed youths in the society. In the area of support like I’ve said interest rates, you are not supposed to have your own money to do business. Banks are supposed to build on our resources, sit down with us and see areas where they can grow our business and the way they grow our business is to give us reduced interest rates to be able to support our buyers in buying our products.
Local Industries in Assembling Computer Components
That brings us back to the area of conducive environment again. You can not be successful in the manufacturing industry especially the ICT business if there is no regular supply of electricity. There are some components that are needed for you to have other people to complement each other for you to manufacture even a single component in the system. We don’t have such industries on ground and for us to have such industries; we need a lot of capital. For example, to manufacture only a DVD writer you need a minimum of 2 to 3 million dollars to set up the factory. With the way technology changes rapidly, that kind of investment is not wise right now because you need other people to complement what you want to make, to buy parts from them. You cannot make all the components in a DVD writer that you want to make, there are some you have to sublet out to people so the industries must complement each other within reach for you to manufacture ICT products. So for now it’s not visible.
Local Systems Builders Club
All I can say is that Brian system is coming up with new products everyday, our product development is working and we have products that can compete with any international acclaimed systems when placed side by side, I bet you Brian will beat most of them in design and in capacity.
Tax Evasion at Computer Village
It’s not that members are not paying taxes, some are paying their taxes, fulfilling their civic responsibilities but we have few that are not paying. Those are the ones that are housed in shops, some of them have like two employees in their employment, and those are the people we are talking about. After reaching an agreement with the Lagos State government and with our members, everybody complied and everybody paid up the needed amount that needed to be paid for the taxes in question. So we have taken care of that and I believe the Lagos State government is happy with the association.
Plans for relocating the village
First of all I give kudos to the Lagos State Governor in person of Governor Fashola. He’s doing a good job in Lagos, bringing the State to what it used to be in the 60s and early 70s. The governor said that he does not want street trading and emphatically that street trading is not allowed in Lagos State and computer village. Computer Village is a residential area which has been turned into a commercial area, but the Lagos State government is saying we need to vacate the place soon and we’ve been allocated a land which will house the present Computer Village and that place is the Kantagua market. So we are working with the Lagos State government to build a befitting ICT centre for Lagos State and Nigeria as a whole. A place big enough to house everybody, whether you are selling hardware, phones or anything that has to do with ICT that will be conducive for buyers and sellers to go about their business without any fear of being attacked. Such an environment is under construction in conjunction with Cadda and the Lagos State government with the Chairman of Oke- Odo Local Government along Ipaja area.
When realizable
In the next one year.
Financial Crisis and ICT Industry
As for the depreciation in the value of the naira, the government has a lot to do. If the naira keeps falling the way it is falling right now, that means the prices of everything will go up. For us to get the kind of penetration we are looking for, to put PC in every home so that people can be computer literate and have that skill set with our counterparts outside this country, we need to get the naira back to what it used to be. That is, one to 120 or less for that area but the ICT industry in Nigeria is growing at an appreciable level which you and I know that Nigerians are improving their skill set in the area of ICT if not anything. I encourage every body out there to go out and learn how to use one or two of the programmes that can help them not only for personal growth but do things in a more efficient way.
Two, cut down cost by using ICT equipment. Three, you will have what I call personal conviction that nothing is impossible for you to do because with the use of the computer the world is at your finger tips. So I’ll encourage everybody to be computer literate.
General News
AfDB, AfCFTA Unite to Unlock $3.4 Trillion Continental Market Through Strategic Infrastructure Development
The African Development Bank Group, the African Continental Free Trade Area (AfCFTA) Secretariat, and Africa50 have signed a Memorandum of Understanding to catalyse infrastructure development across the continent and unlock the full potential of the largest free trade area in the world since the establishment of the World Trade Organization.
Signed at the Africa50 General Shareholders Meeting in Maputo, the tripartite agreement establishes a comprehensive framework for cooperation in identifying, designing, constructing, and maintaining critical infrastructure projects that will enhance intra-African trade, accelerate regional integration, and drive digital transformation across the continent’s market of 1.3 billion people.
Currently, intra-African trade accounts for just 15–18% of total African trade, compared to 68% in Europe and 59% in Asia. The new partnership between the three institutions aims to dramatically increase this figure by addressing the infrastructure gaps that currently constrain trade flows across African borders.
It will prioritise developing multimodal transport corridors, cross-border infrastructure, logistics hubs, ports, and airports to seamlessly connect African markets and reduce the cost of doing business across borders.
Recognising the transformative power of the digital revolution, the partners will also work together to establish cutting-edge data centres and digital trade platforms, enabling African businesses to compete in the global digital economy.
“The African Development Bank has played a lead role in supporting the development and operation of regional economic corridors throughout the African continent by investing over $55 billion in the last nine years to develop road corridors, ports, railways, and expand power pools to interlink countries and boost trade,” said Solomon Quaynor, the Bank’s Vice President for Private Sector, Infrastructure & Industrialization.
Specifically, the Bank invested over $8 billion across 109 cross-border, economic corridors, and infrastructure projects between 2014 and 2024
He added: “The tripartite agreement between the AfCFTA Secretariat, the African Development Bank, and Africa50 underscores the paramount importance of realizing the full potential of the AfCFTA single market with its combined annual GDP of $3.4 trillion through the establishment of transport infrastructure.”
Alain Ebobissé, CEO of Africa50, emphasized that the agreement will support “the development and financing of trade-enabling infrastructure to boost intra-African trade, one of the continent’s greatest endeavours.”
The partnership will operate on six strategic pillars: ensuring alignment with the AfCFTA Agreement and regional policies; jointly identifying bankable projects; mobilising capital through innovative finance mechanisms; establishing robust tracking systems; encouraging stakeholder dialogue; and integrating environmental, social, and governance standards throughout project lifecycles.
The three-year memorandum of understanding will be operationalised through detailed joint work plans and specific implementation agreements that will define projects, timelines, and financing arrangements. Technical working groups will be established to ensure effective coordination among the partners and alignment with national and regional development priorities.
Speaking on a panel at the Africa50 event, Wamkele Mene, Secretary-General of the African Continental Free Trade Area, said: “In the global context, we are facing an unprecedented challenge in Africa.
“But this challenge is a unique opportunity for Africa; it is a wake-up call for us that we have to invest in our institutions, in infrastructure, and our skills. Infrastructure development is at the heart of trade and is a prerequisite to doubling intra-African trade to 25% by 2030.”
Vitel Wireless, Nigeria’s first Mobile Virtual Network Operator (MVNO) has entered into partnership with Slot Systems Limited for distribution of its SIM cards and other gadgets around the country.
Chudi Nwabueze, managing director, Vitel Wireless who described the partnership as a defining moment for his company said Vitel Wireles’s purpose is clear: to transform connectivity in Nigeria through innovation, affordability, and seamless access.
Nwabueze, who spoke in Lagos recently at the official engagement with Slot said Vitel Wireless, as the nation’s first Mobile Virtual Network Operator is committed to creating smart, reliable solutions that break down barriers to communication and make it easier and more cost-effective for people to stay connected anytime, anywhere.
“This partnership with SLOT is a meeting of shared values and vision. By combining our innovative mobile services with SLOT’s extensive retail presence, we are making Vitel Wireless SIM cards and the connectivity they offer more accessible than ever before. Customers will now be able to purchase, register, and top-up their SIM cards conveniently within their own communities.”
He described the collaboration as more than just distribution, ”it is about empowering people. It is about bridging the connectivity gap with technology, accessibility, and affordability at the heart of everything we do.”
Nwabueze further explained Vitel Wireless SIM card is a location technology awareness card. It can track whereabouts of a person. This information can help the police, on official demand, in case of unfortunate incident.
He said the disadvantages of tracking a person’s whereabout outweighs the advantages.
He explained that access code is given to another person for tracking.
“We operate as a core network and we have integrated with all the major networks in Nigeria, including international calls. So, on a simple language, we are a GSM company, that you do call, SMS, data and we offer more value like safety. And the good news is that we are spread out in the 36 States plus Abuja FCT in Nigeria.
Digital Realty Nigeria, a carrier-neutral data centre operator, will be launching its ServiceFabric® platform alongside opening of its new LKK2 Data Centre in Lagos today.
ServiceFabric Platform in Lagos Nigeria, aligned with Digital Realty’s commitment to enabling seamless global interconnectivity for businesses, providing enterprise customers in Nigeria with the ability to connect whenever, wherever, and to whoever they need to.
Engr. Ikechukwu Nnamani, managing director, Digital Realty Nigeria, said that the presence of ServiceFabric in Lagos will support the growing demand for hybrid IT and multi-cloud connectivity, empowering businesses with a secure, software-defined interconnection platform.
Located in the nearby coastal area of Lekki, LKK2 adds nearly 2MW of installed IT capacity across nearly 13,000 square feet of data hall space, supporting the growing demand for scalable, high-performance infrastructure across Nigeria and the broader region. LKK2 will be interconnected with Digital Realty’s existing LKK1 facility, which serves as the landing station for the 2Africa subsea cable, offering customers seamless access to the cable’s 46+ landing points in 33 countries across Africa, Europe, the Middle East, and Asia.
The integration of LKK2 with the 2Africa cable landing station at LKK1 enables businesses in West Africa to leverage low-latency connectivity and reliable access to global cloud and network services. This setup supports improved application performance and enhances access to international digital ecosystems through a carrier-neutral platform.
This new facility integrates with ServiceFabric®, Digital Realty’s global interconnection and orchestration platform, ensuring low-latency, high-throughput connectivity to local, regional, and international destinations. Through ServiceFabric®, LKK2 will interconnect with LOS1, the region’s top internet peering point, and LOS2, Digital Realty’s highly connected data centers located on Victoria Island in Lagos.
Together, this ecosystem delivers robust resilience, redundancy, speed, and scale for enterprise and hyperscale customers seeking to expand into a fast-growing digital market, ensuring continuous, reliable operations.
“LKK2 is a significant milestone in our journey to support digital transformation in Africa,” said Ike Nnamani, Managing Director, Digital Realty in Nigeria. “Our continued investment in Nigeria and the broader African region reinforces our commitment to enabling seamless global interconnectivity and providing a future-ready infrastructure platform for local and global enterprises.”
This strategic expansion reinforces Digital Realty’s commitment to advancing Africa’s digital transformation by delivering the infrastructure and connectivity needed to support innovation and growth across the continent. Recently ranked number one in Africa on Cloudscene’s Data Center Ecosystem Leaderboard, the company continues to cement its position as a leading enabler of the continent’s digital future. With the exponential growth of data and the acceleration of digital initiatives across the region, LKK2 provides the additional capacity which enterprises and content providers need to grow, scale, and connect – wherever and whenever they need to.
LKK2, due to become operational later this year, will support both local enterprises and multinational organizations seeking reliable, secure, and interconnected infrastructure in Africa.
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