Exploring Nigeria’s Untapped Software Industry

Looking at the current consumer trend in Nigeria Ojo Maduekwe writes that the country is fast shifting from software-consuming to a software-producing economy.
 

If you find yourself reading, shopping and building relationships with your internet connected smartphones and laptops, then welcome to the ICT age. More than before, advancement in information and communications technology (ICT) has continued to determine and reshape the way we live, work and play, greatly influencing and transforming the social media, government, education, culture and the workplace. At the centre of this knowledge revolution is software development.
Some parts of the world may have gone ahead in developing their software industry to become better advanced than Nigeria’s, but the giant of Africa is working at not being left behind. Once, the country was known for being contented as a consuming technology, but recent events have seen its citizens producing software for local consumption to the point that foreign organisations are looking critically at investing in the sector.
Before this realisation, Nigeria was losing so much money to the yearly importation of software.
According to President, Institute of Software Practitioners of Nigeria (ISPON), Chris Uwaje, at a recent event, “over 90 per cent of the software used in Nigeria are imported, thereby creating enormous capital flight.” This is expected to change as more investors get involved, and government pay closer attention to the industry.”

A Software-driven World
As the entire world gravitates towards becoming a digital haven, it has become compulsory for every person, among other properties, to own a computer, laptop, phone, smartphone, or all of them. These tools are the gateways to making connections with other human beings in different parts of the world easy. They also make living much easier.
More than before, the computer, laptop, and smartphones have become an indispensable part of our daily lives and a common sight in our modern world. As important as these tools are, experts say they are not complete without the right software to run on them. What they all need is an operating system (OS), which in itself, is a software application.
In a technologically-driven era, we use a wide range of applications, broadly termed as computer application software, on a daily basis to accomplish various tasks in the area of finance, entertainment, utility, and lots more, making a skilled software application developer, who creates these software, to be highly needed.
Countries that have been able to invest in this industry, have not only advanced technologically, they have been able to export software to less developed countries like Nigeria. For example, “Web development in India is a major generator of foreign exchange” according to Holly Maxted in an article on Article Snatch.

The Rise of Local Content
Locally-produced software have gained international attention. Recently, the microchip and software giant, Intel Global was in Nigeria to “help grow the software industry.”
Speaking on the purpose of their visit, the Country Manager, Olubunmi Ekundare, had said the technology giant was in Nigeria “to support the local eco-system in terms of software development by assisting developers in terms of content and software development.”
According to CEO and co-founder, The Co-Creation Hub, Bosun Tijani, “the Nigerian Software Industry is undergoing a quiet knowledge revolution driven in part by demands from evolving non-traditional sectors like entertainment, creative arts, tourism and hospitality amongst others and the general awareness of the potential role of technology in leapfrogging development across the entire African continent.”
The Co-Creation Hub, according to Tijani, is “Nigeria’s first open living lab for technologists, social entrepreneurs, tech companies, investors and hackers in and around Lagos.” At the Hub, “emphasis are placed on supporting and preparing local software developers to build working prototypes of their solution, demonstrate its value through initial testing and inherently engage investors and potential customers in improving their solution through a lean approach.”

Debunking Software Myths
Among numerous challenges facing the Nigerian software developer, industry experts said the twin myths of lack of capital, and foreign software being superior to locally-produced ones top the list. According to Tijani, lack of capital is “the biggest myth in the industry for which our experience at Co-Creation Hub begs to differ. There are more funds in the market than investment ready software ventures.”
For Tijani, it is also a myth to say foreign software are superior to local ones. The difference, according to him is: “In a globalised world, it is expected that most businesses will look where they can get the most value over time. The local software industry is quite nascent and as such disadvantaged when competing with solutions from proven markets.”

From Consumption to Production
If there was a time we were contented as a country with merely consuming technology, it seems that era is becoming history. Increasingly, we are looking critically at the idea of producing technology. Intel’s Ekundare recognises this change. “We are moving away from consuming technology to actually creating it.”
To aid that needed shift from consumption to creation was also why a group of young Nigerians came together to form The Co-Creation Hub, “an innovation centre dedicated to accelerating the application of social capital and technology for economic prosperity in Nigeria”, according to Tijani.
This move has caught the attention of local interests. The Co-Creation Hub and Tony Elumelu Foundation last year launched a Seed Fund to support 20 early stage ventures in their bid to demonstrate their technology to potential end-users.
According to Tijani, “There are more of such initiatives from Government and private foundations in Nigeria today than ever before.” A sign that indeed, the country is on an evolving path to becoming a software producing economy.
For Intel Global, the need for local content production, which is influencing their involvement in the nascent industry, is because of culture differences. “Somebody in Germany does not understand in reality the culture of Nigeria or the way her people thinks. This is why we want to work with local developers so that they can create products that meet the need of the Nigerian people.”

Call for Investors and Government’s Involvement
Stakeholders keep calling for investors and government’s involvement, but what exactly do software developers need from investors and government? Information, said the Intel Global team that visited Nigeria. “A lot of these guys are very passionate but they need access to innovation about what kind of things are already available so they don’t have to re-invent. Exposure to such information will allow them dream bigger dreams.”
On the kind of information the company can offer local software developers, the team said, “Intel is working together with retailers, OEM’s, carriers, telcos. These young people have no direct access to these people. We can introduce them to these decision makers in the companies that are the sales channels for their products in the future. In this way, we also can become part of the process and help them become successful.”
It would be a good development and a great leap for developers if more serious attention is paid the software industry says Tijani.
According to The Co-Creation Hub boss, “There are clearly ways in which the government can also spur growth in this sector including patronising local software houses. A good example of such gesture is the opportunity given to INITS to develop the voter’s registration software used by INEC in the last election.”
The call for government involvement in the software industry is not new. As far back as 2010, the Nigerian government had shown interest in software development.
Director General, the National Information Technology Development Agency (NITDA), Professor Cleopas Angaye, had on December 6, 2010 inaugurated a committee to develop a national software policy for Nigeria.
The committee head, President of the Institute of Software Practitioners of Nigeria (IPSON), Mr. Chris Uwaje, had decried the attitude of government investments in Nigeria’s ICT sector when he said, “It is however disheartening to observe that these investments have been mostly on imported software.”
He went on to say that “a recent disclosure by the National Office for Technology Acquisition and Promotion (NOTAP) shows that Nigeria loses about $1 billion annually to software importation. Whereas Nigeria software industry is potentially a $6 billion industry and could surpass revenue from the oil sector.”
With such goldmine yet to be tapped, it is expected that in the coming years, Nigeria would focus on this industry as an alternative means of revenue generation. Until then, organisations like Intel and The Co-Creation Hub have pledged to assist the country’s effort towards becoming a software producing economy.

Comments