1. IMPACT OF INFORMATION TECHNOLOGY
ON NIGERIA’S ECONOMY
CASE STUDY OF SELECTED FIRMS
ADEYINKA ADEKUNLE TIMOTHY
MATRIC NUMBER NOU144464084
A RESEARCH PROJECT SUBMITTED IN
PARTIALFULFILLMENT OF THE
REQUIREMENTS FOR THE AWARD OF
MASTER DEGREE (MBA) IN BUSINESS
ADMINISTRATION, NATIONAL OPEN
UNIVERSITY OF NIGERIA
JULY 2016

2. APPROVAL PAGE
This is to certify that, to the best of our knowledge, (Timothy Adekunle Adeyinka), a
Master Degree student with Matriculation Number NOU144464084, carried out this
research satisfactory and as has been accepted as meeting the regulations governing the
ward of Master of Business Administration (MBA) in the School of Management Science,
National Open University of Nigeria.
Prof .Anthony M. Oladoyin Date
Dr. O.O. Pitan Date
External Examiner Date
Dean, School of Management Science Date

3. DECLARATION
I, TIMOTHY ADEKUNLE ADEYINKA, humbly declare that this work entitled
IMPACT OF INFORMATION TECHNOLOGY ON NIGERIA’S ECONOMY is a result
of my research effort carried out in the School of Management Science National Open
University of Nigeria, under the supervision of Prof. A. M. OLADOYIN.
I further wish to declare that, to the best of my knowledge , it contains no material
previously published or written by another person nor material which to a substantial
extent has been accepted for the award of any other master of in any university or other
institute of higher learning, except where due acknowledgment has been made in the text.
Timothy Adekunle Adeyinka Date

4. DEDICATION
I dedicated this project to Jesus Christ my Saviour, my mentor and my families.

5. ACKNOWLEDGEMENTS
I give God the Glory for HIS help, wisdom, Grace to pursue this Master programme. I
would like to thank my supervisor, Prof. A.M. Oladoyin, for the patient, guidance,
encouragement and advice he has provided throughout my time as his student. I have been
extremely lucky to have a supervisor who cared so much about my work, and who
responded to my questions and queries so promptly.
I express my gratitude to the Vice Chancellor National Open University of Nigeria,
Professor Abdalla Uba Adamu, and Dr. O. O. Pitan. I would also like to appreciate all
members of staff National Open University Osogbo Study Centre for their help and
support. My appreciation also goes to the management of National Open University of
Nigeria. In particular, I would like to thank my wife for her continual support and
encouragement, my appreciation also goes to my parents and sibling: Seun Adeyinka, Seyi
Adewale and Sade Adeyinka and my children.
I must express my gratitude my Mr. Olaniyi Olajide, Mrs. Oyedele Taiwo, Mrs.
Oluwafisoye Mary, Mr. Ajobo Joseph .A, Mr. Adegoke Adewale, Mr. Olaniran
Oluwabukola and Mr. Sola Egunyomi for continued support and encouragement.
Completing this work would have been all the more difficult were it not for the support
from my friends Thanks you all.

6. ABSTRACT
Globalization is changing Nigeria in transformation and diversifies the economy,
especially is creating new opportunities and new challenges through information
technology. Information technology is a fundamental driver of economic growth and job
creation all over the world in both developed and emerging markets. In addition, ICTs are
also increasingly recognized as a key source of innovation that can generate increased
economic growth and new sources of high-value-added jobs. The literature review was
developed to examine the impact of information technology on various sectors of the
economy. The study examined the report on Nigeria, published by the World Economic
Forum has measured the drivers of the ICT revolution using the Networked Readiness
Index , the economics indicator on various sectors of the economy and the challenges
facing ICT operators in the country. The following hypotheses were stated; there was a
positive relationship between information technologies in diversified economy and
Information technology reduces the level of illiteracy and eradicates poverty in the society.
The responses from the questionnaire were analyzed using the percentage analysis method
and chi-square as the statistical tools. The findings of the research were based on the data
gathered from the respondents. From the data collected the alternative hypothesis “there is
a positive relationship between information technologies on diversified economy” was
accepted.
This section naturally contains 4 components namely.
1. Summary of all the objectives plus the justification for setting out to pursue the
objectives.
2. Summary of all the research methods-data collection methods, sampling size,
frame and techniques; and so on and so forth.

7. 3. Summary of major findings in tandem with the objectives of the study. This reflect
must statistical and qualitative results of analysis; and
4. Conclusion not recommendation.

8. TABLE OF CONTENTS
CHAPTER ONE PAGES
1.1 INTRODUCTION 1
1.2 BACKGROUND 2
1.3 STATEMENT OF THE PROBLEM 7
1.4 OBJECTIVE OF THE STUDY 8
1.5 RESEARCH QUESTION 9
1.6 STATEMENT OF HYPOTHESIS 10
1.7 SIGNIFICANCE OF THE STUDY 10
1.8 JUSTIFICATION OF THE STUDY 10
1.9 SCOPE OF THE STUDY 11
1.10 DEFINITION OF TERMS 12
CHAPTER TWO
2.0 INTRODUCTION 15
2.1 CONCEPTUAL CLARIFICATION 15
2.2 THEORETICAL FRAMEWORK 17
2.3 LITERATURE ON THE SUBJECT MATTER 20
2.3.1 IMPACT OF DIGITAL TECHNOLOGY, INTERNET PROCOTOL
TECHNOLOGY (IPT), AND VOICE OVER INTERNET PROTOCOL

9. TECHNOLOGY (VOIP) 26
2.3.2 IMPACT OF INFORMATION TECHNOLOGY ON AGRICULTURE 30
2.3.3 IMPACT OF INFORMATION TECHNOLOGY ON COMMERCE
AND INDUSTRY SECTORS 32
2.3.4 IMPACT OF INFORMATION TECHNOLOGY ON EDUCATIONAL
SECTORS 36
2.3.5 IMPACT OF INFORMATION TECHNOLOYG ON GOVERNMENT 38
2.3.6 IMPACT OF INFORMATION TECHNOLOGY ON HEALTH SECTORS 41
2.3.7 IMPACT OF INFORMATION TECHNOLOGY ON ENTERTAINMENT
SECTORS 42
2.3.8 IMPACTOF INFORMATION TECHNOLOGY ON MANUFACTURING
SECTORS 44
2.3.9 ECONOMIC BENEFIT OF BROADBAND TECHNOLOGY 48
2.3.10 BENEFIT OF INFORMATION TECHNOLOGY 50
2.3.11 IMPACT OF INFORMATION TECHNOLOGY ON THE SOCIO-
ECONOMIC 52
2.3.12 THE GLOBAL INFORMATION REPORT 2015 53
2.3.13 MICKINSEY REPORT IDENTIFIES FIVE FACTORS
THAT HAVE BEEN KEYS TO INTERNET GROWTH 62

10. 2.3.14 THE EMERGING TECHNOLOGY AREA AND GROWTH OPPORTUNITY
IN NIGERIA 65
2.3.15 NIGERIA ECONOMIC INDICATORS 66
2.3.16 CHINA IMPORT FROM NIGERIA DATA FORECASTS 70
2.3.17 NIGERIA EXPORT 71
2.3.18 NIGERIA MANUFACTURING PRODUCTION 71
2.3.19 NIGERIA FOREIGN DIRECT INVESTMENT 72
2.3.20 NATIONAL INFORMATION COMMUNICATION TECHNOLOGY (ICT)
POLICY 2012 73
2.3.21 CHALLENGES FACING THE ICT GROWTH IN NIGERIA 75
CHAPTER THREE
3.1 INTRODUCTION 80
3.2 AREA OF STUDY
3.3 RESEARCH METHODS
3.4 SAMPLING SIZES 81
3.5 SOURCESOF DATA 81
3.5.1 PRIMARY DATA
3.5.2 SECONDARY DATA 82
3.6 DATA COLLECTION INSTRUMENTS AND PROCEDURES 82

11. 3.6.1 INTERVIEWS
3.6.2 QUESTIONNAIRES
3.7 METHOD OF DATA ANALYSIS 83
3.8 LIMITATION AND VALIDITY 84
CHAPTHER FOUR
4.0 PRESENTATION OF DATA ANALYSIS AND INTERPRESENTATION 85
4.1 INTRODUCTION 85
4.2 COLLECTION OF RESPONSES
CHAPTHER FIVE
5.0 SUMMARYOF THE FINDING, CONCLUSION, RECOMMENDATION AND
PROSPOSAL FOR FURTHER STUDIES 107
5.1 INTRODUCTION
5.2 SUMMARY OF THE FINDING
5.3 CONCLUSION 109
5.4 RECOMMEDATIONS 110
5.5 PROSPOSAL FOR FURTHER STUDIES
113
BIBLOGRAPHY 114
APPENDICES

12. LIST OF TABLES
TABLE 2.1: TOP TEN NIGERIAN VISITED WEBSITE 35
TABLE 2.2: EXAMPLE OF E-GOVERNMENT 40
TABLE 2.3: THE NETWORKED READINESS INDEX TOP TEN COUNTRY 54
TABLE 2.4: TABLE SHOW THE NETWORKED READINESS INDEX 2015
RANKINK NIGERIA AMONG THE VARIOUS
PILLARS OF ICT COMPETITIVENESS 56
TABLE 2.5: ITUMOBILE BROADBAND PREPAID HANDSET PRICES 59
TABLE 2.6: DIFFERENCES IN THE SPEED OF INTERNET ADOPTION ACROSS
COUNTRIES (NIGERIA) 60
TABLE 2.7: THE EMERGING TECHNOLOGY AREA AND GROWTH
OPPORTUNITIES 65
TABLE 2.8: NIGERIA ECONOMIC INDICATOR 67
TABLE 2.9: COMPARISM BETWEEN NIGERIA AND CHINA IN GDP AND
UNEMPLOYMENT 69

13. LIST OF FIGURES
FIGURE 2.1: GROWTH EFFECT OF ICT 48
FIGURE 2.2: NIGERIA GOVERNMENT REVENUES 69
FIGURE 2.3: CHINA IMPORT FROM NIGERIA 70
FIGURE 2.4: NIGERIA EXPORT 71
FIGURE 2.5: NIGERIA MANUFACTURING PRODUCTION 72
FIGURE 2.6: NIGERIA FOREIGN INVESTMENT 73

14. LIST OF ACRONYMS
NRI: Networked Ranking Index
ICT: Information communication technology
ITU: international technology Union
GDP: Gross Domestic growth
VOIP: voice-over-Internet protocol (VoIP) technology
NTP: National Telecommunication Policy
NBC: National broadcasting Commission
NIRA: Nigeria In internet Registration Association
GSM: Global System for Mobile Communication
BPO: Business Process Outsourcing
IXP: Internet Exchange Point
JAMB Joint Admissions and Matriculations Board
NBC: National Broadcasting Commission
NCC: Nigerian Communications Commission
SMS: Short Message Service
USAID: United States Agency for International Development
GSM: Global System for Mobile communications
ICT: Information and Communication Technology

15. HSPA: High Speed Packet Access
HSPA+: Evolved High-Speed Packet Access
HSUPA: High-Speed Uplink Packet Access
IG4D: Internet Governance for Development
FMCT: Federal Ministry of Communication Technology
MOOCS: Massive Online Open Courses
UNPAN: United Nation Public Administration Network
GIS: Geographic Information System
NPC: National Population Commission
CDMA: Code Division Multiple
IDA: International Data Access

16. CHAPTER ONE
INTRODUCTION
1.1 Introduction
Information technology is defined as a collective term for a wide range of software,
hardware, telecommunications and information management techniques, applications and
devices, that are used to create, produce, analyze, process, package, distribute, receive,
retrieve, store, and transform information (Brady et al.,2002).
Information technologies (IT) have the potential to transform economy and diversify in
Nigeria. Information technology communication (ICT) sectors control all information
technology globally .The long-term strategic vision for the IT sector was elaborated upon
in the National Development Plan titled “Nigeria Vision 20:2020”. According to the
document:
The increasing globalization driven by ICT makes it imperative for Nigeria as an
emerging market to irreversibly consider the application and promotion of IT strategy to
facilitate its rapid growth and development. This will involve the development of a vibrant
IT sector to drive and expand the national production frontiers in agriculture,
manufacturing and service sectors. It would also require the application of the new
knowledge to drive other soft sectors: governance, entertainments, public services, media
sector, tourism, et cetera.
Information technologies (ITs) were becoming more powerful, more accessible, and
more widespread. ICT use is a key driver of innovation, especially in advanced economies
where other sources of productivity gains have dried up or produce lower returns. (Draca
el.al.2006). As a general-purpose technology, ICTs have an impact that extends well

17. beyond productivity gains. ICTs act as a vector of social development and transformation
by improving access to basic services, enhancing connectivity, and creating employment
opportunities. In these ways information technology affect how people live, communicate,
interact, and engage among themselves and with their government.
1.2 Background
Information Technology is a system that optimally allocates resources among competing
needs and encourages interactions among individuals, businesses firms and government in
Nigeria economy in its working permeate and affect every strata of the population. The
transformation of Nigeria’s economy based on IT therefore is the transformation of
Nigeria’s people, organizations and or institutions as technology thinking entities. The
mission statement of the government was to use IT for Education, Creation of Wealth,
Poverty Eradication, Job Creation, and Global Competitiveness.
Sisniega (2009) asserted that the applications of information and communication
technologies (ICT) facilitate ubiquitous and instantaneous communication between
organizations and their stakeholders. Information communication technology enables
people and organizations to achieve a seamless workflow and effective processes through
improved interactions. In 2008, one of the world’s leading in international development
economists, Jeffrey Sachs, wrote that mobile phones and wireless internet will “prove to
be the most transformative technology of economic development of our time. ( Sachs
2008).
Drew and Foster (1994) defined IT as the group of technologies that is revolutionizing
the handling of information. It is taken to embody a convergence of interest between
electronics, computing and communication. Chowdhury (2000) posited that ICTs
encompass technologies that can process different kinds of information (audio, video, text,

18. and data), and facilitate different forms of communications among human agents, and
among information systems.
Duncombe et al (1999) simplify the definition by describing ICTs as an “electronic
means of capturing, processing, storing, and disseminating information”. When computer
and communication technologies are combined, the result is information technology or
“InfoTech” information technology (IT) is a general term that describes any technology
that helps to produce, manipulate, store communicate and or disseminate information. IT
merges computing with high speed communication links carrying data sound and video e.g
personal computer, but also new forum of telephone, television, appliance and various
hand held devices.
For example, the personal computer or mobile telephone can now receive and transmit
different types of media and services because of enhanced processing power and memory
capacity. The ICT transform sector has proven to be a strong driver of GDP growth in
nations across the world. From developing countries such as India and the Philippines,
Singapore, Finland, Sweden, China to developed nations such as the United States of
America and Ireland, the ICT sector has contributed to the success of each of these
nation’s economies, the advancement of its people skills and capabilities and positioning
the nation as a place for global firms to do business more efficiently.
The ICT sector is socially and economically relevant to Africa in that it has been the
major economic driver in Sub-Saharan Africa over the past de-cade. Although mobile and
internet penetration remains comparatively low in Africa, never before in the history of the
continent has the population been connected as it is today. Spending on ICT within Africa
is roughly in line with the global average, although there is a considerable variation
between countries. For example, Morocco spends 3.5 times its GDP on ICT than Nigeria.

19. Nigeria is a middle income, mixed economy and emerging market, with expanding
financial, service, communications and technology and entertainment sectors. It is ranked
as the 21st largest economy in the world in terms of nominal GDP, and the 20th largest in
terms of Purchasing Power Parity, Nigeria has the ninth largest gas reserves in the world
and the largest in Africa. It is the largest economy in Africa; its re-emergent, though
currently underperforming, manufacturing sector is the third-largest on the continent, and
produces a large proportion of goods and services for the West African sub region.
Nigeria recently changed its economic analysis to account for rapidly growing
contributors to its GDP, such as telecommunications, banking, and its film industry.
According to a Citigroup report published in February 2011, Nigeria will get the highest
average GDP growth in the world between 2010 and 2050. Nigeria is one of two countries
from Africa among 11 Global Growth Generators countries.
In oil sector, GDP growth posts its worst performance in fifteen years, falling to around
half the level seen over the last decade. Exports fall and the current account, which has
been in a surplus since 1999, dips into a deficit worth around US$20-30bn in 2015. In
2013, the oil sector contributed to 11% of Nigerian GDP, in comparison to a peak of 48%
in 2000, the Real GDP growth 5.4% (2013), 6.3% (2014), 2.5% (2015). (Pwc)
Investors who had previously sought exposure to Nigeria’s high growth potential appear
to be getting nervous. Sovereign bond yields – at 17.3% – hit 7-year highs in February
2015 and the NSE All Share Index has fallen over 30% since July 2014. Although equities
and bonds have staged a partial recovery since the election, both have underperformed
emerging market peers. Longer-term financing is also vulnerable to deteriorating security
conditions. Nigeria’s Country Risk Premium (CRP) our model uses sovereign bond yield
and risk and credit ratings to identify the additional risk of investing in a foreign market

20. over a ten-year time horizon – has increased by 0.7 percentage points over the last three
quarters. Foreign Direct Investment (FDI) inflows also fell to their lowest level in 7 years
in 2013. And over a third of capital expenditures from projects financed externally in 2014
are attributable to the Coal, Oil and Gas sector. These investments will be particularly
susceptible to cost cutting from global energy majors if low oil prices (the oil price hit low
point of $35/bbl) persist in 2015.
The Nigeria Customs Service (NCS) has generated over N747 billion as revenue
between and January and October, 2015. Nigeria has sizeable amounts of gold, aluminum,
lead, and copper, but the sector is largely informal and is characterized by artisan miners,
medium scale operators and illegal miners. Therefore most of the government income
arises from the quarry, cement and construction sector. The solid minerals audits reveal
that the Government of Nigeria has collected an average of almost US $100 million per
year. This compares to almost US $60 billion received from the oil and gas sector in 2008.
(NEITI)
Furthermore, corporate tax paid by mostly quarry and construction companies accounted
for 95% of collected revenues with royalties representing a further 4%. The mining of
minerals in Nigeria accounts for only 0.3% of its GDP, due to the influence of its vast oil
resources. The domestic mining industry is underdeveloped, leading to Nigeria having to
import minerals that it could produce domestically, such as salt or iron ore.(NEITI report
2015). The growth of large services and agricultural sectors has fuelled economic
development, with active fiscal and monetary policy encouraging this trend. Inflationary
pressure from a depreciating currency exceeds deflationary pressure from lower economic
growth. As a result, inflation rises to levels not seen since 2012, as the price of imported
materials and food rises inflation at 14.0% as 2015, 8.1% (2014), and 8.5% (2013). (Pwc
2015)

21. The performance of sub-Saharan Africa is particularly poor: 30 of the 31 countries
included in the sample appear in the bottom half of the NRI rankings (Networked
Readiness Index). The only exception is Mauritius, at 45th. The country has progressed
three places since last year and eight since 2012. Among the large economies of the
region, Nigeria drops seven places to 119th. South Africa drops five to 75th—it is now
third in the region behind Mauritius and Seychelles (74th). In contrast, Kenya (86th, up
six) has been slowly improving since 2012. (NRI 2015)
Many sub-Saharan African countries have fully liberalized their ICT markets, including
several Least Developed Countries (LDCs) and fragile economies: Burkina Faso, Cape
Verde, Kenya, Lesotho, Madagascar, Mauritius, Nigeria, Tanzania, and Uganda. This
strategy bodes well for the future, and some countries such as Kenya and Tanzania are
already reaping the benefits of this liberalization in the form of increased investments and
use and the introduction of new business models and services. (NRI)
Information technology created Internet exchange point (IXPs) established with the
direct support of the government (as in Nigeria) or by a group of private ISPs (as in
Kenya). In both cases, governments provide an essential element, either by playing an
active, leadership role in spurring the adoption of this type of technology, or by creating an
enabling, competitive environment and properly regulating the existence and provision of
this type of services. Governments also play a strategic role in developing IXPs through
the construction of Internet backbone networks to connect IXPs to potential users both
domestically and abroad.(IXPs)
In addition, the ICTs are enhancing African regional trade and integration as well builds
a competitive ICT industry to promote innovation, job creation and the export potential of
African companies. The global economic landscape is experiencing rapid changes.

22. Globalization is changing Nigeria in transformation and diversifies the economy,
especially in creating new opportunities and new challenges through information
technology. Its impact on national economies is driven by significant progress in IT as
exemplified by a plethora of breakthroughs in Biotechnology, Space Research, Energy
Development, and Information & Communication Technology (ICT), among others.
Furthermore, attractive career opportunities have emerged in addition to development of
Made in Nigeria software and computer components that can earn the nation some foreign
exchange. Specifically, IT has successfully aided the following sectors of the Nigerian
economy: the Industrial/Manufacturing, Education, Transportation, Tourism, Health,
Banking, Commerce, Agriculture, Government Services, Defense, Sports, and Rural
Development.
Currently Nigeria has limited locally generated broadband based services. In Nigeria
government have twenty one out of the thirty six ministries running online, while 370 of
the 810 MDAs have some web presence. More government services need to get online and
this should improve with the introduction of the single service portal ‘services.gov.ng’.
States like Lagos, Ekiti, Akwa Ibom, and Rivers are also leading by example having
developed very comprehensive websites. Also more political leaders are using social
media to engage with the polity.
1.3 Statement of the Problem
Hitherto, the dependence of the country’s economy has been on crude oil. This
discovery of oil opened up the oil industry in 1961, bringing in Mobil, Agip and chevron.
However, since the reality has dawned on the country and efforts have been consistently
made to diversify the economy and different sectors are now upcoming and promising, the
effect of information technology is being specially focused. Indeed the study attempts to

23. decipher the particular impact that ICT has been having on nation’s economy. The
question being posed by this study is whether the impact is positive and quantitatively
significant. This is the impetus driving this research work.
The average internet penetration rate in Africa is 14 percent-vastly lower than the 85
percent rate in North America, according the World Bank. (NRI) The lack of affordable
infrastructure is considered to be a major obstacle, lack of local relevant digital content
and high cost of producing software and hardware, scarcity of expertise and living without
electricity. Not unexpectedly, the results in the Infrastructure and Individual usage pillars
are similar, because a well-developed infrastructure is a pre-condition to ICT adoption.
(NRI)
.1.4 Objective of the Study
The broad objective of the study is to examine the impact of information technology on
Nigeria economy. The specific objectives of this study are to:
i. Examine the strategic role government plays in harnessing the gains of ICT
economic development in Nigeria.
ii. Examine the application of the knowledge information communication technology
to drive sectorial development in Nigeria.
iii. Analyze government initiatives and policies on information communication
technology ;
iv. Assess the challenges facing the application of ICT towards transforming the
diversified Nigeria economy.

24. 1.5 Research Questions
i. The introduction of information technology, Biotechnology research will
boasts agricultural sectors and animal farms produces?
ii. Is government policy and strategies on ICT has positive impact on the private
sector of the economy?
iii. Is there need for strong and dynamic technology adoption in achieving
economic scale?
iv. Did most governments engage in use of internet in their operation and provide
capital incentive for development of information technology?
v. Major challenges facing the country in areas of ICT development include
cybercrime and underutilization of ICT for strengthening overall national
security?
1.6 Statement of Hypotheses
Hypothesis one
H1: (Alternative hypothesis): There is a positive relationship between information
technologies on diversified economy.
H0: (Null hypothesis): There is no positive relationship between information technologies
on diversified economy.
Hypothesis two
H1: (Alternative hypothesis): The information technology reduces the level of illiteracy
and eradicates poverty in society.

25. H0: (Null hypothesis): The information technology does not reduce the level of illiteracy
and eradicates poverty in society.
1.7 Significance of the Study
The research provides insight into understanding of the impact of information technology
in transforming Nigeria’s economy. The output of this study will be of immense benefits
of the policy and advocacy on ICT and economic development issues in the country. The
outcome of the study will equally provoke new issues and debates that will be of interest
to new and upcoming researchers in the areas of study.
This study signifies the internet remains nonexistent, scare, unaffordable, or too slow in
developing world. At the end of 2013, 81 percent of the population of high-income OECD
countries used the internet. The rate among low-income countries was 10 times less a mere
7.6 percent, which is lower than the penetration rate among OECD countries, was in
1997.(World Bank)
1.8 Justification of the Study
There is no doubt that information technology had played a crucial part in transforming
the Nigeria economy. Braga (1998) built a case that concludes that the countries with
greater prospects of economic performance in the New Economy are those that can rely on
widespread access to communication networks; the existence of an educated labor-force
and consumers; and the availability of institutions that promote knowledge creation and
dissemination. This may suggest that developing countries are at a disadvantage in
comparison to developed countries.
Nigeria is home to Africa’s largest population (approximately 174.5 million) and the
continent’s biggest economy (more than $500 billion in annual GDP). It is also the center

26. for wide range of information and communication technology (ICT) activities from policy
to practice many of which are supported by the World Bank. Since the establishment of
the Ministry of communication Technology in 2011, the Nigerian government has made
notable progress in advancing its ICT agenda.
The government has catalyzed significant effort in the area of policy and regulation, with
an ICT policy developed in 2012, a national broadband technology development plan
develop in 2013 and e-government strategy now in the works. They have made a push for
increased use of ICT in government to drive efficiency and service delivery by launching a
Federal e-government service portal, institutionalizing a government wide messaging and
establishing cadres and councils to drive implantation of various ICT initiatives.
1.9 Scope of the Study
The bulk of this research work is to examine the role of information technology as
important tool in diversifying and transforming Nigeria’s economy using some selected
information technology industries within Oshogbo and Ibadan metropolis as the main
areas of research. A total of respondent were sampled and their responses was analyzed
with the aid of simple percentages and chi-square statistical analysis.

27. 1.10 DEFINITION OF TERMS
Information technology: technologies that can process different kinds of information
(audio, video, text, and data), and facilitate different forms of communications among
human agents, and among information systems.
Broadband: is term normally considered to be synonymous with a high speed connection
to the internet?
Internet: a global computer network providing a variety of information and
communication facilities, consisting of interconnecting networks using standardized
communication protocols.
E-Agriculture: E-Agriculture describes an emerging field focused on the enhancement of
agricultural and rural development through improved information and communication
processes.
E-Commerce: E-Commerce is a type of industry where buying and selling of product or
service over electronic systems such as the Internet and other computer networks.
EDGE: Enhanced Data rates for GSM Evolution.
E-Education: E-Education refers to the application of Internet technology to the delivery
of learning experiences.
E-Government: E-Government is digital interactions between a government and citizens.
E-Health: E-Health a term for healthcare practice supported by electronic.

28. E-learning: E-learning includes all forms of electronically supported learning and
teaching, including educational technology.
E-contract: E-Contract is a contract modeled, specifically executed and deployed by a
software system.
E-signature: E-signature software from the online electronic signature authority right
signature is the e-signature standard.
E-Payments: E-Payments are payments that are made directly to payee from bank
accounts using security features over the Internet to process the transactions.
E-Voting: E-Voting is a term encompassing several different types of voting, embracing
both electronic means of casting a vote and electronic means of counting votes.

29. END NOTES:
1. See http://www.ixptoolkit.org/. For more information about IXPs, see also Amega-
Selorm et al. 2009.
2. The analysis covers 165 countries for which data on Internet penetration and
population is available for every year over the period 1997-2013. Each country’s
classification by income is from the World Bank (situation as of July 2014). The
breakdown is as follows: 62 high-income countries, 41 upper-middle-income
countries, 37 lower-middle income countries, and 25 low-income countries.
Penetration rates are weight by population. Detailed calculations are available from
the authors.
3. Global Network Readiness Index 2015.
4. Pwc Economic and policy/Nigeria Economy Watch 2016. www.pwc.com
5. Draca el.al. 2006, Cardona el.al. 2013.
6. Thenerveafrica.com/2246/mining-will-important-nigeria-2016.
7. The 2007 NEITI Act mandates NEITI to report on the mining sector on Nigeria.
The EITI Board echoed this when declaring Nigeria as an EIIT Compliant country
in March 2011.

30. CHAPTER TWO
LITERATURE REVIEW
2.0 Introduction
This chapter consists of the conceptual clarification, theoretical frame work and the
literature on the subject matter, the impact of information technology on digital
technology, IPT and VOIP, impact of information technology in agriculture sector, impact
of information technology in commerce and Industry sector, impact of information
technology in educational sectors, impact of information technology in government,
impact of information technology in healthcare sector, impact of information technology
in entertainment sector, economic benefit in broadband technology, benefit of information
technology, impact of information technology on the socioeconomic, the global
information report, the emerging technology areas and growth opportunity in Nigeria,
Nigeria Economic Indicators, and National Information and Communication Technology
(ICT) Policy 2012.
2.1 Conceptual Clarification
In 2008, the Nigerian government in coordination with the World Bank began
implementing an integrated personnel and payroll information system (IPPIS) to decrease
fraud and increase account ability in payroll administration and Human Resource (HR)
recording. Some estimates say the technological implementation has already saved 12
billion Naira (US$120 million) solely in the pilot phase by eliminating “ghost workers” or
fraudulent payees on the payroll.(ICT AFRICA). Nigeria has also recently partnered with
Intel to increase access to rural healthcare and boost delivery systems via ICT related to
health care providers.

31. Multiple stakeholders including ethnic leaders, the Ministry of Health, Intel executives
and participating hardware and software vendors have come together to increase
productivity and the IT presence in rural areas. In recent years, a number of
entrepreneurial companies throughout Nigeria have realized the potential opportunity
within the mobile payments space, which could create a new set of mobile entrepreneurs
and new business models with strong value realization in a market of over 90 million
mobile subscribers, a large segment of whom remain unbanked. The impressive growth
recorded in the Nigerian telecommunications market has unfortunately been challenged by
criminal activity and as such, the success of the mobile payments sector appeals to many
Nigerians as it provides a cost-effective solution to authenticate payments and reduce the
overall risk of theft.
Effective mobile payment companies have provided the Nigerian population with an
innovative and detailed payment management process that covers the entire scope of the
value chain across all the participants in the mobile payment system. The recent focus on
initiatives and licensing opportunities in both the mobile and financial industry on mobile
banking and payment services has driven a number of companies to develop innovative
mobile payment solutions to transform Nigeria’s banking landscape.
Nigeria needs first and foremost to address its endemic power issue, one that if left
unaddressed will keep not only the ICT industry but also the country in economic stasis.
Even though Nigeria’s political leaders have promised to solve the crises for years now, it
is still a huge barrier to growth. Multilaterals such as the World Bank and African
Development Bank should galvanize sustainable energy and power experts, issue tenders,
offer financing, and share resources to tackle this problem. In addition to enhancing
infrastructure, Nigeria needs to focus on enabling its people with enterprise-scale

32. development skills and literacy in ICT via educational initiatives and dedicated training
programs for students and business owners.
2.2 Theoretical Framework
Theoretically, two Schools of Thought explain the relationship between
telecommunications and development. These are the Technophile and the Technophobic
views. The Technophiles believe that ICTs impact positive effects on development. This
perspective argues that in the various communities and sectors of the economy, ICTs will
expand productivity, improve employment opportunities, and upgrade the quality of work
in many occupations. Moreover, ICT will offer many opportunities for small-scale,
independent, and decentralized forms of production. Regarding developing countries,
technophiles envision that technology will aid developing countries to leapfrog stages of
development (Castells 1999; Mansell & Wehn 1998; Nulens & Van Audenhove 1998).
On the other hand, the technophobes regard ICTs as having negative effects on
development and widening the information gap between the rich and the poor, the literate
and the illiterate. While admitting that ICTs could have profound changes on a society,
Van Dijk (1999) believes that applications of ICTs and their transformative nature have
been greatly exaggerated. ICTs may destroy more jobs than they create; the gap between
the rich and the poor may widen. Mansell (1999) saw the huge capital investments
required on ICTs as diverting resources from other sectors of the economy that could have
greater development impacts. On economic level, this perspective forecasts a perpetuation
of the capitalist mode of production, with further managerial control over the means of
production. In most countries, it foresees massive job displacement and ‘de-skilling’.
Nandi, and Dholakia, (1994) established a relationship between investments in telephone
infrastructure and economic development. They examined the connection among a number

33. of factors such as education, energy, telephones, other physical infrastructures and
economic development. The results of the multiple regressions adopted in the analysis
suggest that simultaneous investment in development inputs such as education;
telecommunications and other physical infrastructures are complementary in the
promotion of economic growth. Saunders, et al (1994) conducted several studies
examining the correlation between the density of telephone lines and economic
development. Madden, et al (1998), also, examined the empirical relationship among gross
fixed investment, telecommunication infrastructure investment, and economic growth for a
sample of transitional countries of Central and Eastern Europe.
The results of the studies show a positive relationship between investment in
telecommunications and national economic growth. Empirical evidences show that
investment in ICTs enhances efficiency of economic activities, and that economic growth
stimulates the demand for telecommunications and other ICTs’ components. Braga (1998)
built a case that concludes that the countries with greater prospects of economic
performance in the New Economy are those that can rely on widespread access to
communication networks; the existence of an educated labour-force and consumers; and
the availability of institutions that promote knowledge creation and dissemination. This
may suggest that developing countries are at a disadvantage in comparison to developed
countries.
Similar sentiments are shared by Mansell & Wehn (1998). Brown (2001) argued that
ICTs are simply tools. He maintained that no single tool can solve a global problem, such
as, poverty and its attendant socio-economic problems, which have such complex and
multiple causes. He stressed the role of educated labour-force in this information age.
Chowdhury (2000) noted that many skeptics have not seen the role of ICTs in efforts
intended to alleviate poverty and bring food security to developing countries. The author

34. acknowledged that the problem of poverty alleviation is complex. Efficient production
systems and physical infrastructure are a few of the necessities.
According to Bayes, et al (1999), only half of all telephone calls are related to economic
purposes such as discussing employment opportunities, prices of the commodities, land
transactions, and that, the average prices of agricultural commodities were higher in
villages with phones than in villages without phones. The New Economy may offer a new
channel for economic growth that may allow developing countries to catch the
development train faster, and perhaps ensure a more sustainable ride. There had been some
initial concerns about the risk, in some developed economies, that ICTs could accelerate
the delocalization of certain economic activities toward developing countries.
The benefits of ICTs are now widely recognized everywhere as an important source of
efficiency gains for companies that will allow them to optimize their production function
and liberalize resources toward other productive investments. Digitization the mass
adoption of connected digital services by consumers, enterprises, and governments is far
more than a disruptive wave washing over isolated industries. We have long since
recognized that reality. Digitization is a fundamental driver of economic growth and job
creation the world over in both developed and emerging markets. Moreover, ICTs are also
increasingly recognized as a key source of innovation that can generate increased
economic growth and new sources of high-value-added jobs.
This ability to innovate is essential in the current information revolution that is
transforming economic and social transactions in our societies. Today, the world has
undergone massive changes: the Internet bubble has come and gone, and emerging
countries such as China and India have become prominent global users and providers of
ICT equipment and services. Struggling to emerge from the financial crisis, developed

35. economies are striving to return to higher levels of growth and competitiveness while
fighting stubbornly high unemployment rates, especially among their youth. Both
emerging and developed economies are focusing on innovation, competing globally for
talent, resources, and market shares. Information flows and networks have spread across
borders in ways that could not be imagined before the onset of the Internet, the global
adoption of mobile telephony and social networks, and the rapid growth of broadband.
Business models have been redefined, the workplace has been redesigned, small startups
have evolved into large companies, and entire functions of society (education, health,
security, privacy) are being rethought.
2.3 Literature on the Subject Matter
Nigeria has a population of over 167 million (NPC) people and a land mass of 923,768
square kilometers. The telephone subscriber figure for Nigeria as at the end of February
2013 was 116,601,637 active lines.2 The four active GSM operators have about 96%
market share while the three active 22 CDMA operators have the rest 2G mobile coverage
is at 98% but 3G coverage which is mostly concentrated in urban areas is very limited at
less than 35%. Internet penetration is quoted at 33% and Broadband penetration is at 6%.
(FMCT). Though the internet was first introduced in Nigeria in 1996 no appreciable
uptake was recorded until the further opening of the market since 2001. The slow uptake
of internet has been largely attributed to network infrastructure deficiency among other
factors.
Prior to 1999, development in the ICT sector of Nigeria was generally assessed to be far
below expectation, for a country of its size and resources. For example, total fixed
telephone lines were less than 400,000 while regular internet users were less than
200,000.(FMCT). From a policy and regulatory standpoint, the Federal Government of

36. Nigeria adopted the National Telecommunications Policy (NTP) in 2000 to guide the
development of the telecommunications industry in Nigeria. This was followed by the
enactment of the Nigerian Communications Act (NCA) 2003 to give legal effect to the
NTP. Previously, the National Mass Communications Policy recommended the creation of
a regulatory body to regulate Broadcasting and this led to the promulgation of Decree 38
of 1992 that established the National Broadcasting Commission (NBC).
The promulgation of the indigenization decree in 1977 led to the increase in the number
of indigenous vendors in the computer business, and stimulated more aggressive
marketing by the vendors which in turn resulted in a significant increase in the number of
computer installations and usage in the country. Before 1999, development in the IT sector
of Nigeria was minimal. For instance, regular internet users were less than 200,000 out of
a population of over one hundred and sixty seven million people. The Federal Government
therefore embarked on major reforms in the sector which included:
i. Development and launch of National Policy on Information Technology in
2001 and the establishment of NITDA to implement the policy, co-ordinate,
and regulate information technology development in the country; and
ii. Establishment of the Nigeria In internet Registration Association (NIRA) in 2006
to increase Nigeria’s presence in the cyberspace.
The National Assembly passed NITDA’s enabling Act into law in April, 2007.
According to NITDA Act of 2007, the mandates of the Agency include the following:
i. Creating a framework for the planning, research, development, standardization,
application, coordination, monitoring, evaluation and regulation of Information
Technology practices, activities and systems;

37. ii. Providing guidelines to facilitate the establishment and maintenance of
appropriate infrastructure for information technology and systems;
iii. Developing guidelines for electronic governance, networking of public and
private sector establishments; and for the standardization and certification of
Information Technology Systems in Nigeria;
iv. Rendering advisory services in all information technology matters to the public
and private sectors and creating incentives to promote the use of information
technology in all spheres of life in Nigeria including the setting up of Information
Technology parks;
iv. Introducing appropriate regulatory policies and incentives to encourage private
sector investment in the Information Technology industry;
v. Determining critical areas in Information Technology requiring research
intervention and facilitating Research and Development in those areas.
There has been tremendous advancement in the development of the telecommunications
(telephony) sector in Nigeria, particularly since the commencement of mobile services use
GSM technology in 2001. Nigeria in recent years has been adjudged as the fastest growing
mobile market in Africa and one of the fastest in the world. The telecommunications
sector is governed by the Nigerian Communications Act 2003 (NCA 2003), and The
Wireless Telegraphy Act, 1990. The NCA 2003 affirms the Nigerian Communications
Commission (NCC) as the independent regulatory authority for the telecommunications
sector. The objectives of the regulator include:
i. Creating an enabling regulatory environment to facilitate the supply of
telecommunications services and facilities;

38. ii. Facilitating the entry of private entrepreneurs into the telecommunications
market;
iii. Promoting fair competition and efficient market conduct among all players in
the industry; and
iv. Establishing the Universal Service Provision Fund to promote the widespread
availability and usage of network service and application services throughout
Nigeria.
There are five (5) licensees using Global System for Mobile Communications (GSM),
and Eight (8) licensees using Code Division Multiple Access (CDMA) in the country. A
number of other operators also exist in other market segments, including the following;
Interconnect Exchange Houses, International Data Access License (IDA), Fixed Wireless
Networks, amongst others. The current telecommunications sector is highly competitive
though with a huge market share imbalance between the GSM players and CDMA players,
with the market share currently at 91% and 9% respectively.
On the new technology which was Digital technology in broadcasting industry.
Broadcasting plays a very important role in the lives of the citizens worldwide and is the
most effective means of reaching the largest number of people simultaneously. The
Federal, Regional and State governments monopolized broadcasting in Nigeria, until the
promulgation of Decree 38 of 1992 (as amended) which established the National
Broadcasting Commission (NBC) and charged it with the responsibility of regulating and
controlling the broadcasting industry in the country. The law empowers the Commission
to license broadcast stations, allocate frequencies, regulate content and, generally set
standards for quality broadcasting in the country. According to the Act, the Commission’s
Mandate includes the following:

39. i. Advising the Federal Government generally on the implementation of National
Mass Communication Policy with particular reference to broadcasting;
ii. Receiving and processing applications for the establishment, ownership and
operation of broadcasting stations;
iii. Recommending applications through the Minister to the President, Commander-in-
Chief of Armed Forces for grants of radio and television licenses;
iv. Establishing and enforcing a National Broadcasting Code that contains guidelines
on a variety of issues including licensing, sanctions, etc; and setting standards with
regard to the content and quality of materials for broadcast.
v. Initiating and harmonizing Government policies on trans-border direct
transmission and reception in Nigeria;
vi. Monitoring broadcasting or harmful emission, interference and illegal
broadcasting;
vii. Approving the transmitter power, location of stations, area of coverage; and
viii. Regulating the types of broadcast equipment to be used.
The categories of broadcasting services include:
i. Terrestrial and Satellite free-to-air sound/television;
ii. Satellite subscription direct-to-home sound broadcasting;
iii. Community broadcasting;
iv. Content distribution service (syndication); and

40. v. Internet broadcast.
The legislative, regulatory and licensing framework for the broadcast sector is transparent
and liberalized, and seeks to regulate broadcasting only in circumstances where market
forces are inadequate to realize public policy objectives. According to the current policy,
broadcast licenses will not be granted to any religious organization or political party.
Private and community interests are encouraged to contribute to the development of the
industry, while foreign interests are also encouraged to invest and assist in developing
broadcast services in the country.
Today, as a result of the deregulation of the Nigerian broadcast industry, the number of
federal, state and private broadcasting stations in operation in the country has, as a 2012,
risen to 291, from less than 30 before deregulation. This comprises of:
i. 100 radio stations;
ii. 147 Television stations;
iii. 35 Cable Retransmission Stations known as MMDS; and
iv. 4 Direct to Home (DTH) Stations
Based on ITU recommendations, Nigeria, along with other countries has committed to
transit from analogue to digital terrestrial broadcasting and broadcasting on the VHF band.
Consequently, the Commission has set a June 17, 2015 deadline for the Switch over from
analogue to digital broadcasting. The advent of digital broadcasting will undoubtedly
increase the number of channels and introduce a diverse range of content. The NBC will
therefore require a more robust approach to the critical content regulation of the broadcast
sectors. (FMCT)

41. 2.3.1 The impact of digital technology, Internet protocol technology (IPT) and voice –
over internet protocol technology (VOIP)
Convergence has far-ranging implications for ICT service providers and users. It changes
business models, expands markets, increases the range of services and applications
available to users, and alters market structure and dynamics. Furthermore, given that ICT
is a critical input to economic and social activities, convergence has an indirect effect on
social and economic development there are also risks and challenges. Most prominently,
convergence may lead to monopolization, allowing larger firms to extend their reach into
new markets or raising entry barriers for new entrants. Hence, policy makers must think
strategically about convergence and its role in their economy in order to enhance its
benefits and contain risks. Changing Business Models for Service Providers Service
providers in both the telecommunications and media sectors have seen convergence as a
powerful way of increasing revenues and reducing costs increased revenues.
By offering a wider range of services, service providers can capture more revenues from
their subscribers. A major U.S. cable TV operator saw its average monthly revenues per
subscriber jump from $42 in 1998 to $102 in 2007, with non-TV services such as
telephony or broadband Internet now contributing one-third of its total revenues (Comcast
2007). In Chile, about 60 percent of VTR’s 853,000 cable TV subscribers also use
telephone or Internet services, increasing the company’s revenues by 44 percent between
2005 and 2007 (Liberty Global 2007).
More recently, telecommunications firms are seeing payoffs from diversification. One
U.S. firm now derives 25 percent of its retail revenues from broadband and video services,
and two of the country’s largest telecommunications firms saw their revenues from video

42. service quadruple between 2007 and 2008 (AT&T 2008 and Verizon Communications
2008). Reduced costs Service providers also see convergence as a way to cut costs and
operating expenses. BT (2006) expects that its all-IP network will help reduce operating
expenses by £1 billion a year. Savings are expected because this network replaces the
company’s 17 separate networks, including its traditional telephony network, with one—
integrating a number of operational and network management systems (Dow Jones
International News 2008).
Similarly, Verizon expects that migrating its customers to an all-fiber-optic IP network
will save more than $1 billion a year on network maintenance (Providence Journal 2007).
Use of standardized IP networks is also driving cost savings. Telecom Italia cut costs by
60 percent by introducing IP technology for calls between Milan and Rome (The
Economist 2006). Service convergence also cuts costs by increasing network use.
Traditionally, telephone and cable TV networks provided only one service. Today these
networks can carry multiple services, lowering the cost of each. However, such cost
reductions come at a high upfront price. BT’s savings will follow a £10 billion ($16
billion) investment between 2004 and 2011 (Business Monitor Inter-national 2008).
Similarly, Verizon expects to spend about $23 billion building its U.S. network
(Providence Journal 2007). The high capital spending required to offer converged services
creates a new entry barrier that small or new service providers might not be able to
overcome.
Convergence expands consumers’ access to services because it lowers prices, which in
turn increases the addressable market and widens coverage by using multiple
infrastructures, lower prices for consumers. The reduced costs of operating converged
networks and providing multiple services translate into lower prices for consumers. The
starkest examples of this phenomenon come from the voice telephony market, where

43. voice-over-Internet protocol (VoIP) technology has significantly changed price structures.
VoIP has affected the pricing of international call traffic because it allows carriers to
bypass and compete with traditional call pricing regimes.
In 2007, one-fifth of international voice telephony traffic (in terms of minutes) used
VoIP. In fact, VoIP traffic grew five times faster than did traditional voice traffic
(Telegeography 2007). Services that use the Internet to carry telephone calls offer
significant discounts to consumers. Many service providers also give discounts on
bundles of services, charging less than if subscribers paid for each separately. Such
discounts can be as high as 40 percent (Pyramid Research 2007). Lower prices increase
the addressable market and make some services more attractive to users who are price
conscious or unsure of the usefulness of new services.
In Sweden, for example, a cable TV company offering triple-play services gives
subscribers the least expensive service free (OECD 2006) wider coverage .Convergence
also allows service providers to reach new subscribers. Multiple plays allow new services
to travel over existing networks, expanding the reach of communication services. One
recent report found that telecommunications firms offering IP television (IPTV) have
succeeded in countries with relatively low pay TV penetration but high broadband
penetration (Telecommunications Management Group 2008). The evolution of digital
video broadcasting (DVB) and mobile TV will enable the use of triple play over wireless
networks, further extending the reach of services.
The provision of DVB over cellular networks has recognized potential to increase the
number of TV viewers in countries such as Kenya and the Philippines.4 New broadband
wireless technologies are also raising expectations. For example, in 2005, Kenya Data
Networks began deploying a Wi Max system designed to offer converged services, such as

44. voice and data (All Africa 2005). Wireless triple play will be especially useful in
developing countries, where mobile phone subscription is far more common than
ownership of personal computers or TVs. Further, network convergence allows any
combination of communication networks to carry services. A lot of nontraditional
infrastructure can now carry telephone services, including cable TV and electricity
distribution networks.
This development can significantly improve coverage, even in low-income countries. In
one set of low-income countries, wire line telephones reach an average of just 7 percent of
households, while 33 percent of households are electrified and 18 percent subscribe to
cable TV. Thus, having a combination of networks to carry communication services can
move countries closer to universal service. Broader Range of Services and Applications
Convergence enables ICT users to access a range of services through a wide variety of
devices, including mobile phones. Some 3.9 billion mobile phones are in use worldwide,
giving these devices enormous potential for providing multimedia services.
Already, 27 percent of U.S. mobile phone users between the ages of 25 and 34 watch
video on their cell phones (Economist Intelligence Unit 2008). South African media
conglomerate Naspers has plans to expand its mobile television services into four new
African markets, after introducing it in Namibia, Kenya, and Nigeria (Reuters 2008).
Similarly, an estimated 66 million mobile phone subscribers in India can access Internet
services (TRAI 2008). A 2005 survey of 4,000 mobile phone users found that nearly a
third was using their phones for e-mail or Internet browsing (OECD 2007,). Thus, if
service providers build service-converged networks, then financial services, public
services, and entertainment applications will be able to reach a far larger portion of the
world’s population. Similar possibilities arise from the mixed use of cable TV, wireless
broadband, and other ICT networks.

45. Access to high-quality, reliable, affords- able ICT networks can significantly strengthen
governance through e-government applications and provide opportunities for the remote
delivery of health information or education services. Increased demand for content and
applications over converged networks drives significant economic development. For
instance, media and entertainment expansion into mobile telephony is growing rapidly:
mobile gaming is a $4 billion global market, and in 2005 alone, more than 420 million
songs were downloaded onto mobile phones around the world (SSKI Research 2007).
Creation of these new markets drives employment and investment and catalyzes network
growth. Moreover, online services such as blogs, video repositories, and social networking
tools create opportunities for social development. The information and knowledge
channels created allow the exchange of ideas and provide a platform.
2.3.2 Impact of Information Technology on Agriculture Sector
Broadband technology positively impacts agriculture in several ways. It provides farmers
access to timely and relevant information on weather updates, since the quality of crops
and other tasks depend in large part on weather. The proper timing of planting activities in
line with favorable weather conditions often promotes high yield. Fast online access to
websites5 that share best practices makes it possible for farmers to learn about farming
management practices, online marketing options, availability of livestock and seed crops
etc. Also farmers who use broadband to access pricing information online are likely to
gain bargaining power and make more educated marketing or purchasing decisions.
Similarly, broadband internet enables farmers to market their products directly to
consumers. Local farmers have access to new markets when they set up online shops that
offer certain agricultural products to customers worldwide. Nigerian farmers using
broadband to operate and monitor their equipment remotely, eliminating the need for

46. regular farm visits by technicians. Automatically generated messages can provide an alert
when equipment develops a fault or stops functioning. They can monitor and reset
greenhouse temperatures, humidity, and other settings remotely. All these amount to
significant cost savings amidst improved performance.
With 70% arable land, agriculture is a key sector that creates jobs for the Nigerian
economy. Agricultural communities are typically rural and rural areas are generally the
lack to benefit from infrastructural amenities. Non-availability of broadband in rural
agricultural communities to translate to lost opportunities resulting in significant economic
costs to the nation. It is therefore essential that these rural areas be provided with access to
the kind of broadband services that will truly expand their addressable markets while
increasing knowledge and saving costs.
Application of technology really enhances animal production. Research into physiology
and embryology has provided a basis for the development of technologies that increase
productivity of farm animals through enhanced control of reproductive function.
Progestagens, alone or in combination with luteolysins, are used to control the time of
oestrus in cattle, sheep and pigs, thus permitting better use of artificial insemination,
providing synchronized recipients for embryos and facilitating management strategies.
Treatment with progestagens and pregnant mare serum gonadotrophin (PMSG) or with
gonadotrophin releasing hormone induces breeding activity in sheep and goats before the
commencement of the breeding season and reduces the duration of postpartum anoestrus
in cattle. In pigs, gonadotrophins are used to hasten puberty in gilts, control the time of
oestrus in sows and gilts and reduce the interval between farrowing and oestrus.
Implants of melatonin hasten the onset of the breeding season in sheep and goats.
Success in increasing litter size in sheep and cattle with PMSG has been limited because

47. of the large variation in response between animals. Likewise, immunization against
steroids has not given consistent results. Immunization against inhibin appears to offer the
possibility of increasing farm animal fecundity. Induction of twinning in cattle by embryo
transfer is practicable, and recent developments suggest that in vitro fertilization may
provide a source of embryos for this purpose. Real-time ultrasonic scanning has proved to
be a reliable method for diagnosing pregnancy in small ruminants and pigs. The
identification of pregnancy-specific proteins in cattle and sheep may provide a cheap and
practical serological test for pregnancy in these species.
Partial segregation of spermatozoa into X- and Y-bearing components has been reported,
but the method is not yet practicable for use in conventional artificial insemination of farm
animals. The sex of bovine and ovine embryos can be determined reliably by DNA probes
specific for the Y chromosome. Monozygous twins can be produced in all farm animal
species by microsurgical bisection of embryos and techniques for cloning from embryonic
cells are rapidly being developed. There is a need to devise strategies to utilise these
clones to best advantage in genetic programmes. Chimeric animals can be produced in the
common farm animal species and will play an important role in genetic engineering,
particularly when embryonic stem cell lines are produced in these species. The Federal
Government should focus on agricultural programs that will boost agricultural produces
and encourage farmers to use technology in animal production.
2.3.3 Impact of Information Technology on Commerce and Industry Sector
The growing levels of internet access and the continued rollout of broadband
infrastructure are driving the growth of e-commerce and m-commerce. Like railroads and
highways that facilitated trade and commerce in the past, broadband is the information
superhighway of the 21st century that is accelerating global commerce at a rate never

48. imagined before. An online presence increases the ability for businesses to be found,
regardless of their physical location; and enables commerce to occur without having to
physically visit the business premises. Several initiatives have already been developed to
encourage Nigerian businesses to go online and thereby expand their market reach, for
example the ‘Get Nigerian Businesses Online’ initiative has met with very notable
success.(GNBO). Access to the Internet is leveling the playing field between smaller
vendors, SMEs and bigger businesses and offers smaller businesses the opportunity to
achieve operational scale more quickly.
Remarkably, there has been a growing adoption of online consumer purchases
throughout the world’s major economies. Sectors that have grown most in online
commerce include advertising, sale of software, books, entertainment, travel, event tickets,
clothes, and consumer electronics. According to International Data Corporation (IDC), E-
Commerce consumer's spending will grow from United States dollar (USD) 118 billion
worldwide in 2001 to USD 707 billion in 2005.7 Invesp Consulting, a leading provider of
conversion optimization services and software for online retailers, forecasts that this figure
could reach U$D1.4 trillion by 2015.(invesp.com)
Access to the open internet has created exciting new possibilities for entrepreneurs
worldwide. The internet increasingly crosses the digital divide to reach those previously
excluded from economic opportunity. Not only can these new users consume what is
already online, but they can also create, using the internet to improve their education,
research new ideas, raise money, collaborate, and start their own companies’ opportunities
that would be unimaginable for them without access to the open internet.
The explosion of the volume of e-commerce transactions riding over broadband
infrastructure has meant creation of employment and wealth. Many young technology

49. entrepreneurs are latching into the opportunity, which is permitting businesses of all sizes
to engage in commerce on anytime-anywhere basis. High speed broadband will no doubt
enhance e-Commerce activities in Nigeria. According to Alexa Rankings the top three
international visited sites are Facebook, Google, and Yahoo. Of the top 10 most visited
Nigerian sites, the profile suggests that most popular web destinations are: news
publishing, banking service, job search and e-commerce.

50. Table 2.1
Top ten Nigerian visited website 12/09/12
RANK CATEGORY WEBSITE ALEXA TRAFFIC
RANK
1 FORUM nairaland.com 1,550
2 PUBLISHING Vanguardngr.com 1,686
3 BANKING/CORPORATE Gtbank.com 3,542
4 PUBLISTING Punchng.com 3,120
5 CLASSFIED/CORPORATE Vconnect.com 4,456
6 CLASSFIED/CORPORATE Jobberman.com 4,906
7 PUBLISTING Linkedln.com 5,507
8 COMMERCE Jumia.com.ng 10,212
9 PUBLISTING Naij.com 6,252
10 PUBLISTING Nationalnewspaper.com 5,704
Source: Nigeria Broadband Plan 2013
In spite of Nigeria’s larges population, end user’s adoption for broadband is low. This is
due to several factors including availability, accessibility, and affordability. Subscription
to the internet has been via a mobile handset, internet dongle, desktop computer or a
business center facility. However, individual subscription to broadband would require
ownership of access devices such as computers, smartphone, and tablets.

51. 2.3.4 Impact of Information Technology on the Educational Sector
The availability of high speed internet in the 21st century has pushed learning beyond the
confines of physical classrooms. A student at home can participate in regular classes using
interactive multimedia technology. Unlike traditional school systems which require face-
to-face encounters between teachers and students, broadband technology makes it possible
to deliver distance learning and the sharing of educational resources. Some learning
platforms are structured to provide meaningful interactive, real-time learning experience.
Even traditional teaching methods benefit from the access to online archival materials
and resources. E-learning and Distance learning have become commonplace as modern
education is no longer restricted to sitting in a classroom and taking notes. Students are
empowered to draw on the richness of the internet to research any subject matter ranging
from historical events to simulations of challenging math problems and other courses. The
improved flow of information has made the markets for education products and services
more competitive at a global scale. As a result, education authorities, institutions and
individuals have more options when seeking high-quality educational products and
services. Interactive Whiteboards and Touchscreens are just few of the multimedia
classroom products generally sourced through the internet. Furthermore, broadband is
helping to popularize access to online education classes and digital books.
For instance, Massachusetts Institute of Technology (MIT) has put all the educational
materials from its undergraduate and graduate level courses online, making them openly
available to anyone anywhere, part of its Open courseware initiative. Another online
initiative, the Khan Academy targeted at secondary school students, has over 3800 videos
on everything from arithmetic to physics, finance and history, and it is freely available.

52. Another online initiative, the Katha information technology and e-commerce School
(KITES) in heart of the capital city of Delhi in India. In 2001, it opens the Katha
information technology and e-commerce school (KITES) in Govindpuri, the most
deprived areas of Delhi. KITES has transformed the lived of thousands of children as
young as three years old can try out the computer, mouse and keyboard. Once they are 14
or older, they can study for IT certificates. KITES have already award more than 19,000 of
these certificates.
The National Open University of Nigeria and other similar institutions (Obafemi
Awolowo University Distance Learning Program Ile Ife) have benefit from improved and
pervasive broadband connectivity. Increasing broadband technology penetration will
expand access to educational opportunities at all levels. Broadband connects students to
teachers, parents and free educational resources. It also enables the sharing of curricula
and other resources. Several studies suggest that impacts of broadband on education
include:
• Improved effectiveness of instruction and learning outcomes through more engaging,
interactive activities;
• Enhanced access to a wide array of professional development opportunities for
educators and adult learners;
• Enhanced access to distance learning programs, online learning modules and the
availability of relevant content from any location; and
• Facilitation of the collection and analysis of student data to track student performance
more accurately.(Howley et.al).

53. One of the success stories of internet usages in Nigeria today is that of JAMB going
online. It was discovered that spikes in internet usage coincided with the release of JAMB
result or the beginning of the JAMB registration and JAMB CBT (computer data base test)
examination. Another good example is the America University in Yola which was at one
time responsible for 52% of Nigerian internet traffic, as a result of student having free
access to hardware and high bandwidth. Another good example is the usage of information
technology (internet) in all University and Polytechnic in registration of students and e-
examination in Nigeria. Most university in Nigeria has their website and created portal for
all their students, for students to register and practice online examination.
2.3.5 Impact of Information Technology on Government
Governments are increasingly leveraging broadband technology to provide online service
portals where citizens can receive information and interact with public service
administration. Broadband technology holds the potential to move government processes
online, increasing the speed of service delivery, improve transparency, reduce arbitrariness
and impropriety, and promote cooperation across departments at different levels of
government. The delivery of public services via broadband will not only drive the
improvement of efficiency, it will also serve as an important catalyst for the
‘universalization’ of broadband services. Financial services (e-Payments), health care,
voter registration, land and company registrations are all examples of public services that
will be delivered effectively and quickly online.
The essence of the new approach for delivering government services leveraging broadband
infrastructure is good governance. And the objectives of e-government include:
• Streamlining and standardizing of institutional processes;

54. • Reducing the hassle for citizens to access government services;
• Optimizing content and speed of service delivery chain by all tiers of government;
• Encouraging wholesome recording and dissemination of information and
knowledge.
Governments have been leveraging broadband to experiment with new ideas and
technologies to extend opportunities for engagement with citizens. Some government
agencies now make their services available 24 hours a day, all year round while
eliminating excessive paperwork. The worldwide trend to shift democratic processes
online is premised on the fact that transparency and accountability are usually enhanced
when citizens have broadband connections and therefore have equal access to information
for decision making resulting in good and accountable governance.
Traditionally, the delivery of government service in Nigeria has been hindered by the
complexity of geography. Points-of-delivery of government services are typically located
in the headquarters of Federal Agencies, Ministries, State Capitals and LGA headquarters.
Under this arrangement, citizens are often compelled to travel from far flung areas to the
nearest points of service. Government should encourage using e-contract and e-signature
for government contract and signing to reduce corruption in awarding government
contracts.
. The developed countries form IG4D in order to encourage undeveloped improve. The
Internet governance for development (IG4D) really means, how developing and other
countries organize and manage their national-level engagement with global Internet
governance in the context of their wider national ICT strategies; and how to take an IG4D
agenda forward in the IGF and other international settings. Internet Governance for

55. development, IG4D, and Internet Protocol Version 6(IPv6) are forward looking solution
for the countries (Nigeria) to join IG4D. The USA, Europe, China, Taiwan, Korea are
embracing these innovation technologies (IG4D) and Nigeria cannot be left behind. It is
the duty of government to lower the barrier to digitization broadband remains fast growing
telecommunication market segment with double-digit economy growth.

56. Table 2.2
Example of E-government
National Identity Card
(Passport,
Yellow Card, etc.)
-of-O
license, permit, and
authorizations
sanction
Registration of Land Acquisition
Ownership
Services
Services

57. 2.3.6 Impact of Information Technology on Healthcare Sector
In medical practice broadband networks facilitate electronic exchange of information
such as data, images and video. Telemedicine, tele-therapy and advanced diagnostics are
just a few of the capabilities made possible by broadband for the benefit of modern
medical practice. Broadband encompasses technologies that enable video consultations
with specialists in far flung geographic locations, remote monitoring of patients, and
transmission of clinical images in the case of remote radiology. Remote Radiology
requires the transmission of extremely detailed pictures with huge amounts of information,
which can only be done through broadband networks. Real-time transmission of medical
procedures for diagnostic and training purposes in high definition video has become
increasingly common in countries with adequate broadband infrastructure.
A report published in 2008 by World Health Organization in collaboration with Global
Health Workforce Alliance titled: “Scaling up, saving lives (2008), has revealed an
estimated shortage of 4.3 million medical staff worldwide, with the situation being most
severe in developing nations. The report foresees the possibility of mitigating the gaps
through the leveraging of broadband to deliver medical advice and training, as well as,
diagnose and monitor patients. Broadband enabled healthcare solutions offer the potential
to improve healthcare outcomes while simultaneously controlling costs and extending the
reach of the limited pool of healthcare professionals.
Today’s patients in many jurisdictions communicate with their physicians via email, but
a trend is already emerging whereby patients would engage in video consultations with
their physicians. Broadband has ushered the capability wherein Patients can have face-to-
face video chat with doctors at distant locations. Similarly, a practice known as mobile
healthcare is increasingly deployed. Mobile Healthcare emphasizes leveraging mobile

58. broadband technologies and Smartphone applications to drive active participation by
clinicians and consumers on critical health issues. In Nigeria, government has been saving
lives lately, starting from when it empowered the citizenry with a mobile healthcare
platform that uses SMS to verify fake drugs or the authenticity of their origins.
Government can build on this by setting up a citizen broadcast platform that enables
users to send in images of suspected fake drugs packaging, drug peddlers and illegal
manufacturing plants etc. Electronic records of a patient’s health history including patient
demographics, diagnosis, medications, progress notes, vital signs, medical history,
immunizations, laboratory data and radiology reports can be gathered and stored for easy
and fast access. The availability of such records over a broadband network is likely to help
in quickening medical interventions irrespective of the doctor and medical facility being
approached for treatment. This is even more useful in cases of emergency. Medical
practitioners and their patients are likely to be better equipped to make better decisions,
engage in innovations, become more efficient, and gain prompt understanding about
individual personal health and public health more effectively.
2.3.7 Impact of Information Technology on Entertainment Sector
Nigeria’s Hollywood film industry was ranked third for globally generated revenue in
2011.(business day oct,25). It generated close to N126.4 billion (about U$D800 million) in
the three years spanning 2010- 2012. The two film industries ahead of Nigeria’s are the
US’ Hollywood and India’s Bollywood. The global film and entertainment industry
generated N14.5 trillion (U$D90.6 billion) in 2010. This was projected to increase to
N16.2 trillion (U$D102.7 billion) in 2012. The world has witnessed the increasing
popularity of online media services like YouTube, (South Korean PSY) Netflix, iTunes,

59. and other media streaming or video-on-demand digital entertainment services but without
broadband, online entertainment as we know it today would not exist.
The largest consumer demands for bandwidth are coming from Music, (December 2012)
Movies, Videos, TV shows and Radio content downloads. The demand to download video
content, such as a movie or TV show, within a short timeframe requires significant
bandwidth. A single video download (typically 400Mb) over the internet is likely to
require not less than 20Mbps in data transfer rates, to ensure fast delivery of less than
twenty five seconds to the end user.
Under such circumstances, narrowband dial-up users are no better off than those without
internet access; in terms of the extent that they can use (or not use) the internet for high
quality, high definition entertainment purposes. With the global phenomenon of the global
movie industry, the demand for video traffic is now more prevalent for mobile TV,
Desktop TV, Cable TV and HDTV watchers. And as more of the world’s populations go
online for entertainment, pressure on internet access infrastructure builds across the world
compelling a phenomenal worldwide shift towards high-capacity broadband networks.
Greater bandwidth capability has become absolutely essential in order to prevent the
networks from becoming congested with this traffic.
Effective broadband infrastructure and distribution networks make this kind of growth
possible, and aside from the impressive revenue that is being realized through the
traditional global entertainment industry, broadband is permitting an enhanced revenue
model for both the established and emerging small artists, and the media advertising
agencies spreading their products and services across it.

60. 2.2.8 Impact of Information Technology on Manufacturing Sector
The world of manufacturing has reached a turning point because of the influence and
impact of Information Technology (IT). Some refer to it as the “New Manufacturing Era”
(Panchak Conquering a World of Change, 1998). Manufacturers must compete in the
global market to be successful today this trend is going to continue. Manufacturing
executives see their role more broadly as creators of value and wealth. The manufacturing
industry is changing to make profits for the company, employees, and the stockholders.
After a decade of downsizing and restructuring, most countries businesses have cut about
all the costs they can (Cohan, 1997). Business owners have come to the conclusion that
long term health will depend on growth achieved through competition. The Key is
innovation companies who excel in innovation can achieve remarkable growth and
profits.
The Old-manufacturing environment consisted of producing a product on an assembly
line for customers the countries. The focus was to build as much as possible in order to
achieve economies of scale to lower costs (Verespej, 1998). Worker-manager relationships
were simple that is managers gave the orders and workers did the work. In not a too
distant past, workers were given full time status of 40 hour per week with overtime
possible, were given benefits (e.g., vacation, holidays, medical insurance, etc.), cost of
living adjustments, and even retirement. Workers expected lifetime job security and got it.
Assembly line manufacturing was prevalent. Goods were produced as they headed down
the assembly line, as in automobile production and other productions. Workers were
generally unskilled and performed repetitive tasks.
The New-manufacturing environment consists of combining technological advances
with strategic management insight to reach a company’s goals and potential. One must

61. look at the fundamental changes in the workforce. Technology is leading Management to a
decentralized/ flatter organizational structure (Laudon, 2000). Middle management has
been reduced and workers have been empowered to resolve issues themselves. Managers
now identify needed skills and provide workers with the resources to solve problems
rather than give orders. This is the era of the Integrated Product Team (IPT). People
worked in groups with a project leader that may become a team member of another in the
future. Workers in a manufacturing plant manage the production process and decide the
most efficient way to get the job done.
Suppliers are part of the manufacturing process employees, managers, suppliers, and
customers work as a team. Alliances are unfolding customers and suppliers are working
side by side in the same office or manufacturing plant; also, temporary employees are
given as much responsibilities as full-time employees. People are more skilled today than
in the past. Nearly two-thirds of the workplace jobs that were created require education
beyond high school and be tied to the use of Information Technology (IT) (Verespej,
1998). Management is aware that reducing costs is a benefit of IT.
Company’s goals are to automate tasks where appropriate. Companies can control their
inventory and production. Chrysler has used IT to implement Just-In-Time (JIT)
manufacturing and lean production to reduce costs (Lucas 1997). Boeing Company also
claims to have reduced costs as well as improve quality. The new Boeing 777 Airliner
Company was the first “paperless airplane” designed using sophisticated computer aided
design programs (Lucas, 1997). Companies have to move quickly to compete because
with information technology it takes only days to gain or lose a competitive advantage.
Manufacturing information systems today support the production/ operation functions of
companies. Production/operation functions include the activities concerned with planning
and control of the processes used in producing goods and services. Computers are at the

62. root of these processes. Computer-based manufacturing information systems use several
major techniques to support Computer Integrated Manufacturing (CIM). Computer-
Integrated Manufacturing is an overall process that stresses the goals of computer use for
factory automation and must include the following (O’Brien, 1997):
• Simplify/reengineer production processes, product designs, and factory automation.
• Automate production processes and the business functions with computers and robots.
• Integrate all production and support process using computers and the
telecommunications network.
Engineers use Computer-Aided Engineering (CAE) and Computer- Aided Design (CAD)
systems to help design products. Product designs can be modeled, analyzed, and designed/
drafted using graphical software in 2- dimensional or 3-dimensional views. These types of
systems are frequently responsible for determining standards for product quality (i.e.,
quality assurance).
Additionally, a bill of materials can be a final product of the design process. Furthermore,
Research and Development (R&D) time has been greatly reduced over a laborious non
computerized process. To improve manufacturing processes, Manufacturing Engineers
(MEs) use computerized systems such as Computer-Aided Process Planning (CAPP).
Computers are also used to identify and plan the material requirements needed to produce
a product. This is referred to as Material Requirements Planning (MRP). Integrating MRP
with production schedules and shop floor control functions is referred to as Manufacturing
Resource Planning (MRPII). To aid in the manufacturing of products, Computer-Aided
Manufacturing (CAM) is employed. Computers and robotics are used to fabricate
assemble and package products. Monitoring and controlling production process in a

63. factory (shop floor control) is accomplished by directly controlling a physical process
(process control), a machine tool (machine control/numerical control), or a machine with
humanistic capabilities (robots).
Artificial Intelligence (AI) may someday have a large impact on the manufacturing sector
(Miller, 1985). AI enables information integration for decision making from conceptual
design, engineering, planning, scheduling, fabrication, testing, shipping, and customer
service (Meyer, 1987). Other AI topics include: Expert Systems, Artificial Vision, Natural
Voice Recognition, and Voice Recognition. Benefits of CIM systems include:
• Increased efficiency through work simplification and automation.
• Improved utilization of production facilities.
• Reduced investment in production inventories using Just-In-Time practices.
• Improved customer service.
These are just some of the ways information technology is be used in the manufacturing
process. With the introduction of the Internet and the World Wide Web, companies have
access to a global market place. The Telecommunications industry is providing a way to
access this technology. The manufacturing industry uses IT to enhance their competitive
edge and more effectively compete in the global market. According to trading economic
market forecast on Nigeria Economics, Nigeria manufacturing industries use IT to
enhance their competitive edges and effective production. According to the forecast,
manufacturing production actual forecast 0.40% December 2015, manufacturing
production increase in 1st quarter 2.3% (2017) and 6.67% (2020).(tradingeconomics.com)

64. 2.3.9 Economic Benefits of Broadband Technology
The economic benefits of investing in broadband are considerable and far reaching. It is
widely accepted that an increase in broadband penetration has positive impact on GDP
growth. A 2009 World Bank study suggests that a 10% increase in broadband penetration
yields an additional 1.38% increase in GDP growth for low to middle income countries
(see chart below)
Figure 2.1 Growth Effect of Information Communication Technology
Sources: Quiag et al,(2009)-World Bank
In the first half of 2013, the FMCT ran a test pilot for a ‘micro-work’ program that gave
3500 otherwise unemployed youths access to freelance crowd sourcing via the internet. In
just two months the pilot reported over $121,163 USD of revenue earned by just over
2000 active registrants serving 42 clients globally. The exercise was a resounding success
showing that access to broadband contributes to job creation and economic growth by
improving productivity and accelerating innovation.

65. A study by the international Economic Council highlights the immediate tangible benefits
of broadband technology as a major community engagement and revival tool, (Craig
Settles, October 2012) listing below:
i. Attracting new business.
ii. Reviving Business districts
iii. Helping Local Companies grow in reach.
iv. Reviving communities.
v. Helping home business grow.
vi. Booting worker training and e-learning by
∙ Improving job skill and professional development
Helping to transition into a new industry or professional
Making job searching easier
2.3.10 Benefits of Information Technology
We live in a global village where ICT has a direct impact on a Nation’s ability to
improve the economic wellbeing of her people and compete globally. Broadband is an
essential infrastructure of the 21st Century. It enables access to business and job
opportunities, improves healthcare, education and government services, and facilitates
social interactions. Broadband is to the 21st Century Information Age what Electricity was
to the Industrial Age. It has a significant transformative effect on how people live and
work. It empowers the individual user with previously unimaginable capabilities and
global reach.
The Internet is the world’s largest repository of information and knowledge and High
Speed Access is critical to fully harnessing the benefits of the Internet. In 2010, the
internet accounted for US$1,672 billion of the global economy, or an average of 2.9

66. percent of the total GDP. The contribution from developing or aspiring countries was
small only US$366 billion.(This Countries). Of this amount the BRIC countries (Brazil,
Russia, India, and China) were responsible for US$234 billion, almost two thirds of the
total, while the African countries continent’s share was only US$18 billion.
However, many benefits of ICTs are not accruing to lower-income population because
access and adoption are low. Five policies by actions are recommended to close the access
and adoption gap to increase the positive benefit of ICTs to group at the base of the
economic pyramid:
i. Focus public resources and incentives for building broadband internet access out to
rural and underserved communities.
ii. Connect schools and libraries to broadband internet service and ensure wider
spread connectivity within schools.
iii. Remove excess taxation on devices and access and consider targeted subsides for
certain population.
iv. Develop robust ICT training curricula and programs.
v. Focus on closing the gender gap in ICTs.
2.3.11 Impact of Information Technology on the Socioeconomic
Information technology has created economic opportunities and foster social and
political inclusion, ultimately contributing to shared prosperity. The socioeconomic
benefits brought about by ICTs are precisely what the Impact sub index of the NRI aims to
measure. Information technologies hold the potential for transforming our economies
through multiple channels. They boost productivity and reduce transaction and
information costs. They allow new models of collaboration that increase workers’

67. efficiency and flexibility for better work life balance. ICTs foster entrepreneurship and
create new business models.
The past two decades have witnessed the emergence of startups that have disrupted
entire industries or created entirely new ones. Some of these startups have since become
corporate giants that are transforming our world. Startup incubators now exist in most
major countries and provide affordable training, mentorship, and resources to those who
wish to start a business. Associated with 3D printing and other technologies, user-friendly,
open-source software and in expensive hardware are contributing to the spread of digital
manufacturing among aspiring entrepreneurs, especially among the youth.
Through crowd funding and equity-crowd funding platforms, ICTs also provide
alternative sources of credit for individuals and entrepreneurs who do not have access to
traditional sources of funding, or even for more established businesses that need to finance
their operations. Online marketplaces, such as Lending Club, allow borrowers and lenders
to connect directly online, while big data makes it possible to compute a credit score for
virtually every human being. ICTs offer significant social benefits, notably by enabling
access to basic services, including financial services and education. Perhaps one of the
best examples of how the mobile revolution is changing financial services is M-PESA, the
mobile-based money transfer system that was launched in Kenya and Tanzania and is now
spreading to the rest of the developing world. In the education arena, the proliferation of
massive online open courses (MOOCS) allows people around the world to upgrade their
skills, train, or re-train more frequently, more flexibly, and more cheaply than through
traditional channels.
Technology is also allowing for a more direct interaction between populations and
governments. Improved government online presence can significantly increase the

68. efficiency of public administration. The Internet provides new ways for citizens to
participate in the policy and decision-making processes, especially for those whose voice
is usually further from the boardrooms. Open-data initiatives and stronger commitments
by governments to making information available online improve transparency,
governance, and accountability, because citizens and civil society can now monitor more
closely the conduct of civil servants. Most governments have responded more or less
promptly to demand for e-participation and have enhanced the provision of e-information,
the launch of e-consultation initiatives, and the use of e-decision-making. As a result, we
observe significant improvement by most countries in the latest edition of the E-
participation Index compiled by UNPAN.
Widespread ICT use by businesses, government, and the population at large is a pre-
condition for all these benefits and opportunities to materialize, as confirmed by the NRI
results. Reveals the nearly perfect relationship between the Usage and Impact sub-indexes
a linear regression of the latter on the former yields a coefficient of determination. ICTs
will both contribute to ushering in the data revolution and benefit from it. ICTs in all their
forms, such as mobile phones, the Internet of things, satellite imagery and sensors are
revolutionizing the way data are being collected.
Solow paradox in 1987, Nobel Prize winning economist Robert Solow noted, “You can
see the computer age everywhere but in the productivity statistics. Four main mechanisms
dictate the process by which ICTs contribute to macroeconomics growth by affecting
inputs to GDP growth (Jalava and Pohjola 2002;OECD 2003:
i. IT contribute to GDP directly through the production of ICT goods and service as
well as well through continuous advance in ICT producing sectors.

69. ii. ICTs contribute to total factor productivity growth through the reorganization of
the ways good and service are created and distributed.
iii. ICTs industries generate positive employment effects.
iv. Increasing application of ICT (capital deepening leads to rising labor force).
v. Promoting fair competition and efficient market conduct among all players in the
industry.
2.3.12 The Global Information Report 2015 edition (Networked readiness Index)
As a general-purpose technology, the impact of information and communication
technologies or ICTs extends well beyond productivity gains. As shown in this Report,
ICTs act as a vector of social development and transformation by improving access to
basic services, enhancing connectivity, and creating employment opportunities. Since
2001, The Global Information Technology Report series published by the World
Economic Forum in partnership with Cornell University and INSEAD has measured the
drivers of the ICT revolution using the Networked Readiness Index. For each of the 143
economies covered, it allows areas of priority to be identified to more fully leverage ICTs
for development.

70. Table 2.3
The networked readiness index 2015 ten top Country
Rank Country/Econo
my
Value 2014
(out of
148)
Income level Group
1 Singapore 6.0 2 Hi-OECD ADV
2 Finland 6.0 1 Hi-OECD ADV
3 Sweden 5.8 3 HI-OECD ADV
4 Netherlands 5.8 4 Hi-OECD ADV
5 Norway 5.8 5 Hi-OECD ADV
6 Switzerland 5.7 6 Hi-OECD ADV
7 United State 5.6 7 Hi-OECD ADV
8 United
Kingdom
5.6 9 Hi-OECD ADV
9 Luxembourg 5.6 11 Hi-OECD ADV
10 Japan 5.6 16 Hi-OECD ADV
119 Nigeria 3.2 112 LM SSA
Source: The Networked Reading Index 2015
Note: Income level classification follows the World Bank Classification by income
(situation as of July 2014). Group classification follows the international Monetary
Fund’s classification (situation as of October 2014). Income group: Hi=high-income
economies that are member of the; Hi-OECD=high-income OECD member.
UM=upper-middle-income economies, LM=lower-middle-income economies; LI=low-
income economies; Group: ADV=Advance economies; SSA=Sub-Saharan Africa.

71. From the table, Singapore, the government is leading the ICT revolution with a clear
digital strategy and one of the world’s best offerings in terms of online services and e-
participation tools, behind only the United Arab Emirates, in the indicator measuring the
impact ICTs are having on government efficiency. Singapore offers the most conducive
business and innovation environment worldwide and ranks 2nd for the quality of its
regulatory framework. Singapore boasts the highest penetration of mobile broadband
subscriptions per capita in the world.
From the table, Finland its education system is outstanding and its workforce highly
skilled, the country boasts an excellent political and business environment and top-level
infrastructure. Sweden, as of 2013, some 95 percent of individuals used the Internet. This
allows ICTs to have a large impact on both the economy and society. Swedish companies
are highly innovative in creating new products and services and are leaders in patenting
ICT-related technology. Almost half of the Swedish workforce is employed in knowledge-
intensive jobs. ICTs also improve access to basic services and government efficiency.
From the table, Nigeria is not rank among the best 10. The divide among the best and
worst performing countries runs the deepest in terms of infrastructure, affordability, and
individual usage.