1. YOUTH DEVELOPMENT, ICT & NIGERIA’S KNOWLEDGE ECONOMY presentation made at the: 18 th NIGERIAN ECONOMIC SUMMIT By Wednesday, December 05, 2012 Ministry of Communication Technology THE HONOURABLE MINISTER OF COMMUNICATION TECHNOLOGY MRS OMOBOLA JOHNSON

2. Outline The ICT Industry Nigeria’s Youth Demographics Youth and ICT Policy Youth Entrepreneurship in ICT The Role of Government Expected Outcomes 2 © 2012. Federal Ministry of Communication Technology

3. The Nigerian ICT Industry: fastest growing sector in the economy SECTORCONTRIBUTION TO GDP (Q3, 2012) RankPercentage Agriculture140.19 Wholesale & Retail Trade219.37 Crude petroleum & Natural Gas 314.80 Telecommunication & Post45.70 Source: “Revised 2011 and Estimates for Q1-Q3, 2012 Gross Domestic Product for Nigeria“ National Bureau of Statistics. See http://www.nigerianstat.gov.ng/pages/download/87http://www.nigerianstat.gov.ng/pages/download/87 In the third quarter of 2012, one of the ICT industry sector, the Telecommunication & Post is the fourth highest contributor to the nation’s GDP and is the fastest growing sector in the Nigerian economy equates to N76.3bn GDP at Current Basic Prices 3 © 2012. Federal Ministry of Communication Technology

4. Transaction Services The Opportunities in the Nigeria ICT Industry © 2012. Federal Ministry of Communication Technology 4 Mobile Network Operators Satellite Operators Fixed Wireless Operators Fixed Wire-line Operators Internet Service Providers Device Sales & Distribution Device Maintenance & Repairs Device Assembly Infrastructure Services Training & Education Equipment Maintenance & Repairs Equipment Sales & Distribution Equipment Assembly Call Center Operations Research & Development Support Services Software Development Access Provision Business Process Outsourcing Converged Services (Data, voice & media) Annual Maintenance & Support (servers & storage) Software Maintenance & Support Software Installation & Customization Software Sales & Distribution Value Added Services Infrastructure Service Providers Legend High growthMedium growth Low growth

5. ICT Opportunities in 3 Strategic Areas 5 © 2012. Federal Ministry of Communication Technology INFRASTRUCTURE(Broadband)INFRASTRUCTURE(Broadband)  Job Creation (civil works, network equipment, maintenance) BUSINESSBUSINESS  New e-commerce business, business innovation, productivity INCLUSIVE DEVELOPMENT  E-Health, E-Agriculture, E-Government

6. Nigeria’s Youth Demographics According to population statistics, 70% (i.e. 116.9 million) of Nigeria’s 167 million population fall into the youth group (i.e. ages 18 – 35, according to National Youth Policy). However, youths are known the world over to be the greatest consumers of ICT content and creators of ICT businesses. © 2012. Federal Ministry of Communication Technology 6 15-2425 – 44 37.7%22.4% Unemployment Rate (2011) Source: National Bureau of Statistics Age Group: Secondary School NCE/ OND/ Nursing BA/BSC/HND 20.1%20.2% School Leavers:

7. Youth Entrepreneurship in ICT © 2012. Federal Ministry of Communication Technology 7 Network Service Providers Device Sales & Distribution Device Maintenance & Repairs Call Center Operations Research & Development Infrastructure Services Support Services Software Development Software Distribution & Sales Access Provision Value Added Services Equipment Assembly Equipment Sales & Distribution Equipment Maintenance & Repairs Device Assembly Infrastructure Service Providers Software Installation & Customization Software Maintenance & Support Oxygen Broadband Networks Veda Computers Encipher Inye Websoft - Vantium Co-Creation Hub SLOT Computer Village, Ikeja In the first tranche of YouWiN! Business Plan competition, the ICT sector represented the sector with the second highest number (11.8%) of awardees after Agriculture (22.8%) MyPaga Wakanow Dealday (online stores) Konga.com (online stores) Jobberman

8. The Potential & Possibilities of ICT: India Comparison © 2012. Federal Ministry of Communication Technology 8 An exemplar of a country that has leveraged ICT in a most strategic way to create jobs and create wealth through private sector enterpreneurship The IT industry in India employs over 2.54 million professionals, contributes 6.4% GDP and generates revenue of about US$100 billion. Many of the jobs created in India are held by young people All of this is in a developing economy like Nigeria with similarities in youth demographics, high levels of poverty and largely inadequate infrastructure.

9. The Potential & Possibilities of ICT: India Comparison © 2012. Federal Ministry of Communication Technology 9 INDIANIGERIA Area 3,287,000 km² 923,768 km² Population 1,210,193,422 170,123,740 (2012 estimate) GDP US$1.848 trillion USD (2011) US$240.7 billion (2011) Per Capita US$1,388 US$1,490 Poverty Rate 32.7% 62.8% Global Hunger Index (GHI) GHI Global Rank: 43 GHI: 22.9 GHI Global Rank: 18 GHI: 15.7 (2012) Human Development Index Global HDI Rank: 134 HDI: 0.547 Global HDI Rank: 156 HDI: 0.459 Size of ICT Industry US$100 billion US$13.1 billion ICT Jobs 2.54 millions ~1.3 millions (estimate) Sources: World Bank, National Bureau of Statistics

10. National ICT Policy: Youth and ICT The ICT Policy sets out clear objectives for the Youth: To leverage ICT in addressing Youth-specific development and orientation issues; and To ensure that the Youth use ICT responsibly and for positive purposes. Strategies Promote the use of ICTs, in partnership with youth-focused bodies and relevant MDA’s, to deliver information and content that emphasize national unity, tolerance and ethical values. Support the delivery of programmes designed to ensure that the youth focus on positive application of ICT. Promote incentive and support schemes targeted at youth entrepreneurship initiatives in ICT. Ensure that the youth is protected adequately in cyberspace. Promote the incorporation of ICT within the education curriculum at all levels. © 2012. Federal Ministry of Communication Technology 10

11. Government as an Enabler for Youth Entrepreneurship in ICT Increased availability of broadband – Broadband strategy and roadmap (Jan 2013) Institutional support for Youth Entrepreneurship in ICT – IT Incubation Centres – IT Innovation Fund – TechLaunch Pad Skills and Capacity Development Nokia MLab Project IBM Skills Development and Research Institutes (SDRI) ACCESS Nigeria Telecoms Engineering Centres of Excellence Nigerian Research and Education Network Student Computer Ownership Scheme / Portal © 2012. Federal Ministry of Communication Technology 11 Promote incentive and support schemes targeted at youth entrepreneurship initiatives in ICT.

12. Expected Outcomes Increase the ICT contribution to GDP through a deepening and broadening of the industry Grow Nigeria ICT Industry to become the African hub for ICT business services provision serving both regional and global markets, through innovative ICT solutions Improve the attractiveness and bankability of businesses in the ICT sector Venture capital Foreign direct investment Traditional loans © 2012. Federal Ministry of Communication Technology 12

13. YOUTH DEVELOPMENT, ICT & NIGERIA’S KNOWLEDGE ECONOMY presentation made at the: 18 th NIGERIAN ECONOMIC SUMMIT By Wednesday, December 05, 2012 Ministry of Communication Technology THE HONOURABLE MINISTER OF COMMUNICATION TECHNOLOGY MRS OMOBOLA JOHNSON