One would appear to be too futuristic here. But it is common knowledge that the science fictions of the 19th and 20th centuries have become the technological realities of the 21st century. Add to this the fact that the momentum and speed of change has aggravated many folds and you just might catch my drift.
The oil mining sector has been at the heart of the build and ruin of Nigeria’s economy since the 1960s. The discovery of hydrocarbons led to the neglect and abandonment of agriculture; encouraged consumption and what economists call a “rentier” system, discouraged local revenue generation through veritable sources such as taxation; and worst of all nurtured corruption to unspeakable proportions.
On this wrong foundation, Nigeria has come to be overbearingly dependent on crude oil and its derivatives to the tune of about 98 percent. Critical sectors such as manufacturing have been totally abandoned and are now very difficult or near impossible to revive. Worst of all, the nation failed woefully in reinvesting the proceeds from oil in the development of infrastructure and social services, leaving a disproportionately large segment of its population in poverty and squalor.
Then came a push in the direction of ICTs through the liberalisation and privatisation of the telecommunications sector in the late 1990s. That move brought with it a legion of intended and unintended consequences. With the benefit of hindsight, this can be said to have been the most important political, social and economic decisions of any Nigerian government in the last three decades.
The step brought with it a quantum leap in foreign direct investments and with this, an amalgam of infrastructure, technical expertise, investment opportunities and thousands of jobs. No one single sector perhaps with the exception of banking, textiles and the unproductive public sector has created as many jobs and opportunities like ICT in recent memory. While the textile factories remain shut and the banks often regurgitate workers for sundry reasons, the telecoms sector has tended to diversify and present new opportunities and new jobs on the go.
This probably accounts for the pleasant surprise on the discovery that the sector alone had grossed more than a quarter of Nigeria’s GDP in the recent rebasing exercise. At 28.6 percent, telecoms showed significant strength in its performance that takes the shine off the over-feted, over-pampered oil sector. Although oil yields direct and raw currency, this is the very reason why virtually all the proceeds are corruptly creamed off. Again, attempts at unbundling the oil sector has been afflicted with the disease of public sector management in Nigeria – lack of political will power and bureaucratic red tapes as well as meddling but powerful cartels. On the other hand, the telecoms sector has fared well under private sector management and public sector regulation, creating a synergy that makes for pragmatic and dynamic cooperation for the benefit of all stakeholders.
One remarkable feature in the investments in telecoms is the fact that investors easily overlook the high risks inherent in doing business in Nigeria. Whereas investors in other sectors get discouraged by the sheer absence of infrastructure such as electricity, those in telecoms readily overcome this drawback by providing their own electricity and other facilities to run their businesses. This tells much about what attraction the industry has and what prospects investors see in it.
The role of ICT in the advancement of Nigeria’s economy is therefore no longer questionable. It has become a key driver of economic activity and has considerably transcended the barriers of bureaucracy and public sector apathy. It has manifestly brought the concept of globalisation to bear even on Nigeria’s economically disadvantaged and poor communities.
But for telecommunications, it is only to be imagined what Nigeria’s economy would be today. The rapid migration of banking services from analogue to mobile and digital platforms; the ongoing cashlite policy of the Central Bank of Nigeria; advancements in journalism and broadcasting; virtual access to remote and special libraries across the globe and the sheer ease of communications through voice and data exchange are simply amazing.
With improved digital infrastructure, the gap that still hinders the practical realisation of e-governance, e-commerce, e-education and whatever else could easily be bridged. These challenges would be easily surmounted with the realisation of the broadband plan. Broadband makes it possible to have more bandwidth available for carrying larger volumes of data and information between people and organisations.
It is taking all the foregoing into perspective that one thinks it is high time Nigeria made a quantum leap beyond dependence on oil. The future lies with the telecom mast, not with the oil rig. The world is migrating to electronic trains, cars, planes, and what have you? It would only be a matter of time before petrol engines become obsolete – what with the global outcry over greenhouse gases.
The future, indeed including the management of our identities, funds, elections and all are digital and for now, the starting base is telecoms. This calls for concerted attention to be paid to the development of ICT and the telecoms sector in Nigeria. Regulatory bodies like the Nigeria Communications Commission (NCC), must be adequately equipped, funded and provided with the enabling environment to thrive. They hold the key to the future – because oil is fast becoming a relic.
Odeh is an economist based in Lafia, Nasarawa State
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