Political Science

Study on Nigeria IT Industry

Introduction
Information technology has showed tremendous growth within the past three decades when computer technology provides many innovations, which lead to reduced costs of manufacturing desktop computers. This condition immediately speeds up the number of home users worldwide as operating systems microprocessors, etc are available in many models and price.

Moreover, computer technology development continues finding new tools that help human to do their work much easier, simpler, and better. In 1980s, most computer applications come in the form of text-based user interface such Word Stars and Chi Writer. Then in 1990s, we start using a graphical user interface in most computer applications such as Microsoft Word, Word Perfect and many others that we use on daily basis. In the 21st century, most applications have emerged to be graphical than we have encountered before so that we are more familiar with the term GUI, which stands for Graphical User Interface.

Another factor that contributes to the growth of information technology in a country is the Internet that starts growing in early 1990s. This situation also rapidly influences countries in the world as intercontinental fiber optic cables are deployed to enhance the connectivity. Today, the internet has been an inseparable part of business and also for individuals not only in developed countries but also in developing ones.

Concerning these issues, this paper will discuss the study on Nigeria IT industry compared to Malaysia. In addition, the study will highlight the condition where Nigeria currently increase efforts to attract inflow foreign direct investment in order to favor the growth of IT market in the country.

Research Objectives
As the development of information technology sector is influenced by many factors, it highlights that each country may have different level of growth. Due to this situation, this paper has several research objectives as following

This paper intends to describe factors that influence the information technology developments.
Using the non-participant observation method, collecting data and analyzing qualitative information from journal, books, magazine and other online materials, this paper discusses the study on Nigeria IT industry compared to Malaysia.

In addition, the paper aims at elaborating the current efforts to attract inflow foreign direct investment in order to favor the growth of IT market in the country.
 
Literature Review
Factors that influence the information technology developments
Pricewaterhouse Coopers (2000) describe that Information Technology (IT) is actually a lot younger than the computer technology. In the 1970s, the need for timely, accurate and reliable information helps the Information Technology to grow widely. But it was due to the small computers or refers to desktophome computers that are discovered in the 1980 that increase the impact of Information technology toward individuals and businesses. Today, the technology has developed into corporate weapons to face fierce competitions. The role of the IT business as a strategic advantage of is widely recognized (The Importance of, 2000).

In addition, it is also discovered that the use of internet in business is increasing rapidly, despite the fact that within that year -2002- international business are having a little downshift in its development. However, the share of online transactions in total B2B sales is growing quickly on both sides of the Atlantic, estimated to be 20 in 2006. International dialogues have been made to address the internet-induced changes in the global economy. The condition represents a major shift of global business to the on-line environment (E-Commerce and Development Report, 2005 Corbitt, 2003).

The study on Nigeria IT industry compared to Malaysia
As computer technology and internet become two major factors that speed up the IT development of a country, it drives authorities in Nigeria to present the infrastructure that would favor the increasing traffic of internet. As the result, within the 21st century, the country experiences the tremendous growth on internet traffic.

Figure 1 Countries with the highest net additions of Internet users in Africa (2000-2008)
Source httpwww.mashada.comblogstagAfrica
In another literature, the growth is detailed where Nigeria records a remarkable growth on the internet users from 200,000 users in 2000 into magnificent 11 millions users in 2009 as shown in the figure 2.

Figure 2 Internet Usages and Population Growth in Nigeria
Source Internet World Stats, 2010b

This development is comparable to Malaysia that also experiences significant internet users growth during the 21st century (see Figure 3). The difference is Malaysia already has better internets penetration rate about 15 in 2000 as the geographical condition in Malaysia support the mass deployment of IT infrastructure. This is much different from Nigeria that requires multiple modes in order to increase the number of internet users in the country due to the challenging geographical conditions.

Figure 3 Internet Usages and Population Growth in Malaysia
Source Internet World Stats, 2010b

Factors that support the development of internet users both in Nigeria and Malaysia are contributed by changing policy. In Nigeria, for example, previously the country face hurdles as they have unreliable and underdeveloped fixed-line infrastructure. However, the country then changes the regulations to intensify the competition and let the advances wireless broadband access technology to serves customers. This changing immediately adds the number of internet service providers (ISPs) into 400 licensed ISPs in addition to the growing number of gateway operators, internet exchange, and data carriers (Internet World Stats, 2010b Berkey, 2002 Bo-Ling, 2001).

As the information technology does not merely depend on fixed-line access, the country also deploys the Next Generation Networks (NGN) that becomes the basis for triple-play services composing of voice, data and videoTV services (Internet World Stats, 2010b).

This regulation factors also become one driving factors that contribute to the increasing IT sector in Malaysia. The country also introduces the Multimedia Super Corridor (MSC) Project that highlights the governments commitment to the improvement of technological society. As the IT infrastructure in Malaysia is advancing, this would attract foreign companies to establish branches in Malaysia (Internet World Stats, 2010a).

Nigeria efforts to increase inflow foreign direct investment
As a country that becomes one of the biggest and fastest growing telecom markets in Africa, Nigeria has lucrative markets for growth in all sectors. Learning from Malaysia that develop seriously the Multimedia Super Corridor (MSC) Project in order to attract foreign investors to invest in Malaysia, Nigeria also learns that the building of reliable and widespread IT infrastructure will be the keys to increasing number of foreign direct investment to the country. Figure 4 shows the historical trend of Nigerian inflow foreign direct investments during 2001-2006 periods.

One major move that Nigerian government take in information sector is the privatization of incumbent telecommunication operator, Nitel, which will enable them to compete aggressively and effectively in the future. The government also introduces the licensing regime in 2006.

Figure 4 Nigeria inflow foreign direct investments
Source Internet World Stats, 2010b

The changing regulation in telecommunication sectors will attract new operators to provide both fixed and mobile services in Nigeria in which some of them are backed up by foreign companies. Once these operators deploy network throughout the Nigeria by delivering both fixed and mobile service, Nigeria expect that it will significantly raises demand for Internet access and broadband capabilities.

Methodology
In this paper, we will employ the non-participant observation method especially by analyzing qualitative information from journals, books, magazines and many more. In addition, the data collection is carried out through indirect approach, highlighting that the information obtained is secondary in nature. The data used within this study is generated from direct observation performed by a member of the organization which we are about to discuss. This approach is appropriate because a direct observation would provide a more detail and more accurate information about the object of study.

The most important of conducting observation is it provides researchers with an understanding about the perceptions about things or people we observe. However, since observation deals with someones perception, we plan to avoid preconceptions since it would provide this research with some bias.

In addition, to provide a comprehensive and reliable discussion on IT development in Nigeria compared to Malaysia counterpart, this paper will conduct some researches using the data and observation of the working environment. In this situation, it will employ various sources including electronics journals and surceases investigations and books that relate to the topics of discussion in IT development.

Limitation
The method does not involve direct interviews which will slightly reduce objectivity and the accuracy of information. We are retrieving more reliable data from experts analysis, journals and various publications from available media. Using the data resources above, we are hoping to present an independent and objective analysis toward the IT development in Nigeria compared to that in Malaysia.