The Federal Government is set to penalize its agencies for non-compliance with its directive mandating all of them to patronise made in Nigeria software and indigenous players in the information and communications technology (ICT) sector.
It was gathered that non-compliance with the directive has cost the government billions of Naira in terms of capital flight and has retarded the growth of the local ICT industry.
It is also said to be responsible for the high unemployment rate amongst software developers and indigenous players in the sector.
A 2006 government circular signed by the former Secretary of the Federation, Chief Ufot Ekaette had directed all federal agencies and ministries at the federal and state levels to with immediate effect patronise made in Nigeria software and locally assembled computers as a priority choice of applications for all their functions.
But the ministries are said to have flouted this directive and instead embraced foreign software developers and foreign made computer products and services to the detriment of their local counterparts.
Institute of Software Practitioners of Nigeria (ISPON) said that it was a welcome development that the federal government under the new dispensation of President Goodluck Jonathan was making moves to deal decisively with agencies found not to be complying with the directive to patronise local players, because they contribute to the stagnation of the software industry.
The institute lamented that local software industries were dying and viable operating firms have decreased from about 250 in 1999, to about 15 in 2011 because big players have crowded them up.
It added that the fact that there was no antitrust law to protect the local sector has also has given rise to the suffocation of small industry players in the sector.
Operators in the telecoms space under the aegis of Association of Licensed Telecoms Operators of Nigeria (ALTON) and Association of Telecoms Companies of Nigeria (ATCON) had recently called for government bail out to mitigate against the effect harsh economic realities was having on the telecoms industry.
The Chairman of ATCON, Engr. Titi Omo Ettu had emphasised that in the 17 years of the Association’s existence, membership has dwindled from 145 to 80.
He had added that 45 percent of the companies actually went under due to the vicissitudes of the business environment with Internet Service Providers topping the sub sector lists.
Also, the Chairman of the association of Licensed Telecoms Operators ALTON, Engr Gbenga Adebayo had also called on Government to look into how to assist ailing service providers with ‘bailout’ funds.
He expressed the hope that in the interest of competition and survival of the Nigerian telecoms industry, government should look critically at ways and means of assisting struggling players to survive.
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