Economic potential of nigeria filetype pdf

Completing tasks using information technology, results in rapid processing and information mobility as well as improved reliability and integrity of processed information. In small and medium enterprises, information technology is seen as the development, installation and implementation of computer systems and applications. Information technology is concerned with the use of technology in managing and processing information especially in organizations.

In particular it deals with the use of electronic computers and computer software of convert, store, protect, process, transmit and retrieve information. For that reason, computer professionals are often called IT specialists or business process consultants and the division of company or organization that deals with software technology is often called the IT department.

The Office of the Deputy Prime Minister, Department of Trade and Industry and Local Government Association UK, ODPM defined information technology to include any equipment or interconnected system or subsystem of equipment that is used in the creation, conversion or duplication of data or information.

The term includes but is not limited to, telecommunication, products, such as telephones, information kiosks, and transaction machines, World Wide Web sites and the office equipment such as copiers and fax machines. All the above definitions of information technology share certain key characteristics which are outlined below.

Speed, accuracy, efficiency and productivity. However, from the knowledge of the foregoing, and for the purpose of this research study, information technology will be defined as the various technologies which are used in the acquisition, storage, organization, manipulation and transmission of information to accumulate knowledge, ease and expedite planning, decision making and controlling in an organization, while enhancing efficiency.

On a last and crucial note, with regards to the meaning of IT, there is the need to further stress the fact that IT is the merging of computing and telecommunications technologies. For the full potential of information technology to be realized, these two elements must come together. On their own, the powers of computers are immense, but limited. It is only when communications is introduced that computers can be networked so that people can work together by sharing data, documents and by sharing ideas mainly through electronic messages.

Many believe that it is only when two or more computers are networked that organizations can start appreciating the real power of the computer. What this implies is that, although an organization may own stand alone computers, such an organization cannot be said to be proficient in IT until these computers are interconnected or networked, allowing information to be exchanged within the organization with the utmost of ease.

Some of the operational structural problems of SMEs in Nigeria were further outlined by Anamekwe as follows: 1 Management Problems -all important entrepreneurial and operational decisions are taken by one person sole owner. Their low business credibility, poor management, inefficiencies, limited collateral security, high risk of failure make it difficult for them to raise capital from usual sources and often force them to secure loans at higher interest rates from other lenders.

Empirical research on ground will prove or invalidate this assertion. Growth of competitive pressure force SME to fight for new markets, new products and new distribution channels. These environment movements can be faced just from those businesses that have quality information systems support. The only competitive advantages companies and SME enjoy are their process of innovation and ability to derive value from information as resource.

As noted earlier, information technology is the technology that is used to store, manipulate, distribute or create information. Furthermore, it is claimed that through the use of information technology, SMEs can gain from developing capabilities for managing, information intensive resources, enjoy reduced transaction costs, develop capacity for information gathering and dissemination of international scale and gain access to rapid flow of information Irefin, Abdul- Azeez, and Tijani New business models and market configurations enabled by information technology, including business process outsourcing, provide SMEs with access to new market and new sources of competitive advantages.

SME usage of ICT ranges from basic technology such as radio and fixed lines to more advanced technology such as email, e-commerce, and information processing systems.

The first ICT tool that most SMEs adopt is having basic communications with a fixed line or mobile phone, whichever is more economical or most convenient for the business. This allows the SMEs operators to communicate with its suppliers and customers without having to pay a personal visit.

After acquiring basic communication capabilities, the next ICT upgrade is usually a PC with basic software. Even without Internet connectivity, SMEs can use PCs for basic word processing, accounting, and other business practices. With the Internet, SMEs are able to use more advanced communications capabilities such as email, file sharing, creating websites, and e-commerce.

This may be sufficient for most SMEs, especially those in service industries such as tourism. Like any firm, an SME decides which type of ICT products to adopt based on the concrete benefits they can bring to its core business, the ICT capacity of its employees, and the financial resources available. Most people are familiar with basic ICT such as fixed phone lines, mobile phones, fax, computers, and basic document processing software — like Microsoft Office.

Advanced communication technology, however, is more complex. Advanced communication technology relies primarily on the Internet and the intranet, which allow people within the firm to share files with each other over the same network. Having Internet connectivity enables firms to do faster research, set up websites, conduct e-commerce, and set up video conferences. One of the most revolutionizing developments in advanced communication technology is Voice over Internet Protocol VoIP.

VoIP includes all types of voice communication transmitted through the Internet, whether it is between computer and computer or in hybrid form between computer and regular phone. It competes directly with traditional fixed line and mobile phone operators. Users only pay for their dial-up, broadband, or wireless Internet connection.

Most complex of all is advanced IT. It is often very expensive, sophisticated and takes more time to implement by a firm. SMEs can sign up for one or all available services. In order to reduce costs, some firms opt to outsource this component or use an Application Service Provider ASP that provides functional software capabilities over the Internet.

Information and Communication Technology ICT can play a very important role because it can help SMEs both create business opportunities and combat pressures from competition. Appropriate ICT can help SMEs cut costs by improving their internal processes, improving their product through faster communication with their customers, and better promoting and distributing their products through online presence.

It is also note worthy that the type and volume of product an organization produce determine the relevant ICT facilities and the capital spent to adopt and make available to the workers to discharge their specialized duties. Nigeria as a developing nation, the application and use of ICT in organizations is still very slow compare to other African countries, this corroborate with the finding of Kolawole, Adeigbe, and Hilary , noted and concluded that most of organizations in Nigeria are Non-Intensive ICT users that is, such organization of course have some ICT facilities such computer, LAN, WAN, mobile and land phones but could not afford internet and VSAT which could give them access to the outside world.

The reason according to Ojukwu, is due to cost, fear of fraudulent practices and lack of facilities necessary for their operations. Kapurubandara and Lawson have categorized internal and external barriers that impede adoption of ICT by SMEs in a developing country.

In developing countries some of the ICT challenges include legal and regulatory issues, weak ICT strategies, lack of research and development, excessive reliance on foreign technology and ongoing weaknesses in ICT implementation.

These factors include: lack of infrastructural facilities, lack of funds, cost of implementation, lack of awareness, lack of appropriate government policies, lack of skills and training, cultural factors, electricity constraints, corruption, low levels of education, illiteracy, lack of proper information, and so on. Adenikinju advocates that problems relating to the SMEs sector in Nigeria and its development have been handled inappropriately by the government and highlight problems such as infrastructural and cultural factors, as acting against the effective development and exploitation of ICT in Nigeria.

Lal also pointed out that the major factors that affect the adoption of ICT are infrastructure, cost of purchasing computer equipment, government support and management support respectively.

Sajuyigbe and Alabi asserted that lack of finance, lack of electricity, lack of computer skill personnel and lack of government support are the major factors that hinder adoption of ICT by SMEs. Apulu and Emmanuel, also found that characteristics of the firm and industry sector are contributory factors to the adoption and exploitation of ICTs in SMEs. They further asserted that the intensity of ICT in any organization is a function of the organizational annual turnover.

It is possible to access what is available and then can you really need to ask what the price of what you can access is. With a mix of visionary government ICT policy and profit-motivated private-sector competition, eventually, the issue of affordability becomes less important even though availability and universal access to ICT facilities are assured compared to what was obtainable in Nigeria years ago when most SMEs in Nigeria could not afford relevant ICT facilities VI.

Conclusion and Recommendations The small-scale enterprises often target grassroots business and finance. They exist to provide much-needed capital and impetus to small business groups. In so doing, they necessarily require the services of ICT. In any case, it is generally believed that ICT facilities make work faster and better, speed up operations, eliminate duplication and reduce paper work e.

Expectedly, their services and operations were being hampered due to this abysmally low ICT application. It is equally regrettable that this state of affairs exists in spite of a National Policy on Information Technology.

Based on its findings the study recommends as follows: www. Nigeria should strive to strongly position itself to meet up with the requirements of ICT infrastructure, with specific reference to the SMEs.

The present state in terms of ICT facilities is, to say the least, deplorable, and the trend needs to be urgently reversed. The SMEs and to, as a matter of necessity, equip themselves adequately with all ICT facilities, not just basic office tools. For example, such relevant ICT gadgets as Internet facilities, video conferencing facilities, facsimile, e-mail, telex, e.

Computers at all SMEs should necessarily be connected to the information super highway. The SMEs should urgently ensure that all or, at least, most of their staff henceforth have access to personal or shared access to computers which have been hooked to the Internet. Government should extend the hand of assistance to SMEs, particularly with a view to improving their funding and financing capacity. The energy sector needs to be urgently over-hauled to ensure constant and uninterrupted electricity supply, lack of which greatly and severely hampers day-to-day operations of the SMEs particularly ICT services.

Based on that, increasing the e-readiness of medium sized firms would require heavy investment in human capital, to be complemented by raising awareness and upgrading levels and types of connectivity. For small firms, priority should be directed to increasing awareness of the role of ICT, together with improving e- infrastructure and human capital. It would be beneficial for small and medium firms to work in clusters in order to benefit from economies of scale.

Such projects should be placed as priorities on the development plan and donor support agenda. A final point emerging from this study is that the SMEs are low on their e-readiness not only because of the low level of their e-infrastructure, but because of the more serious barriers related to awareness and human capital.

By the same logic, SMEs development in general and their e-readiness in particular will be affected by traditional old economy challenges such as financing issues, legal infrastructure, policy setting and the business environment.

One might then extend the micro e-readiness concept to include such old economy challenges that will affect SME e-readiness. This will be the subject of future research. References [1]. Adebayo O. International Journal of Business and Management Invention, 2 9 , [2]. Adenikinju, A. Ajayi, O. President Muhammadu Buhari acts as the head of state and head of government. This was the first time an opposition candidate had won a presidential election in Nigeria. The president appoints the cabinet, which is known as the Federal Executive Council.

The legislative branch is made up of the seat Senate and the seat House of Representatives. Elections to both houses are for 4 years and are achieved by a simple majority in single seat constituencies. Nigeria is the third-biggest country in West Africa by area and 32nd-largest in the world. With km of coastline adjoining the Gulf of Guinea, it is well connected to international trade routes and acts as an important conduit of goods for the landlocked countries to the north.

It has borders with Benin, Cameroon, Chad and Niger. It is also a diverse land. There are mountains in the south-east, central plateaus and hills, and plains to the north.

The km long Niger River bisects the country and rises to the Guinea Highlands. Entering Nigeria in the north-west, it meanders towards the coast, forming a delta before emptying into the Gulf of Guinea to the west of Port Harcourt. The country lacks any significant mountain ranges. The most prominent is the Bamenda Adamawa Mandara chain, which is shared with Cameroon and is home to Chappal Waddi, the highest point in Nigeria and the whole of West Africa, standing at metres. The 10th parallel north, a circle of latitude, is an important boundary, marking the dramatic difference in geographic and climatic conditions between the south and the north.

The south is defined by thick vegetation, savannah and tropical conditions, while the north merges into the Sahel, a semi-arid transitional zone that reaches to the Sahara desert further north. Given the contrasts between the north and south of the country, it is hardly surprising that temperature and weather conditions vary substantially. The far north is arid, the centre of the country is tropical and the south is equatorial.

Further north, there is a dry season, running from November to March, and a wet season, lasting from April to October. Average annual rainfall can vary from roughly cm in the south-east of the country to just 50 cm in the far north. The latter region is influenced by the Harmattan, a hot and dry northerly wind, which blows in dust from the Sahel and Sahara. Nigeria is also blessed with an abundance of resources. The country is most widely known for its vast hydrocarbons wealth.

It was home to At current production rates, this will give the country another 43 years worth of oil revenues.

The country also contained 5. However, Nigeria possesses much more than simply oil and gas. It is home to significant deposits of coal, iron ore, lead, limestone, tin and zinc. Just as importantly, it has rich land and water resources that are ripe for further agricultural exploitation. Indeed, the agricultural industry remains a mainstay of the economy, accounting for Approximately Substantial water resources also assist the agricultural sector.

The country has bn cu metres of total renewable water resources. This should help expand productivity through irrigation. As of , only 0. With an estimated m people in , according to the IMF, Nigeria ranks as the seventh-most-populous country in the world. Furthermore, it is predicted to rapidly climb through these rankings in the coming decades.

With a current population growth rate of 2. Given these trends, it is unsurprising that Nigeria is also a young country, with a median age of just It is also increasingly urban. With the urban population growing at 3. The country has more than different ethnic groups. English is the official language of the country, while Hausa, Yoruba and Igbo are commonly spoken in specific regions. In total, there are more than indigenous languages currently spoken throughout the country.

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