Local Computer Makers Express Reservations Over FG Ban

When the Federal Government under the administration of former President Olusegun Obasanjo, in 2006,

…granted approval to some local information technology companies to produce, assemble and market locally made computers, it was expected that the step would help accelerate the penetration of information technology awareness and drive the growth of the industry.

Although some level of success has been recorded in the industry in the last five years, but analysts are of the view that the accelerated growth and the expected impact on the economy has been abnormally sluggish. The reason for this limited achievement has been linked to some government policies which have not helped in boosting local Original Equipment Manufacturer (OEMs) or ‘Made-in-Nigeria’ products and foster growth in the local Information Communications Technology (ICT) industry.

Only recently, the Federal Government through its relevant agency, the National Information Technology Development Agency (NITDA), announced the ban of foreign Personal Computer (PC) from all government offices and public schools. This order, according to the Director-General of NITDA, Prof. Cleopas Angaye, was with immediate effect.
While this declaration has been made, IT industry stakeholders, especially the local computer manufacturers, are sceptical about the step taken by the government. Their reservations border on the will power to implement the decision made by NITDA.

Speaking with BH, the corporate affairs manager of Zinox Technologies, Mr. Echika Ezuka, said the step taken recently by the Federal Government through the National Information Technology Development Agency (NITDA) is a laudable. He however, expressed displeasure over the full implementation of such orders in the past.

“I believe the local Office Equipment Manufacturers (OEMs) are poised to deliver the best that will be expected of them by the government. Zinox has the capability, human resources, financial muscles and the entire wherewithal to service the Nigerian market. My only fear is that of the implementation of the decision taken by the government. In fact, this is not the first time the federal government is giving such an order. This concern is based on the fact that such a decision was made by the government some years ago, but without full implantation or follow-up. Under President Obasanjo administration, similar declaration was made. And this was specifically in favour of Zinox products before other local manufacturers were integrated into the scheme. The order was short-lived, as all government offices continued to heavenly patronise foreign ICT products brands.

“As from today, purchase of foreign made IT products and computers is an offence punishable by a prison term, fine or both if flouted in the emerging dispensation by the agency to foster patronage of local ICT products and services. It will now be punishable for public procurement of non-made-in-Nigeria computers and IT products where certified local brands exist. Public funds should only be expended on locally manufactured products,” NITDA Director-General, Professor Cleopas Angaye, stated during a stakeholders’ forum recently.

In the same vein, the corporate affairs manager of Omatek, Mr. Kayode Yekun, said the company has nothing to fear about the huge market the ban would naturally create for local brands. But he cited the issue of electricity as a likely clog that may slow down the wheel of progress for the local OEMs. According to him, “Nigerian market is a very huge one. The IT market is even bigger than many other sectors’ market. The step taken by the government will give us opportunity to be more active than ever before. It is not only Omatek that is in the Computer market. The issue of power is something I see as a general problem. And if any business organisation wants to wait until public power is completely fixed, then, there will be no business and the national economy will continue to decline. For Omatek, we are very ready to make more mark in this industry, by maintaining required standard and making our products available and affordable.”

Indeed, there is no gainsaying that the ban will buoy the local manufacturers of IT products. In Nigeria today, there are many graduates who are skilled in software development, even with local contents. Some undergraduates in Nigerian tertiary institutions have been known for their potential IT-related feats. If these human resources are harnessed and fully tapped into by the local OEMs and relevant government agencies, the vision of NITDA and ICT industry stakeholders realised within few years, with Nigerian brands competing with her foreign brands.

Commenting on the development, Chris Uwaje, president of the Institute of Software Practitioners of Nigeria (ISPON) enjoined government to provide the enabling environment for indigenous computer manufacturers to thrive. He also pointed to the issue of product standard which according to him is very crucial to end-users of IT products.

Obviously, foreign brands are bound to lose their grip on Nigeria’s Personal Computer (PC) market. But the onus rests on the local manufacturer to strip the foreign brands of their endless dominance through enhanced performance and more investment into their businesses like expansion of their respective factories and employment of more skilled workers. Now that public institutions, including schools are now their exclusive market, even though some of them like Zinox have some blue chips on as their customers, the issue of product standard needs to taken seriously without any compromise.

It would be recalled that Zinox’s performance during the last voters’ registration exercise was commended. If with the short-time frame under which the success was recorded, it could only be imagined how much money would have been saved if national projects like the failed National Identity Card were allowed to be handle by some of these local computer companies.

To the industry stakeholders, it is not time yet to celebrate, until there is a significant compliance to the order by the government on the ban of foreign brands which are still very present in many government institutions, schools and perhaps among some NITDA officials.

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