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Information Technology Market in Sub Saharan Africa
Nigeria Is Open For BusinessU.S. Commercial Service Nigeria
Hannah KamenetskyActing SCO
www.buyusa.gov/nigeria
Presentation Overview
• Nigeria at a Glance
• Telecom Growth
• Opportunities
• Challenges
• CS Nigeria Services
Gateway to West Africa
Nigeria at a Glance
• Africa’s largest population – 140 million•Language of Business: English• World’s 10th largest oil reserves • World’s 8th largest oil exporter• World’s 7th largest natural gas reserves• Ambitious privatization programs• Vast infrastructure needs• Positive perception of U.S. technology• New government elected April 2007
Nigeria’s Economy
• Currency: Naira 128/$1
• GDP growth: 5.3% (2006) 8.2% est. (2007)
• GDP per capita: $769 (2006) $827 est. (2007)
• Unemployment Rate: 5.8% (2006)
• Inflation Rate: 8.3% (2006) 7.9% est. (2007)
• Paris Club debt forgiveness 2005 ($12.4 bln/$18.6 bln)
• Most London Club debts cleared 2006/07
• Banking system consolidation: 89 25 stronger capitalization
ICT Sector: Room for Growth
Telecom Sector # of Users Teledensity
Fixed Line 1.6 million 1.1%
Mobile 37 million 26%
Internet 5 million 3.5%
Mobile Telecom Sector: “0 to 60”
• Telecom market liberalized in 1998; cell phone license sold off in 2001
• NCC introduced unified licenses in 2006• Explosive growth in mobile sector• Investment: est. $8.5 billion• 2001: <500,000 wireless & fixed lines• 2006: 37 million wireless and fixed lines• Teledensity: 50 million+ in next 3 years
Privatization = Opportunities
• NITEL sold to private firm – Transcorp Plc• Trancorp agreement with Vodacom will inject
$1.2 billion over next 2-3 years to upgrade/expand• Needs: equipment and services to rebuild
decaying infrastructure and buildout new networks nationwide
• But: China often offers more favorable financing terms than U.S. firms
Nigerian Communications Commission (NCC)
• Plans to auction 3G networks covering spectrums in the range of 1800 MHZ, 3G and 450MHZ
• Needs: License purchasers will need technology, equipment and technical services/partners to launch new services
Nigerian Communications Commission
• Partnership initiative with Celtel Nigeria, Ericsson, Huawei launching pilot test in Abuja, Lagos, Port Harcourt
• Project assessing potential for 3G/HSDPA networks and services
• Needs: mobile phones, PCs, TV and video services for growth and development nationwide
Major Cellular Players
Mobile Provider Technology Coverage
MTN Nigeria GSM 900/ GPRS
Nationwide
GloMobile GSM 900/ GPRS
Nationwide
CelTel GSM 900/ GPRS
Major cities, limited rural
M-Tel (NITEL) GSM 900/ GPRS
Nationwide
MDC (UAE) * GSM 900/ GPRS
Nationwide
Big Four +1 Opportunities
• MTN: using new fiber optic transmission network, plans nationwide expansion
• M-Tel: plans to increase capacity by 2.5 million lines, build 800 additional base stations with Vodacom
• Glo-Mobile: ready to launch 3G technology; spend $3 billion over next to years to upgrade/expand network
• Celtel: 3G test trials in Lagos, Abuja, Port Harcourt
• MDB: paid $400 million in Jan 07 for unified telecom license to provide national & international telecom services using fixed & wireless technologies
Nigerian Elections
• Alhaji Umaru Musa Yar’Adua won presidential election April 21
• PDP continues political domination• Likelihood of continuing the reforms
of Obasanjo• Official transfer of power: May 29
Nigeria: Challenges
• Advance-fee fraud, aka “419” scams
• Corruption
• Basic infrastructure lacking
• Power outages
CS Nigeria Services
• NUSA - ~ 4,000 members
• International Company Profile
• Market Research
• International Partner Search
• Gold Key Service
• Trade Show Delegations - U.S.