At 99%, Nigeria’s telecoms hardware imports means ‘billions of dollars in capital flights,’ CCMON President tells Technology Times

Nigeria’s growing telecoms imports is an adverse trend that President Bola Tinubu’s administration needs to reverse, among other local tech content issues, Mrs Adenike Abudu, President, Certified Computer Manufacturers of Nigeria (CCMON), says in an exclusive interview with Technology Times.

Technology Times: As the President of Certified Computer Manufacturers of Nigeria (CCMON), how does your group respond to President Bola Tinubu plan to accord priority to the digital economy as a rail for creating one million jobs in Nigeria?

Thank you for having me here. It’s a welcome development, and it aligns with the volume of the ICT (information and communication technology) solutions and hardware that we use in Nigeria. Hardware like iPhone, tablets, laptops, etc that is consumed in Nigeria. So it’s a very welcome development.

Technology Times: In the past, CCMON has expressed concerns about the continuous patronage of foreign products in Nigeria’s tech industry by all tiers of government. Explain the implications of this for the economy?

By NCC (Nigerian Communications Commission) data, Nigeria has over 300 million active lines. So for a line to be active, hardware is required. So, here, 99% of this hardware is imported. This translates to billions of dollars in capital flights. Okay. So as certified OEMs (Original Equipment Manufacturers), we know that only deliberate policies or enforcement of existing laws can reverse this adverse trend.

Technology Times: Your body has also mentioned the non-implementation of the federal government’s local content policies in relation to public procurement. How has this impacted the growth and development of local capacity in the tech space?

Well, it is now so worrisome that government continue to use their taxpayers’ money to patronise foreign brands even when capacity exists locally. The impact is definitely negative, not just to our members, but to the nation as it relates to national interests.

Technology Times: Can you explain the provisions of the Executive Order (EO) three and five, which are related to the support of local content in public procurement? How are these policies intended to benefit local computer manufacturers?

On the surface, the EQ is meant to promote the growth of the local industry by insisting a minimum of 40% local content in public procurement. The order says that 40% should be given to local manufacturers; minimum of 40%. Okay. The reality is that the order implementation has been near 0% in performance. We have not been getting much.

Technology Times: What steps do you believe the government should take to address the issue of patronage of foreign PCs over indigenous brands?

Okay, while individuals can use their money to buy any brand of technology of their choice, government must, as a necessity, must use taxpayers’ money to patronise and promote local products. That’s what the Executive Order says. So it’s a must.

Technology Times: The local content policy directs government agencies to patronise made-in-Nigeria computers. In your view, why do you think some agencies continue to ignore these directives in favour of foreign brands?

Okay, because it’s just simple, no consequence for flouting the law. It’s that simple. No consequence. So everybody can do whatever they like.

Technology Times: What measure has CCMON taken to work with relevant stakeholders and government agencies to promote the capacity of Nigerian computer manufacturers and boost the local economy?

Okay, we have continued to advocate with relevant stakeholders. In an instance, with NITDA (National Information Technology Development Agency), we were part of a monitoring committee that was set up. The courage by the regulator to enforce compliance among other sister government agencies is clearly a major challenge. On our own side, we have continued to advocate with relevant stakeholders, like I said. We were part of the Monitoring Committee that was set up then by NITDA. We were part of it, and we have also involved ourselves in doing one or two things to support NITDA where necessary.

Technology Times: Can you elaborate on the capability of Nigerian OEMs in PC manufacturing?

Collectively local OEMs have invested over $100 million in setting up their warehouse and we employ thousands of Nigerians there. We have capacity to produce over 20,000 laptops daily, 30,000 smartphones and tablets. Some of our members are also manufacturing smart meters, set-top boxes also known as decoders, smart TVs and a lot of ICT hardware. So we have the capacity.

Technology Times: The post-pandemic era has encouraged an increased demand for computing devices. How are CCMON members prepared to meet this demand and contribute to the nation’s economic growth?

Okay, with the right policies in place and enforcement, OEMs will continue to invest and upgrade their capacity to be able to increase their market share. This is the dream of every business owner, and that is what we will continue to do.

Technology Times: Looking at other countries that are increasing local capacities and patronage to grow their economies, what do you believe Nigeria needs to do to avoid falling behind in global competitiveness and reduce over-dependence on foreign computer hardware and software?

We need to patronise and consume what we are producing daily. We need to prioritise consuming what we can produce daily. That should be a priority. We don’t want capital flight. I mean that’s the normal thing to do. That’s what China and many of these countries are doing. This cannot be over-emphasised. There are those who condemn everything local while we are happy to coexist with the foreign brands in a healthy competitive environment. We must be conscious of using taxpayers’ money to promote indigenous solutions.

Technology Times: What steps should President Tinubu take to realise his administration’s vision to leverage the digital economy for job creation and economic growth?

Okay, well my advice to him will be engaging and encouraging stakeholders to promote local manufacturers. It will be a good start with NITDA. Our NITDA needs to be encouraged as a regulator of the sector of the country to make meaningful progress in the ICT space. Unfortunately for now, a lot of lacking are there. That area is still lacking. There is minimal protection from NITDA to its certified OEMs.

Technology Times: Is there anything you may want to add?

What I will just continue to emphasise is that we have this Presidential Order. It’s just good to carry it out as it is, and we hope and believe that this new government will be able to do something about it. Okay, so that we can continue to create jobs for our youths. So that we reduce to minimal, if not even make it zero, the issue of capital flights.

It will be a good thing to see youth, some people carrying Nigerian-made computers, phones and all of that. It will be a good thing to flood the market with that. That in his own will make us proud because God has created everyone to be occupied in a particular space that that person is occupying. So we are occupying a space now. Let us use what is within that space. The more we produce locally the more it is being checked, the more it is being used. With quality assurance, we will get there. China started from somewhere, look at them today. So for us, I think it is high time we started doing all of these things necessary to promote local contents and what is necessary to to patronise our OEMs. 

So that at the end of the day, the government will be happy; OEMs will be happy and then the whole federation too will be happy. At the end of the day, because what’s going to happen is that when we start doing that, our economy will improve. We have continued to analyse this. When we start using local things, our economy will improve. That’s what we want. No matter what the recession, you still want our economy within that recession, our economy can greatly improve. You can imagine going to buy bread from maybe a neighbouring country. We don’t do that. So whatever it is that we are using should be proudly produced by Nigerians. That’s what I have to say.