NATIONAL SOFTWARE POLICY By National Software Policy Committee National Information Technology Development Agency (NITDA) October 2011 Page i
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MEMBERS OF NATIONAL SOFTWARE POLICY COMMITTEE Professor O. C. Akinyokun: Chairman of National Software Policy Committee Mr. I. Aliyu: Member representing OSGF Professor O. Osuagwu: Member representing Academia Dr. A. S. Daura: Member representing NITDA Mr. Inye Kemabota: Member representing NITDA Mr. J. T. Obaro: Member representing ISPON Mr. Mba-Uroukwu Chinenye: Member representing ISPON Mr. A. G. Bisong: Member representing FMST Mr. O. O. Aderemi: Member representing FME Dr. U. F. Mohammed: Member representing NOTAP Mr. D. K. Oladapo: Member representing FCSC Ms. C. I. Cheneze: Member representing FJSC Mrs O.O. Oyeleye: Member representing NCC Mrs. E. Akwara: Member representing NCC Mr. R. Eyo: Member representing NCC Mr. S. A. Shehu: Member representing CPN Mr. B Olubamise: Member representing CSOs Mr. J. Y. Omokore: Member representing CAPDA Mr. M. I. Agidan: Member representing SON Mr. D. Adeyeri: Member representing Banking and Finance Dr. V. O. Olatunji: Secretary to National Software Policy Committee RESOURCE PERSONS Mr. Chris Uwaje; President of ISPON Professor C. O. Uwadia; President of NCS Professor S. B. Junaidu; Director of Iya Abubakar Computer Centre, ABU Dr. Takang Armstrong; CEO of ALTEQ.ICT Mr. Pius Okigbo jr.; CEO of INFOSOFT Nig. Ltd. Dr. F. M. E. Uzoka; University of Calgary, Canada EDITORIAL COMMITTEE Professor O. C. Akinyokun: Chairman Professor O. Osuagwu: Member Mr. Mba-Uroukwu Chinenye: Member Mr. B. Olubamise: Member Mr. D. K. Oladapo: Member Page iii
Dr. V. O. Olatunji: Secretary FOREWORD Information Technology (IT) is the world's fastest growing body of knowledge that is transforming resource-based economies to knowledge-based economies. Information services, products and production processes are evolving rapidly. Knowledge engineering is replacing pure data and information oriented engineering. The engine of IT as a global agent for societal change and transformation in an emerging knowledge economy is software. Software is a tool for good governance, optimal productivity, transparency and accountability with a proven potential to contribute to national Gross Domestic Product (GDP). Software is the new paradigm shift in the history of human development with immense ability to bridge the economic gap between the developed and developing nations. Given the existing political and socio-economic status of Nigeria in West Africa and Africa, the potentials exist for the emergence of Nigeria as a global competitor in the software market with ancillary beneficial impact of poverty alleviation, gender equality, wealth and job creation in the society. There is evidence that the domestic market for software products and services is huge as exemplified by the increasing activity of global Original Equipment Manufacturers (OEMs), penetration of Internet connectivity and mobile phone usage, growth of national database, knowledge discovery, data mining, emergency response systems and a host of other platforms. The challenge facing Nigeria is how much of this market opportunity is linked to the emergence of a vibrant local software economy and capability, as opposed to net negative capital flight and job losses to international competition. Thus, while indigenous software is capable of reducing the existing capital flight through foreign software, it also has the capacity to attract tremendous foreign earnings desirable for accelerated growth of Nigerian economy. In 2004, National Software Development Task Force (NSDTF) was set up by the Federal Government while National Software Development Initiatives (NSDI) was sponsored and organized by the private sector to provide a Road Map for software development in Nigeria. The 2005 recommendations of NSDTF and NSDI have not been backed up with any legislative and regulatory framework. It is imperative that Nigeria develops a software policy in order to align software as a National Critical Infrastructure (NCI) for national goals, aspirations and empowerment. The National Information Technology Development Agency (NITDA), in December 6, 2010, set up the National Software Policy Committee (NSPC) with members drawn from a broad spectrum of stakeholders to develop a National Software Policy (NSP) aimed at providing a blueprint to make Nigeria a competitive country in the area of software development. This document which is the product of NSPC is organized in three parts. Part One presents the Terms of Reference of NSPC, NSP Vision, Mission and areas of focus, and breakdown of NSP statements. Part Two presents the objectives of the NSP and the indicators of the Strengths, Weaknesses, Opportunities and Threats of the software sector of Nigerian economy. Part Three presents the National Software Policy with emphasis on the policy statement, policy objectives and policy strategies of the seven areas of focus, namely: software human capital; software infrastructure; software fiscal policy; software industry economics; software legislative, regulatory and institutional frameworks; software and national development strategy; and software research, innovation and development. NITDA, currently, aims at developing a strategic plan for the implementation of NSP. Page iv
Professor Cleopas O. Angaye Director General/Chief Executive Officer of NITDA ACRONYMS AND ABBREVIATIONS ATCON AU CNII CNSI CPN CSO CT ECOWAS EU DC FCSC FGN FIRS FJSC FME FMST GATS GATT GDP GSM GWP ICT ICT4D IDPs IKE IS ISPON IT KE KS LEEDS MDA MDG NAPEP NASSCOM NASENI NCS NDS NCC NEEDS NEPAD NGO NISE NITDA Association of Telecom Companies of Nigeria African Union Critical National Information Infrastructure Critical National Software Infrastructure Computer Professional (Registration Council) of Nigeria Civil Society Organization Communication Technology Economic Community of West African States European Union Digital Colony Federal Civil Service Commission Federal Government of Nigeria Federal Inland Revenue Service Federal Judiciary Service Commission Federal Ministry of Education Federal Ministry of Science and Technology General Agreement on Trade in Services General Agreement on Trade and Tariffs Gross Domestic Product Global System for Mobile Telecommunication Gross World Product Information and Communications Technology Information and Communications Technology for Development International Development Partners Information and Knowledge Economy Information Society Institute of Software Practitioners of Nigeria Information Technology Knowledge Engineering Knowledge Society Local Economic Empowerment and Development Strategy Ministry, Department and Agency Millennium Development Goal National Poverty Eradication Programme National Association of Software and Service Companies National Agency for Science and Engineering Infrastructure Nigerian Computer Society Nigerian Developed Software National Communications Commission National Economic Empowerment and Development Strategy New Partnership for African Development Non Government Organization Nigerian Software Exhibition National Information Technology Development Agency Page v
NITEL Nigerian Tele-communications Limited NNPC Nigerian National Petroleum Corporation NOA National Orientation Agency NOTAP National Office for Technology Acquisition and Promotion NSDI National Software Development Institute NSDTF National Software Development Task Force NSERT National Software Emergency Response Team NSIF National Software Innovative Fund NSP National Software Policy NSPC National Software Policy Committee NISRID National Institute of Software Research, Innovation and Development NUC National Universities Commission NYSC National Youth Services Corp OSGF Office of the Secretary to Federal Government PC Personal Computer Per Capita Income Gross Domestic Product divided by the country s population. PPP Public Private Partnership PW Political Will R&D Research and Development RID Research, Innovation and Development RDBMS Relational Database Management System SE Software Engineering SEEDS State Economic Empowerment and Development Strategy SHP Software Human Capital SI Software Infrastructure SFP Software Fiscal Policy. SIE Software Industry Economics. SLRIF Software Legislative, Regulatory and Institutional Frameworks SNDS Software and National Development Strategy. SON Standard Organization of Nigeria SRID Software Research, Innovation and Development. SMEDAN Small and Medium Enterprise Development Agency ST Software Trade STP Software Technology Parks SWOT Strengths, Weaknesses, Opportunities and Threats TOR Terms of Reference TRIPS Trade-Related Aspects of Intellectual Property Rights UNECA United Nations Economic Commission for Africa USA United States of America WSIS World Summit on Information Society WTO World Trade Organization Page vi
TABLE OF CONTENTS Profile of National Software Policy Committee iii Foreword iv Acronyms and Abbreviations v Table of Contents vii PART ONE EXECUTIVE SUMMARY 01 PART TWO BACKGROUND INFORMATION ON NATIONAL SOFTWARE POLICY 2.1 Introduction 04 2.2 Vision of National Software Policy 04 2.3 Missions of National Software Policy 04 2.4 Objectives of National Software Policy 05 2.5 SWOT Analysis of Software Sector in Nigeria 05 2.6 Conclusion 07 NATIONAL SOFTWARE POLICY PART THREE 3.1 Areas of Focus of National Software Policy 08 3.2 Policy on Software Human Capital 08 3.2.1 Policy Statement 08 3.2.2 Policy Objectives 08 3.2.3 Policy Strategies 08 3.3 Policy on Software Infrastructure 09 3.3.1 Policy Statement 09 3.3.2 Policy Objectives 09 3.3.3 Policy Strategies 10 3.4 Software Fiscal Policy 11 3.4.1 Policy Statement 11 3.4.2 Policy Objectives 11 3.4.3 Policy Strategies 11 3.5 Policy on Software Industry Economics 12 3.5.1 Policy Statement 12 3.5.2 Policy Objectives 12 3.5.3 Policy Strategies 13 3.6 Policy on Software Legislation, Regulation and Institutional Frameworks 14 3.6.1 Policy Statement 14 Page vii
3.6.2 Policy Objectives 14 3.6.3 Policy Strategies 14 3.7 Policy on National Software Security and Strategy 15 3.7.1 Policy Statement 15 3.7.2 Policy Objectives 15 3.7.3 Policy Strategies 15 3.8 Policy on Software Research, Innovation and Development 16 3.8.1 Policy statement 16 3.8.2 Policy objectives 17 3.8.3 Policy strategies 17 REFERENCES 18 Page viii