Nigerian Internet-What is the chemistry

Mention the word “Nigeria” around an IT crowd, and what often comes to mind is spam.

Indeed, Nigerian spam became so famous, it was part of a "Saturday Night Live" sketch about an awards show called “The Spammies.” It is the topic of many anti-spam Websites, including one called Nigerian Spam.

But this association, while it reflects an indigenous criminal element that has caught the world's attention, can be a disservice to an emerging African powerhouse. In an article earlier this year, I described Nigeria’s booming capital markets. It is an exciting time, as returning expatriates trained in London and New York are filling the country’s professional positions.

Oil-rich Nigeria, situated on mid-Africa's Atlantic coast, is the most populous country in Africa and the eighth most populous in the world. Its 140 million people, including 70 million Muslims and 60 million Christians, represent three main ethnic groups and speak about 250 different languages.

With Internet penetration at only 7.2 percent, reported by Internet World Stats, the potential for growth is massive.

There are challenges: “Internet doesn’t come cheap in Nigeria. One of the reasons for this is the costs involved in using satellites due to a lack of cable infrastructure… Most Internet traffic in Nigeria… needs to be routed by satellite via North America and Europe,” according to African business Website TradeInvestNigeria.com.

Out of 10 million Internet users, only 500 people have broadband. “High-speed broadband requires fiber optic cables. The situation should, however, improve as there are a number of projects underway to connect African countries with the rest of the world through undersea cables,” according to TradeInvestNigeria.

Meanwhile, access to telecom services isn't necessarily reliant on new cabling. While only 4 percent of people in Nigeria have fixed telephone lines, 30 percent have cell phones, reports the International Telecommunications Union.

Use of cell phones helps folk bypass cable infrastructure gaps as well as the country's pervasive power outages. Clearly, the key to Internet adoption is currently through cell phones.
“Traditional internet service providers are facing increasing competition from internet services offered by mobile operators. The introduction of 3G services has enabled many Nigerians to access the internet through mobile devices,” reported TradeInvestNigeria.

Momentum is building.
“[While] Q108 should see the launch of the country's fifth national mobile operator… the growth of fixed-wireless services and investor interest in Nigeria's regional telecoms operators will put added pressure on the national providers to improve their services or risk losing market share to smaller rivals,” states the Nigeria Telecommunications Report 2008.

Nigerian firms are seizing the moment. “For the first time in the history of [the information and communications technology industry] in Nigeria, two indigenous firms, Zinox Computers, a computer manufacturer, and CDMA telecom operator Reltel Wireless, are joining forces to provide Nigerians with Internet-ready PCs,” reported the IDG News Service.

Despite daunting challenges, Nigeria is pursuing a path of reforms and modernization. It has the raw materials -- natural resources and educated talent -- to become a world player. And its fledgling Internet industry presents a tremendous opportunity to build bridges with other countries.

Source :Deborah Nason is a freelance writer based in Connecticut.