Ict/Telecom
$15m ICT Venture Capital Fund Underway – Johnson
The Minister of Communication Technology, Mrs Mobolaji Johnson, said on Tuesday in Abuja that the Federal Government would soon launch a $15 million ICT venture capital fund.
Johnson disclosed this to newsmen after presenting the budget performance of her ministry to President Goodluck Jonathan.
She said that the fund, which would be substantially private-driven, would be used to finance commercially viable projects, ideas and initiatives in the ICT sector.
The minister said that the Nigeria Information Technology Development Agency (NITDA) would anchor the fund and contribute about $3.6 million to it.
She said the balance of $11.4 million would be sourced from local and international investors, and that the fund would be managed by independent managers, who would work with the ICT incubation team.
Johnson said the managers would identify projects or initiative that “we believe are great ideas that will be commercially successful’’.
“We will use the initial capital development fund of 15 million dollars to fund the development of those ideas until they become commercially viable.”
“Basically, the reward is when they get a commercial viability and you sell them off or you do an Initial Public Offer (IPO) like they do with Facebook and all those companies where the returns go to the investors”.
“As we become more successful we will raise additional money.’’
The minister said that the country had yet to record the expected success in the telecommunication sector because of lack of necessary facilities.
According to her, the perceived success recorded with the increase in the number of telephone lines from 400,000 to 101 million was not enough when compared to other African countries.
She said that inadequate infrastructure was also responsible for the poor quality of service being rendered by service providers to the subscribers.
“When you look at the mobile penetration in Nigeria, we are about 60 per cent which is actually one of the lowest in Africa.
“What is the reason for the poor quality of service? It is the first part that I mentioned, poor infrastructure,’’ she said.
Johnson said that the United Kingdom with a population of about 67 million and less land mass, had over three million sq. km of fibre optic and 60,000 base station.
She said that Nigeria with about 167 million people had one million sq km of fibre optic and 20,000 base stations.
“The industry has grown very quickly and we are not building up infrastructure as quickly as we need to.
“And so what we need to do is to actually build infrastructure, and that is why we are working with the network operators to build infrastructure.”
The minister identified policies, the state governments and destructive tendency of Nigerians as part of the challenges facing the development of ICT infrastructure.
For instance, she said that the procedure for acquiring the right of way for the fibre optic in the states was “protracted, cumbersome and expensive.”
According to her, the Federal Government time limit for approval for right of way is 21 days with a cost of N145,000 per km, while some states charged between N1 million to N2 million per km to rollout the fibre in their domain.
The minister said that there were also reports of willful damage to telecom infrastructure by saboteurs.
She said that 9.8 per cent of the ministry’s N9.2 billion capital budget had been released, while only 16.5 per cent of the amount released had been used.
The Managing Director, Shell Nigeria Exploration and Company Limited (SNEPCo), Elohor Aiboni, said Bonga, Nigeria’s first deep-water asset, has recorded major milestones, due to effective leadership, cutting-edge technology, continuous improvement and collaboration with stakeholders.
She noted that since coming on stream in November 2005, Bonga has maintained a track record of production that saw it achieve one-billion-barrel export on February 13, last year.
In her presentation, titled “The Bonga Journey to a Billion Barrels”, at the ongoing 2024 Offshore Technology Conference in Houston, Texas, United States, Aiboni, said: “SNEPCo is grateful for the contributions of all the parties to the Bonga story and we can all be proud of the milestones.
“Bonga has been consistent. In 2014, nine years after coming onstream, it achieved half a billion barrels of crude and doubled it in 2023. We have worked relentlessly to ensure excellent asset management, project and wells delivery and deployment of technology and innovations in our operations”.
According to her, these factors, “coupled with the supportive partnership of the Nigerian National Petroleum Company Limited and our co-venturers – TotalEnergies, EP Nigeria Limited; Nigerian Agip Exploration; and Esso Exploration and Production Nigeria Limited, make Bonga stand out as a world-class investment case”.
She continued that, “SNEPCo also enjoyed the support of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and the Nigerian Content Development and Monitoring Board (NCDMB) in the success of Bonga operations”.
Aiboni also listed the challenges of keeping the Bonga Floating Production, Storage and Offloading vessel full as the asset ages and dealing with unexpected developments with subsea wells and equipment.
She said: “SNEPCo responded with a campaign of operational excellence, which among other initiatives, led to the creation of a programme known as the Bonga Business Improvement Plan that continually reviews and identifies improvement initiatives and drives sustainability in operations and upskilling of staff.
“The Bonga success story has been led by Nigerians who have been managing directors of SNEPCo since it was established in 1993, in a deliberate policy by Shell to develop indigenous manpower for deep-water operations in Nigeria.
“Today, some 97percent of the SNEPCo workforce is Nigerian and overall, Bonga has helped to create a new generation of Nigerian deep-water professionals.
“Our vision at SNEPCo remains to be the best deep-water business, powering growth and achieving net zero emissions in line with Shell’s Powering Progress strategy”.
Banks’ borrowings from the Central Bank of Nigeria (CBN) fell month-on-month, (MoM) by 44 percent to N12.16 trillion in April from N21.7 trillion in March.
Analysis of latest data from the CBN shows that the 44percent drop represents the first MoM decline in banks borrowing from since January when it increased by 268.7 percent to N3.6 trillion from N976.29 billion in December 2023.
However, further analysis showed that banks’ deposits in the CBN SDF grew MoM by 118.4 percent to N428.97 billion in April from N196.37 billion in March 2024.
Banks make use of the SLF to access liquidity to run their day-to-day business operations while the Standing Deposit Facility window (SDF) on the other hand, is an overnight deposit facility that allows banks to lodge excess liquidity (money) with the CBN and earn interest.
The decline in banks’ borrowing from SLF may reflect an increase in banking system liquidity and also the decision of the apex bank last year to remove the limit on the remunerable daily placements by banks at the SDF.
According to the CBN Governor, Mr. Olayemi Cardoso, the CBN removed the cap on the remunerable SDF to increase activity in the SDF window and manage liquidity.
A Financial technology expert, Olatunji Akinrinola, has highlighted the exponential growth of the FinTech industry, which according to him, was driven by technological advancements.
Akinrinola made this assertion in a press release recently, where he stressed that the role of technology in driving this exponential growth in the FinTech sector was very outstanding.
According to him, Technology has revolutionised the way financial services are delivered, making them more accessible, efficient, and inclusive.
“Through innovations such as mobile banking, digital payments, and blockchain technology, FinTech companies have been able to reach a larger population and provided them with access to financial services”, he stated.
Akinrinola emphasised the role of technology in enabling financial inclusion, adding: “Technology has democratised access to financial services, particularly in regions with limited banking infrastructure.
“Mobile money platforms and digital wallets have empowered individuals to conduct financial transactions conveniently and securely, without the need for traditional banking services”.
He also underscored the role of Artificial Intelligence (AI) and data analytics in driving innovation within the FinTech industry, noting: “AI-powered algorithms and predictive analytics have revolutionised risk assessment, fraud detection, and customer personalisation in financial services.
“These technologies enable FinTech companies to provide tailored solutions and mitigate risks more effectively, ultimately enhancing the overall customer experience”.
Akinrinola stressed the importance of regulatory frameworks in fostering the growth of the FinTech industry.
“While technology has accelerated the growth of FinTech, it is essential to establish robust regulatory frameworks to ensure consumer protection and maintain market stability. Regulators play a crucial role in balancing innovation with risk management, thereby creating a conducive environment for the sustainable growth of the FinTech sector”, he stated.
Akinrinola underscored the role of technology in driving the exponential growth of the FinTech industry, saying, “Technology has been a game-changer for the FinTech sector, enabling innovation, expanding access to financial services, and driving economic growth.
“As technology continues to evolve, the FinTech industry will undoubtedly play a significant role in shaping the future of financial services ecosystem”.
Corlins Walter
