Technology
Most Govt Agencies Use ICT Projects to Steal Public Funds—NITDA
By Modupe Gbadeyanka
The National Information Technology Development Agency (NITDA) and Galaxy Backbone have collaborated with the sole aim of deepening rapid penetration of Information and Communication Technology (ICT) in Nigeria.
According to the Chief Executive Officers of NITDA, Dr Isa Ali Ibrahim Pantami and that that of Galaxy Backbone, Mr Yusuf Kazaure, lack of synergy, collaborations and unhealthy rivalry among ICT parastatals under the Ministry of Communications in the past affected the growth of the sector.
Mr Pantami, when he received the Galaxy Backbone boss at his office recently, lamented that most MDAs have turned IT projects to conduit pipes with which they siphon public funds because it requires limited scrutiny in the National Assembly. He affirmed the readiness of NITDA to stop the unholy practices.
The NITDA DG stated that looking at the ICT sector, it was practically impossible for the agencies to work in silos and called for proper synergy and understanding among them. He added that what is important is the development of the nation not personal credit.
He said the main focus of NITDA was to regulate the IT industry because one of the challenges he identified on coming on assumption of office was that the sector is not properly regulated adding that it also accounts for the capital flight and pressure on foreign exchange.
The NITDA boss explained that his effort in repositioning NITDA as the clearing house of all government IT projects has started yielding the desired results as the Federal Executive Council recently rejected some proposed IT projects due to lack of proper clearance from NITDA.
“We have written to MDAs that NITDA is the clearing house for all government IT projects and we are ready to take any violator of the law to court. Our Act empowers us to imprison any violator between one to three years,” he said.
He said the importance of obtaining NITDA’s clearance is to do ‘a value-for-money analysis’ of the projects and reduce wastage of public funds which helps the nation in saving considerable funds.
The DG informed the Galaxy Backbone Management that NITDA as a regulator, would support the operator.
“We are not the operator, we are the regulator and there is need for the regulator to support the operator.
“We have directed the MDAs to host their website on Galaxy backbone infrastructure except where is absolutely necessary because doing contrary to that is compromising the security of the nation.
“We have the power to design guidelines to make sure all the MDAs patronize galaxy backbone and improve our drive to develop our local content,“ he said.
He however, suggested that a standing committee should be set up between NITDA and Galaxy Backbone with the mandate of looking at issues of common interests that affect the two organisations.
In his remarks, the Galaxy Backbone boss pointed out that there was so much work to be done in developing the nation’s ICT sector with limited resources.
He noted that this calls for a form synergy and collaboration among ICT agencies, pointing out that the issues preventing synergy among the parastatals under the supervising Ministry have been broken down in the Memorandum of Understanding (MoU) signed to streamline the functions of each agency.
He explained that it was on the import of the new approach he decided to visit NITDA to identify areas of possible collaborations.
Mr Kazaure recalled that Galaxy came into being as a result of inter-ministerial advice in which NITDA played a crucial role in establishing.
He added that it was in the wisdom of government to register it as a private Liability Company. He said the company has recognized NITDA as the regulator of the IT sector in the country and it is ready to work with the Agency to provide services that are determined by the users.
However, he lamented that in spite of the robust infrastructure of the company, a lot of Ministries Departments and Agencies have not complied with the directive of hosting their data locally.
He added that duplication of Data Centres by various MDAs makes it difficult for government to take any e-government initiative, urging the agency to roll out regulations that would compel the MDAs use a common platform provided by Galaxy so as to deepen the ICT market for people who want government service.
“It is normal to make Galaxy a monopolistic entity because it has the capacity to provide a common platform for agencies to communicate with each other, stating that the company has hosted 250 government websites and created 40,000 e-mail accounts for staff of the federal government,” he said.
Technology
NCC Approves 50% Hike in Call, SMS, Data Tariffs
By Adedapo Adesanya
The Nigerian Communications Commission (NCC) on Monday approved a 50 per cent tariff increase on calls, SMS, and internet data for telecoms companies in the company.
This comes after telcos suggested a 100 per cent hike in the tariffs, the first of such changes in over 10 years.
Despite the recommendation, the NCC was concerned about the impact this would have on Nigerians, who are battling a cost of living crisis.
The NCC rationalised the 50 per cent hike, saying it wanted to strike a balance between protecting consumers and ensuring the industry’s sustainability.
“The adjustment, capped at a maximum of 50 per cent of current tariffs, though lower than the over 100 per cent requested by some network operators, was arrived at taking into account ongoing industry reforms that will positively influence sustainability,” a statement from the NCC read on Monday night.
Recall that the Minister of Communications, Innovation and Digital Economy, Mr Bosun Tijani, has said the federal government may consider between 30 and 60 per cent hike in tariffs.
“I think it should not be more than anywhere between 30 and 60 per cent,” he said during an interview recently.
On his part, the Chief Executive Officer of MTN Nigeria, Mr Karl Toriola, said telcos are proposing a 100 per cent increase in tariffs to the Nigerian government.
He, however, pointed out that it won’t get such approval but said a substantial change, beneficial to all stakeholders, could be agreed upon.
It is not certain what the reaction of the telcos may be concerning this new development. If they disagree with the approval, it may lead to another round or dialogue or limitation of service offerings.
Technology
Nigerians Hail Acceptance of Naira for AWS Cloud Subscription
By Modupe Gbadeyanka
The acceptance of the Naira for payments for cloud services in Nigeria by global cloud leader, Amazon Web Services (AWS) has continued to excite its customers in the country.
Before now, Nigerians subscribing to the company’s cloud services were forced to purchase foreign currencies, particularly the United States Dollar (USD).
But to make transactions easier for its teeming clients in the country, AWS announced it was now accepting payments in local currency.
“With payments in their local currencies, customers can avoid foreign exchange costs associated with making foreign currency payments.
“This also removes payment friction for customers in countries where local regulations put limits on the foreign currency amount a customer can access,” the American firm said in a statement.
By lowering the barrier for Nigerian companies to pay for cloud services in their local currency, AWS has given itself an edge, but the growing local alternatives may still present a challenge.
The organisation said it is not just about price anymore—it’s about local relevance and helping businesses navigate the complexities of Nigeria’s economic environment.
The decision of AWS to accept naira payments comes in response to the growing appeal of local cloud providers in Nigeria.
Recall that in January 2023, the firm launched its AWS Local Zones facility in Lagos to reduce latency and improve performance for Nigerian businesses—often an important factor since many Nigerian companies host their services in AWS’s European region due to geographical proximity.
By offering a new payment option alongside this infrastructure, AWS can solidify its foothold in the Nigerian market, especially as local providers continue to present an attractive, economically aligned alternative.
“This is a welcomed development. We have been waiting for this to happen for a long time. I am glad it has finally become a reality. I don’t need to buy forex (foreign exchange) to pay for Amazon cloud services,” a tech enthusiast based in Lagos, Mr Kolade Adewale, told Business Post.
“I want to believe that the competition from Microsoft’s Azure may have forced AWS to include the Naira as a payment option. This is what competition does to the market. You can see such in the telecommunications and petroleum sectors with Dangote Refinery,” another tech enthusiast, Mr Goke Fashina, said.
Technology
FG May Consider 60% Telcos Tariffs Hike
By Adedapo Adesanya
The Minister of Communications, Innovation and Digital Economy, Mr Bosun Tijani, has said the federal government may consider between 30 and 60 per cent hike in tariffs and not the 100 per cent proposed by telecommunications companies in the country.
“I think it should not be more than anywhere between 30 and 60 per cent,” he said during an interview on Channels Television on Wednesday night, monitored by Business Post.
He said that even though the companies are insisting that a 100 per cent increase is what is needed to stabilise the sector, the government knows that such a level of increase will be harmful to the people.
“We have already made it clear that we are not going to approve 100 per cent. These companies are asking for 100 per cent, stating clearly that this is what they believe they need to get.
“But what we are looking at in terms of the sector is that if this is the sector that is responsible for driving growth in our country, it will be harmful to our people to allow MNO to increase by 100 per cent,” Mr Tijani said.
The Minister noted that the Nigerian Communications Commission (NCC) is still working on the tariff increase and is yet to arrive at a particular figure.
This points to continued standoff after it was widely expected that the tariffs will be announced last Friday.
According to him, it is necessary to look at the numbers, the implication any increase will have on the people and the sustainability of the sector for proper balancing.
Mr Tijani said that for mobile network operators to improve their service to the required standard, there is a need for them to keep improving their equipment.
Speaking recently, the Chief Executive Officer of MTN Nigeria, Mr Karl Toriola, said telcos are proposing a 100 per cent increase in tariffs to the Nigerian government.
He, however, pointed out that it won’t get such approval but said a substantial change, beneficial to all stakeholders, could be agreed upon.
“So, I’m not sure they will give us 100 per cent, but I am optimistic they will give us something substantial and maybe progressively over the course of the year we can have smaller adjustments that will help us to get back to where we need to be,” Mr Toriola said.
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