Nigeria to invest US$5.3bn in IT next year

africansmartphone andreypopov shutterstockMobile devices are expected to contribute to the growth in ICT spending next year. (Image source: AndreyPopov/Shutterstock)Nigeria is expected to invest around US$5.3bn in 2016, revealed a survey by the International Data Corporation (IDC)

ICT spend in Nigeria will grow 6.5 per cent YoY in 2016, with mobile devices responsible for much of the increase, said the report.

Several organisations in Nigeria have embraced digital initiatives that could help to streamline costs and enhance flexibility. Specifically, concepts such as Big Data analytics, mobility, cloud and social business and Internet of Things (IoT) are leading the “digital transformation” in Africa, said the IDC report.

IDC associate vice-president for sub-Saharan Africa Mark Walker said, “Smart City initiatives, whether greenfield or brownfield, are driving greater adoption of 3rd Platform technologies as well as a deeper paradigm shift on the part of governments, technology users, and vendors. Indeed, the success of Smart City initiatives will play a role in Nigeria’s digital transformation journey in 2016.”

Specifically, the popularity of IoT has enhanced the significance of digital intervention in Nigeria, cited the report. Applications vary from government, retail, transport, manufacturing and utilities – all of which are expected to aid vendors improve their business.

Oluwole Abegunde, telecommunications research analyst at IDC West Africa, said, “The adoption of IoT will accelerate the rate of digital transformation in Nigeria as organisations and stakeholders seek actionable insights from the high volumes of data that will inevitably be generated by the proliferation of connected ‘things’ such as mobile devices, wearables, and sensors.”

In the coming year, public and private sector organisations will shift to digitised supply chains in 2016. Regional integration, public-private partnerships (PPP) and omni-channel services as well as trade agreements and a joint effort to reduce reliance on commoditised trade will all aid the growth of digitisation in Nigeria. The growth of eCommerce and mCommerce will lead to a stronger sense of sharing within the African business community and likely set examples for established and emerging markets worldover, said the report.

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