Information Technology Financing
|
Telecommunications
revenue (1999) |
US$
1,521.5million |
|
Telecommunications
investment (1999) |
US$
253.9 million |
Source
UNECA[1]
There are not many
private capital sources for information technology companies in Nigeria. For
the most part, venture capitalists do not venture in to Nigeria. There is
little venture capital activity in this country. Doing business in Nigeria
presents significant risks for foreign as well as domestic investors. Nigeria
is known throughout the world for crimes related to fraud and until recently,
there were little to no enforcement of protections against patent and trademark
infringement. The government is committed to providing an environment for
information technology growth, including IT financing and has initiated stronger
enforcement of existing laws and established new laws. This should give
investors more comfort when considering investing in Nigeria. Currently, there
are no Nigerian companies listed on the London or New York stock exchanges.
The government
is a large source of funds for information technology activity. Many international organizations, UNESCO,
UNDP, World Bank, and the Ford and McArthur Foundations, are significant
sources for IT funds.[2]
These organizations and others have given grants and loans for things such as small
business seed money, IT training and education, projects like the Nigerian
university networking project, and to support NITEL build an Internet backbone.
