In August 2013, Oracle opened its first partner hub in Nigeria in collaboration with Interdist Alliances , a platinum level member in the Oracle Partner Network. The partner hub is part of Oracle's aggressive plan to expand its operations in Nigeria to effectively compete with some of its key rivals that are already established in the country. Nigeria's IT market is forecast to grow rapidly over the medium term on the back of strong macroeconomic fundamentals , a major incentive for global technology firms seeking new growth front iers amid stagnation in their traditional markets .
|Strong Growth Ahead|
|Nigeria Software Sales (US$mn)|
Interdist Alliances will run the partner hub from its offices in Lagos. The hub integrates Oracle Studio, Oracle Academy and Oracle ISV Migration Centre. It will also enable Oracle to increase the number of made-in-Nigeria solutions tailored to meet local needs. The technology giant views product localisation as a key strategy for its expansion in Nigeria and across Africa.
Oracle lags its key rivals, such as SAP and IBM, in Nigeria's budding IT market, although some its solutions are already deployed across multiple industry verticals in the country by a network of local partners. The company identifies poor logistics and infrastructure as some of the reasons why it took longer than anticipated to debut in Nigeria. However, we expect the launch of the partner hub and the implementation of an aggressive growth plan to improve the firm's prospects in the country.
BMI notes that Oracle, like so many other technology giants, is keen to tap into Nigeria's fast growing IT market to offset the impact of slow growth in its traditional markets. Nigeria's IT market is forecast to grow by a CAGR of 19.6% over our five-year forecast from NGN646.6bn (US$3.96bn) in 2012 to NGN1,579.1bn in 2017. Population size and economic growth are two key growth factors for IT products, and Nigeria meets both of these requirements. The key sectors expected to drive growth are the power, financial services, telecoms, aviation and retail. Meanwhile, E-commerce activities in Nigeria are on the rise on the back of increasing internet usage. In May 2013, the Central Bank of Nigeria revealed that the total value of electronic funds transfer has risen to around NGN80bn per day. This is expected to grow rapidly in the future, creating opportunities for advanced software solutions.