NCC identifies challenges to data mining in Nigeria

Seeks support for Fintech players
The Nigerian Communications Commission (NCC) has identified the challenges hindering data mining in the country.

It fingered lack of skilled personnel, data security and protection, as well as dearth of coordination, poor development of e-governanace, uptake of e-services, duplication and control of national data by various agencies and private sector players.

Data mining is defined as a process engaged or used in the extraction of usable set of information from a larger set of raw data for the purposes of information sharing.

The commission, in a document titled, “Emerging role of data and Fintech in the development of digital economy”, observed that there exists “massive pool of data yet untapped and considered to be one of the most valuable available resources.”

The study by the Emerging Technologies Research Unit of the Research and Development Department of NCC observed that the new economy “is considered to be focused on the rapid real time, analysing the flows of unstructured data often in the form of streams of photos and videos generated by users of social networks, streams of information produced by commuters on their way to work, flood of data from hundreds of sensors in a jet engine and more.”

On the lack of skilled manpower, the document noted that for the goal of data mining to be achieved, there has to be active engagement of well-learned and technically sound knowledge and skill, which cut across diverse sectors such as education, agriculture, telecommunications and healthcare.

According to NCC, statistical data culled from experiences of Millennium Development Goals (MDGs) implementation in Nigeria point to critical challenges posed by lack of comprehensive, up-to date, monitored and harmonised data.

The commission said also inclusive was the lack of comprehensive data production strategy for proper monitoring as the responsibilities of those who produce the data have not been properly outlined besides inappropriate methodologies for computation of indicators.

The report said the duplication and control of national data by various agencies and private sector players was a challenge to data mining in the country.

MEANWHILE, the regulator has sought support for growth of Fintech players in view of their invaluable contribution to Nigeria’s Gross Domestic Product (GDP) on account of the survey.

It pointed out that there are about 210 to 250 Fintech operators/companies in Nigeria that brought about the valuation of the industry to $153.1 million in 2017 and projected to rise up to $543.3 million by 2022.

Despite the impressive statistics, NCC stated that Fintech start-ups still face a significant number of problems in Nigeria.

The report recommended that the regulator and the Central Bank of Nigeria (CBN) should collaborate and organise a forum for Fintechs and banks on strengthening their digital platforms and systems.