Growing Nigerian economy through digital storage centres

By Ernest Ndukwe, Vice Chairman, NCC

Ernest Ndukwe

The Central Securities and Clearing System (CSCS) was incorporated the same year the Nigerian Communications Commission (NCC) was established through decree 75 of 1992 . It was the need for deregulation and market liberalization that brought NCC into being, while exigencies of long period of share transfers and some other bottlenecks in the Nigerian Stock Exchange necessitated the establishment of the CSCS. From its inception, the improved operational efficiency attained, promoted confidence in the Nigerian Stock Exchange and therefore attracted greater volume of foreign investments. In a similar vein, the NCC’s transparency, predictability and strict adherence to regulation discipline have also contributed to the confidence engendered in foreign investor in the telecommunication sector as confirmed by inflow of foreign investments since its inception also.

CSCS was incorporated by the Nigerian Stock Exchange in July 29, 1992 but commenced operations only 10 years ago. It had been involved in traded stock transfers and within this period had achieved drastic reduction in effective traded stock transfer period from between 6–12 months pre-1977, to the present maximum of four days to effect the same transaction. Its depository functions and its institutionalized transparency and accountability in the Nigerian capital market have earned it world class recognition viz: Member of African and Middle East Depository Association, excellent rating of ‘A’ by world reputable International Market Infrastructures Risk Rating Organization, Messrs. Thomas Murray. More than everything else, we are today also celebrating its pioneering status of establishing a Digital Storage Centre here in Nigeria.

In the effort to optimise the utilisation of communications’ limited natural resources and attain greater efficiency in operations, the Digital era emerged logically in sequential order to analogue systems after many years of progressive Research and Development work.

The analogue era lasted for over a century beginning with the discovery of telegraphy which is basic communications and nineteenth century, to, the emergence of Radio towards the end of the same century which promoted the advent of the Broadcasting industry in the early part of the 20th century. The need to decipher coded electronic messages during the first and second world wars (1914–1918 and 1939–1945) and attain computation capabilities at speeds faster than normal human capacities and competence encouraged the development of electromechanical computing technologies and computers from mid 20th century onwards.

The three distinct industries of Telecommunications, Broadcasting and Computers converged in the Digital era to what is now generally known as Information and Communications Technologies (ICT). The present era began only within the last two decades of the 20th century and has since developed at a relatively tremendous rapid pace, driven by technological advancements, liberalisation of markets, globalization and the realisation of the Global Information Highway first advocated by Vice President Algore of the USA.

Multimedia messaging from a single terminal is the principal distinctive feature of this Digital era. The fact that any information in the form of voice message, data, image and video can be digitized, stored, processed and transported for delivery point to point and/or point to multipoint in real time is central to the digital age. It must also be emphasised that the INTERNET, an offshoot of the ARPANET (Advanced Research Project Administration Network) of the US Defence Department as well as the World Wide Web are driving the ICT world today.

It is evident from all the above statistics that while Nigeria is developing at a fast rate to attain the world advanced nations’ level of achievement in this sector, a lot of challenges still have to be overcome in the immediate future.

DIGITAL STORAGE CENTRES
The concept of digital storage centres emanated from the practical effects of technological convergence. It is the collation and storing of information, physically or electronically, by sorting, scanning and/or archiving in an accessible and retrievable form that would stand the test of time. The experienced continuous growth of electronic transactions in escalating proportions presently justifies the need in Nigeria now, more than ever before, to provide services associated with DSC. This would place Nigeria in a predominant position as one of the fastest growing economies in the West Africa region as well as Africa and probably internationally too.

The CSCS Digital Storage Centre has a leading role to play in this era of privatisation, liberalization, competition and globalization essentially because of the proliferation of e-transactions and the need for real-time operations.

Competitive pressures require that organisations became more efficient and responsive in order to survive and thrive. As the volume of documents within establishments explodes, the management can be tasking and pose real challenges. The traditional system of having paper documents, e-mails, faxes, PDFs, CAD and other office documents left unmanaged and stored in filing cabinets, on file servers or on desktop PCs around the office exposes organisation to compliance risks, service delays, cost overruns and a host of other challenges. Resultant from this is the fact that to date, lots of data and critical information lie waste in vaults in some offices, libraries, banks, schools, law courts etc which make them susceptible to being inaccessible forever, though they are still relevant and valuable.

Today, software solutions are available that combine document and records management capabilities into a single, compete offering. These solutions enable savings in operating time, cost, complexity of storage and access to documents throughout the information life cycle. They also empower by offering improved access to critical documents, promote customer service and operational efficiency while reducing risks and addressing compliance demands.

The deficiencies of Information and Communications Technology (ICT) services on the African continent can be associated with the lack of adequate infrastructures and facilities, resulting from long years of state ownership and control of economic activities in the sector. However, following global trends in the current Digital era, countries in Africa have created, and are adopting national policies that are private sector driven, and aimed at delivering evenly spread services to communities throughout the countries. Consequently, the challenges to achieving increasing access to telecommunications on the continent will include ensuring deployment of appropriate infrastructures, and adequate connectivity of these infrastructures within countries and across the continent to promote sustainable social and economic development of the countries in particular, and the continent in general.

There are indications and high expectations that satellite-based systems—VSATs and the SAT-3 submarine fibre optic cables with other planned similar projects will radically improve access from the most remote areas of the continent, especially with the latter when fully developed. Two distinct planned projects by the Nigerian Communications Commission along these lines are the State Accelerated Broadband Initiative (SABI) and the Wire Nigeria (WIN) projects. Although wireless solutions offer rapid rollout, greater reliability, better security and lower maintenance costs they may not suffice for many African countries unless complemented by cable based terrestrial system in more densely populated areas. There is therefore the need for the more creative and cost effective solutions similar to those enumerated above to achieve optimum network connectivity and facilitate services. There is also the need to sustain the existing enabling climate for private sector to build sustainable networks.

CHALLENGES
Challenges facing this service include commercial subscription.
Subscription is coming from different organisations and as such will have different formats of documents and needs. The Digital Storage Centre must be proactive and be adequately staffed with skilled staff to cope with the diverse platforms and applications.

Connectivity: It is obvious that communications links will either be by leased capacity from providers or by private links through microwave, point-to-point, point-to-multipoint methods. There is need for connection to Internet Service Providers or backbone providers including E1s, E3, and other high capacity links.

Network Infrastructure
All elements of the core network infrastructure should be fully redundant to achieve an uninterrupted Network Operations coordinating activity centre of 24 x 7 x 365.

Fraud – Real-time intrusion detection and notification: is critical in the operations of a DSC because of the sophistication of the methods applied and skill of the culprits.

Computer viruses are very sophisticated programmes by experts and have very devastating effect on infected systems. The risks are higher as many companies subscribe to the services of the centre.

Apart from the high tech security issues, there are other hazards of physical nature like fire, robbery, etc.

Environmental Control and Fire Prevention
Physical Security
• On-site 24 x 7 x 365 monitoring
• Video surveillance cameras throughout the facility (inside and outside)
• On-site security guard on duty at all times
• Biometric scanners and access card required for entry to all data centre areas
• Bullet-resistant walls and glass
• Man-trap areas at all entrances to all data centre areas
• Floor space, rack space or caged space available as desired and/or required.

Power
• Fully redundant energy source and UPS battery back-up as necessary.
• Adequate logistics of operation and maintenance
• Adequate supply and storage of spare parts.

Legal issues
There should be enabling laws, regulations and guidelines for the operations of Digital Storage Centres. This would discourage malpractices and other unwholesome behaviour among staff and customers. It would further prevent the abuse of information/data as well as promote international confidence in the integrity of data stored, accessed and disseminated from the centre.

The functions of the centre by its formation, nature and activities primarily cut across the regulatory activities of SEC, NITDA and the NCC with respect to communications infrastructure in general. It is observed that some government initiatives with international agencies like UNESCO, USAID, Japan funds In Trust , OSIWA, IDRC, British Council and DFID are already on.

The way forward for the smooth and effective operations of the Nigerian DSC therefore, is the urgent and due enactment of an Act to give legal backing to its functions. Similar Acts are already operating in South Africa, the United States of America and many nations in Europe.

The legal cum judicial benefits would be the admissibility of data in the form of electronic messages in evidence even as its original document. It shall permit electronic retention of documents even if retained by data message as well as allow the production of a document in electronic format as satisfactory in law. In some jurisdictions electronic data signatures are accepted as genuine and would suffice in agreements entered into via data messages.

From right, Engineer Olawale Ige, former Comm.
Minister; The Nigerian Stock Exchange Director
General/CEO, Professor Ndi Okereke-Onyiuke;
and the MD/CEO, Central Securities Clearing
System Limited, Mr. Onyewuchi Asinobi, at the
10th anniversary of CSCS Limited in Lagos recently.

The Digital Storage Centre is playing dual roles of shares clearing and repository functions and also, as public/private organisation data vault. There should be an Act or legislation to be enacted in response to global high-and low-profile financial scandals in order to protect shareholders and the general public from accounting errors and frauds. The act should be administered by the Security and Exchange Commission (SEC), which sets deadlines for compliance and publishes rules on requirements. The Act should not only address business practices and specify its application to business records storage, but should also define records that could be stored and for how long. The legislation would be all encompassing, including the financial side of corporations, as well as the ICT department activities for storage of corporation’s electronic records. Mr. Paul Usoro (SAN) in the June edition of the PUC journal gave the following comments.

“The best evidence rule advocate that the best evidence possible should be tendered in court. In the case of documents, this rule requires that the original document or that which is closest to it be tendered. The challenge is that there is hardly any difference between the original and an exact copy of computer memory. This invariably means that the printed versions of computer-created files that can be tendered in court are copies or even secondary copies of the original version. In contrast, Section 1001 (3) of the U.S. Federal Rules of Evidence states “if data are stored in a computer any printout or other output readable by sight, shown to reflect the data accurately, is an ‘original’’’. This provision was given effect in Aguimatang v California State Lottery, where the court held that the computer printout did not violate the best evidence rule because a computer printout is considered an ‘original.’

This confirms that other nations are already taking steps in the direction of making modern technology integrated to modern way of living.

Benefits of Digital Storage Centre As Highlighted by CSCS
• The recognition of the importance of information technology for the economic and social and economic prosperity of a country;
• Promotion of global access to users and customers;
• Promotion of the understanding, acceptance of and growth in the number of electronic transactions in Nigeria;
• Removal and prevention of barriers to electronic communications and transactions in Nigerian and the world at large;
• Promotion of legal certainty and confidence in respect of electronic communications and transactions;
• Assurance that electronic transactions in Nigeria conform to and reflect the highest international standards;
• Encouragement of investment and innovation in respect of electronic transactions in Nigeria;
• Development of a safe, secure and affective environment for the consumer, business and the Government to conduct and use Digital Storage Centres and electronic transactions;
• Promotion of the development of electronic transactions/services which are responsive to the needs of users/consumers;
• Encouragement of compliance with acceptable international technical standards in the Digital Storage Centres and provision and development of electronic communications and standards;
• Promotion of the stability of electronic transactions in Nigeria;
• Encouragement of the national interest, sovereignty and security of Nigeria (which must not be compromised) through the use of electronic communications.

Specialised Management Services
These are services that can promote unified operation where a common data base is supposed to be maintained by competing Operators in an industry with intelligent Network Systems such as in the telecoms industry where it could facilitate Number Portability. The operations and official transactions of corporate bodies, institutions, government agencies, ministries and establishments would become better efficiently run. For example, the Nigerian Customs Service has recently developed an electronic communications and transactions device for accessing the content of imported or exported items from place of shipment or airlift to point of destination. The system which is designed to pre-determine fake waybills and related documentation should be capable or being supported by services rendered by the Digital Storage Centre.

The on-line services operations of the Corporate Affairs Commission (CAC) as well as the Nigerian Immigration Services where all international passports are issued could also be complemented with the service of the DSC for safety and back-up purposes.