An Overview of Foreign Intangible Technology Inflows into the Nigerian Economy from a Regulatory Perspective

Abstract

The regulation of intangible technology transfer became a policy of the Nigerian State in 1983 following the promulgation of Decree No 70 of 1979 which was later amended in Decree No 82 of 1992 and subsequently by the Act of the Parliament Cap N62, LFN 2004. The Office has statutory mandates which include regulating the inflow of all intangible technologies into the Nigerian economy. Intangible technologies are codified in licenses granted through patents, trademarks, industrial design, trade secrets, know-how, etc. Globally, about 60% of the international trade transactions are anchored through these portfolios to sustain economies, particularly in developing countries. This study provided an overview of intangible technology inflows into the Nigerian economy from the regulatory perspective within the 2010-2017 periods. The objectives of the study were to x-ray the trend of foreign technology penetrations into the Nigerian economy through NOTAP regulator window within the period, identify three (3) most attractive sub-sectors, key sources, cost implication, and financial savings to the National economy. The study lasted for one twelve months and accessed about one thousand five hundred and fifty (1,550) foreign technology transfer agreement documents in NOTAP-ID Unit. Data obtained were analyzed and presented with simple histograms and chats. The results revealed that about one thousand four hundred and nine (1,409) foreign technology transfer agreements involving knowledge transfer (intangibles) approved by NOTAP to have effect in Nigeria’s economy within the period in which an increased growth of Foreign Direct Investment (FDIs) was observed. Information and Communication Technology-ICT (30%) were the most attracted sub-sectors followed by Finance & Insurance (25%) and manufacturing (21%). Major sources of these investments were from the Asian countries (568), Western Europe (434), and UK (336). These investments are not inclusive of inflows into the Oil & Gas, Iron & Steel industries. The cost to the economy was about 950 billion Naira. Due to NOTAP intervention, about two hundred and forty-seven (247) billion Naira were made as savings to the National Economy. The authors suggested that the Nigerian government should develop a strong technical and sustainable educational system to boost domestic technology supplies, improve the Science, Technology, and Innovation (STI) policy implementation. Increasing investment in STI Research and Development were also strongly recommended as National imperatives to achieve significant competitiveness while strategically leveraging on the available foreign intangible technologies to sustain national economic growth. More importantly, all intangible technology transfer transactions in all sectors of Nigeria’s economy should be subjected to the NOTAP Act to meet national economic objectives. The assessment concluded that the inflow of intangible technologies into the Nigerian economy overtime has positively impacted the growth of the economy particularly in the ICT and financial sub-sectors.