By Jonah Nwokpoku

Big data is a broad term for data sets so large or complex that traditional data processing applications are inadequate. Challenges include analysis, capture, search, sharing, storage, transfer, visualization, and information privacy. The term often refers simply to the use of predictive analytics or other certain advanced methods to extract value from data, and seldom to a particular size of data set.

Specifically, businesses especially online related ones use big data, by combining data from web browsing patterns, social media, industry forecasts, existing customer records, etc to predict trends, prepare for demand, pinpoint customers, optimize pricing and promotions, and monitor real-time analytics and results.

According to McKinsey analysis of more than 250 engagements over a five year period, companies that put data at the centre of the sales and marketing decisions improved their marketing ROI by 15 to 20 per cent. In Nigeria, the availability of big data has not proved to be very economically useful. This is due to restricted access placed on big data.

Some institutions that retain and continue to gather such large amount of data include the telecommunication companies. Through sheer large number of mobile phone users, SIM card registration and increasing penetration of smartphones, these telecommunications companies have been able to gather so much data more than any other institutions in the country.

At the just concluded Mobile West Africa conference held in Lagos, Senior Manager, Enterprise Marketing, MTN Nigeria, Tayo Egunjobi, presenting a paper titled: ‘Thoughts on Big Data’ explained that Nigeria has more big data than it knows what it can do with it. According to him, “We are swimming in an ocean of data made possible by the internet, mobile penetration, web and business applications.”

Giving instance of big data availability in Nigeria using MTN as an example, he noted that MTN with its 60 million active mobile lines records about 2.6 million minutes of voice calls monthly. It also records 77 per cent of Internet Traffic generated through mobile devices utilising about 40 million Megabytes from MTN Monthly.

In terms of business applications, he noted that MTN holds 8.5 Petabytes of Data with a growth rate of 30 per cent. What all these mean is that with such huge concentration of data in one place, decisions around technology consumption habit can easily be made through careful study and analysis of these data.

The problem however is that access to these data is restricted by the telecommunications’ regulator, the Nigeria Communications Commission. Although the restrictions to access to these data has not prevented MTN from mining the same data to sell to advertisers who use these with little considerations to privacy rights of mobile phones users.

For these, industry analysts believe that the restrictions placed on data usage is impeding the growth of electronic business in the country. But the telcos argue that it is matter of security, and most importantly, compliance with industry regulations.

At a panel discussing how Nigeria can benefit from liberal data policy, Chief Executive Officer, eTranzact International, Valentine Obi noted that strides have been made in payments in Nigeria, from the time where data collection was a very difficult task, to 2015, a period that is seeing an increased focus on data collection from regulators and organizations, an example being the recently instituted Bank Verification Number.

According to him, access to big data can play a critical role in e-fraud prevention. He said: “One big prerequisite for financial inclusion and in fraud control for financial institutions is a check called ‘Know your Customer.’ It is one of the biggest challenges we face in the payments industry, and all players can come together to help solve this issue.

The Telcos own a lot of user data and can help the payments platforms by sharing this data.   “There is a big need for the Telcos to share data in order to safeguard and protect customers from fraud just like banks share data with the switching platforms.” Kojo Boakye, Policy and Advocacy Manager, Alliance for Affordable Internet also speaking, pointed out that Africa stands a better chance at benefiting from increasing broadband and smartphone penetration if better policies regarding data access are put into place.

According to him, instead of the telcos monopolising the data, open access can help businesses to consolidate gains while new ventures stand a better a chance at navigating their businesses to profitability and reduce the high failure rates prevalent among start-ups. But in a swift reaction, Airtel Nigeria’s Head, New Products Development, Okechukwu Igwegbe noted that the issue of access to data lies primarily with the regulators.

While acknowledging the benefits inherent in open access, he also pointed out that there are still other institutions like the Independent National Electoral Commission and the National Identity Management Commission which can also boast of avalanche of reliable big data and have not embraced the open access strategy being canvassed.