Telecom
Government Intervention Required to Attract Investments in Telecom- Teniola
The Nigerian Telecommunications industry was once referred to as one of the fastest growing in the world. The situation is, however, a lot different today as many operators are faced with loss of revenue, largely due to the economic recession, over the top players, multiple taxation, insecurity and other issues.
I was recently with Olusola Teniola, President of the Association of Telecom Companies of Nigeria, ATCON, and he spoke at length on the some of the challenges in the Telecom industry and the way forward.
Olusola stated that, the reason why investors are not investing in the Telecom industry in Nigeria for now can be looked at from both the macro and the micro economic environment within Nigeria.
Having being in recession for more than two quarters, and the low growth rate of between 0.3% and 0.8%, which is not the kind of growth rate that an investor is looking to invest in. “Investors will be looking for high single digit or double digit growth rate regime to invest in”, he maintained.
He stated that Kenya and Ethiopia are the current leaders in the Telecom industry in Africa at the moment, with Nigeria and South Africa lagging behind. The recession, he declared, has made many capital projects to be put on hold in the Telecom industry which is capital intensive.
Olusola stated that the industry needs the government to create the enabling environment, as well as create a more stable foreign exchange regime because, the multitude of forex windows we currently have, is not encouraging the investor. He also stated that the debt facility problem being faced by about two of the players in the industry.
Speaking on how all these has impacted on the quality of service provided by these Telecom companies, Olusola stated that, there are two aspects to the quality of service provided and this is where the micro economic environment comes in. He emphasized that, one of them is the technical aspect of quality.
The NCC, he said, focuses on the technical aspect of it in terms of the KPI’s set and are usually driven by the ITU standards. The other aspect, he stated, has to do with capacity management, which has to deal with investments in networks. “If you look at the actual composition of the industry to date, there has been an investment of about $68billion, right from the time the industry was liberalized in 2001 to date and that represents quite a significant amount of Dollars flowing in”, he observed.
He emphasized that, about half of the $68billion investment, so far, came in through FDI, and if it is broken down further, only one operator has contributed 50% of that, as about $16billion came from only one operator, where we have many operators.
He opined, that, the investments, so far, has not covered the whole of Nigeria, hence, the industry is still in need of further injection of investment to grow. He said that there are about 150million subscribers where the networks have, so far, deployed in Nigeria.
He made it known that, services to these subscribers, is based on the infrastructure that we have, so far, which was built, predominantly, for voice, but which now also runs e-payments, mobile money, etc.
“You can see that, the struggle to try and keep up with the congestion requires that more capacity has to be put in place and that means funding”, he observed
When asked what he recommends as steps, going forward, Olusola stated that ATCON has always advocated that its members have their equipment and investments protected, which he reiterated, is significant.
He observed that, yes, ICT has now become critical to the success of the Nigerian economy, Telecom, however, is a key factor and an infrastructure player in Nigeria at the moment because, without the infrastructure, we cannot even use our smartphones for any other thing other than to using it for making the basic calls.
On security of the Telecom infrastructure, there has been a liaison with NCC and other security outfits, like the Nigerian Police, to protect these infrastructures.
The Association, he stated, also encourages the reporting of incidences of damages to infrastructures the more instead of just repairing the damages and keeping mum over the damages.
The idea, he maintained, is to raise awareness about the negative impact on the quality of services rendered, caused by tampering with Telecom facilities
Olusola is of the opinion that, it is not about the fact that, whether Floor pricing has to go or has to stay, but it is about innovation, competition and the best consumer choice. The extinction of the CDMA’s, he observed, had to do with the management of the companies involved as well as operating on a regional basis and not on national basis, rather than about pricing.
“The forces that dictate the market chose the GSM technology for many reasons, and one of the reasons is that the SIM card can be divorced from the device and the devices, in my opinion, are actually, more smarter and lovelier in the GSM realm than in the CDMA”, he concluded.
CFA is the Founder, www.CFAtech.ng & Co-producer/Presenter,Tech Trends on Channels Television
National Association of Nigerian Students (NANS) has condemned the recent increase in tariffs by telecommunications companies in Nigeria, threatening to embark on a nationwide protest to compel a reversal.
In a statement jointly signed on Thursday in Abuja by Comrade Anzaku Shedrack Ovye, national secretary-general, NANS and Comrade Samson Ajasa Adeyemi, the student body gave the Federal Government and telecommunications companies a 72-hour ultimatum to reverse the tariff increase.
The students warned that upon the expiration of the ultimatum, students across the country would be mobilized for a series of street protests nationwide to ensure a reversal.
They argued that the arbitrary action of telecommunications companies has further exacerbated the financial burden on millions of Nigerians, particularly students and youths, who are among the dominant end-users of their services.
The statement read in part:
“This decision, which has led to a significant rise in the cost of calls, data, and other communication services, is both unjustifiable and insensitive, given the prevailing economic challenges faced by the populace.
“NANS views this development as a blatant disregard for the welfare of Nigerian citizens and an affront to the principles of affordability and accessibility that should govern the telecommunications sector.
“This administration is committed to promoting the welfare of Nigerian students; hence, it will vehemently oppose any tendency that does not align with this vision.
“NANS is deeply concerned about the adverse impact this tariff hike will have on students, many of whom rely heavily on affordable telecommunications services for academic research, virtual learning, and staying connected with their families.
“Therefore, it is worrisome to comprehend the justifications for these increments, as NANS considers this action a direct threat to the security of Nigerian students and an attempt to further impede their ability to navigate their academic endeavors, maintain familial connections, and secure legitimate personal incomes, particularly for independent students responsible for their upkeep.
“We hereby issue a 72-hour ultimatum to telecommunications companies, the Honourable Minister for Innovation, Digital and Blue Economy, Dr. Bosun Tijani, and the Nigerian Communications Commission to reverse this tariff increase and provide a clear roadmap for ensuring affordable telecommunications services for all Nigerians.
“Failure to comply with this ultimatum will leave NANS with no choice but to mobilize students across the nation for a series of peaceful protests to demand justice, accountability, and a comprehensive audit of activities in the telecommunications sector,” NANS stated.
The leadership of NANS maintained that as student representatives, they would not stand idly by while the rights and welfare of Nigerian students, which they have vowed to protect, are trampled upon by greed, “corporate capitalism,” and regulatory complicity.
NANS also called on the Federal Government to intervene promptly and decisively to address this issue.
Additionally, they urged telecommunications companies to prioritize the interests of their customers over profit margins and to engage in meaningful dialogue with stakeholders to find sustainable solutions rather than inflict further hardship on Nigerians who are already struggling economically.
“As the voice of Nigerian students, NANS remains committed to advocating for policies and actions that promote equity, fairness, and the overall well-being of all Nigerians.
“We will continue to hold all parties and duty-bearers accountable to ensure that the rights of students and citizens are protected,” the statement added.
Federal Government has restated its dedication to closing Nigeria’s digital divide, with a focus on delivering connectivity to underserved and unserved communities.
Dr. Bosun Tijani, Minister of Communications, Innovation, and Digital Economy, disclosed this on Thursday during a stakeholders’ engagement session held at the Marriott Hotel, Ikeja, Lagos.
Tijani noted that while significant progress has been made in expanding broadband penetration and strengthening digital infrastructure, millions of Nigerians remain without access to reliable digital opportunities.
He announced several flagship initiatives under the Federal Government’s efforts to bridge the divide. These include Project BRIDGE, a 90,000km fibre optic expansion; Project 774, aimed at connecting every local government secretariat with high-speed internet; and the Universal Access Project, targeted at connecting over 20 million unconnected Nigerians.
Other initiatives, such as the National Broadband Alliance of Nigeria (NBAN) and the 3 Million Technical Talent Programme, were also highlighted.
“The Universal Service Provision Fund (USPF) remains a critical tool in delivering this goal, as it supports infrastructure expansion and inclusive policies,” Tijani said.
He stressed the need for strong public-private partnerships and collaboration with development agencies and local communities to achieve sustainable progress.
Dr. Aminu Maida, Executive Vice-Chairman of the Nigerian Communications Commission (NCC), emphasized the importance of unified efforts to build resilient telecommunication infrastructure.
He revealed that projects funded by the USPF had played a significant role in connecting remote communities.
“We urge stakeholders to strengthen partnerships and explore innovative financing models that will ensure sustainable connectivity,” Maida said.
The engagement session also provided a platform for deliberations on practical strategies for addressing barriers, such as inadequate infrastructure and limited digital literacy, which hinder the achievement of universal connectivity in Nigeria.
The Federal Government reiterated its vision of achieving universal access to communications and digital literacy for all Nigerians by 2030.
MTN Nigeria, in collaboration with the Lagos State Government, on Thursday launched ‘MyLagosApp,’ a digital platform designed to enhance urban living in Lagos.
L-R: Chief Digital Officer, MTN Nigeria, A’isha Mumuni; Legendary Nollywood Actress, Joke Silva; Chief Executive Officer, MTN Nigeria, Dr. Karl Toriola; Deputy Governor of Lagos State, Obafemi Hamzat and Chief Information Officer, MTN Nigeria, Shoyinka Shodunke at the launch of MyLagosApp, a one-stop digital hub designed to simplify urban living, held on Thursday, March 13 at MTN Rooftop Plaza, Falomo, Lagos.
The application, which serves as a one-stop hub for events, entertainment, transport services, hospitality, and government-related payments, aims to simplify access to essential services for residents and visitors.
At the launch event held in Lagos, the Executive Governor, Mr. Babajide Sanwo-Olu, represented by Deputy Governor Dr. Obafemi Hamzat, lauded the partnership as a milestone in leveraging technology to improve lives.
“This collaboration reflects our administration’s commitment to bridging the gap between public and private sectors, using innovation to provide practical solutions for the people,” Hamzat said.
He described the app as a vital tool for fostering transparency, accountability, and seamless access to public services, noting that it aligns with the state’s smart city initiatives.
MTN Nigeria’s CEO, Dr. Karl Toriola, expressed the company’s pride in partnering with the Lagos State Government to achieve this milestone.
“MyLagosApp is a major stride in digital transformation, marking a significant step in making Lagos a truly smart city. It simplifies connectivity, access to services, and promotes an efficient urban ecosystem,” Toriola said.
The app, developed by MTN’s Software Lab, adheres to global security standards and ISO 27001 certification, according to MTN’s Chief Information Officer, Shoyinka Shodunke.
Stakeholders at the event emphasized the role of the app in advancing mobility, supporting local businesses, and enhancing government-citizen interactions.
The application is now available for download on Android and iOS platforms.
Tony Elumelu Foundation Set to Announce 2025 Cohort of TEF Entrepreneurship Programme
Millions of Nigerians @ Risk as NASIMS Leaks over 23m FG Records
NANS Issues Fresh Protest Notice over Telecom Tariff Hike
NBTI Advocates for Legislation to Strengthen Local Content
Renaissance Energy Completes Acquisition of SPDC
General News2 days agoDaphne Dafinone, CBN GOV’s Ally Facing Alleged N100m Fraud Charges – Police
News3 days agoUS Launches ‘Self-Deportation’ App to Streamline Voluntary Exits
Telecom3 days agoAirtel Buys Back 66,089 Units of Own Shares
E-Financial3 days agoEFCC Uncovers 58 Ponzi Schemes Targeting to Defraud Nigerians
E-Business3 days agoMassive Cyberattack on X Sparks Worldwide Service Disruptions
E-Financial3 days agoReps Ask CBN to Suspend ATM Charges Hike
E-Financial3 days agoPalmPay Partners AfriGO to Issue Over 5m Cards
Telecom2 days agoLagos Lawyer Sues MTN, Seeks Dissolution of Board