Strengthening Nigeria’s telecoms sector
Analysis
The Nigerian telecommunications sector has been one of the bright spots in the country’s economic development in the past seven years.
The growth of the sector, especially the mobile arm, has had a direct impact on other aspects of the Nigerian economy. Today, as result of the improvements in the telecoms sector, business activities have been greatly enhanced, and the lifestyle of many people have also improved.
While the sector has been directly responsible for the creation of a substantial quality of jobs, it has also produced jobs indirectly other sectors. For instance, outsourcing services are making an inroad into the country simply due to the fact that the telecoms sector has taken root.
The impressive performance of the mobile operators has opened the eyes of many investors who had in the past been unwilling to come to Nigeria and they are now seeking ways to come into this economy.
The IT sector (software and hardware) as well as the printing and publishing sectors, have all benefited immensely from the revolution in the industry.
However, there are certain indicators that show that despite the impressive performance of the sector, all is indeed, not well with it.
First is the fact that despite the growth of the fixed wireless sector in the past few years, such growth has been largely restricted to a few major cities in the country. Wireless services have only been in less than 12 states in the country.
The implication of the situation is that despite the impressive growth of the sector, it remains largely restricted to just a few cities.
Yes, some people argue that every state in the country now has mobile service, but the truth is that the cost remains prohibitive and options that should be available to users are not there.
Secondly, the issue of rural telephony remains a sore point in the development of the sector, as government is still unable to make the scheme deliver its promises.
The Nigerian government, for some reasons that most right-thinking people cannot explain, took a decision to secure a loan to execute the rural telephony programme at a time that the sector has been doing quite well.
But a new dimension that has been added to the sector lately; it is the gradual death of small players and their increasing acquisition by bigger ones.
One thing that is clear from the current development soon, small players may find it difficult to compete in the market-place in the face of aggressive competition from the bigger ones.
Given these reasons, there may be need for the telecoms sector regulatory body to take certain steps to address the issue.
The fact that fixed wireless firms have found it difficult to enter many states is probably suggestive that there may be need to adopt a new approach to the development of the sector.
This is because like all other developed countries, Nigeria must find a way whereby her citizens would not be spending a fortune to get telephone services.
Also, while the presence of big operators is desired, there is the need to find a way to deliver value for money and also, allow small players to get protection where necessary.
Nigeria’s telecoms growth must now go beyond the mobile sector. It must find ways to develop other services, including Internet.
The Nigerian telecommunications sector has been one of the bright spots in the country’s economic development in the past seven years.
The growth of the sector, especially the mobile arm, has had a direct impact on other aspects of the Nigerian economy. Today, as result of the improvements in the telecoms sector, business activities have been greatly enhanced, and the lifestyle of many people have also improved.
While the sector has been directly responsible for the creation of a substantial quality of jobs, it has also produced jobs indirectly other sectors. For instance, outsourcing services are making an inroad into the country simply due to the fact that the telecoms sector has taken root.
The impressive performance of the mobile operators has opened the eyes of many investors who had in the past been unwilling to come to Nigeria and they are now seeking ways to come into this economy.
The IT sector (software and hardware) as well as the printing and publishing sectors, have all benefited immensely from the revolution in the industry.
However, there are certain indicators that show that despite the impressive performance of the sector, all is indeed, not well with it.
First is the fact that despite the growth of the fixed wireless sector in the past few years, such growth has been largely restricted to a few major cities in the country. Wireless services have only been in less than 12 states in the country.
The implication of the situation is that despite the impressive growth of the sector, it remains largely restricted to just a few cities.
Yes, some people argue that every state in the country now has mobile service, but the truth is that the cost remains prohibitive and options that should be available to users are not there.
Secondly, the issue of rural telephony remains a sore point in the development of the sector, as government is still unable to make the scheme deliver its promises.
The Nigerian government, for some reasons that most right-thinking people cannot explain, took a decision to secure a loan to execute the rural telephony programme at a time that the sector has been doing quite well.
But a new dimension that has been added to the sector lately; it is the gradual death of small players and their increasing acquisition by bigger ones.
One thing that is clear from the current development soon, small players may find it difficult to compete in the market-place in the face of aggressive competition from the bigger ones.
Given these reasons, there may be need for the telecoms sector regulatory body to take certain steps to address the issue.
The fact that fixed wireless firms have found it difficult to enter many states is probably suggestive that there may be need to adopt a new approach to the development of the sector.
This is because like all other developed countries, Nigeria must find a way whereby her citizens would not be spending a fortune to get telephone services.
Also, while the presence of big operators is desired, there is the need to find a way to deliver value for money and also, allow small players to get protection where necessary.
Nigeria’s telecoms growth must now go beyond the mobile sector. It must find ways to develop other services, including Internet.
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