Telecommunications regulator (Nigerian Communications Commission), should consider altered perspective around tariff to encourage investments.
Mr. Bolaji Balogun, the chief executive officer of Chapel Hill Denham, made the recommendation during his keynote presentation at the “Telecoms Industry 2.0” forum, organised by Financial Derivatives Company (FDC) in Lagos on Tuesday.
The forum gathered key players in the sector to discuss its vast potential, current challenges, and the strategic path forward.
Balogun said that reviewing the telecoms tariffs has become inevitable due to the present business climate in the country.
He argued that 11 years since the tariffs were last reviewed, it makes economic and business sense to encourage investments in the sector that caters for not less than 14% of the nation’s GDP.
He further said that the federal government should lead the way towards localisation and domestication of certain operations and equipment in the sector.
The shift, he said, would become a critical driver for sustained economic growth, technological advancement and national development.
He emphasised the telecoms sector’s immense potential but warned that this potential would remain untapped without deliberate and strategic interventions focused on localisation.
He said: “Nigeria’s telecommunications sector is poised for exponential growth, but we must prioritize domestication and localisation to unlock its full potential,” Balogun stated. He highlighted the need for a paradigm shift from an import-dependent model to one that nurtures and supports local production capabilities.
“Government policies must pivot to support local manufacturers, ensuring that the production of telecommunications equipment is anchored within Nigeria”.
A key component of Balogun’s roadmap was the urgent need for infrastructure development.
“Expanding our network infrastructure is non-negotiable,” he asserted. “Broadband accessibility should be at the forefront of our efforts, as it is fundamental to achieving digital inclusion and fostering economic growth.”
Balogun also emphasised the importance of developing local talent to sustain the industry’s growth.
“Investing in STEM education and creating strong linkages between academia and industry is crucial. Our local talent is the bedrock of our telecommunications future,” he said.
Balogun called for a stable and clear regulatory framework, essential for attracting investment and fostering innovation.
“We need policies that are not only clear but also consistently applied. A supportive regulatory environment will help us achieve our growth objectives,” he noted, adding that efficient dispute resolution mechanisms and proactive government engagement are key to creating a business-friendly atmosphere.
He also pointed out the telecommunications sector’s potential to drive financial inclusion.
“Mobile banking and digital financial services can significantly expand access to financial services, especially in underserved regions. The telecoms sector is central to this transformation.”
Also speaking, Mr. Wale Edun, the minister of Finance and the Coordinating Minister of the Economy, represented by Dr. Armstrong Takang, managing director of the Ministry of Finance Incorporated (MoFI), re-echoed the sentiments about the sector’s potential while expressing concern over the slowing pace of investment and job creation.
He urged a comprehensive reassessment of the sector’s direction.
“We must critically evaluate whether our current trajectory is sufficient to prepare us for the Fourth Industrial Revolution, where telecommunications will be a cornerstone. Emerging technologies like artificial intelligence offer immense opportunities, but we need to ensure our sector is ready to capitalise on them,” Takang warned.
He also noted that while technological advances may disrupt traditional jobs, history shows that they also pave the way for new opportunities.
In her remarks, Doris Uzoka Anite, the minister of Industry, Trade, and Investment, represented by John Uwajumogu, emphasised the transformative potential of Industry 4.0 and the strategic advantage Nigeria has with its youthful population.
She highlighted the pivotal role of telecommunications in driving digital transformation and advocated for robust public-private partnerships as essential for progress.
“The government is committed to creating a conducive environment through initiatives like the National Broadband Plan and significant investments in digital infrastructure and human capital. However, the true key to success lies in fostering strong public-private partnerships,” she said.
“As the global economy becomes increasingly interconnected and decentralised, collaboration between the public and private sectors will be crucial in driving forward our digital transformation agenda.”
Anite further reinforced the government’s commitment to working closely with industry stakeholders to explore and develop opportunities for partnerships that will drive Nigeria’s telecommunications sector into a new era of growth and innovation.
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