The Nigerian Pioneering & Interconnection Forum’s (ngPIF) second day was marked by an in-depth panel discussion on the topic, “Navigating Regulatory Challenges for Broadband Expansion and Digital Transformation.”
Moderated by Olawale Owoeye, the Managing Director of Cedarview Communication Limited, the ngPIF panel featured key industry figures including Muhammed Rudman, CEO of Internet Exchange Point of Nigeria (IXPN), Dr. Ibiso Kingsley-George, Assistant Director at the Nigerian Communications Commission, Dr. Krishnan Ranganath, Regional Executive – West Africa at Africa Data Centres, and Abiodun Sanni, Senior Sales Manager at Rack Centre Limited.
Olawale Owoeye initiated the discussion by contextualizing the industry’s current standing. He highlighted two crucial aspects: the progress toward the 2025 broadband penetration target and the ongoing initiatives driving the digital economy. Dr. Ibiso Kingsley-George, representing the Nigerian Communications Commission, provided a detailed update on the broadband penetration status.
As of August 2023, the country had achieved 45% broadband penetration whereas it has set 70% target by 2025.
She emphasized the importance of developmental regulation and synergy among regulators, underlining the need for innovative solutions within the sector, digital literacy programs, and data privacy protection.
“The National Broadband Plan of 2025 in Nigeria aims to achieve a 70% completion rate by the end of 2025. Currently, as of August 2023, the progress stands at 45%. To meet this target and align with the National Digital Economy Policy and Strategy (NDSS), a comprehensive approach is being adopted.
In pursuit of these goals, developmental regulation practices, combining regulation with innovation, have been implemented. Synergy among various regulatory bodies is emphasized, ensuring a harmonious working relationship.
Key stakeholders, including the central bank and financial institutions, collaborate to foster a revenue-neutral, departmental approach to digital identification.
The licensing framework is being revamped, with a focus on exploring new license areas and encouraging innovations within the sector. This approach allows for the exploration of innovative ideas without fear of immediate retribution, fostering a conducive environment for market growth.”
Muhammed Rudman, CEO of IXPN, shed light on the dynamics between major and smaller players in the market.
He highlighted that out of 159.5 million internet subscribers in Nigeria, a staggering 99.8% were on mobile networks. Despite their small market share, smaller ISPs played a significant role in handling traffic, especially through exchange points. Rudman emphasized the need to empower these smaller providers to expand internet access in remote areas. Training programs and capacity building initiatives were essential, allowing these providers to compete effectively and contribute meaningfully to internet adoption.
“Despite the announcement of 5G technology, its adoption remains low, with a mere 0.8% penetration, primarily limited to specific locations like Victoria Island. The challenge lies in the affordability of 5G devices, making it inaccessible for most individuals, especially those in remote regions.
To bridge this gap, initiatives are being undertaken to establish community networks and smaller ISPs in underserved areas. By focusing on providing affordable internet services to these communities, the aim is to enhance digital access and adoption. These efforts signify a commitment to ensuring that the digital revolution reaches every corner of Nigeria, empowering individuals and communities through accessible and affordable internet connectivity.”
Muhammed Rudman emphasized the need for simplified government policies in the telecommunications sector.
He pointed out the complexity of current regulations, which cover various aspects such as hardware, infrastructure, content, and access. Rudman highlighted the challenges faced by small service providers, especially in accessing networks, and urged the government to find innovative funding solutions for them.
He raised concerns about the affordability of internet services for citizens, citing instances where internet subscribers dropped due to financial constraints and emphasized the critical role of telecom and internet access in national development.
He further urged the government to prioritize these sectors to empower citizens and break the cycle of poverty and insecurity, stressing the importance of protecting internet infrastructure and ensuring affordable access to devices for network expansion.
Dr. Krishnan Ranganath, from Africa Data Centres, discussed the key role of data centers in the digital economy. He noted the recent influx of new players and the expansion of existing ones, aligning with the National Broadband Plan and digital economic policies.
Ranganath highlighted the importance of regulations such as the Nigerian data protection regulations and the need for a collaborative ecosystem, stressing the necessity of high-quality networks, affordable internet, and shared infrastructure to support the growth of data centers and the broader digital economy.
“The overarching goal is to ensure affordable internet access permeates every corner of Nigeria. This objective necessitates the establishment of a robust and high-quality network infrastructure that spans across the nation. Such a network not only facilitates widespread internet accessibility but also acts as a catalyst for the growth of the data center business. The expansion of the network infrastructure creates a larger market for data services, thereby driving the demand for data centers in various regions of the country.
In essence, the growth of the data center business is intricately linked to legal mandates, improved connectivity through undersea cables, and a collaborative effort among stakeholders to build a comprehensive and high-quality network infrastructure. By addressing these aspects collectively, Nigeria can pave the way for affordable internet access, enabling businesses to flourish and ensuring the digital transformation reaches every corner of the country.”
Abiodun Sanni of Rack Centre Limited emphasized the importance of government policies that drive investment. He acknowledged the private sector’s proactive approach in providing services where needed, even without direct government intervention.
Sanni advocated for policies addressing critical issues like power, taxation, and infrastructure. He also urged the government to focus on supporting Small and Medium-sized Enterprises (SMEs), which contribute significantly to the country’s GDP and employment.
“The public sector should concentrate on Small and Medium-sized Enterprises (SMEs). SMEs contribute over 80% of employment in the country. Creating a conducive environment for them is crucial. In terms of regulation and policies, governments should focus more on this sector. SMEs make up about 45% of the GDP, underscoring their economic importance. When it comes to policies, power is a critical factor. Stable power supply is essential, especially for data centers. We anticipate potential power price increases in the coming months, but this should align with the quality of power supply.
Moreover, taxation policies need to be favorable for our sector. Ensuring adequate power supply to regions where data centers are being established is vital. If the government expects us to set up data centers in various locations across the country, they must provide the necessary infrastructure, including reliable power sources. These are the policy changes we are advocating for in terms of infrastructure development.”
Dr. Ibiso Kingsley-George elaborated on the complexities of regulations within the industry.
She clarified the areas within the Nigerian Communications Commission’s purview, including ensuring competition, proper resource utilization, and consumer protection.
While highlighting the challenges faced, she also emphasized ongoing efforts to collaborate across government agencies, address infrastructural vulnerabilities, and engage with state governments on right-of-way charges.
The panel discussion at the Nigerian Pioneering & Interconnection Forum reiterated the need for collaborative efforts between government bodies, regulatory agencies, and private sector players.
Simplifying regulations, empowering smaller service providers, and fostering an environment conducive to investment are inevitable in navigating the regulatory challenges.
As Nigeria steers toward its 2025 broadband penetration goal and digital transformation objectives, continued dialogue and strategic partnerships will be essential in shaping the country’s digital future.
