Follow Us on Google
By Chinenye Anuforo [email protected]
Nigeria’s telecommunications sector in the past one year under President Bola Tinubu is akin to a roller coaster ride. It had its ups and downs. Nonetheless, the sector has witnessed significant changes, driven in large part by government’s policy decisions. These policies have had a mix of positive advancements and disruptive measures, leaving the industry with both opportunities and uncertainties.
The NIN-SIM Saga
The most dominant theme during the period was the National Identification Number NIN-SIM card linkage policy. Facing rising security concerns, particularly around SIM-enabled kidnappings, the government mandated linking phone numbers to verified NINs. “The policy’s intention is undoubtedly positive,” said Engr. Bisoye Coker-Odusote, Director-General/Chief Executive Officer of National Identity Management Commission (NIMC). “Linking SIMs to NINs strengthens security and helps combat criminal activities.”
However, the rushed implementation of the policy caused significant disruption. Mass confusion and a tight deadline for compliance led to network shutdowns as millions scrambled to register their NINs. “The short timeframe and lack of clear communication created unnecessary panic,” lamented Kunle Olusanya, a businessman based in Lagos. Industry estimates suggested subscriber decline of around 9 million data users by the end of 2023, highlighting the immediate negative impact.
Despite the temporary setbacks, the long-term benefits of the NIN-SIM policy cannot be ignored. Increased security in the telecom space fosters trust and encourages wider adoption of mobile financial services, a crucial aspect of financial inclusion in Nigeria.
Data takes center stage
The most significant trend within the year was the undeniable shift towards data services. Voice calls, traditionally a major revenue stream, faced a decline. Mobile internet access and data bundles have become the primary source of income for major operators like MTN, Airtel, Globacom, and 9mobile. This trend reflects Nigeria’s growing digital landscape, with a surge in smartphone usage and increased reliance on online services for everything from banking to entertainment.
Analysts predicted this data-driven growth will continue. Afrinvest, a leading Nigerian research firm, highlighted the rising internet penetration rate and the growing young population, comfortable with technology, as key factors propelling this trend.
Here, government policies have played a mixed role. On the positive side, initiatives like the National Broadband Plan 2020-2025 aim to increase broadband penetration across the country is fostering a data-driven economy. However, concerns remain about Right of Way (RoW) charges levied by government agencies on operators for deploying infrastructure, which can inflate service costs and hinder data affordability for some Nigerians.
Building infrastructure for 5G and beyond
While the NIN-SIM policy dominated headlines, positive developments were recorded. The government’s continued focus on spectrum allocation and infrastructure investment provided a much-needed silver lining. This spurred telecom operators like MTN Nigeria and Airtel to upgrade networks and expand their reach, particularly in previously underserved rural areas.
“The focus on infrastructure development is critical for long-term growth,” said Gbenga Adebayo, Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON). “These investments not only improve connectivity across the nation but also pave the way for future technologies like 5G.”
The potential of 5G technology was a major talking point throughout last year and up till now. With its promise of ultra-fast speeds, low latency, and enhanced network capacity, 5G has the potential to revolutionize various sectors, from healthcare and education to manufacturing and agriculture.
Artificial Intelligence
While 5G grabbed headlines, another emerging technology, Artificial Intelligence (AI), quietly began to make its mark on the Nigerian telecom sector. Telecom operators are exploring the potential of AI to automate network management, optimize resource allocation, and personalize customer experiences. “AI has the potential to transform the way we operate,” said a tech expert, Jide Awe from Jidaw Systems Limited. “From predictive maintenance to enhanced cybersecurity, AI can significantly improve efficiency and service delivery.”
However, concerns remain about the ethical implications of AI in the telecom space. Issues like data privacy, algorithmic bias, and job displacement require careful consideration and proactive policy frameworks.
Challenges and uncertainties
Despite the advancements, significant challenges remain. The digital divide or gap between those who have access to the internet and those who don’t, persists as a major hurdle. While government initiatives like the National Broadband Plan aim to bridge this gap, concerns linger about their effectiveness and funding.
Another major concern is the decline in Foreign Direct Investment (FDI) in the telecom sector. Data from the National Bureau of Statistics (NBS) shows a staggering 70.5% decrease in FDI in 2023 compared to the previous year. “The uncertain regulatory environment and economic instability are discouraging foreign investors,” explained Muyiwa Lukman, an economic analyst with Lagos-based firm. “Creating a more predictable and investor-friendly environment is crucial for attracting the capital needed to fuel further growth.”
Looking ahead
“As Tinubu advances into his tenure, navigating through this evolving landscape, collaboration between policymakers, telecom operators, and the public will be paramount”, Adebayo stated.
“Striking a balance between security measures, promoting innovation, and fostering an environment conducive to foreign investment will be key to unlocking the sector’s full potential. Open dialogue and a focus on long-term planning are essential”, Awe suggested.
“We need a more inclusive and collaborative approach. By working together, we can build a secure, innovative, and inclusive telecom sector that benefits all”, Jidaw Systems boss concluded.
