At a stakeholders conference themed ‘Telecoms Industry 2.0: The Next Investment Frontier in Nigeria’, leading voices in the telecommunications industry raised concerns about the growing challenges facing the sector. Key industry players, including Karl Toriola, CEO of MTN Nigeria; Carl Cruz, CEO of Airtel Nigeria; Bolaji Balogun, CEO of Chapel Hill Denham; Bismark Rewane, CEO of Financial Derivatives; Gbenga Adebayo, Chairman of the Association of Licensed Telecom Operators (ALTON); Temi Popoola, CEO of NGX Group, and others, called on the Nigerian government to take urgent steps to support the telecommunications industry, which has been under increasing distress.
The telecommunications sector, which contributed 13.5% to Nigeria’s GDP in 2023 and serves as a backbone for critical sectors of the economy, has been grappling with financial difficulties. In the first half of 2024, both MTN Nigeria and Airtel reported significant losses, reflecting the broader challenges facing the industry.
Bolaji Balogun, who delivered the keynote address at the event, provided a historical overview of the telecommunications industry in Nigeria, highlighting that over $70 billion has been invested in the sector since its inception. However, he warned that the rate of investment is declining due to a myriad of challenges. “While the past has been remarkable, the future of this sector could be even more promising if the challenges holding it back are addressed,” Balogun noted.
Gbenga Adebayo, ALTON Chairman, detailed some of the pressing issues facing telecom operators, including the burden of up to 54 different taxes, high energy costs, frequent cable cuts, and challenges with securing rights of way.
He emphasised the critical need for government intervention to prevent the complete degeneration of telecom services across the country. “There is a lot that the government can do to prevent the complete degeneration of telecom services across the country,” Adebayo stressed.
Karl Toriola, CEO of MTN Nigeria, painted a stark picture of the industry’s future if no action is taken. “The telecom sector is facing a lot of challenges of which if urgent action is not taken, it will dry up. The truth is that investors are not going to come to invest in the sector if the fundamental issues are not addressed. The telecom sector is in the ICU stage,” Toriola warned.
Without decisive government action to address the myriads of challenges, from regulatory burdens to infrastructure deficits, the future of Nigeria’s telecommunications sector remains uncertain. The conference allowed stakeholders in the industry to unite in their call for the necessary reforms that will safeguard the industry’s sustainability and its vital role in the nation’s economy.
