Abu: Ubiquitous Broadband Penetration Will Enhance Connectivity

The CEO of Liquid Intelligent Technologies Nigeria, Mr. Wole Abu, speaks on the need for ubiquitous broadband penetration in Nigeria in order to boost connectivity and drive down cost of data. Emma Okonji presents the excerpts:   

The world recently celebrated World Telecommunication and Information Society Day. How well has Nigeria and the rest of Africa positioned themselves to be part of the global telecoms growth in terms of internet connectivity and broadband penetration?

The central plinth of the broadband penetration plan in Nigeria is anchored in the Nigerian National Broadband Plan (NNBP) 2020-2025, which sets a target for internet penetration to be 70 per cent by 2025. This essentially, underpins everything infrastructure providers are doing, because the internet sits on top of digital infrastructure – fibre, towers, data centres, and the like. Nigeria has not achieved that target. It currently stands at around 40 per cent, so a lot of work still needs to be done.

World Telecommunication and Information Society Day is a reminder that telecommunications, connectivity, and internet access are no longer a luxury. They are modern necessities and critical for the growth of developing nations like Nigeria.

The total number of active internet subscribers in Nigeria is put at 158 million yet the cost of data is still on the high side. What can be done to drive down the cost of data?

Several factors must be considered if data prices are to come down.

The first is currency fluctuations. All revenues in Nigeria are in Naira, and as the value of the Naira fluctuates, so does the value of the commodity bought for both consumers and service providers.

Currency fluctuations can cause the Naira to depreciate against assets, especially when factoring in the exchange rate, since in Nigeria, the cost of delivering internet services is dollarised. So from the exchange rate perspective alone, providers are already struggling uphill. This is made worse if the exchange rate moves against them. One of the most common problems facing communication providers is that they are competing against the value of our currency.

The second issue we have is the lack of a steady power supply. Consumers need power for reliable telecommunications and, unfortunately, Nigeria has a very dysfunctional power grid. This severely impacts connectivity delivery. 

Overall, to drive down the cost of data, there has to be a holistic approach, which calls for the stabilisation of our currency’s value and a national grid that is reliable.

It is going to require extensive collaboration and perhaps a change in perception from both the public and private sectors. Stakeholders’ consensus needs to be built so that we can articulate and solve these problems effectively. It is to achieve this objective that Liquid has partnered with several industry bodies and government stakeholders locally.

Africa has the lowest number of internet connections, despite experiencing the most growth in regional connectivity. How can Liquid Intelligent Technologies change the narrative?

The connectivity infrastructure in Nigeria today is steadily growing. From a regional perspective, you are looking at subsea cable like the Equiano sea cable, which is one of the many big consortiums that Liquid is a part of, and that puts us in the middle of regional development. Liquid also has the largest independent fibre deployment on the continent – over 110,000km of fibre backbone stretching right across Africa.  Liquid has also brought connectivity to remote areas of Africa through satellite technology. By deploying advanced satellite networks, we are not only working to bridge the digital divide, but we are also empowering people through reliable internet access, telecommunications, and data services in previously unreachable regions.
Liquid’s vision is a digitally connected Africa that leaves no African behind. We know that there are still many people who have no access to the internet, and so we have to deal with the issue of access first. 

Around 90 per cent of access to internet connectivity in Nigeria is via mobile devices, with little percentage for fixed devices such as laptops and desktop computers. What could be the effect of this development on digital transformation? 

Nigeria is a mobile-first country and will remain that way for the foreseeable future because of the distribution of fibre. If Nigeria had developed like other countries and had fixed lines before the introduction of mobile devices, there would be more of a mix of people accessing the internet through fixed devices and mobile devices.

Digital transformation is naturally hampered by this, which is why one of the National Broadband Plan’s initiatives is to extend enterprise-level connectivity. By and large, the public and private sectors cannot have their operations on mobile phones, and that is why infrastructure is being built to service these sectors.

Nigeria is entering a new phase of digital transformation – you can see this even in the government level, where the Ministry of Communications has changed its name to the Ministry of Communication and Digital Economy. So right from the top, from the policy level, they are beginning to see a change that is not just confined to telecoms. We are beginning to talk about the digital economy, which is way broader than just communication as a service.

Boosting Africa’s internet connectivity requires huge investments and significant regulatory reforms. What should African governments and telecom regulatory authorities do to support the growth of internet connectivity?

It is important that government and the private sector work together to empower people and businesses with reliable, fast, and secure connectivity. Not only is this a modern necessity for business and economic growth, but it is also needed by every individual in our country’s digitally transforming landscape. The government could help in many ways including: Harmonising and standardising right of way;

Streamlining and simplifying licensing; Making it easier to build infrastructure; Making infrastructure a part of any public works going forward; Giving tax cuts to companies that contribute to infrastructure that connects more than just their client base; Providing steady and reliable power through the national grid (not all African countries have this problem, but many do), and Providing a school curriculum that prepares learners for a digital future that they can take part in.

African governments should really look at regulation, finances, and land use, which includes the right of way and fees around construction and of course taxes.

What is your view about data storage in the cloud, and how can Liquid advance such technology development in Nigeria in today’s digital era?

When you talk about data storage in the cloud, you are looking at the future of data storage. Companies and governments used to store their data on-premises and that is very expensive. It required space, your own power, and a skilled workforce to manage it. Migrating all of that to the cloud, lowers costs and increases data availability to organisations, individuals and the workforce, and this mitigates risks.

The future is cloud. It is here to stay and of course, a great number of African countries are talking about data sovereignty, which is why you are seeing data centres coming into Africa. It is going to grow massively. It is one of the highest growth areas now in terms of verticals across Africa and in Nigeria.

Liquid has invested heavily in data centres across Africa and in Nigeria, and they play a vital part in the underlying digital infrastructure, and that is our business basically.

The establishment of the African Continental Free Trade Area (AfCFTA) in Lekki, Lagos, will no doubt, attract lots of internet connectivity for businesses in the area. How will Nigeria meet such connectivity demand?

Connectivity is critical to the realisation of the free trade objectives. Where Liquid comes in is essentially providing a seamless connection between locally based parties, which facilitates ease of trade and movement of services and goods back and forth. Liquid continues to invest in connectivity and supply products and services for players using the AfCFTA. Another initiative we are undertaking is to work very closely with other regional organisations to maximise regional connectivity, which is another important factor.

How will SMEs and the e-commerce sector benefit from the services of Liquid Intelligent Technologies in terms of having ubiquitous access to the internet that will drive their businesses?

Well, online access is crucial to driving businesses in both sectors, and Liquid offers many services and products that can benefit Small and Medium Enterprises (SMEs) and e-commerce. We are a one-stop-shop that can service all the needs of organisations and businesses, starting with broadband packages and expanded network coverage delivered through our extensive fibre network. Our products and services include cloud, cyber security, data centres, and more, and all of our solutions are scalable so they can grow alongside the business needs.

How can Nigeria as a country leverage the opportunities that digital transformation offers?  

Today if you look at the technology sector, I think we are already above 15 per cent contribution to GDP and that figure is set to rise. As the ICT sector’s contribution rises, it will unlock all other areas. Everybody knew that digital transformation was inevitable, but COVID has accelerated it. That pace is not going to slow down any more and Nigeria as a country needs to take advantage of it. We need people, we need skills, and we need the right policies.