How Sector Challenges May Make or Mar Telecoms’ Industry Growth in 2024

Emma Okonji

Industry stakeholders have identified some disturbing factors that could make or mar telecoms growth and development in 2024.

Chairman, Association of Licensed Telecoms Operators of Nigeria (ALTON), Gbenga Adebayo, who identified some of the factors, told THISDAY in a telephone interview that a number of industry players struggled to survive in 2023 due to several identified factors like lack of access to funds, high interest rates on loans and harsh business environment.

Others, he added, are: Refusal of government to grant Right of Way (RoW) approval for telecoms’ network expansion, multiple taxes and incessant closure of telecoms sites by government agencies, including indebtedness of Money Deposit Banks (MDBs) to telecoms operators over the Unstructured Supplementary Service Data (USSD) agreement between Banks and Telcos, among others.

The challenges according to Adebayo, could mar the growth of the telecoms sector in 2024 if they are not adequately addressed by government.

He added that the identified challenges could also boost further, the growth of the telecoms sector, if nipped in the bud early enough in 2024.

“Nigeria as a country has not reached the level where we can say we have achieved maximum growth in the telecoms sector, because of the many challenges facing the telecoms’ industry, coupled with the fast changes taking place with emerging technologies. Today we are talking of 5G technology, but some advanced economies are already discussing 6G technology and they are talking about shutting down the 2G and 3G technologies, which of course will put more pressure on 4G and 5G technologies,” Adebayo said.

He therefore called on the Minister of Communications, Innovation and Digital Economy, Dr. Bosun Tijani, to ensure the sustainability of the telecoms’ industry in 2024 to enable telecoms operators to continue to remain in business and offer quality services to the fast growing population of telecoms subscribers.

“There is need for the Minister to review telecoms’ pricing, because the current pricing is no longer sustainable, which could lead to the extinction of more telecoms operators. The Minister must as a matter of urgency, focus on the sustainability of the industry in 2024.

“The issue of SIM card registration and linkage to National Identity Number (NIN) should be concluded in 2024, because it has dragged for too long and it is already affecting the growth of the telecoms sector. Nigeria cannot talk of driving its digital economy when it has not concluded on its identity management issues as it relates to SIM card registration and linkage to individual NIN,” Adebayo said.

He said achieving 70 per cent broadband penetration by 2025 as enshrined in the Nigeria’s Broadband Plan (2020-2025), without addressing the indentified challenges in the telecoms sector in 2024, might just be a mirage and an illusion. “Given the current level of 48 per cent broadband penetration in Nigeria, it calls for more commitments on the part of government on one hand and on the part of telecoms operators on the other hand. It is clear that both the government and telecoms operators are willing to achieve 70 per cent broadband penetration by 2025, but we need more of the commitment to address industry challenges as well as the investments to achieve it,” Adebayo further said.      

In the area of regulatory intervention, Adebayo called on the minister and the NCC to come up with policies in 2024 that would provide access to funding to telecoms operators who need funding to sustain and grow their telecoms business.

On the issue of the lingering interconnect debt among telecoms operators, Adebayo said government must find ways to support telecoms operators who need financial support to survive.

Addressing the issue of the over N200 billion debt owed telecoms operators by Money Deposit Banks, under the Unstructured Supplementary Service Data (USSD) agreement reached between telcos and the banks, Adebayo said with the appointment of a new Minister of Communications, Innovation and Digital Economy, as well as appointment of the new Executive Vice Chairman of the Nigerian Communications Commission, fresh discussions have begun since last year, which according to him, will certainly address the debt issues this 2024.

“Discussions are ongoing and going by the level of discussions, I believe the issue will be addressed this 2024. More than ever before, we are beginning to see more commitments on the part of all stakeholders in resolving the issue and we are optimistic that the issue will be resolved in 2024,” Adebayo said.   

On his part, the Chief Broadband Officer for MTN Nigeria, Onyinye Ikenna-Emeka, said 5G technology would drive the telecoms sector in 2024, given its impact in 2023. According to her, MTN is concerned about broadband connectivity for all Nigerians in 2024.

“Our focus this 2024 is to make available the more, the fit for purpose 5G offerings for small and medium enterprises (SMEs) that will further deepen broadband connectivity among SMEs. We have Office Broadband Proposition, tailored to help SMEs connect easily to broadband connectivity,” Ikenna-Emeka said.