The Nigerian telecommunications sector has remained a cornerstone of the country’s economy, driving growth in various industries, increasing access to digital services, and contributing significantly to the nation’s GDP. In the last one year, the Federal Government has made a number of promises to enhance this sector, aiming to improve infrastructure, expand broadband access, increase investments, and ensure better service delivery.
Promises
One of the major promises by the government was to increase broadband penetration across the country, particularly in underserved and rural areas. The National Broadband Plan (NBP) 2020–2025 set ambitious targets to achieve 70 per cent broadband penetration by 2025, with significant milestones expected to be met by 2023. The Federal Government, through the Nigerian Communications Commission (NCC), promised the deployment of 5G technology, a crucial step in advancing Nigeria’s digital transformation agenda.
This technology would revolutionise internet speeds, support the Internet of Things (IoT), and enhance services in sectors such as healthcare, agriculture, and education. Another notable promise was to encourage local manufacturing of telecom equipment and boost indigenous participation in the telecommunications value chain. The FG aimed to create policies that would attract local and foreign investments, leading to the development of local capacities and job creation.
The government also committed to strengthening the regulatory environment to ensure fair competition, consumer protection, and better quality of service from telecom providers.
Achievements
Over the past year, Nigeria has made noticeable progress in broadband penetration. By mid-2023, the country achieved over 50 per cent broadband penetration, inching closer to the 70 per cent target by 2025. Initiatives such as the deployment of optic fiber cables and the licensing of infrastructure companies (InfraCos) contributed to this growth, enabling better internet access in both urban and rural areas. However, despite this achievement, there are still significant gaps, especially in remote and underserved regions where high-speed internet access remains a challenge. Affordability also remains a concern, as many Nigerians still find data costs prohibitive.
5G network
In August 2022, the Nigerian Communications Commission (NCC) licensed MTN and Mafab Communications to launch 5G services. By 2023, MTN Nigeria successfully began rolling out 5G services in key cities, including Lagos and Abuja. This development has set Nigeria on a path to becoming a digital hub in West Africa, enhancing connectivity and enabling innovations in various sectors.
However, widespread access to 5G is still in its early stages, with concerns around the availability of compatible devices and infrastructure for nationwide coverage. The FG needs to push for more public-private partnerships to fast-track the full deployment of 5G across the country.
Investments
The Nigerian government has continued to encourage investment in the telecommunications sector. In 2023, there was an increase in foreign direct investment (FDI) in the sector, with companies like Airtel and MTN making significant capital investments to expand their network infrastructure. The federal government, through the Ministry of Communications, Innovation and Digital Economy, has also worked to improve the ease of doing business in the sector, particularly by reducing bureaucratic bottlenecks in acquiring telecoms licences and spectrum.
However, local manufacturing of telecom equipment remains a challenge. Despite the FG’s push for local content development, the sector still heavily relies on imported equipment, which hampers efforts to build local capacities and create jobs in the telecom value chain.
Regulatory improvements
The NCC, in collaboration with the federal government, made strides in improving the regulatory framework of the telecoms sector. The commission introduced new policies aimed at enhancing consumer protection, such as improved mechanisms for reporting poor service quality and addressing consumer complaints swiftly. There has also been an emphasis on curbing illegal deductions and charges by telecom operators, with the NCC imposing fines on
defaulters. Despite these efforts, there are still complaints from consumers regarding the quality of service. Network disruptions, slow internet speeds, and dropped calls remain prevalent issues, particularly in rural areas. The regulatory bodies need to enforce stricter penalties and monitoring to ensure that telecom providers meet their service obligations.
Challenges
Despite improvements in broadband penetration, a significant digital divide remains, especially in rural areas. The federal government’s promise to bridge this divide has been hampered by infrastructural deficits, security challenges in some regions, and the high cost of deployment. There is a need for a more coordinated approach to ensuring that rural areas benefit from ongoing developments in the telecoms sector.
Data costs in Nigeria remain high, despite efforts to make internet services more affordable. Stakeholders said the federal government needs to collaborate with telecom operators to address this issue and explore subsidies or incentives that can make internet access more affordable for the average Nigerian. Meanwhile, the telecoms operators has continued to agitate for tariff increase considering the high cost of production.
It all started subtly, with murmurs from the major telecom operators — MTN, Airtel, Glo, and 9mobile — about the escalating costs of doing business in Nigeria. The naira had been steadily depreciating against foreign currencies, and the cost of importing equipment, maintaining infrastructure, and investing in new technologies had become a financial burden.
In particular, the energy crisis posed a unique challenge, with diesel prices for powering cell towers skyrocketing due to fluctuating oil prices and persistent fuel shortages. “Every month, our operational costs increase, and we are struggling to maintain the quality of service Nigerians have come to expect,” lamented a senior executive at one of the major telcos. “The telecom industry cannot operate in isolation from the economic realities of the country. We’ve reached a tipping point.”
Backlash
As news of the agitation for a tariff increase spread, it was met with stiff resistance from consumer advocacy groups and the public. In a country where telecommunications have become essential for day-to-day living, any increase in tariffs would have an immediate and widespread impact. From students using mobile data for online classes to entrepreneurs relying on the internet to conduct business, the potential fallout was immense.
Social media was soon abuzz with criticisms of the telcos, accusing them of greed and a lack of empathy for the average Nigerian, who was already grappling with a high cost of living. The fear of losing affordable access to data and voice services sparked public outrage, with calls for the government to intervene and protect consumers. “I can barely afford to pay for my current data plan as it is. If they increase tariffs, how will we survive? Everything is already so expensive,” said one disgruntled customer on Twitter.
Mediation
Caught between the demands of telecom operators and the concerns of the public, the Nigerian government found itself in a delicate situation. The Nigerian Communications Commission (NCC) was tasked with mediating the issue, seeking a balance between allowing the telcos to recover their costs while ensuring that telecommunications remained affordable for the general populace. In a series of meetings with telco representatives, the NCC listened to the grievances of the operators.
They acknowledged the valid concerns raised but emphasized that any potential tariff adjustment would need to be carefully considered, particularly given the socio-economic realities faced by the average Nigerian. “We understand the challenges faced by the telecom operators, but we also have a duty to protect the interests of Nigerian consumers,” said an NCC. “Our goal is to find a solution that ensures the sustainability of the telecom sector while keeping telecommunications services accessible.”
Cybersecurity and data privacy
With increased internet access comes the challenge of cybersecurity and data protection. While the federal government has made moves to strengthen cybersecurity infrastructure, more needs to be done to safeguard users from cyber threats. The Nigeria Data Protection Bureau (NDPB) needs to be more active in enforcing data privacy regulations, particularly as 5G networks expand and more data becomes vulnerable to breaches.
The last year has seen commendable progress in the Nigerian telecommunications sector, particularly in the areas of broadband penetration, the 5G rollout, and regulatory improvements. However, significant challenges remain, including the digital divide, high data costs, and issues related to local content development.
Last line
The Federal Government’s promises have set a clear direction for growth, but more concerted efforts are needed to ensure that these gains are evenly distributed and that the sector continues to serve as a catalyst for Nigeria’s digital economy.