Ahead of Nigeria's $1 trillion economy target by 2030, industry leaders emphasize that telecom and digital infrastructure are crucial. At a high-level digital infrastructure panel in Abuja, stakeholders discussed the transformative potential of Nigeria's digital space and operational hurdles that must be resolved to sustain Foreign Direct Investment (FDI). The event, organized by the Nigerian Communications Commission (NCC), aimed to outline a clear consensus on the critical foundation required to propel Nigeria into a $1 trillion economy.
Nigeria's demographic landscape provides a competitive edge, with a median age of 18 to 19 and a vast, digitally savvy youth population driving exponential growth in data consumption. The MTN Chief Technical Officer, Yahaya Ibrahim, noted that Nigeria is transitioning toward an "intelligent economy" driven by artificial intelligence and advanced digital services. This shift is expected to significantly contribute to the country's economic growth.
Mobile Network Operators (MNOs) have made significant investments in local network expansion. The Airtel Nigeria CEO, Dinesh Balsingh, revealed that his organization has committed nearly $3.3 billion to network expansion since inception. He praised the NCC for advocating reduced Right-of-Way (RoW) fees across states, with over 13 states eliminating or reducing RoW fees to the federal benchmark of N145 per meter.
However, challenges persist, including state-level road reinstatement charges that often offset gains from reduced RoW fees. Dinesh Balsingh warned that these charges can be a significant burden on MNOs. In contrast, the federal model allows operators to directly reinstate dug-up roads to statutory standards.
Power management is a critical concern for telecommunications companies, given the unreliable national grid. The IHS Towers CFO, Seye Dosunmu, emphasized the need for alternative energy sources, such as solar-hybrid and high-capacity battery storage systems. These solutions can provide cleaner, more affordable energy for off-grid sites.
Smaller operators and Internet Service Providers (ISPs) also face challenges, including high middle-mile transit and power costs. The Spectranet COO, Sumit Gambhir, echoed concerns about the significant burden of these costs on non-MNO entities lacking massive capital scale. These challenges must be addressed to ensure a level playing field for all industry players.
The NCC has called for stronger investor confidence to help close Nigeria's digital infrastructure gap. The Executive Vice Chairman, Dr Aminu Maida, noted that the forum marks 25 years of the GSM journey, reflecting the impact of bold policy reforms and transparent licensing on communication. The Commission seeks to put evidence before regulation to drive growth in the sector.
Key points
- The Nigerian Communications Commission (NCC) is seeking investors to close digital gaps and support the country's goal of a $1 trillion economy by 2030.
- Industry leaders emphasize that telecom and digital infrastructure are crucial to achieving Nigeria's economic growth target.
- The NCC has advocated for reduced Right-of-Way (RoW) fees across states to encourage investment in network expansion.
