Telcos: After 61 Years of Independence, Telecommunications Sector has Significantly Impacted Nigeria’s Economy

Emma Okonji

Ahead of tomorrow’s 61st Independence anniversary celebration, telecommunication operators (Telcos) in the country have stated that the telecoms sector has significantly impacted the Nigerian economy in various ways, especially in the past 20 years of the rollout of Global System for Mobile Communications (GSM).

Chairman of the Association of Licensed Telecoms Operators of Nigeria (ALTON), Mr. Gbenga Adebayo, while recounting the gains and challenges of the telecoms sector since Independence in 1960, said for 41 years from the time Nigeria gained Independence in 1960 to the time of GSM rollout in 2001, the country was able to connect only 400,000 lines, which he attributed to an era where it was declared by government that telecommunications was the exclusive right of the affluent in the society.

Adebayo who spoke exclusively to THISDAY said from 2001 when GSM services were commercially rolled out, up till date, Nigeria has recorded over 200 million connected telephone lines, thereby giving telecoms access to majority of Nigerians, despite the increased population of the country.

“For 41 years of Independence, which was before the rollout of GSM services in Nigeria, the country had 400,000 lines, but at 61 years of Independence which was after the roll out of GSM services, Nigeria has over 200 million telephone lines. This means that in the past 20 years, when GSM was rolled out, Nigerian population has increased and more people now have access to telephone lines. This goes to show that GSM is a tool and bedrock for faster development in the telecoms sector, which other sectors now rely on for growth and development.

“In the past 20 year of GSM rollout, telecoms has also added to the country’s Gross Domestic Product (GDP), and it has made great contributions to Nigeria’s economy. So we are bold to say that telecommunication has done well and has remain one of the pillars of modern development and economic emancipation of Nigeria,” Adebayo said.

He further told THISDAY that looking inward; it was obvious that Information and Communications Technology (ICT) had become the future technology that countries must adopt. “Given the foundation, which ICT has enabled, one can quickly say that in another 10 years, Nigeria will be among the comity of nations that will be leading in modern science and development, with telecommunications becoming one of the pilots of such development, ”Adebayo said.

According to him, the growth and development that have been enabled by the telecoms sector since Independence has been tremendous.

Citing such growth and development, Adebayo said in 2001, Nigeria’s teledensity was 0.04 per cent, but has risen to 99.18 per cent as at August 2021.

He also said broadband penetration was 0.6 per cent in 2010, but rose to 19.49 per cent in August 2017, with a further rise to 41 per cent in August 2021.

In the area of GDP growth, Adebayo said telecoms contribution to GDP was 7.40 per cent in Q4 2013, and it increased to 14.42 per cent in Q2 2021.

He said pricing in the telecoms sector has continued to drop, compared to other sectors. According to him, the cost of SIM card in 2001 was N20,000, but it has significantly dropped to as low as N100 in 2021.
Speaking on service quality, Adebayo said although there had been improvement in service quality since 2001, he however said various environmental factors that are beyond the telecoms regulator and operators are still impeding service quality.

He added, “For Nigeria to have unhindered service quality, all critical factors must be looked into, which he said, include electricity supply, roads, government policies on Right of Ways (RoWs) and multiple taxation.”
Adebayo therefore advised government not to tax telecoms operations to death, as currently been seen in some states of the federation.

Adebayo who commended the federal government for the approval of 5G network rollout in Nigeria, said: “At 61 years of Independence, government has made the right decision to approve the policy on 5G rollout for Nigeria. This is because 5G is the next generation network that will speed up development. Countries without 5G will be stifling their growth and development. So the approval of 5G rollout in Nigeria by the Federal Executive Council (FEC), which coincides with the 61st Independence celebration of Nigeria, is quite significant and this will provide solid foundation for the future development of ICT in Nigeria.”

“So many things that will speed up the country’s development, will ride on ICT infrastructure just like the eNaira that is currently being introduced by the Central Bank of Nigeria (CBN). 5G is the technology that is sought-after and it is coming at the right time when Nigeria is celebrating her 61st Independence, Adebayo further said.