Boosting Nigeria's internet penetration

Nigeria has reported a significant growth in broadband penetration, reaching 44.5% in July from 40.9% in February. The government has set an ambitious target of achieving 70% broadband penetration by 2025. To discuss the role of the private sector in achieving this goal, Kendall Ananyi, the Founder and CEO of Tizeti, joined CNBC Africa for an insightful interview. Ananyi highlighted the opportunities for internet providers to complement the work of mobile network operators in expanding broadband access across the country. While major cities like Lagos, Rivers State, and Abuja are well covered with broadband, there is still a significant gap in internet accessibility in the other 33 states, where reliance on mobile data limits usage. Ananyi emphasized the need for affordable internet solutions in these underserved regions to bridge the digital divide. Tizeti, with its focus on cost-effective infrastructure deployment, aims to provide internet access at a more affordable rate, particularly in areas where traditional telcos face challenges. The interview also delved into the evolution of the industry, with the introduction of more submarine cables promising cheaper internet in the future. Ananyi noted that while the increase in cables offers more bandwidth, the key challenge lies in effectively delivering internet connectivity to end consumers. Tizeti's infrastructure is designed to connect submarine cables to its network, ensuring a seamless transmission of internet services to homes and businesses. Looking ahead, Tizeti is planning to explore capital markets to fund its expansion efforts. Ananyi revealed the company's intention to raise capital through a mix of equity and debt, leveraging its track record of profitability and growth in Nigeria and Ghana. With profitable subsidiaries in both countries, Tizeti aims to reinvest its cash flow to expand operations in West Africa. The company's expansion strategy includes entering new markets in English-speaking African countries, as well as establishing a presence in Francophone West Africa. By setting up a French headquarters, Tizeti aims to tap into the French market and leverage wholesale capacity to drive growth. Ananyi highlighted the strategic location of Tizeti's French HQ, which positions the company to access markets like Togo and other countries with limited internet providers. By adapting successful strategies from its Nigerian and Ghanaian operations, Tizeti aims to navigate regulatory and market challenges in new regions while maintaining profitability and stability. The company's expansion into diverse markets underscores its commitment to becoming a leading internet service provider across Africa, bridging the digital divide and fostering economic growth.