FDI into Nigeria’s telecom sector hits $2.5bn in 4 years

Nigeria's telecom sector has been a focal point of discussion recently, with the country securing a staggering $2.5 billion in foreign direct investment between 2019 and 2022. Tony Emoekpere, the President of the Association of Telecommunication Companies of Nigeria, shed light on the remarkable growth the sector has witnessed and the challenges that lie ahead. With the industry showing promising signs of growth year on year, it's no surprise that investors are keen on tapping into this burgeoning market. However, amidst the success story, there are looming concerns regarding the return on investments as operating costs continue to rise steadily. Emoekpere highlighted the challenges faced by operators, with costs skyrocketing by over 40% in the last five to six months, while tariffs remain stagnant. This disparity poses a significant hurdle for telecom companies striving to maintain profitability in the face of escalating expenses. Despite these challenges, the sector remains resilient, with stakeholders focusing on enhancing the quality of service to meet consumer demands. Emoekpere emphasized the importance of safeguarding communication infrastructure by designating it as critical national assets to prevent vandalism and disruptions in service delivery. Operators are committed to providing top-notch services to consumers, recognizing that enhanced service quality directly impacts their bottom line and revenue generation. The industry's efforts to engage communities and raise awareness about the vital role of telecom infrastructure in society have been instrumental in fostering a collaborative approach towards mitigating challenges such as infrastructure vandalism. Recent engagements between industry stakeholders and the new leadership at the Nigerian Communications Commission (NCC) have set a positive tone for future collaborations. Emoekpere praised the NCC's proactive stance in addressing industry concerns and its commitment to achieving result-oriented outcomes. Ongoing discussions on tariff adjustments aim to strike a balance between revenue generation and service quality, ensuring that any hikes are paralleled by tangible service improvements. Furthermore, efforts are underway to resolve longstanding issues, such as the USSD dispute between telcos and banks, to streamline operations and enhance the sector's efficiency. Ultimately, the telecom industry's pivotal role in driving economic growth and connectivity across sectors underscores the need for sustained efforts to overcome challenges and foster a conducive environment for innovation and development.