How Nigeria can sustain investment inflow in telecom infrastructure

Nigeria is gearing up for a significant investment inflow of as much as 3 billion dollars in the telecommunications equipment and fiber optic infrastructure by mid-2025. The crucial question on everyone's mind is: Can this momentum be sustained with the right business environment and policy reforms? In a recent exclusive interview on CNBC Africa, Kendall Ananyi, the CEO of Tizeti, shed light on the current landscape and what needs to be done to ensure the sustainable growth of the telecom sector in Nigeria. Ananyi emphasized the urgent need for a national backbone built with fiber optics to further expand connectivity across the country. He highlighted the progress made with submarine cables landing in key cities like Lagos and Port Harcourt, laying the foundation for extending connectivity to urban, semi-urban, and even rural areas. This ambitious project signifies the importance of continued commitment from the investment community in Nigeria. One of the key challenges facing companies in the connectivity space, according to Ananyi, is the affordability and access to backhaul. The high cost of internet capacity outside major cities like Lagos poses a significant barrier to investment and expansion. However, Ananyi's company took a proactive approach by expanding services to additional states despite the cost challenges. With the expected 3 billion dollar investment influx, Ananyi is optimistic that the increased options for backhaul will drive down operational costs, ultimately leading to more affordable services for customers. The recent tariff reviews in the telecom sector have also played a crucial role in improving unit economics and stimulating further investment. Ananyi pointed out that the tariff adjustments have been well-received by customers and are expected to strengthen the business case for investing in digital infrastructure in Nigeria. In the pursuit of scalability and a supportive ecosystem, access to the right funding is paramount. Ananyi revealed that Tizeti is in the final stages of preparing for an IPO, which will enable them to raise capital for expanding their free fiber service launched in December. The upcoming IPO is poised to attract both retail and institutional investors, setting the stage for accelerated growth and development in Nigeria's telecom industry. Reflecting on Tizeti's operations in Ghana, Ananyi shared positive results, with the improved exchange rate and stable power supply contributing to the company's profitability in the region. With a clear roadmap for growth and continued success, Tizeti is poised to make significant strides in the telecom sector, both in Nigeria and beyond. The future looks promising for Nigeria's telecom infrastructure, with key stakeholders like Tizeti at the forefront of driving innovation and connectivity. As the country prepares to welcome substantial investments and implement strategic reforms, the stage is set for a transformative period in the telecommunications landscape, paving the way for greater access, affordability, and connectivity for all Nigerians.