Under the direction of Dr. Bosun Tijani, Minister of Communications, Innovation, and Digital Economy, Nigeria’s telecommunications sector has been poorly handled with gaps, according to a recent report by research firm SBM Intelligence. This has raised concerns about the disparity between the Ministry’s digital goals and the realities on the ground.
The report claims that even though Dr. Tijani has introduced audacious plans like the 3 Million Technical Talent (3MTT) program to develop a workforce with digital skills, his strategy doesn’t seem to have the operational depth needed to handle pressing issues in the telecom sector.
According to the study, Dr. Tijani could not have extensive experience of telecommunications infrastructure, a field that is still crucial to Nigeria’s digital transformation, given his background being primarily focused on innovation and the larger digital economy.
“It may be challenging for a minister who lacks a thorough understanding of core telco operations to convert broad digital goals into practical policies that actually support the underlying infrastructure,” the research said.
The Problems in the execution of policies in one area where the Minister has fallen short of expectations was the Critical National Information Infrastructure (CNII) Protection policy, according to the report.
Under Dr. Tijani’s leadership, the Critical National Information Infrastructure (CNII) Protection strategy is one instance of an implementation challenge.
Despite President Tinubu’s August 2024 designation of telecom infrastructure as CNII, telco operators continue to report vandalism and attacks.
In the research, SBM said, “They attribute this to a perceived ‘lack of direction on the enforcement of the policy and the government’s failure to designate a specific security agency for the enforcement,’ indicating a clear disconnect between policy formulation and effective execution.”
The research also pointed out that systemic problems still exist even though the government plans to install 90,000 kilometers of fiber optic cable and is aiming to invest $3 billion in telecom infrastructure.
These include hefty right-of-way (RoW) fees, several taxes, and macroeconomic factors including devaluation of the currency, inflation, and rising diesel prices, all of which have made telecom providers less financially viable.
SBM Intelligence also assessed the tenure of the immediate former Minister, Dr. Isa Pantami, in the report “Signal Strength: The Past, Present, and Future of Nigerian Telecom.” The report noted that while Pantami was a strong supporter of Nigeria’s “digital economy” agenda and pushed for digital transformation and the adoption of enabling policies, his tenure was not without controversy.
The telecom industry was significantly impacted by the NIN-SIM linking policy, which was introduced in December 2020.
Together, mobile operators lost over nine million active internet users in 2021 alone. Additionally, the analysis noted that Nigeria suffered significant economic losses of an estimated $366.9 million as a result of the government’s directives for network shutdowns, including the June 2021 ban on Twitter.
However, it noted that important milestones were accomplished under Pantami’s direction, such as the creation of the National Digital Economy Policy and Strategy (NDEPS) and the effective rollout of 5G, which helped to generate N1 trillion in income.
Some Important suggestions for the sector were discussed with SBM Intelligence stating that the government must give telecoms top priority in CBN forex allocations in order to map out a viable future for the industry.
Along with specifically identifying and empowering security agencies for enforcement and guaranteeing accountability for vandalism, it also called for the creation of strong and enforceable measures for safeguarding vital national information infrastructure (CNII).
According to the report, the government must also address exorbitant right-of-way fees and double taxation in order to encourage private sector investment in network growth.
In order to balance industry viability with consumer welfare and national development goals, the research firm recommended that the Nigerian Communications Commission (NCC) require public consultations prior to tariff hikes and encourage more in-depth and organized communication and cooperation between government agencies, telecom operators, and civil society organizations.
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