The Nigerian Communications Commission (NCC) has tasked licenced Mobile Network Operators (MNOs) to double their telecom investments from $70 billion to $140 billion over the next 10 years. According to the Commission, this should be done by positioning widespread network infrastructure across the country.
Reasons for this: The Executive Vice Chairman of NCC, Prof. Umar Garba Danbatta gave this directive because the $70 billion investment was not adequate for Nigeria’s telecommunications market which is one of the fastest growing telecommunications markets in the world.
He said this would help meet the growing demand for affordable and accessible broadband services, promote the growth of businesses across all sectors of the economy and create employment for the teeming youth.
What does this mean: These investments, when doubled, will help reach more Nigerians with basic telecom infrastructure and services. As of now, over 40 million Nigerians are yet to be reached because of the unavailability of broadband services, especially in the rural areas.
Danbatta said the need for service providers to increase their infrastructure deployment came as a result of the ever-increasing demand in the country. Therefore, it is mandatory to create more room by doubling the size of the investment.
“The NCC roadmap for broadband has created new frontiers for investment. The quest for data and social media, as well as the increasing value–added services creates new frontiers for investments. Therefore, the desire for investment in the sector will continue to grow as the size of the network increases.”
Why this matters: Robust telecommunications network is important for economic growth and this can be made possible through investments. Investing in telecommunications infrastructure is also crucial because telco products such as cable and switches lead to increase in the demand for goods and services used in their production. These all transcend to prosperity for the country.