Bolaji Balogun, chief executive officer of Chapel Hill Denham, has said that integrating digital infrastructure can transform Nigeria’s economy.
Balogun disclosed this during his keynote speech at the Financial Derivatives Company’s Telecoms Industry 2-0: The Next Frontier in Nigeria event, which was recently held in Lagos.
“We cannot secure this nation without improving our digital infrastructure. Our digital infrastructure has the power to change Nigeria’s economy. While significant investment has been made in the sector, there is still much work to be done,” he said.
He added, “If we are going to leapfrog and change this country, we would have to leapfrog our structures, from BVN to NIN, and all things in our digital infrastructure arsenal.”
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He further stated that there are many areas for further investment to improve the digital infrastructure in Nigeria.
“If the country is going to develop, broadband penetration must be improved. Nigeria is too large for the broadband penetration it has. Also, there is a need for improved service quality, improved smartphone penetration and ultimately, the development of tech talents,” he argued.
Balogun further added that there is a need for Nigeria to address the issue of scale in its digital economy. “According to projections, Nigeria’s population can become the 5th largest country in the world before 2075. Also, in less than 10 years, Nigeria will be ranked the third-largest mobile market globally. However, we cannot achieve this feat without scaling our operations,” he said.
Also at the event, Gbenga Adebayo, Chairman of the Association of Licensed Telecom Operators of Nigeria (ALTON), noted that the telecoms industry is now a victim of its success.
“The telecom industry has become a victim of its success. The industry has been seen now as a source of income for the government at various levels,” he said.
While highlighting the sector’s progress over the years, the ALTON chairman stated that government interference is putting businesses.
“Experts believe that government interference in businesses poses a risk to the repayment of their investments. They ask what happens when your government develops a new policy.”
Adebayo cautioned that the high energy cost is fast becoming a constraint to the telecom industry.
“The biggest constraint we have in the telecom industry is the high cost of energy. If the government had continued to fulfil its part of the bargain it made in the early 2,000s to provide 18 hours of electricity, the heavy logistics and the capital we spend today from powering sites would not be there,” he stated.
The chairman urged the government to come to the aid of the sector. “The government should stimulate foreign investment to relieve the industry of the strain,” he added.
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Industry experts at FDC’s event included Karl Toriola, CEO of MTN Nigeria, and Carl Cruz, CEO of Airtel Nigeria. They decried the sector’s current state and noted that economic headwinds are affecting it and its ability to attract foreign exchange.
“Industry collaboration with regulators is also very essential for the country to progress. It is, therefore, imperative for players in the telecoms industry to engage in constant communication with our regulators, especially to address the limiting factors affecting the telecoms business,” Cruz added.
