Finance Minister Wale Edun has highlighted that insufficient regulatory frameworks and excessive taxation are significant barriers to growth in the telecommunications sector.
Edun made these remarks during a Business Roundtable focused on Investments in Broadband Connectivity and the Protection of Critical National Information Infrastructure, which took place on Wednesday in Abuja.
The two-day event, hosted by the National Communications Commission (NCC), centered around the theme: “Right of Way and Protection of Broadband Infrastructure: The Path to Successful Broadband Investment and Connectivity.”
Represented by Dr. Ali Mohammed, Director of Home at the Ministry of Finance, Edun called on the private sector to enhance its investment in the telecommunications industry, emphasizing that the Federal Government alone cannot address these challenges without collaborative efforts.
“This sector is highly vulnerable and densely packed, which is why we urge both local and international investors to engage in investments here,” he stated. “We have identified connectivity and broadband infrastructure development as key issues in Nigeria.”
Despite acknowledging other existing challenges, Edun expressed optimism that they are manageable. “It is crucial for stakeholders to unite in addressing these specific issues,” he added.
Abdulrahman Abdulrazaq, Chairman of the Nigerian Governors Forum (NGF), underscored the importance of broadband connectivity as a vital component of infrastructure and the backbone of Nigeria’s socio-economic future. Represented by Abdulateef Shittu, the NGF’s Director-General, Abdulrazaq affirmed governors’ full support for the nation’s digital transformation agenda.
“We are committed to achieving an 80 percent broadband penetration by 2027, which necessitates laying an additional 95,000 kilometers of fiber-optic cable across the country. This ambitious endeavor requires sincere collaboration among all stakeholders present today,” stated Abdulrazaq, who is also the Governor of Kwara State.
Dr. Aminu Maida, Executive Vice-Chairman of the NCC, noted that a previously approved increase in telecom tariffs has successfully attracted $1 billion in investments to the sector. “In alignment with our economic regulatory mandate, the commission approved tariff rates that are both cost-reflective and competitive within the telecommunications industry. This strategic regulatory measure has significantly bolstered investor confidence,” he explained. “I can assure you that operators have committed to investing over $1 billion in additional infrastructure rollout to enhance broadband coverage and capacity nationwide.”
National Security Adviser Nuhu Ribadu, represented by AVM Enebong Effiom, Director of Critical National Assets and Infrastructure Protection at the Office of the National Security Adviser (ONSA), emphasized the need for the NGF to promote consistency and consensus among states. Ribadu added that the NGF could enhance compliance with security matters through peer engagement and alignment of state policies with national objectives. “The forum can also facilitate dialogue on all regulated broadband issues that impede digital inclusion and infrastructure growth,” he stated.