Nigeria’s Information, Communication Technology (ICT) sector continues to experience exponential growth and frequent happenings year on year.
In the telecoms sector alone, the Nigerian Communications Commission (NCC) has recorded more than 140 million subscribers in 2015, making Nigeria the largest telecoms market in Africa and the Middle East.
Although Nigeria’s overall telecoms capacity is relatively high and a number of high-capacity submarine cables have been brought into the country, bringing this capacity into people’s homes remains a major hurdle. Yet despite the challenges, most indicators point to continued expansion.
In recent years, Nigeria has grown into one of Africa’s largest and most vibrant markets for ICT products and services, with an ecosystem that ranges from software start-ups to infrastructure firms.
According to the Federal Ministry of Communication Technology, the federal oversight body, the nation accounts for 29% of all Internet usage on the continent, and this figure is expected to rise.
Despite the rapid pace of growth in recent years, the industry faces a host of challenges, including low broadband penetration in terms of usage and infrastructure access, high operating costs and a lack of local content. Nevertheless, most Nigerian ICT players are looking forward to continued growth ahead.
The year 2015, saw major happenings in the ICT industry starting with the ban on the APC SMS platform – 35350 –meant for fund raising. The Nigerian Communication Commission (NCC), under the leadership of the past executive vice chairman, Eugene Juwah, said that the action of the mobile network operators was running a political advertisement for the APC and was not in compliance with the provisions of the NCC guidelines on the use of shot Codes in Nigeria.
Eugene Juwah who had been reappointed by former President, Goodluck Jonathan for a second tenure before the expiration of his first was On August 4, 2015, replaced with Umaru Danbatta as the Executive Vice Chairman of NCC by President Mohammadu Buhari.
The most talked about story in the sector, which gathered momentum was that of the huge fine of N1.04 trillion imposed on MTN. This fine relates to the timing of the disconnection of the 5.1 million MTN unregistered or improperly registered subscribers and is based on a N200, 000 fine for each improperly registered subscriber. This is reportedly the largest fine issued in the history of telecom infringement.
Nine years after starting the digital switchover process, Nigeria missed the previously set June 17, 2015, digital switchover deadline by the International Telecommunication Union (ITU), for countries to switch from analogue to digital terrestrial television broadcasting.
A new target date of June 17, 2017 was set for Digetal Switchover, and in order to help the country achieve the new target date, Emeka Mba, Director General of Nigerian Broadcasting Commission, approved and witnessed the contract signing between Media Concepts international (MCI) and the third largest Set Top Box (STB) manufacturer in the world, KAON media, to commence the construction of its manufacturing plant in Nigeria, on October 27, 2015.
Witnessing the MUO signing, Emeka Mba said that the entire value chain of broadcasting is changing this year due to the actualisation of digital migration.
Mba said; “This is a significant testament to what we have always envisioned. Sitting here today to witness the agreement signing, with the amount of money and resources put into this development shows the strong belief these companies have in Nigeria.”
He added that, “digital switchover is a monumental project that results in changes to existing technology. The entire value chain of broadcasting is changing and we believe that this is the digital future. It is not just about importing but local manufacturers are involved in the creation of technology to bring beneficial growth in our economy.”
Last year, Nigeria also witnessed the secret sale of 4G spectrum licenses. Sometime in May, the NCC was again in the news for the alleged secret sale of 900MH and 700MHz bands fourth generation (4G) Digital Dividend Spectrum licences to Globacom and Cyberspace Ltd towards the last days of President Goodluck Jonathan’s administration.
The three major telecoms companies in Nigeria, MTN, Airtel, and Etisalat were also in the news for raking in N689.96 billion ($3.45 billion) from the sale of mobile towers, otherwise known as base transceiver stations (BTS), to third party infrastructure companies in a sale and leaseback deal designed to promote network sharing, ensure higher quality, sustain reliable mobile services, lower overall costs and also promote a cleaner environment through reduced diesel usage and increased investments in alternative energy solutions.
The ICT industry seeks to expand further in 2016, with newer developments and fresh ideas from the newly appointed Minister of communication, Adebayo Shittu.
Shittu has expressed positive outlook for the ICT sector in the incoming year, saying that he is open to new ideas and ready to work with key stakeholders to deliver the desired result. Nigerians patiently await the release of the ICT industry blueprint in mid-January this year.
