Telecoms & IT
From The Report: Nigeria 2015
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Over the past decade Nigeria has become the largest telecoms market in Africa and the Middle East, with more than 140m active telecoms subscribers in 2015, according to the Nigerian Communications Commission (NCC), the federal telecoms regulator. As is the case elsewhere in frontier and emerging markets, mobile subscribers accounted for over 99% of this total, with virtually all of that segment controlled by the country’s four GSM operators: MTN Nigeria, Airtel Nigeria, Globacom and Etisalat Nigeria. Nigeria’s overall telecoms capacity is relatively high – a number of high-capacity submarine cables come ashore in the country – but bringing this capacity into people’s homes remains a major hurdle. Yet despite the challenges, most indicators point to continued expansion. Taking into account the nation’s large population and solid economic fundamentals, most local players are counting on continued rapid telecoms uptake. In the past five 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 penetration in terms of both 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. This is due in part to the significant scope for expansion in terms of potential bandwidth – thanks to a total capacity of nearly 10 Tbps, most of it unused, through the existing submarine cables.

This chapter contains interviews with Omobola Johnson, Minister of Communication Technology, and Issam Darwish, Executive Vice-Chairman and CEO, IHS Group.

Articles from this Chapter

Overview

A handful of mobile operators dominate Nigeria’s rapidly expanding telecoms sector
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Over the past decade Nigeria has become the largest telecoms market in Africa and the Middle East, with more than 140m active telecoms subscribers in 2015, according to the Nigerian Communications Commission (NCC), the federal telecoms regulator. As is the case elsewhere in frontier and emerging markets, mobile subscribers accounted for over 99% of this total, with virtually all of that segment controlled by the country’s four GSM operators: MTN Nigeria, Airtel Nigeria, Globacom and Etisalat Nigeria.…

Interview

Omobola Johnson, Minister of Communication Technology: Interview
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Interview: Omobola Johnson What strides have been made in improving telecoms operators’ ability to lay new infrastructure? OMOBOLA JOHNSON: Between 2011 and 2014 over 30,000 km of terrestrial fibre was laid and over 10,000 2G and 3G base transceiver stations (BTS) were installed, bringing in 40m voice subscribers and 28m data subscribers. While this is a substantial addition to telecoms infrastructure, given increased demand for voice and data services, as well as more affordable access, we need…

Analysis

The sale of wireless spectrum in Nigeria set to have a major economic impact
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Under Nigeria’s National Broadband Plan (NBP), launched by the Federal Ministry of Communication Technology (FMCT) in 2013, the government plans to increase wireless broadband penetration in the country to 42% by 2018. This represents a major jump on the current rate of 6% over a relatively brief span, but there is precedent for growth of this magnitude in Nigeria’s broadband market. According to FMCT data, by 2014 the country’s overall bandwidth capacity was around 9000 GB per second, up 26…

Analysis

Rural connectivity: Boosting broadband penetration in remote communities
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As in many developing nations in Africa and around the world, Nigeria’s rural population has declined in recent years as a result of steadily increasing rural-urban migration. While this trend is expected to continue for the foreseeable future, providing public services to rural communities remains a government priority. In terms of telecoms, Nigeria’s rural population is consistently underserved compared to city dwellers, and the major telecoms providers have invested heavily in population…

Overview

Efforts to ensure Nigeria’s technology and IT industries live up to their potential
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In the past five 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 (FMCT), the federal oversight body, the nation accounts for 29% of all internet usage on the continent, and this figure is expected to rise. The sector also is playing an increasingly central role in a traditionally oil-dependent economy:…

Analysis

Outsourcing services in Nigeria’s IT sector
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The National Information Technology Development Agency (NITDA) held Nigeria’s first National Outsourcing Conference in August 2011. The event marked a major push by Nigeria to carve out space in the business processing outsourcing (BPO) sector. The rationale behind this is clear. BPO firms are major employers in markets like India and the Philippines – a key consideration in Nigeria, where unemployment is roughly 24% – and have driven broader growth in the telecoms sectors of those economies.…

Analysis

Efforts in Nigeria to encourate local ICT entrepreneurs
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In recent years Nigeria has developed into a major market for ICT firms of all stripes. With a population of nearly 170m people – more than a third of whom subscribe to mobile internet services, according to the Nigerian Communications Commission – the country is the largest potential market for ICT products in Africa and one of the fastest-growing in the world. The number of mobile internet subscriptions more than doubled from 30.9m at the end of 2012 to 64.2m at the end of 2013. With these…

Interview

Issam Darwish, Executive Vice-Chairman and CEO, IHS Group: Interview
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Interview: Issam Darwish What trends are you seeing in the expansion of network towers in recent years? ISSAM DARWISH: Africa has around a billion people, and the population is young and expected to double in the next 30-40 years. Voice penetration in Nigeria is about 65%, compared to 125% in Morocco or Northern Europe, indicating huge potential. There is massive room for growth in voice, and data is materially underexploited. Everyone wants a smartphone now and wants to communicate with apps,…