Gbenga Adebayo, Chairman of the Association of Licensed Telecom Operators of Nigeria (ALTON), has emphasized that the telecom sector should not be seen as a mere palliative solution for economic challenges.
He made this assertion during his address at the launch of the Groupe Spécial Mobile Association (GSMA) digital economy report in Abuja.
Adebayo underscored the myriad challenges facing the telecom industry, impeding its growth and development.
He stressed the importance of sustainable investment, effective regulation, and a conducive business environment to propel progress within the sector.
The GSMA digital report, unveiled on May 9th, 2024, highlights the telecom’s significant contribution to Nigeria’s GDP, accounting for 8%, and 13.5% when considering the broader ICT ecosystem.
However, it also sheds light on the considerable challenges confronting the industry, including investment hurdles, right of way issues, multiple taxation, and regulatory constraints.
Adebayo pointed out the burden of over 45 associated charges and levies on operators, despite supposed removals of right of way costs.
He lamented that such practices create an unfavorable business climate, deterring investment and hampering the industry’s capacity to deliver quality services.
Additionally, he emphasized that regulatory interference and the lack of regulator independence further exacerbate these challenges.
“The price review should be a simple regulatory process. The public debate this has gained makes it appear the industry is insensitive to people’s concern. While the government tries to provide incentives for the public on account of ongoing macroeconomic headwinds, the telecoms sector should not be used as a palliative to solve the people’s problem. We must price right to sustain the industry; we must price right to have the right investment,” Adebayo asserted.
He concluded by stressing that the industry must be allowed to operate sustainably, with appropriate investment and regulation, to deliver quality services and drive economic progress. Adebayo encouraged stakeholders, including policymakers, regulators, and operators, to collaborate in addressing the challenges facing the industry, ensuring its potential as a critical sector in Nigeria’s economy is realized.
