Technology Development in the Nigerian Telecommunication Sector

A brief outlook of technology development in the telecommunications sector. The uptake, challenges and potential solutions to technological development issues in the industry.

Overview of the telecommunications sector

In just over 20 years since privatisation, the Nigerian telecommunications sector has significantly grown. In a short period, the number of telephone lines has increased from 400,000 lines by NITEL to having about 300 million connected GSM lines. This sector has received investment totalling $75 billion in over 20 years. While the telecommunications story is a top bright spot in Nigeria, and great things are being accomplished in the sector, much more can be accomplished.

With the rapid adoption of mobile phones that support 5G, 4G and 3G services all over the country, the sector’s growth is expected to be fast. By 2025, 3G will likely join the 2G networks already shut down. It is also believed that most mobile connections will be on 5G by 2029. The future indeed looks very bright for the telecommunications sector in Nigeria.

Benefits of telecommunications in Nigeria

As one of Africa’s largest telecommunications markets, telecoms contribute more than 17% to the Gross Domestic Product of Nigeria. It is no doubt that telecommunications have immensely contributed to the economy of Nigeria and Nigerian lives. Telecommunications has paved the way for other sectors in Nigeria to develop. For example, banking has been made easier through mobile banking apps; there are also different e-learning, e-health and e-commerce platforms, all aided by the telecommunications sector.

Besides making essential communication and dissemination of information more accessible, the telecommunications sector also became a trusted ally for businesses, religious and social organisations, and individuals during and after the COVID pandemic. Remote work and online meetings and interactions have been made possible through telecommunications.

Uptake of telecommunication technologies in Nigeria

Over the past couple of years, the uptake of telecommunication technologies and services has risen. It has primarily been attributed to the restrictions and lockdowns brought by the COVID 19 pandemic. Due to the need to communicate and hold conferences, classes and virtual meetings on video technologies, there has been an increase in the number of uptakes of telecommunication technologies.

Many people have become internet users in two years because of the shift to remote working. More businesses are becoming dependent on telecommunications in delivering their products and services. Telecommunications now plays a vital role in keeping societies, governments, and businesses connected. The increasing importance of telecommunications means a corresponding rise in the uptake of telecommunication technologies in Nigeria.

Technological challenges facing the telecommunications sector

Some of the challenges facing the telecommunications sector include:

1. Infrastructure: there are still places without 2G/3G services or networks. The major challenge for the telecommunications sector is ensuring that everywhere is connected, especially the rural areas. Power is also a significant challenge as network providers must depend on diesel generators to ensure they remain online. They also must deal with vandalisation by unscrupulous elements.
2. Network Security: with emerging technologies, a major technological challenge is ensuring network security. New technologies usually bring new threats to applications and network security.
3. Complex operational processes: network providers have millions of subscribers and offer varying products and services. This makes operational tasks very complex for network providers, especially in an era where we are trying to eliminate face-to-face assistance.

Solutions to technological development issues in the telecommunication sector

The solution to technological development issues is reform, and this is addressed by the new strategic vision plan (SVP) by the Nigerian Communications Commission (NCC). The SVP aims to increase consumer engagement and ubiquitous services and enable cross-functional infrastructure. This is going to help consolidate the growth of the telecommunications sector.

There is a need for the telecommunications sector to be considered essential to Nigeria’s economic development since it provides the infrastructural backbone for a new digital economy that helps drive socioeconomic development in all the sectors of the economy (Mobile banking, eCommerce). For economic growth, it is crucial to invest in telecommunications infrastructure. Only proper infrastructure can lead to effective and efficient operations. Through investments in telecommunications, network security can also be upgraded to meet the requirements of new technologies.

_____________________________________________________________

Copyright © Akingate. All Rights Reserved.

See our copyright notice.

Image Credit: 446205 © Winterling | Dreamstime.com