Nigeria’s telecommunications sector posted a sluggish development in 2021 over the assorted coverage positions taken by the federal government.
Current numbers printed by the Nationwide Bureau of Statistics (NBS) confirmed a decline in web customers by 7.99 % to 141.9 million.
By implication, it means cell telecoms operators misplaced about 9 million knowledge subscribers in 2021.
Based on the report, Nigeria had 141.97 million energetic web subscribers on the finish of the fourth quarter of 2021 in opposition to 150,8 million in January 2021.
NETWORK SHUTDOWNS AFFECTED SUBSCRIBERS’ DATA IN KATSINA, KANO, ZAMFARA
Evaluation of the report confirmed that Katsina, Kano, Sokoto, Zamfara, and Ogun states recorded declines in 2021.
Whereas Katsina and Kano states recorded 1.21 million and 1.15 million year-on-year, respectively. Web subscribers in Zamfara (888,817), Sokoto (676,259) and Ogun state (574,727) additionally recorded declines.
HOW GOVERNMENT REGULATIONS PLAYED OUT
In December 2020, Isa Pantami, minister of communications and digital financial system, directed the Nigerian Communications Fee (NCC) to audit the subscriber registration database.
He additionally instructed cell community operators to droop the sale, registration, and activation of latest SIM Playing cards till the completion of the audit train.
The coverage additionally denied new entrants into the nation entry to buy cell traces, whereas additionally making it troublesome for present customers who need to retrieve their misplaced traces to take action.
Moreover, on June 5, 2021, President Muhammadu Buhari ordered the shutdown of Twitter over a deleted tweet. The ban lasted for over 100 days, costing the nation round $366.9million earlier than it was lifted in October.
In September 2021, the Nigeria Communications Fee(NCC) instructed all telecommunications firms to close down their companies in Zamfara over incessant insecurity within the state.
The order, which got here on August 3, was speculated to be for 2 weeks, nevertheless it was lifted in November following an outburst from civil society organisations (CSOs).
Previous to that, there had been a shutdown of telecommunication companies in 14 out of 23 native governments in Sokoto as a part of efforts to examine banditry.
On September 9, 2021, Katsina additionally shut down 13 out of 34 native governments, together with Funtua, Malumfashi, Bakori, Dutsin Ma, Faskari, Sabuwa, Dandume, Safana, Batsari Kankara, Danmusa, Jibia, and Kurfi.
The state had a complete of three.5 million energetic web customers in This fall 2021.
BAD MARKET FOR TELCOS
Consultants mentioned the mixture of those developments advert a pricey impression on the sector.
Checks by TheCable confirmed that MTN misplaced about 5.1 million subscribers, dropping from 63.9 million to 58.8 million between January and December 2021.
Additionally, Airtel Nigeria misplaced 2.5 million subscribers between January and December 2021, whereas 9mobile misplaced 1.13 million subscribers throughout the similar interval.
Globacom, alternatively, misplaced about 470,000 subscribers throughout the similar interval, in response to knowledge on the Nigerian Communications Fee (NCC) web site.
The data and communication sector of the Nigerian financial system recorded its slowest development in 14 quarters. Based on the fourth-quarter GDP report, the ICT sector contributed 15.5 % to the combination actual GDP with N11.23 trillion in 2021, representing a 6.55 % enlargement in comparison with N10.54 trillion recorded within the earlier yr.
‘CRIMINALS HAVE DESERTED TELCOS’
Talking on the decline of web customers, Pantami had mentioned the web subscribers that abandoned the telcos inside one yr are principally criminals.
“The over 12 million which have dropped are principally criminals that can’t come out to regularise their numbers,” the minister had mentioned.
EXPERTS SAY POLICY POSITIONS STIFLED GROWTH
Talking to TheCable, Boye Adegoke, senior programmes supervisor, Paradigm Initiative (PIN), described the expansion within the sector as “pathetic”, particularly at a time the nation is attempting to de-emphasise the oil sector as its main supply of international alternate.
“It’s pathetic and unlucky,” he mentioned.
“The sector was performing so properly till just lately. It’s unlucky.”
For Adegoke, a key motive for the sector’s abysmal efficiency is poor authorities coverage — the Twitter ban and actions of the minister of knowledge which additionally embody attempting to control streaming companies.
He mentioned sector-peculiar issues like the precise of approach, fundamental infrastructure resembling energy, have additionally contributed to the throes within the telecoms house.
“So long as Nigeria has energy challenges, our telecom sector can’t function on the highest potential doable,” he added.
Gbenga Sesan, the manager director, PIN, mentioned the gradual development is the results of the coverage place taken by Pantami.
Sesan mentioned the selection to clamp down on the sector as a result of insecurity was ill-advised, noting that actions taken haven’t helped the safety scenario anyway.
He added that the deal with creating a number of ranges of forms by the NIN-SIM linkage decreased the uptake of SIM playing cards and led to a big drop within the variety of subscribers.
“Which implies income loss for telecommunications firms and authorities, and naturally, an enormous loss to the financial system,” he mentioned.
“Authorities is standing in the best way of progress by its coverage summersaults.”
Because the civil society organisations are advocating for change, he urged firms to push again higher “as a substitute of complying with each — together with unlawful — directive(s)”.