Network outages, the history of NIN-SIM, expensive data, a serious problem for the telecom industry – The Sun Nigeria

By Chinenye Anuforo (email protected)

Nigeria the telecommunications sector over the last year under President Bola Tinubu has been like a rollercoaster roller coaster ride. It had its ups and downs. Nevertheless, there have been significant changes in the sector, largely driven by government policy decisions. These policies have introduced both positive advances and groundbreaking measures, leaving the industry with both opportunity and uncertainty.

The NIN-SIM saga

The most dominant topic during this period was the policy of linking cards to the NIN-SIM national identification number. Amid growing security concerns, particularly over SIM-enabled kidnappings, the government has ordered phone numbers to be linked to verified National Identification Numbers. “The intention of this policy is undoubtedly positive,” said Eng. Bisoye Coker-Odusote, Director General/Chief Executive Officer, National Identity Management Commission (NIMC). “Combining SIM cards with NINs increases security and helps fight criminal activity.”

However, the hasty implementation of this policy caused significant disruptions. Massive confusion and a tight deadline for compliance led to network outages as millions of people tried to register their NINs. “The short time and lack of clear communication caused unnecessary panic,” lamented Kunle Olusanya, a Lagos businessman. Industry estimates suggest there will be a decline of approximately 9 million data users by the end of 2023, underscoring the immediate negative impacts.

Despite temporary setbacks, the long-term benefits of the NIN-SIM policy cannot be ignored. Increased security in the telecommunications space fosters trust and encourages greater adoption of mobile financial services, which is a key aspect of financial inclusion in Nigeria.

Data takes center stage

The most significant trend throughout the year was the undeniable shift towards data services. Voice calls, traditionally the main source of revenue, have seen a decline. Mobile Internet access and data packages have become the main source of income for major operators such as MTN, Airtel, Globacom and 9mobile. This trend reflects Nigeria’s growing digital landscape, with a surge in smartphone use and an increased reliance on online services in everything from banking to entertainment.

Analysts predicted that data-driven growth would continue. Afrinvest, a leading Nigerian research firm, highlighted rising internet penetration rates and a growing young, tech-savvy population as key factors driving this trend.

In this case, government policy played a mixed role. On the positive side, initiatives such as the National Broadband Plan 2020-2025 aim to increase broadband penetration across the country, supporting a data-driven economy. However, concerns remain about right-of-way (RoW) fees levied by government agencies on operators to deploy infrastructure, which may inflate the cost of services and hinder data affordability for some Nigerians.

Building infrastructure for 5G and more

Although the NIN-SIM policy dominated the headlines, positive developments were noted. The government’s continued focus on spectrum allocation and infrastructure investment has provided much-needed improvement. This has encouraged telecom operators such as MTN Nigeria and Airtel to upgrade their networks and expand their coverage, especially in rural areas that were previously underdeveloped.

“Focus on infrastructure development is crucial for long-term growth,” said Gbenga Adebayo, president of the Association of Licensed Telecommunications Operators of Nigeria (ALTON). “These investments not only improve connectivity across the country, but also pave the way for future technologies like 5G.”

The potential of 5G technology has been a major topic of conversation throughout last year and into the present. With its promises of ultra-fast speeds, low latency and increased network capacity, 5G has the potential to revolutionize sectors ranging from healthcare and education to manufacturing and agriculture.

Artificial intelligence

While 5G has been making headlines, another emerging technology, artificial intelligence (AI), has quietly started making an impact on the Nigerian telecommunications sector. Telecom operators are exploring the potential of artificial intelligence to automate network management, optimize resource allocation and personalize customer experiences. “Artificial intelligence has the potential to change the way we operate,” said technology expert Jide Awe of Jidaw Systems Limited. “From predictive maintenance to enhanced cybersecurity, AI can significantly improve efficiency and service delivery.”

However, concerns remain about the ethical implications of artificial intelligence in the telecommunications space. Issues such as data privacy, algorithmic bias and job relocation require careful consideration and the development of a proactive policy framework.

Challenges and uncertainties

Despite progress, significant challenges remain. The main obstacle remains the digital divide, or the gap between those who have access to the Internet and those who do not. While government initiatives such as the National Broadband Plan aim to fill this gap, concerns remain about their effectiveness and funding.

Another major problem is the decline in foreign direct investment (FDI) in the telecommunications sector. Data from the National Bureau of Statistics (NBS) shows a staggering 70.5% decline in FDI in 2023 compared to the previous year. “The uncertain regulatory environment and economic instability discourage foreign investors,” explained Muyiwa Lukman, an economic analyst at the Lagos-based firm. “Creating a more predictable and investor-friendly environment is critical to attracting the capital needed to fuel continued growth.”

Looking to the future

“As Tinubu steps into his position, navigating in this changing landscape, cooperation between policymakers, telecommunications operators and society will be paramount,” Adebayo said.

“Finding a balance between security measures, promoting innovation and creating an environment conducive to foreign investment will be key to unlocking the sector’s full potential. Open dialogue and a focus on long-term planning are essential,” Awe suggested.

“We need a more inclusive and collaborative approach. By working together, we can build a safe, innovative and inclusive telecommunications sector that benefits everyone.” – summed up the head of Jidaw Systems.