“The collapse of the telecommunications sector may slow down economic growth”

Nigeria economic experts and telecommunications industry stakeholders have expressed concerns that the continued decline of the telecommunications sector could hamper the country’s economic growth and development.

They stated this at a recent breakfast session hosted by the Lagos Business School and Pan-Atlantic University, where eminent personalities from the private sector gathered to discuss the topic “Telecommunications Sector: The Basis of Economic Dynamics in Nigeria.”

Keynote speaker and CEO of Financial Derivatives Company, Bismarck Rewane, highlighted the key role of the telecommunications sector in driving economic growth, innovation and productivity across industries.

In his presentation titled “Nigeria’s Economy on the Brink: Adaptation or Collapse?” Rewane highlighted the challenges facing the sector, including rising inflation, high operating costs, limited access to foreign exchange, regulatory burdens, multiple taxes and extortion at the state and local levels.

He stressed that these issues seriously threaten the growth and development of the sector, citing MTN’s loss recorded in FY2023 as a glaring example.

He noted that telecommunications operators are advocating for cost-reflective rates to counter the unfavorable economic conditions they face.

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