The telecom sector sees an annual outflow of foreign exchange worth $2.16 billion

As FG gives NCC six months to meet the challenges

The Ministry of Communications and Digital Economy has revealed that Nigeria has recorded an annual outflow of foreign exchange to the telecommunications sector of approximately $2.16 billion.

Following the development, the Federal Government has given the Nigerian Communications Commission (NCC) six months to initiate local innovative solutions to address Nigeria’s specific challenges in the sector.

The Minister of Communications and Digital Economy, Isa Ali Pantami, who stated this yesterday at the Prototype and Research Exhibition in Abuja, said there was a need to build indigenous technological capacity to enable the country to fully participate in the telecommunications ecosystem.

Pantami disclosed that in a bid to develop indigenous capacity in the Nigerian telecommunications sector, the government had launched the National Local Content Promotion Policy to develop and produce quality local content to drive the sector.

He noted that research conducted by scientists in collaboration with industry found it necessary for the country’s technological development, which is considered the backbone of the telecommunications industry and the basis for the future development of advanced telecommunications products and services.

According to him, most countries depend on their economic progress and productivity to engage in research and innovation to propose viable solutions to their challenges and problems.

The Minister said the Nigerian telecommunications sector had played a key role in enabling other sectors to grow the economy and was considered crucial in the Federal Government’s economic diversification drive to avoid over-dependence on oil.

He noted that while the nature of investments in the telecommunications industry remains capital-intensive and generally long-term, conducting research in telecommunications is extremely complex because it requires time, huge financial resources and foresight, which he noted must be maintained for several years for the investments to bring a return.

Executive Vice President and CEO of NCC, Prof. Umar Garba Danbatta, also said that the exhibition was aimed at enabling academic research project holders to showcase already developed prototypes and showcase ongoing research to telecom operators. suppliers, investors and other academics.

Danbatta noted that the measure would encourage the commercialization of locally developed telecommunications innovations as a means of supporting and deepening the indigenous technological capacity of Nigerians to support industry development and create wealth for allied enterprises.

He said that over the years, the committee has awarded grants to successful academic institutions to develop working prototypes of telecommunications products that can meet industry needs and ensure sustainable development.

“We will be presenting and exhibiting 10 prototypes, fully developed and ready for market. Therefore, it is important to have a commercialization strategy enabling the transition from basic research to the market in order to meet local challenges, as well as reduce excessive dependence on imported innovations and technologies,” he emphasized.