Investment in telecoms hits $12b, says Ndukwe
From Saxone Akhaine, Kaduna
PRIVATE sector's investment in Nigeria's telecommunications industry from February 2001 till date has reached $12 billion, the Executive Vice Chairman of the Nigerian Communications Commission (NCC), Chief Ernest Ndukwe, has said.
He also said the figure of active subscribers to telecommunication services in the country would hit a figure above 80 million Nigerians by the end of December, this year.
Ndukwe spoke at the Nigerian Guild of Editors' Conference at the weekend in Kaduna.
The Editors' body, in statement at the end of the conference, urged the Federal Government to see the media as a partner in the achievement of its Vision 2020, seven-point agenda and the Millennium Development Goals (MDGs).
Ndukwe said "the growth in lines has been propelled by a boom in private investment in telecommunications sector," stressing that this situation was due to "a favourable operating environment in Nigeria as the private sector players have invested over $12 billion into the sector since February 2001."
The NCC boss, in a paper at the event, said the boom in the sector "represents a phenomenal increase in private investment from just about $50 million as at 2000," adding that "today, investment in the telecom sector ranks second only to that in the oil sector.
"Increased competition in the market has also pushed down connection fees by operators such that fixed line connection costs now range from $20 to $100 in 2008, down from as high as over $700. From the mobile operators, the pressure of competition and market forces, forced the operators to reduce their connection rates and today mobile connection is virtually free for anyone who can pay an upfront charge for minutes of call,"
Ndukwe said the emergence of digital mobile services had led to improvements in efficiency and productivity, reduction in transaction costs, increased service innovation and better quality of life.
He remarked that "over 12,000 persons have been directly employed by the telecommunications operators and millions of Nigerians are benefiting from indirect employment generated by the operators.
"The progress of the telecommunications industry in the last seven years is largely as a result of the liberalised market, but even in a liberalised environment, government still has a vital role to play in growing the nation's telecommunications infrastructure and ensuring a competitive environment that will reduce prices and make services more affordable."
Ndukwe said the government is committed to positioning Nigeria among the top information-rich economies of the world within the next few years, and dedicated to providing the right environment to attract more investment into the ICT sector.
"Certainly, key technology areas such as wireless system, optic fibre transmission systems and Internet/broadband have been identified for particular attention, digital wireless and mobile communications systems have helped Nigeria leapfrog into the circle of the world's top 10 countries recording highest mobile subscriber growth."
The President of the Nigerian Guild of Editors, Mr. Gbenga Adefaye, said there should be an enthronement of credible leadership at the state level to promote the nation's developmental efforts in the areas of Vision 2020 and the MDGs.
According to him, the media would now be more interested and participate in the enactment of genuine electoral process in the country.
Lamenting the attitude of the government in not carrying the media along in the current effort to evolve a viable electoral system, Adefaye said: "Journalists have been sidelined in the core issues of electoral reform process."
