Ex-Gabon’s President Seeks Nigerian Govt’s Support For Telecoms Sector

A former President of Gabon, Prof. Ali Bongo,yesterday emphasised the need for government’s support and deregulation to ensure the survival of the Nigerian telecoms sector.
Bongo made the observation at the Lagos Business School Breakfast Session which had the theme, “Telecom Sector: The Fulcrum for Economic Dynamism in Nigeria.”
He highlighted the sector’s growth potential, citing its 8 per cent outperformance of Gross Domestic Product (GDP) growth rate between 2019 and 2023 in Nigeria.
While examining the telecom sector’s critical role in Nigeria’s economic growth and development, the former president urged the government to provide support and create an enabling environment for the sector’s growth.
He warned that as the sector continued to face numerous challenges, its decline could have far-reaching consequences on Nigeria’s economic dynamism
Also, the Chief Executive Officer (CEO), Financial Derivatives, Bismarck Rewane, in his keynote address, said that the sector’s decline could have far-reaching consequences for the country’s economic growth and development.
Rewane highlighted the telecom sector’s critical role in driving economic growth, innovation, and productivity across various industries.
The CEO, in his presentation titled, ”Nigerian Economy on the Brink, Adapt or Collapse?” highlighted the sector’s challenges which included rising inflation, high operating costs and limited access to foreign exchange.
He also listed regulatory burdens, multiple taxation, and state and local government extortion as challenges in the sector.
Rewane said that these challenges were threatening the sector’s growth and development, citing MTN’s reported loss in the 2023 financial year.
According to him, the telecom operators’ push for cost-reflective tariffs is deemed necessary due to adverse economic hardships.
‘’The current situation is having a detrimental impact on the sector’s growth and development, such that the revenue potential from telecoms may start falling, leading to a ripple effect on other sectors.
“The Big Push Theory posits that growth in one sector can stimulate growth in others through backward and forward linkages.
“The telecoms sector has both forward and backward linkages to various sectors.
“These linkages to other sectors are vital for economic growth, innovation, and productivity across various industries making it a key enabler and driver of development in modern economies.
“If the telecom industry collapses, all other sectors will follow,” he said.