Exceptional telecommunication and information communications technology (ICT), all over the world, is not run on fresh air, and so needs funding.
A lack of the necessary funding leads to a deficit in the appropriate infrastructure and a good number of un-served or undeserved customers.
These were part of the discussions by a panel at the 2019 Telecom Executives and Regulator Forum (TERF 2019).
The panel session moderated by the Managing Director/Chief Executive of Galaxy Backbone Limited, Mr Yusuf Kazure, centered on ‘Funding Telecoms and ICT investment in Nigeria: How would the deficit in the Nigerian telecom infrastructure be financed?
The panel which consisted of leaders of thought in the industry shared divergent views concerning the topic, but they all agreed that all hands must be on deck if to harness more investments in the sector.
According to them, the industry needs new inspiration; both private and public sector all need to play a part to attract and get the funding needed to improve Nigeria’s ICT sector.
The Elephant in the Room
Defining funding as the biggest elephant in the room when it comes to ICT, Mr Yusuf revealed that the challenges associated with insufficient funding are steadily on the increase and if nothing is done about it, the ICT and Telecoms sectors of Nigeria would continue to struggle to bridge gaps.
Referring to a previously delivered speech which revealed that the amount spent in investment in the ICT sector is about $68 billion, he commented that the mentioned amount would need to be doubled in ten years if ICT in Nigeria would be anything to write home about.
Shared Responsibilities
A member of the panel, and the Executive Director, Business Development, BroadBased Communication Limited, Mr Chidi Ibis, bemoaned the level of disregard the Central Bank of Nigeria (CBN) has for the ICT sector.
According to him, the CBN budgeted some amount of money for the creative industry of the country to develop over a length of time.
He revealed that having a ten-year plan for their development, the movie production section has N30 million budgeted and the movie distribution section has N500 million, whereas the Software development sector has a time frame of three years for development and just N3 million budgeted.
He opined that it has to be known by all that the ICT impacts every other sector in the economy, enabling the achievement of the Sustainable Development Goal (SDGs).
He concluded that the key players in the ICT sector should approach the CBN to do better in dispersing the intervention funds.
A few of the panellists shared the responsibilities between the government and the private sector.
They deduced that if the government could create an enabling environment in the form of processes, ease of business, and setting the right priorities, these changes would create confidence and attract the needed investors.
Meanwhile, the Executive Vice Chairman (EVC)/CEO, Nigerian Communications Commission (NCC), Prof. Umar Danbatta, represented by Mohammed Babajika, clearly stated, while responding to questions from the audience, that government do not fund but create the enabling environment and ease of business to support investments.
He made it known that funding was a private responsibility.
Rounding off the panel and drawing a conclusion, Mr Kazure stated that the availability of the funds for investment was not the problem hence “…the money is there and we can get it, but we need housekeeping. We need to know what is required of us and develop ourselves.”