ATCON seeks CBN intervention to bridge telecom infrastructure gap in Nigeria

The Association of Telecommunications Companies of Nigeria (ATCON) has called for the intervention of the Central Bank of Nigeria to assist in bridging the existing funding gap to build more telecom infrastructure in the country.

The President of the Association, Mr Anthony Emoekpere, made the call on Friday during the visit of the National Executive Council members of ATCON to the Chairman of the House Committee on Telecommunications, Peter Akpatason, and his committee members in Abuja. Emakpore requested the Committee to engage the CBN on behalf of the telecom operators for funding.

According to him, the funding could be in the form of low-cost intervention funds to build broadband infrastructure. This is even as he called for an enabling environment for more investments in the telecom sector and foster its growth.

Multiple challenges in the telecom sector

While listing the challenges confronting the sector to include poor local content, funding deficit, multiple regulations, and rising cost of business, among others, Emoekpere said:

“Telecom is a capital-intensive sector, requiring significant CAPEX investment to facilitate efficient communications service provision.

We would like this committee to drive strategic engagement with the Central Bank of Nigeria (CBN) on behalf of the telecom sector to bridge the infrastructure funding gap.

This can be done by providing accessible Low-Cost Intervention Funds for the rapid deployment of Broadband Infrastructure nationwide, including in rural areas.”

To address the problem of local content in the telecom sector, the ATCON President added: “Though telecommunication is a global service, nations promote their local players in different ways, enabling them to compete regionally, and globally, thereby raising a multiplier effect in their economy to repatriation of profits.

“There is a need for a concerted effort to shape the future of youths by sponsoring a bill to ensure that a Nigerian content plan exists in the industry.”

He recommended that the committee adopt the model practised by the Nigerian Local Content Management Board for the Local Content Fund in the Oil and Gas sector.

Other concerns he raised were issues of rising cost of business, wholesale tariffs for leased lines, Right of Way, need for critical national infrastructure, adding that they are central to the country’s socio-economic progress.

The response from the lawmakers

Responding to ATCON, Akpatason said collaboration between the legislature and the private sector would drive growth, and innovation and ensure expertise inputs are considered in law-making processes.

He assured the association that the committee was ready to assist in providing necessary parliamentary interventions and support when the need arose.

“In line with the committee situation to strengthen and sustain a relationship with stakeholders, we will organize a legislative regulator’s stakeholders forum before the end of the year.

This is for us to get acquainted and enhance our understanding of our challenges, goals, and aspirations, as well as gain valued insight into the telecommunication sector.

“We are going to set up a committee, consisting of members both from the legislature and the association to come up with recommendations on all the identified issues.

The government is interested in ensuring that businesses grow because the government cannot employ everyone,’’ Akpatason said.

Also speaking, Rep. Midala Balami, the Vice Chairman of the committee, said in developing local content, there is a need to dwell on quality to meet global standards.

Balami also said the youthful population and skills of Nigerians needed to be harnessed to ensure that citizens enjoy real-time dividends of democracy.