Nigeria’s telecommunications industry is grappling with declining investments, primarily due to the devaluation of the naira, which has escalated the cost of importing essential telecom infrastructure. Major players like MTN and Airtel have reported significant financial losses, largely due to foreign exchange challenges. MTN, with nearly 80 million subscribers, faced a loss of N137 billion in 2023, while Airtel Africa reported a loss of $89 million in its fiscal year ending March 2024, with a substantial portion attributed to naira devaluation.
The Association of Licensed Telecoms Operators of Nigeria (ALTON) has raised concerns over potential network disruptions if the economic situation persists. In response, the Nigerian Communications Satellite (NIGCOMSAT) has proposed strategic partnerships with telecom operators to alleviate the impact of dollar scarcity. NIGCOMSAT plans to leverage its procurement power to secure telecom equipment at better prices and is already in discussions with some operators.
Olufunke Fagbeja, NIGCOMSAT’s head of marketing and stakeholder engagement, emphasized the importance of collaboration in delivering value to Nigerians. She highlighted ongoing efforts to establish partnerships with equipment manufacturers, enabling NIGCOMSAT to offer discounted rates to telecom operators. Additionally, NIGCOMSAT is exploring opportunities to support local manufacturing of telecom components through its accelerator program, aiming to enhance Nigeria’s position in the global technology space.
