•Dr. Uche Nworah
A renowned media and communication expert, Dr. Uche Nworah, who once held a key role at Glo, one of Nigeria’s leading telecom companies, has in this interview called on the federal government to declare a state of emergency in the telecom sector. Drawing from his extensive experience within the industry, Nworah highlights the critical challenges facing the sector, from the crippling naira-to-dollar exchange rate to the unbearable operational costs and brain drain. He warns of an imminent collapse of the sector if immediate action is not taken, emphasising the dire consequences for Nigeria’s economy and its people, reports Daily Independent.
Excerpts:
You recently called on the federal government to declare a state of emergency in Nigeria’s telecom sector. Why do you believe this measure is necessary?
The telecom sector in Nigeria is facing critical challenges that, if left unchecked, could lead to its collapse. The inability of telecom companies to invest in new equipment and infrastructure due to the high naira-to-dollar exchange rate and stagnant data and voice call rates is a major concern. This situation is exacerbated by the unreliable power supply, which forces telcos to rely on generators, leading to unsustainable diesel and petrol costs.
Additionally, we are seeing an unprecedented brain drain, with skilled staff leaving the country, and there’s the issue of harassment by local communities and excessive taxes from all levels of government.
All these factors combined make it clear that urgent action is needed to prevent a total collapse of the sector.
You mentioned that the inability to invest in new equipment and infrastructure is the biggest challenge facing the sector. How is this impacting telecom companies?
Telecom companies are struggling to maintain, let alone expand, their network infrastructure. The current naira-to-dollar rate makes it nearly impossible for them to purchase new equipment or upgrade existing technology. As a result, the infrastructure is becoming increasingly outdated, which directly affects the quality of service that subscribers receive. The stagnation in data and voice call rates further limits the financial capacity of these companies to make necessary investments, creating a vicious cycle of deteriorating service quality.
How significant is the impact of the power supply issue on the telecom sector?
The power supply issue is a significant burden on the telecom sector. Due to the unreliable electricity supply, telcos are forced to rely on generators to power their sites and offices, which come with exorbitant diesel and petrol costs. This not only increases their operational expenses but also affects the overall reliability and efficiency of their services. Subscribers experience frequent call drops and poor network coverage as a direct result of these challenges.
Can you elaborate on the brain drain issue and how it affects the telecom sector?
The telecom sector is experiencing a severe brain drain, with many skilled professionals leaving the country in search of better opportunities abroad.
This exodus of talent leaves telecom companies with a shortage of experienced personnel, making it difficult for them to maintain high service standards and innovate.
Furthermore, the remaining staff often faces harassment from local communities and excessive demands from governments, adding to their challenges.
What are the consequences of foreign investors being unable to repatriate their funds?
Foreign investors play a crucial role in the telecom sector, and their inability to repatriate funds due to the depreciation of the naira is a major issue.
When funds are trapped in Nigeria, they lose value over time, which discourages further investment.
This lack of investment hampers the sector’s ability to grow and upgrade its infrastructure, worsening the challenges already facing telecom companies.
How is the current crisis affecting the average Nigerian subscriber?
Subscribers are bearing the brunt of the telecom sector’s challenges. They are experiencing unreliable voice and data services, frequent call drops, and high data costs. Poor network coverage is widespread, forcing people to move around or hold their phones in strange positions just to get a signal.
Many Nigerians now carry multiple phones with SIM cards from different networks just to stay connected. It is a frustrating situation, and it highlights the urgent need for government intervention.
You’ve warned that the telecom sector could collapse like the banking sector did some years ago. What would be the implications of such a collapse?
If the telecom sector were to collapse, the consequences would be catastrophic, both socially and economically. Communication is a lifeline in today’s world, and any disruption would affect businesses, emergency services, and daily life. Economically, it could lead to job losses, reduced foreign investment, and a decline in overall economic activity.
The fact that telcos are already threatening service outages and proposing load shedding indicates that the sector is on the brink of collapse. The government must step in now to prevent this from happening.
What specific steps do you think the government should take to address these challenges?
The government needs to declare a state of emergency in the telecom sector and initiate a dialogue with the operators. This should include reviewing and possibly reducing the tax and levy burdens on telecom companies, addressing the power supply issue, and creating an environment that encourages investment. Policies to retain skilled staff and reduce brain drain are also essential.
Additionally, the Central Bank of Nigeria should prioritise resolving the issue of trapped funds for foreign investors. These steps are necessary to stabilise the sector and prevent its collapse.
