The chances for new enterprises in the Nigerian telecoms sector, as well as the sector’s boundless growth potential, have been emphasized by Absa, a pan-African investment bank.
Despite the problems in the sector, the bank said the chances and development potential remain great, and it urged wise investors and entrepreneurs to take advantage of the opportunities and predicted growth.
Sadiq Abu, Chief Executive Officer, Absa Nigeria, said at a media roundtable in Lagos on “The Nigeria Telecoms Sector: Exploring the Opportunities,” that power deficits, vandalism of transmission infrastructure assets, theft, and multiple taxation are some of the issues plaguing the smooth operation of telcos in the country.
Despite the hurdles, he believes the sector still has a lot of room for expansion, particularly in broadband internet, last-mile connectivity, and telco infrastructure (data centres, fibre optic networks, etc).
Regardless of the seeming maturity of voice revenue sources, there is still a large and growing demand for data.
“The telecommunications industry is generating interest from local and foreign investors.
“This is because the capacity for growth in the industry is limitless. And telcos are already strategically developing useful business vehicles to take advantage of emerging opportunities in the industry.
“Meanwhile, the various challenges that are bedeviling the smooth operations of telcos provide expansive opportunities for smart entrepreneurs who possess an innovative and unerring vision of what can be done to help the players maintain cost advantage or protect critical transmission infrastructure assets through the provision of services that hedge against disruption in the supply chains,” Sadiq said.
Let’s see what happens