Telcos Respond to FG: Telecom Sector Not a Panacea for Economic Challenges

• Adebayo rebuffs idea of telecom sector as quick economic fix, stresses need for addressing fundamental industry challenges comprehensively
• Despite telecom’s significant GDP contribution, Adebayo highlights obstacles like investment barriers, taxation, and regulatory challenges hindering industry growth

Gbenga Adebayo, Chairman of the Association of Licensed Telecom Operators of Nigeria (ALTON), has rebuffed the notion of using the telecom sector as a quick fix for Nigeria’s economic woes.

Speaking at the launch of the Groupe Spécial Mobile Association (GSMA) digital economy report in Abuja, Adebayo underscored the need to address the telecom industry’s fundamental challenges rather than rely on it as a sole solution to broader economic issues.

Highlighting the sector’s multifaceted challenges, Adebayo stressed the importance of sustainable investment, streamlined regulation, and a conducive business environment to foster growth and development.

The GSMA digital report acknowledges the telecom sector’s significant contribution to Nigeria’s GDP (eight percent) and the broader ICT ecosystem (13.5 percent) but also sheds light on the persistent obstacles hindering its full potential.

Investment barriers, right-of-way challenges, multiple taxation, and regulatory hurdles were identified as major impediments to industry growth.

Despite supposed efforts to eliminate right-of-way costs, Adebayo pointed out the burden of over 45 associated charges and levies on operators. This excessive financial burden, he argued, creates an adverse business climate, dampening investment enthusiasm and undermining service quality.

Moreover, Adebayo raised concerns about regulatory overreach and the lack of regulatory independence, exacerbating the industry’s challenges and impeding its ability to deliver optimal consumer services.

As discussions continue about the telecom sector’s role in Nigeria’s economic recovery, Adebayo’s remarks underscore the imperative for holistic solutions that address systemic issues and pave the way for sustainable growth and innovation within the industry.