What Nigeria’s telecom sector will look like in 2024

Nigeria’s telecommunications sector has always been a buzzing sector with a lot of activities and big events. Last year was not a bad year either for the sector as many fascinating events occurred in the sector now referred to as the ‘new crude oil’ of Nigeria. Its contribution to the Gross Domestic Product (GDP) has […]

Nigeria’s telecommunications sector has always been a buzzing sector with a lot of activities and big events. Last year was not a bad year either for the sector as many fascinating events occurred in the sector now referred to as the ‘new crude oil’ of Nigeria. Its contribution to the Gross Domestic Product (GDP) has been increasing every quarters for the past three years, surpassing Oil and Gas’ in some of the quarters. 

But what will 2024 look like for the sector? Let’s take a look at some of big events that will likely shape this year for the telecom sector.

MTN, Glo interconnectivity charge issue may linger 

One of the major news in the sector early in the year was the MTN and Globacom interconnectivity charge issue which may linger than necessary. MTN and Glo have been on each other’s neck for more than 10 years as regards interconnectivity debt issue. 

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Though officials of the two companies said the interconnectivity debt issue between South African-owned telecom operator, MTN Nigeria and indigenous operator, Globacom is being resolved, it may rear its head within the year again.  

The chairman of Association of Licensed Telecommunications Operators of Nigeria (ALTON) Engr Gbenga Adebayo told Daily Trust that more than 61million Glo customers should not worry as the issue would be resolved amicably.  

“Parties are looking at how best to resolve the issues to avoid any  escalations”, Adebayo, who is the joint spokesman for the two operators said. 

The Nigerian Communications Commission (NCC)  had on Monday announced plans to restrict  Glo subscribers from calling MTN lines due to unresolved interconnectivity charges.

A notice signed by Mr Reuben Muoka, NCC’s Director of Public Affairs had alerted Globacom network to the unsettled charges.

After examining the circumstances, NCC decided that Globacom lacked sufficient reasons for non-payment, Muoka said on Monday.

NCC to come down hard on telcos over bad QoS

Another news every keen follower of telecom events is looking forward to is the fulfilment of promise by the Nigerian Communications Commission (NCC) that it will be stricter on monitoring of quality of services being offered by the big four telecommunications operators in the country from January, this year. 

NCC’s CEO and Executive Vice Chairman, Dr Aminu Maida revealed this when he held a meeting with Nigerian Information Technology Reporters Association (NITRA) in Abuja in December. 

“We are going to be driving very hard on that (Quality of Service), as one of the areas that we should be held responsible; we will make sure it is transparent. I want it to be transparent so that we can drive the industry”, Maida had said. 

According to the executive vice chairman, NCC would embark on compliance drive this year to make sure “that we are working on the things that will help the licensees , MNOs and other stakeholders in the value chain.”

He added that the commission would hold mobile networks operators (MNOs) accountable “because what you do not measure you do not hold people accountable on”. 

At the end of January,  he also said, NCC would be releasing new strategic plan for the industry and country’s telecom sector. 

Telcos may bar millions subscribers from telecom network in March 

Also, the four major telecom operators will by March 2024 bar millions of their subscribers from using their mobile lines over noncompliance with SIM -NIN linkage regulation. 

 MTN, Airtel, Glo and 9mobile disclosed this in a joint statement issued via their association and signed by the chairman of Association of Licensed Telecommunications Operators of Nigeria (ALTON),  Gbenga Adebayo  and its executive secretary, Gbolahan Awonuga. 

Responding to a directive issued by the Nigerian Communications Commission (NCC) on December 15, asking the telcos to delist noncompliance subscribers, the big four operators said they would abide and bar subscribers would failed to link their SIM with NIN by March this year.  

“We, the Association of Licensed Telecommunications Operators of Nigeria (ALTON) refers to the Nigerian Communications Commission’s (NCC) directive dated 15 December 2023 communicated to our members to implement full network barring on all MSISDNs for which the subscribers have not submitted their national identity numbers (NINs) and those without verified NINs. 

 The statement read in part: 

“The NCC has directed our members as provided below:

That all MSISDNs for which the subscribers have not submitted their NINs, are to be barred on or before 28 February 2024. 

That where five (5) or more MSISDNs are linked to an unverified NIN, such MSISDNs are to be barred on or before 29 March 2024. Where less than 5 MSISDNs are linked to an unverified NIN, such MSISDNs are to be barred on or before 15 April 2024. 

“All affected subscribers must be verified (biometrics and biodata) before their lines are unbarred.”

Daily Trust recall that the Federal Government commenced implementing the SIM/NIN harmonisation programme in December 2020 through the NCC. 

This programme requires all telecommunications subscribers to link their NINs to SIM registration records to avoid service restrictions. 

The linking involves validating the NIN with the National Identity Management Commission (NIMC) and matching the subscriber’s NIN records with the SIM registration information (verification) to ensure proper subscriber identification. 

Following the directive of the NCC, which took effect on 4 April 2022, all SIMs for which the subscribers failed to submit their NINs were placed on outgoing call restriction only, and the affected subscribers were advised to verify their NINs before being reactivated. 

Despite the limited service restriction, millions of subscribers have yet to submit their NINs for verification. 

ALTON therefore said its members are committed to implementing the directive as law-abiding corporate citizens who are highly supportive of the government’s objective to build a digital economy.

“We, therefore, wish to appeal to esteemed subscribers to kindly enrol for NINs or submit their NINs through the appropriate channel advertised by members to avoid full suspension of services by the set deadlines”, Adebayo and Awonuga said.

2G, 3G will still dominant in 2024

As 5G and 4G spread have stagnated in the last one year to high operating costs, 2G and 3G will still reign in most Nigerian towns and villages this year. Economy is still not look buoyant and the operators will still find it bit difficult to roll out more infrastructure. So, 5G rollout will still not common this year. 

The International Telecommunications Union (ITU), of the United Nations, has said Nigeria and rest of Africa countries have the lowest 5G coverage rate in the world at only 6 per cent as of December 2023. 

This is in part due to the continued importance of older mobile technologies in Africa, such as 2G and 3G networks, the international agency on telecom and internet said in its  latest report. 

The report indicated that while 2G and 3G networks are being phased out in developed countries, they remain a key part of the telecommunications landscape in many African countries, especially those with lower-income economies like Nigeria. 

According to the ITU, 2G and 3G networks are still the predominant technologies in use in many African countries including Nigeria. 

This is because these networks offer a lower-cost option for providing basic mobile services, such as voice calls and text messages, in areas where 4G and 5G networks are not available.

Daily Trust reports that there are still hundreds towns and villages in all the country’s six geopolitical zones workout 4G and 5G networks.

As a result, ITU said, older technologies (2G and 3G) are likely to continue to play an important role in the African telecom industry. 

Increase in call, data tariffs imminent 

Telecommunications services’ subscribers may start paying higher for call and data this year as operators “earnestly” seek Federal Government’s nod to increase telecom tariffs in the country. 

If the telcos’ request is granted by FG, Nigerians will pay between 10 and 15 per cent more than the current tariffs, sources at NCC and Ministry of Communications and Digital Economy told our reporter in confidence. 

The telecom operators had been “pleading with government since November to approve their request to alter upward the current call and data tariffs, but don’t want them to do that until things normalise in the new year”, a source at the ministry had told Daily Trust. 

When the source was asked “what do you mean by until things normalise in the new year”, our reporter was told “until 2024 budget becomes operational and works start in earnest”. 

Adebayo had said high operating costs were killing the industry already and the only way to survive was to raise tariffs.

“The current pricing regime is not sustainable in the face of high operating cost”, he told Daily Trust. 

Daily Trust reports that despite high inflation rates, telecom companies have not adjusted their prices for years. But the telcos have reduced their data value, according to many of their customers.   

Customers received text messages over the past few days notifying them that their monthly subscription plans have been increased starting from February bills. 

“Telecom services are poor Nigerians’ lifeline, any attempt to increase tariffs now will amount to killing Nigerians economically, and will resist it with all legal means”, Ogunbanjo said. 

He claimed telcos have nothing to justify any increment as government has already looking into their complaints of high duties, forex scarcity and others.

Daily Trust reports that despite high inflation rates, telecom companies have not adjusted their prices for years. 

But the telcos have reduced their data value, according to many of their customers.

FG to enforce data protection compliance this year 

The Nigeria Data Protection Commission (NDPC) said it would enforce  daata protection compliance in private and government organisations  in the country this year. 

This is in a bid to ensure professionalism among firms that are licensed to carry out compliance as a service, the agency’s top official said. 

Whilst addressing the meeting of the Commission in Abuja, the NDPC’s National Commissioner, Dr. Vincent Olatunji, urged Data Protection Compliance Organisations (DCPOs) to see their role in the implementation of the Nigeria Data Protection Act (NDPA) 2023 as a public trust which must be guarded with utmost sense of responsibility. 

Airtel boss to bow out in June 

Airtel Africa plc had announced the retirement of the Chief Executive Officer, Olusegun “Segun” Ogunsanya, with effect from 1July, 2024.

Mr. Ogunsanya, who joined Airtel in 2012, ran the Nigeria Operations of the telecommunications and mobile money company for nine years before his appointment as chief executive officer of the Group in 2021.

The Company also announced the appointment of Sunil Taldar as Managing Director and Chief Executive Officer to succeed Mr. Ogunsanya on his retirement.

Mr. Taldar, who joined Airtel Africa in October, will begin the transition to the new role, working alongside

Mr.Ogunsanya.