• Thursday, March 28, 2024
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Recognise changing dynamics for SMP 2020-2024 to create digital economy – experts urge NCC

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Telecommunication industry watchers are wondering how effective the strategic management plan (SMP) 2020-2024 will be, considering that challenges like inadequate infrastructural capacity, insufficient network backbone creating congested networks, multiple taxes, and others meant to be tackled with the SMP of 2014-2018, still persist in Nigeria today.

This comes as the Nigerian Communications Commission (NCC) designed a new plan – the SMP 2020-2024 – to bring the benefits of a digitised economy to the citizens, believing that with digital transformation is key to growth in different industries, enterprises, government agencies and the economy at large.

The NCC, under the Ministry of Communications and Digital Economy, recently released a strategic management plan (SMP) 2020-2024, to act as a pedestal to drive the implementation of the Federal Government’s vision for a fully digital economy by the end of 2024.

A digital economy is an economy with smart cities based on digital computing technologies, data and conducting business through markets based on the internet and the World Wide Web.

Olusola Teniola, president, Association of Telecommunications Companies of Nigeria (ATCON), says in a telephone interview with BusinessDay that the industry is extremely hopeful that this new plan is achievable because of the existence of the National Broadband Plan (NBP) 2020-2025, which has members of the regulatory body on its committee and therefore creates an alignment in working to solve the major issue of broadband penetration and infrastructure deficit that creates inadequate internet access.

“One of the things that we as an industry are very happy about is that the new SMP came out at the same time as the Nigerian Broadband Plan (NBP) 2020-2025, which speaks to the fact that there are areas that need to be focused on, and that’s lack of access and connectivity based on the fact that we have infrastructure deficit,” he says.

“All the issues in the previous SMP still persist, but the biggest difference is that there is the NBP with members of the NCC on board to back this up and drive the plan. This makes a big difference because the alignment of that broadband plan is now in sync with the SMP,” he notes.

On the launch, Isa Ali Ibrahim Pantami, Nigeria’s minister of communication and digital economy, said, “The launch of this SMP 2020 – 2024 will create an innovative idea on how to be more successful in achieving a digital economy.”

Although industry experts agree that the digitisation of the economy and development of smart cities create benefits and efficiencies, as digital technologies drive entrepreneurship, innovation and fuel job opportunities and economic growth, most people wonder how helpful the plan will be in achieving a digital economy without investments, incentives and the right government policies, even with strict implementation.

The Nigeria digital economy diagnostic report by the World Bank, released in 2019, shows that many Nigerians and businesses remain excluded from the digital ecosystem as a result of limited access to broadband and non-availability of adequate devices (mobile and computers) to fully utilise the internet.

To solve the issue of broadband penetration, NCC says, “The commission aims at achieving pervasive and inclusive broadband access by providing incentives for broadband deployment in Nigeria.

“The Federal Government’s economic diversification plans are focused on a robust digital economy, which will improve employment generation, as well as encourage innovation. This was prime in our minds during the formulation of the SMP. We have invested great time and effort in ensuring that this document is pragmatic, and I am very confident and excited in its completeness to successfully guide the commission in achieving the set objectives. We are committed to the implementation of this SMP,” Umar Garba Danbatta said during the virtual launch of the plan about a week ago.

In the SMP 2020-2024, NCC plans to increase access to communication irrespective of socio-economic, geographical and financial divides, create a level playing field for all operators, significantly improve mobile network quality of service, encourage local innovation and investment, promote and protect investment of investors and provide cyber security (internet) and digital privacy protection, among others.

However, it is imperative to know that there are several issues to be resolved in Nigeria to achieve a truly digital economy. Questions like: how does NCC regulate emerging technologies? How would they cope with challenges of cyber security, privacy issues, fast pace of changing technologies and disruption of business models? have come up, and need to be addressed for the plan to be successful.

It is also important to note that mobile broadband download speed is still very low, with Nigeria ranked at 104th position in the world as of July 2019. 4G adoption in Nigeria was only 12.2 percent of total mobile connections in January 2020. Nigeria has only 73.5 million broadband subscriptions when active mobile subscription is 186 million.

Connectivity, which prevails as the panacea for the deployment of digital services and applications for enterprises, government and carriers, has totally transformed the way businesses are managed and government operates, making everything easier, cost efficient, more reliable and quicker. Hence, digitisation has become a necessity for economic growth.

“According to the NBP, the infrastructure deficit is about $5 billion, which is not possible to get without collaboration with the private sector. What is required more than anything is that the capacity and capability of NCC has to recognise the changing dynamics that is required to deliver on their commitment, and one of the commitments they’ve got to ensure is that they have an evolving regulatory environment. We cannot afford to have millions of Nigerians who do not have meaningful access to the internet,” Teniola states.

Key information and communication technology (ICT) stakeholders and experts stress that the role of broadband development in stimulating economic growth, policy harmonisation for enhancing ICT infrastructure and attracting both foreign and local investments, as well as human resource development are paramount to Nigeria’s move to truly achieve a digital economy.

A source at MainOne Cable Company, Infraco license winner for Lagos State, tells BusinessDay that although the company earmarked a N25 billion digital infrastructure investment for the Lagos smart city initiative, its efforts to start laying infrastructure are truncated by policy flip flops.

“Apart from the fact that Lagos State still charges over N3,000 per linear of fibre as Right of Way (RoW) cost, the government also went ahead to contract another company to lay fibre network even though NCC only gave infrastructure company (Infraco) license for Lagos to MainOne,” the source discloses.