Dwindling Telecom investments: NIGCOMSAT proposes strategic partnerships to cushion effects
Nigeria’s telecommunications industry is facing a downturn due to the devaluation of the naira, which has significantly increased the cost of importing telecom infrastructure.
Major players like MTN and Airtel have reported substantial losses, primarily due to the high cost of acquiring foreign exchange for their operations.
MTN, with nearly 80 million subscribers, reported a loss after tax of N137 billion in 2023, while Airtel lost $89 million due to forex challenges.
The Association of Licensed Telecoms Operators of Nigeria (ALTON) has warned of potential network disruptions if the situation persists.
In response, the Nigerian Communications Satellite (NIGCOMSAT) has proposed strategic partnerships with telecom operators to help alleviate the burden of dollar scarcity.
NIGCOMSAT aims to use its procurement power to secure telecom equipment at competitive prices, offering operators a way to expand their networks more affordably.
Additionally, NIGCOMSAT is exploring opportunities to support local manufacturing of telecom components through its accelerator program, which seeks to foster innovation and technological advancements in Nigeria’s telecom sector.