As Nigeria seeks to take advantage of the potential presented by emerging technology, the Federal Government emphasized yesterday how crucial the telecom industry is to growing the nation’s economy.
A new age of private capital investment and competition has been brought about by the liberalization of the telecom sector 25 years ago, according to Mr. Wale Edun, Minister of Finance and Coordinating Minister of the Economy.
Edun gave a speech at the Financial Derivatives Company (FDC)-hosted Telecom Investment Forum 2.0 in Lagos, which focused on The Next Investment Frontier in Nigeria.
Dr. Armstrong Takang, Managing Director of Ministry of Finance Incorporated (MoFI), was Edun’s representative.
Given the sector’s enormous impact on daily lives and its skyrocketing contribution to GDP, he said the industry’s amazing success has been undeniable.
He claims that innumerable Nigerians have profited from the opportunities provided by the deregulation of the telecoms sector, from online education to mobile banking.
He stated that Nigeria needs to be appropriately ready to take advantage of the potential presented by the Fourth Industrial Revolution, with telecommunications serving as its cornerstone.
“Artificial Intelligence and other emerging technologies hold immense promise, but we need to ensure this sector is primed to capitalize on them. While technology may disrupt jobs, history shows that it also creates new opportunities. The world’s largest companies are testaments to this,” Edun said.
He did, however, voice concerns about the industry’s slowing job growth and investment inflow, and he advocated for a thorough analysis of the sector’s future.
He made the point that the telecom sector might be even more alluring to investors with a supportive legislative environment.
“With the right regulations and enabling policies, the telecommunications sector has the potential to become a cornerstone of Nigeria’s economic future,” Edun said.
Temi Popoola, Group Managing Director of the Nigerian Exchange Group (NGX Group), emphasized the telecom sector’s major influence on financial inclusion, transparency, and capital market efficiency.
“The telecommunications sector is not just about connectivity; it is a vital cog in the machinery that drives market transparency and informed decision-making,” Popoola said.
He cited the strong ties between the telecom sector and the financial market by pointing out that two of the top five most capitalized businesses on NGX are telecom behemoths.
Popoola emphasized that telecommunications have a significant impact outside of their core offerings.
Popoola stated, “Their contributions go beyond connectivity; they make it easier for real-time market data to be disseminated, which is essential for improving market transparency.”
He emphasized how the capital market and the telecommunications sector work together to create a strong ecosystem that benefits partners, suppliers, and investors.
Popoola emphasized the need of creating an atmosphere that stimulates innovation since it will lead to increased spending on infrastructure and personnel development in the industry.
In order to create new prospects that would benefit the financial markets and the telecoms industry, he advocated for continuing cooperation between the two.