Co-founder of Co-Creation Hub (CcHub) and Nigeria’s Communications, Innovation and Digital Economy Minister, Bosun Tijani has been hailed as a technology evangelist.
Given his extensive background and influence in the technology industry, much was expected from Tijani when he entered the government, brimming with technological knowledge. However, a year into his tenure, the anticipated technological revolution remains unrealised and his promises are largely still on paper.
Despite making several policy statements that should have brought significant advancements if implemented, not much has changed. Nigeria’s technology sector has yet to become the competitive force envisioned, capable of rivaling the oil and gas industry as a significant revenue source for the country. Industry players complain that Tijani is often inaccessible and, recently, he has become more reserved in his communications, possibly losing some of his earlier enthusiasm and drive.
Expectations were high for Tijani, who had proven his mettle as a private entrepreneur, building a tech hub from the ground up and expanding its influence across Africa. Despite his deep understanding of global technology business and partnerships with international tech giants, Tijani has yet to translate these experiences into tangible benefits for Nigeria.
Telecommunications companies are struggling as revenues dip and the industry fails to live up to the hype. This downturn affects returns on investments and taxes paid to the government and the annual operating levy (AOL) remittances to the Nigerian Communications Commission (NCC). Contributions to the gross domestic product (GDP) may decrease as companies grapple with a stagnant economy and deteriorating service quality.
When the Minister spoke six months after his appointment, he stated that he had been “extremely vocal about things I was knowledgeable about and while at it, I built the largest tech hub in Africa for the benefit of our people (domiciled in Nigeria). I left very strong receipts of my motive including lives touched.” In what appeared to be self-praise, he added, “I am proud of my performance in the last six months and inspired to keep pushing. For those who are truly interested in the progress of our nation, you already know how to follow my work.”
While telecommunications operators struggle for survival amidst mounting challenges, does the minister recognise the urgent need to take decisive action to reposition the industry for growth and increased investments? A thriving telecommunications sector would have far-reaching effects: Mobile network operators could sustain operations and create value, leading to maximised consumer welfare and increased contributions to GDP, ultimately boosting government revenues through taxes and levies.
Industry leaders advise that the minister should rise to the occasion and set aside any aversion to criticism. Praise singers are unnecessary; there is significant work to be done. Telecommunications serve as an enabler for all other critical infrastructure sectors, vital to national productivity and security. Optimal functioning requires a complex, interconnected ecosystem of fibre, satellites, towers, base stations, switches, and data centres, which must operate without interruption to deliver quality service.
However, there have been numerous incidents where civil works like road construction have damaged infrastructure, leading to service disruptions. Vandalism, theft of equipment, delays in site approvals for new towers and harassment of staff by state and local agencies demanding levies further complicate matters. These issues were highlighted in a submission to the minister on October 4, 2023.
On the vexing issue of multiple regulations and taxation, there have been several instances of regulatory overlap. Different government agencies under various ministries issue frameworks with unique rules, creating conflicts and regulatory uncertainty that hinder industry growth. For example, instruments issued by the Federal Competition and Consumer Protection Commission (FCCPC), the new Nigeria Data Protection Commission, Nigerian Maritime Administration and Safety Agency (NIMASA) and the National Information Technology Development Agency (NITDA) often overlap with NCC mandates.
Operating companies have cautioned against the release of regulatory instruments by the NCC that conflict with other agencies’ mandates, warning that this will increase the administrative burden and derail government policies aimed at easing business operations. The Minister is expected to intervene either directly or through a working paper to the Federal Executive Council (FEC).
Telecommunications companies are also worried about the rising cost of doing business due to inflation, currency devaluation, difficulty accessing affordable foreign exchange, rising energy costs, and security issues. Despite these challenges, the pricing regulatory framework has not been updated to reflect current economic conditions.
Despite these myriad challenges, the minister has focused on long-term initiatives. For instance, in April, he hosted a workshop to boost the use of artificial intelligence (AI) in raising productivity. He noted the increased global attention on AI and growth in technology investments in Nigeria, saying: “Over 1 Petabyte of storage is already being allocated to AI projects in Nigeria by Galaxy Backbone Limited and the Pilot Compute Programme, which sees 21st century technologies invest over $2 million in graphics processing unit (GPU), is positioning us to build and narrate the story of why we need to invest in our computing power as a nation.
“We all know that the strength of a network is determined by the value that each node on the network brings to it. If our world is truly connected, you are not helping Africa or Nigeria by ensuring that we can come to the table and participate. By partnering with us, you are only ensuring that our world is stronger because we have something significant to contribute to the network,” he added.
He spoke about several strategic partnerships and projects facilitated by the Ministry of Communications, Innovation & Digital Economy to fast-track Nigeria’s growth in AI, including the relaunch of new and improved capacity at the National Centre for AI and Robotics (NCAIR) to better fulfill its mandate. The centre aims to promote research and development in emerging technologies and their practical applications in areas of national interest, focusing on AI, robotics, drones, the Internet of Things (IoT) and other emerging technologies. Cisco supports this capacity-building initiative.
The minister also announced Nigeria’s Computing Infrastructure Pilot to accelerate AI project development, managed by Galaxy Backbone Limited in partnership with 21st Century Technologies. This infrastructure will be available to local researchers, startups, and government entities working on critical AI projects. The AI Compute will reside at the Galaxy Backbone Data Centre and be accessible through NCAIR.
The Nigeria AI Collective, a community of practice collaborating to drive economic prosperity through AI, aims to position Nigeria as a global leader in AI for good. “The Collective will harness the power of AI to drive economic prosperity, accelerate innovation and social development, and position Nigeria as a leading force in AI globally,” the minister stated. While these initiatives are promising, industry players believe the minister should address pressing current issues before embarking on long-term programmes like AI and the Compute project. The immediate concerns of the telecommunications sector need urgent attention to create a solid foundation for future technological advancements.
