Dr. Uche Nworah, a renowned communication expert, has urged the government to declare a state of emergency in Nigeria’s telecom sector to prevent its imminent collapse.
His call comes after a Facebook post by Anthony Okafor predicted the sector’s downfall.
Nworah, who spent six years working in a major telecom company, agrees that the sector faces numerous challenges, including:
– Inability to invest in equipment and infrastructure due to high naira-to-dollar rates and stagnant data and voice call rates
– Epileptic power supply, forcing telcos to rely on generators with unbearable diesel and petrol costs
– Staffing issues, including brain drain and harassment by local communities and governments
– Excessive taxes and levies from local, state, and federal governments
– Trapped funds for foreign investors, unable to repatriate funds due to naira depreciation
Nworah emphasizes the need for urgent action, stating, “A state of emergency should be declared in the sector. Nigeria is happening to the telecom sector. We should not allow the sector to collapse.”
He added,,”The biggest challenge to me is inability to invest in equipment and infrastructure, or to replace obsolete ones.
“At the current naira to dollar rate, that’s mission impossible, coupled with the fact that data and voice call rates have remained stagnant.
“This is why Telcos are not able to invest in new equipment and technology. Add the epileptic power issue. Telcos run all their sites and offices with generators. Diesel and petrol costs are unbearable.
“There is also the unfortunate issue of staffing. Their staff are leaving in droves going abroad. They suffer from equipment vandalism.
“Local communities harass their staff, local governments, state governments and even the federal government also extract their pounds of flesh by way of taxes and levies.
There are many other challenges too. You can’t help but feel for them. Even those that are majorly owned by foreign investors suffer from trapped funds. They can’t repatriate funds.
By the time CBN remembers them, the value of naira they hold would have depreciated so much.
” A state of emergency should be declared in the sector. Nigeria is happening to the telecom sector. We should not allow the sector to collapse.”
