Financial analyst Bismarck Rewane recently cautioned that a possible collapse in Nigeria’s telecom industry could lead to a decline in other vital sectors. During the Lagos Economic Summit, Rewane emphasized the interconnectedness of the telecom industry with the broader economy and urged immediate government action to avert a widespread economic downturn.
Rewane emphasized that the telecommunications industry plays a crucial role in contemporary business and communication. A breakdown in this sector would not just impact services but also create a ripple effect on sectors like banking, e-commerce, and manufacturing, which heavily depend on strong telecommunications infrastructure.
Rewane, the CEO of Financial Derivatives Company, emphasized that the telecoms sector’s health is crucial for the overall economic stability of Nigeria. He pointed out that the sector contributes significantly to the country’s GDP and has been a key driver of growth in recent years. However, he expressed concerns over mounting operational challenges, regulatory uncertainties, and the increasing cost of doing business, which are putting immense pressure on telecom operators.
“The telecoms industry faces numerous challenges, including high operational costs, regulatory bottlenecks, and inadequate infrastructure,” Rewane explained. “These issues need to be addressed promptly to ensure the sector’s sustainability and prevent a broader economic impact.”
Rewane urged the government to take immediate steps to support the telecoms sector, suggesting measures such as reducing regulatory hurdles, providing tax incentives, and investing in infrastructure development. He also called for a comprehensive review of current policies to create a more conducive environment for telecom operators.
“Government intervention is critical at this juncture,” Rewane asserted. “We need policies that support investment and innovation in the telecoms sector. This includes streamlining regulatory processes, offering financial incentives, and ensuring that infrastructure development keeps pace with technological advancements.”
The financial expert also highlighted the importance of collaboration between the private sector and the government to address the sector’s challenges. He advocated for public-private partnerships to drive infrastructure development and improve service delivery, thereby ensuring the sector’s resilience and growth.
“The private sector has a crucial role to play, but it cannot do it alone,” Rewane noted. “A collaborative approach involving both public and private stakeholders is essential to tackle the systemic issues and drive sustainable growth in the telecoms sector.”
Rewane’s warning has sparked a conversation among industry stakeholders, who echoed his concerns and called for immediate action. Many emphasized the critical role of the telecoms sector in enabling digital transformation and driving economic progress.
“Rewane’s insights are a wake-up call for all of us,” said Funke Opeke, CEO of MainOne. “The telecoms sector is vital for the digital economy, and we must ensure its stability and growth. Collaborative efforts between the government and industry players are necessary to address the challenges and unlock the sector’s full potential.”
As the government considers its response, industry watchers will be closely monitoring developments to see if Rewane’s recommendations are implemented. The hope is that timely and effective intervention can stabilize the telecoms sector, safeguarding it from potential collapse and ensuring its continued contribution to Nigeria’s economic development.
“The future of Nigeria’s economy is closely tied to the health of the telecoms sector,” Rewane concluded. “By taking proactive steps now, we can prevent a crisis and lay the foundation for sustained growth and prosperity.”
