Information is undeniably important in today’s
global economy, therefore the significance of telecommunication and
telecommunication systems cannot be over emphasized. Countries and institutions
are tasked with the challenge of employing up to date telecommunication systems
as a vehicle for keeping up with the relevant Information Communication and Technology
(ICT) needed to excel in the current global economy. A country’s economic
development can be vastly improved by its ICT development. ICT can create the right
platform for development across all sectors of an economy.

Nigeria has also recognized the importance of
telecommunication and set in motion catalysts to ensure a largely improving telecommunications
sector. Banks have embraced this by introducing; mobile banking, internet
banking, pos systems, multiservice ATM facilities, airline ticket purchase and
hotel reservations and so much more. The rise of indigenous online shopping
platforms like Jumia, Konga, Adibba, mystore, Kara and Kaymu are also a
testament to the fact that Nigerians now have a penchant for online shopping.
However, this particular sector is still largely under developed as most of
these online shops only deliver in Lagos or Abuja or both. Many other states in
the country are still yet to benefit from this fantastic new trend. Also
because of the unavailability of secure online payment platforms like PayPal where
payment is withheld until goods are delivered and deemed as satisfactory by the
receiver, the online shopping platforms rely on cash in hand on delivery
methods which are not very modern or safe.

Virtually every other sector in Nigeria
including hospitality/Recreation, entertainment, education, manufacturing, auto-mobile,
entertainment, banking, power generation, construction, oil and gas sectors
have become progressively reliant on ICT networks. Recent development in ICT
systems makes it increasingly easier for Nigeria to participate in the global
economy. Although giant strides have been achieved recently in this sector,
there is still a lot more room for improvement asides form the challenges faced
by the online shopping sector as was mentioned above.

The Nigeria telecommunication service sector
is a very lucrative for investors as one of the Nigerian GSM (Global Systems
for Mobile Communication) companies declared full profitability less than
18months after service launch on investments of over US$700 million. The GSM market
experienced a triple digit growth consecutively for five years after privatization.
By 2013, GSM communication segment of the telecom sector recorded a market size
of about 110 million. Although just 3 companies currently control over 80% of
the market share, there is so much room for more investment in other segments
of GSM services. These companies still import sim cards which creates an
opportunity for investment in the local manufacture of sim cards.

Investors can also benefit from the void that
stems from having insufficient local firms to carry out:

Sales and
installation of Terminal Equipment;

  • Provision and operation of Public Pay-phones;

and operation of Community Telecommunication (Rural and Urban);

Repair and
maintenance of telecommunications facilities;

of high pair cables as well as fibre optic cables and other telecommunications
accessories; and

(e.g. Telephone-external and internal wiring for residence, office etc.).

Mobile telecommunication services also offer
potentials for investment. Currently, services cannot be transferred to other
networks while retaining the same phone number. The subscriber has to purchase
a new sim card and therefore get a new number which can be inconveniencing in
several ways. Most services are still based on the pay as you go system of
payments. Very few and inadequate price plan payment services are currently
available. Marketing and sales, rate and billing, invoicing and collection also
constitute services that are calling out for investment.

The broadband sector is still evolving but
still in its infancy. Unlimited internet services for home and small and medium
business use is still a dream. Internet services are still relatively slow and
fibre optic services are yet to be established for home and smaller businesses.
Locally assembled or produced servers are still being awaited. Currently there
is a dominant pay television DSTV-Multichoice and there is still no other company competing
with them for clients as their services are head and shoulder above every other
pay TV service available. This also provides opportunities for investment. Local
(free view) television channels lack content and are plagued with poor picture
quality. This also presents another investment opportunity for investors.

Other investment opportunities in the
Nigerian Telecommunication Sector include: ICT Fraud Management, Intelligence,
Asset Protection, Asses Tracking and Cash Management.

Olives Consultancy Services assists investors
looking to invest in the Nigerian markets in a variety of ways. Please visit
our website
for more information or send us an email on
We have offices both in the UK and in Nigeria. We will be happy to read from
you and answer your questions too. Please feel free to comment below. Many
thanks from the Olives team.