Nigeria moves a step closer to deploy 5G

Nigeria is taking significant steps towards deploying 5G services, with the recent signing of a Memorandum of Understanding between the Nigeria Communications Commission (NCC) and the Nigerian Communications Satellite to utilize the C-Band Spectrum. This move aims to boost the country's digital economy and enhance connectivity for its 205 million active SIM users. The C-Band Spectrum, which ranges from 160 to 200 megahertz, will be available for service providers interested in rolling out 5G to acquire through an auction process once final approval is obtained from the federal government. Olusola Teniola, the President of the Africa Digital Economy Forum, highlighted the importance of this development, stating that the C-Band Spectrum aligns with the global standard of using the 3.5 gigahertz spectrum for 5G deployments. This spectrum allocation will allow for faster internet speeds and improved network access, essential for driving productivity and economic growth. The deployment of 5G in Nigeria is seen as crucial for keeping up with global technological advancements. With the country boasting the largest economy and the fastest-growing telecommunications market in Africa, the need for enhanced broadband connectivity is paramount. Currently, broadband penetration stands at around 40%, with the target set at 70%. 5G technology is expected to play a key role in achieving this target, alongside the extensive optic fiber infrastructure required as its foundation. 5G technology opens up a multitude of opportunities across various sectors, including security, healthcare, and education. As remote work and digital interactions become more prevalent, 5G will facilitate seamless connectivity and drive innovation in how work and communication are conducted. The shift towards remote working and hybrid schooling further emphasizes the significance of reliable and high-speed internet, which 5G can provide. In addition to the progress in 5G deployment, the extension of the deadline for the registration and integration of the National Identity Number (NIN) with mobile SIM cards has implications for both subscribers and telecom operators in Nigeria. The government aims to complete the registration process for the 68 to 78 million unique SIM subscribers by the end of June, with a current rate of about 3 million registrations per month. Despite the challenges posed by this regulatory requirement, some telecom operators have shown resilience in the face of changing policies. For instance, MTN reported a 17% increase in revenue in the first quarter, although inflationary pressures may impact future financial performance. The halt in SIM registrations may lead to a temporary dip in subscriber numbers, with a shift towards Over-The-Top (OTT) applications likely to occur. Looking ahead, the telecom sector in Nigeria anticipates a challenging second quarter, with potential revenue fluctuations and margin pressures expected due to the ongoing SIM registration process. While there may be a short-term impact on profitability, industry experts like Teniola remain optimistic about a recovery in the later part of the year. The revised SIM registration policy is seen as a crucial factor in facilitating this rebound and driving growth within the telecom industry.