Lagos: Nigeria is confronting a substantial economic setback, losing approximately $15 billion annually due to a significant gap in broadband access, according to FibreOne, a prominent broadband provider in the country.
According to News Agency of Nigeria, the Chief Experience Officer of FibreOne, Yinka Isioye, addressed this issue during his keynote speech at the 21st Titans of Tech Conference, Expo and Awards in Lagos. The event, themed 'Game Changers: Shaping the Future of Technology,' highlighted the critical necessity of broadband as a fundamental infrastructure for digital advancement in education, healthcare, and economic growth sectors such as SMEs, fintech, and smart cities.
Isioye pointed out that over 60 percent of Nigerians, and more than 70 percent of Africans, still lack reliable broadband access, resulting in millions missing out on crucial opportunities. He shared a personal anecdote, illustrating the impact of inadequate connectivity when he missed a life-changing interview due to poor internet access.
He further explained that Nigeria's internet speeds are significantly slower and more expensive compared to global standards. Citing the World Bank, Isioye mentioned that a 10 percent increase in broadband penetration correlates with a 1.4 percent GDP growth in developed nations. For Nigeria, an additional 30 percent penetration could potentially unlock $19 billion, with a multiplier effect boosting annual GDP growth by over $45 billion.
Isioye warned of the educational and healthcare disparities that could ensue without improved broadband, with over 45 million students and rural communities at risk. He also highlighted Nigeria's potential to become a global outsourcing hub, which remains untapped due to the existing broadband gap.
The cost of this gap is nearly four times Nigeria's combined health and education budgets, and equivalent to the federal allocations received by one of Nigeria's 36 states annually. Isioye identified several challenges to broadband expansion, such as high fibre deployment costs, power instability, and low Average Revenue Per User (ARPU), which hinder return on investment.
Despite these obstacles, Isioye praised the efforts of Internet Service Providers and Mobile Network Operators in innovating and expanding networks, along with the Nigerian government's strategic initiatives towards a digital-first economy. He called for concrete solutions like mobilising pension funds, promoting shared rural fibre consortia, and enabling Mobile Virtual Network Operators for rural broadband delivery.
Isioye proposed additional measures, including community-driven networks, public-private partnership WiFi zones, and broadband for job schemes with tax incentives for ISPs. He emphasised FibreOne's commitment to viewing broadband as a tool for empowerment and national progress.
The event's convener, Mr Pedro Aganbi, echoed the importance of the conference theme, which aimed to highlight those leading change and innovation in technology. Aganbi stressed the need for bold rethinking of systems and solutions to inspire new ways of working and connecting.