For any transformation or development to take place in any sector of an economy be it in developed or developing countries such as Nigeria, a legal framework is required to guide such transformation. It is the legal framework if adhered to that will provide the direction such transformation or reform should go.
It also provide fundamental guideline on the activities of players in the industry, such as what operators as the case may be are expected to do in their operational activities as well as government intervention that will provide level playing ground to ensure that operators are given equal opportunity to compete.
This was the case in the country’s telecommunications sector in 2000 when the federal government under Chief Olusegun Obasanjo decided to liberalize the telecommunications sector. Government then put together a legal framework, the National Telecommunications Policy, which was designed to herald the expected liberalization of the sector. It is also the policy that guides Nigerian Communications Commission (NCC) in its regulatory framework as well as gave opportunity for inflow of both foreign and local investment in the sector.
The September 2000 National Telecommunications Policy assisted in moving the country from 400,000 active telephone lines in 2001 to the present 75 million lines among other achievements.
It is against this backdrop and the need to foster development in the sector as well as address other challenges in the sector, that the federal government through Alhaji Ikra Biblis, Minister of State for Information and Communications, few weeks ago inaugurated a 25-man committee in Abuja to undertake the task of reviewing the current National Telecommunications Policy. He said the policy was being reviewed due to new trends in the industry, which have made the current document outdated.
He said the review is crucial to government’s efforts at developing the telecommunications sector to meet short, medium and long-term goals, initiative measurement of national growth indicators. The committee, chaired by Mr. Isaiah Mohammed, the former executive director, Nigerian Telecommunications (Nitel), has three months to submit its recommendations.
The minister said the previous document had helped Nigeria to surpass the ITU’ teledensity figure of one line to 100 people in three years.
Biblis said: “In less than 10 years, we have more than 75 million active lines in the various networks, and the teledensity figures have gone beyond 50 per cent mark as against the 10 per cent envisaged by the policy in 2000”.
The minister said the review of the blueprint should have been done at least once before now because of the rapid growth in the sector. “Some of the areas the document focused on in September 2000 may have been eroded with time” he said.
The committee comprising experts in the industry, government officials and journalists was asked to examine issues arising from the rapid global telecommunications growth, the evolution of new media and the challenge of information security for the new policy regime.
Mohammed expressed the readiness of members of the committee to meet the expectations of the government.
“In the light of development of the sector and to stay ahead of international recommendations, the committee will ensure that telecommunications is delivered to every part of Nigeria. We have to deliver and we shall deliver,” he sad.

Stakeholders’ expectations
Ernest Ndukwe, executive Vice Chairman, Nigerian Communications Commission, said that he expects the committee to produce an update policy that would transform the industry.
He said: “Telecommunication is a highly fast-changing industry and therefore, we need to keep pace with global trend. The review is a good initiative that will give investors a roadmap for investment in the future.”
Ndukwe listed areas the committee should address as Internet and need to look at a case where the entire country is covered by transmission infrastructure and its broadband infrastructure is expanded”.
Lanre Ajayi, chairman, Nigeria Internet Group (NIG), said that the current policy lead emphasizes on telephone which it has been achieved going by the growth in teledensity. He said what the country need now is broadband infrastructure, stating that the new policy should reflect that, which will therefore bring issues such as online applications, cyber security and evidence act. “How we intend to go about these should be addressed by the new policy,” he said.
He added that the implementation of the existing policy was successful in that the telephone penetration target it set out to achieve was surpassed. He expressed optimism that the new policy expected to address other areas of telecommunications as well as lay foundation for development in the sector will be met when it is final reviewed and release for implementation.
Gbenga Adebayo, chairman, Association of Licensed Telecommunications Operators of Nigeria (Alton) said the current National Telecommunications policy had a five year action plan and have met and surpassed the expectations of government and stakeholders in the industry. He noted that as at 2000 when the policy was promulgated it was not envisage that the industry will record 75 million active subscriber lines which is an indication of tremendous growth in the sector.
Adebayo who is also member of the review committee added that a review is necessary as technology is dynamic as well as challenges of the industry which is a product of growth in the sector.
He said that there is need to fashion the policy in order to address those industry challenges. According to him, due to rapid changes in technology, there is need for the policy to preempt technology and accommodate foreseen as well as unforeseen developments. It should also protect infrastructure and service providers, as well as address the issue of convergence where technology has brought broadcasting and communications together.
He added that the new National Telecommunications Policy must be prepared to accommodate such convergence. He however pledge the committee readiness to carry out the task of bringing out a draft that will address issues in the industry required for development of the sector and the country in general.
Achievements of the current policy
Nigeria is one of the biggest and fastest growing telecom markets in Africa, attracting huge amounts of foreign investment, and is yet standing at relatively low levels of market penetration. Far reaching liberalisation has led to hundreds of companies providing virtually all kinds of telecom and value-added services in an independently regulated market. The mobile sector, which has seen triple digit growth rates five years in a row since competition was introduced, has been joined by a number of additional players under a new unified licensing regime which is expected to also boost the country’s underdeveloped Internet and broadband sector. Third generation mobile and WiMAX wireless broadband services are being rolled out at a rapid pace.
Nigeria has overtaken South Africa to become the continent’s largest mobile market with now over 74 million subscribers, and yet market penetration stands at less than 50% in early 2010. The network operators are investing billions of US$ to expand their networks and improve the quality of service in order to avoid sanctions by the industry regulator, NCC. 3G services have been launched, and increased competition comes from an array of additional players who have entered the lucrative mobile market. Declining ARPU levels are forcing the operators to introduce new services and transform themselves into converged broadband service providers.
Nigeria, today records a strong standing in the world information society due to the quantum growth telecom has ushered in the last decade.
In the past eight years of telecommunications sector liberalisation, NCC sources say subscriptions to telephone services have risen to the current level of over 74 Million active connected lines. This growth and advancement in telecommunications within the last decade has improved the nation’s ICT ranking in the world and has positively impacted all sectors of the nation’s economy. Nigeria has also become Africa’s largest telecom market.
The achievements in the industry so far can be attributed largely to the foresight by government in implementing a successful sector reform and providing the enabling and conducive environment with respect to policies and regulatory regime. The federal government has proven its commitment to promoting a regulatory environment that is independent, fair, transparent and predictable".
Before the licensing of the Digital Mobile Operators in 2001, private investment in the telecommunications sector in Nigeria stood at about $US50 million. Between 2001 and now, the sector has attracted about $US18 billion in direct local and foreign investment. These high investment levels have been attained because Nigeria has become one of the most desired investment destinations for ICT in Africa not just due to the potential of the market but also due to the stable policy and regulatory regime.
The role of the policy maker must of necessity be separate from that of the regulator. The situation where the policy maker tries regulating the industry when there is a regulatory body in place would run contrary to International best practice, and creates regulatory uncertainty which investors do not like.
Maintaining a stable and predictable operating environment is essential for attracting investment and avoiding actions that can constitute a disincentive for investment or challenge the sustainability of returns on investment capital. The telecoms sector is very capital intensive and therefore, to continue network expansion, improve quality of service and increase coverage in Nigeria, emphasis must be on ensuring an attractive operating environment.
Stakeholders are optimistic that the committee with their practical experience in the industry will produce an ensuring National Telecommunications Policy that will usher in the next frontier in the growth and development of the sector.

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