Telecom
Adeshina, Agric Minister Insists on Buying GSM Phones for Farmers
Akinwunmi Adeshina, minister of Agriculture, has affirmed that despite the criticisms trailing the proposed purchase of cell phones for farmers in the country, the ministry would not go back on its decision.
He said that the ministry intends to use the power of the mobile telephone technology to unlock the hidden wealth of the Nigerian farmers in the coming years.
Adeshina, who last week denied that the ministry intended buying mobile phones to farmers in the country, yesterday affirmed that the policy would not only enhance the performance of Nigerian farmers but also transform the agricultural sector.
The minister compared his critics to the Jews who falsely accused Jesus Christ, before the Roman emperor but was not found guilty.
“I will not be distracted. We will rebuild the broken walls of Nigeria’s agriculture and unlock wealth and opportunities for our farmers. For those calling for my crucifixion, let me say that when Jesus was before Pilate, they had accused him falsely. Pilate, after listening to his case, found no cause for condemning him. Nonetheless, should anyone still want me crucified, let me say this, along my faith: “I am crucified with Christ already. Nevertheless, I live and the life that I live, I live by the grace of the son of God, who died for me,” said Adeshina.
Adeshina noted that the government would not commit itself to direct purchase of cell phones for farmers but would only subsidise the phones through a partnership that would involve telephone service operators, Ministry of Communications Technology and other stakeholders.
He said the purchase of cell phones for farmers is tied to the distribution of fertilizers directly to the farmers without the involvement of third parties who had allegedly been ripping them off.
“Government policy must always be based on evidence and well analysed data. We carried out an analysis of our GES (growth enhancement support) work based on a large sample of 426,000 farmers from various local government areas in 13 states.We found that 71 percent of farmers sampled did not have cell phones. This shows that many of our farmers in rural areas are quite poor and are excluded from the benefits of the mobile phone revolution going on in Nigeria. These farmers cannot access the GES scheme without cellphones and we must find a way to include them. They must not be left behind,” said Adeshina.
Adeshina said that the Ministry planned to make phones available to farmers on a gradual basis, stressing that government would not be involved in direct purchase of the phones.
“Of course, we cannot get 10 million phones to all farmers who do not have phones this year. Our plan is a gradual scale up. We intend to get about 2 million phones to farmers who do not have phones this year”.
“How will these phones be paid for and how will they be distributed? We ended four decades of corruption in the fertilizer and seed sector by ending direct procurement and distribution of these inputs by the government.
“We also ended the ineffective and corrupt direct procurement and distribution of tractors by government. It will therefore be inconsistent for government to now start direct procurement and distribution of phones.
“There will be no direct procurement of phones by the Federal Government. We are also not going to give anyone contracts to import phones from China or anywhere else. Let me also state loud and clear.
“The Ministry of Agriculture and Ministry of Communications Technology are partnering together to implement this policy,” he emphasised.
Asked who will be eligible to benefit from the scheme, the minister said “we intend to use the GES scheme to distribute these phones. To be entitled to a phone, farmers must be registered on the e-wallet platform. Paper vouchers will be issued to farmers who do not have phones.
“The government will provide a subsidy to the farmer through the voucher to buy the phone. The farmer takes the voucher to the local mobile phone operator and pays the balance which is the difference between the value of the voucher and the cost of the phone.
“Once a farmer buys a phone and a SIM card, his new phone number will be updated on the e-wallet database and he will be able to receive his e-wallet voucher which will entitle him to purchase fertilizer and seeds at subsidized rates.
“Phones will be sold directly to farmers by local mobile phone service providers. The government simply subsidizes the cost of the phone directly to the farmer.
“We intend to start by first targeting farmers who live in areas where there is network coverage already but who do not have phones. We will then encourage phone companies to increase their coverage and as they do we will target farmers in those areas.
“By so doing phone companies will have the incentive to expand to rural areas because our programme will assure them of customers in those new areas. Cell phones in the hands of our farmers will do more than deliver government subsidized inputs.
“It will provide them access to market price information. They will be able to bargain better and save themselves from the middlemen who currently exploit them by paying them very low prices for their produce.
“Cellphones in the hands of our farmers will allow us to reach farmers with extension information such as what crops to plant, when to plant and other agronomic practices that will help them improve their productivity.
“It will allow farmers to better deal with shocks such as drought and floods in real time. Simple alerts to farmers’ phones can help them avoid catastrophes while saving lives.
“Majority of our farmers are excluded from financial services. 78.8 percent of Nigeria’s rural population are unbanked according to the report by Enhancing Financial Innovation and Access, EFInA. The cost of reaching them in rural areas is high for financial institutions.
“No bank can afford to build branches in every little village. Cellphones provide financial institutions with a low cost and efficient way of providing financial services to our farmers. The use of cellphones to provide financial services in rural areas is not new. It is already being used in several African countries.”
The minister said despite the wide criticisms on his plans for the farmers, he would not be deterred in his determination to transform the agricultural sector, stressing that “as a Minister, I cannot use hype to guide policies. I must use evidence to guide policies. When the floods occurred, there was panic in the land.
“Some derided our efforts and said Nigeria would have famine; that there would be massive food shortage; and there would be food riots. Those who wanted to import food and get waivers from government sponsored such media hypes. I was not moved.
“We used modern technology to guide our decision. Using remote sensing and satellite imagery, we mapped out the extent of the flood and determined that no more than 1.17 percent of our total cultivated area was affected by the floods. Our detractors wanted the world to believe the opposite, that food crisis was imminent. They were wrong. Today, five months after the floods, we do not have a food crisis.
“The same way these detractors have misled the public about the relevance of cellphones in Nigerian agriculture. They do not know that we are already using cellphones to distribute fertilizer and seeds to even mitigate the impact of the flood. We are already using cellphones to reach 232,000 farmers for rice production in the dry season, each getting three bags, across 10 states of the north east, North West and north central regions.
Speaking further the minister claimed that: To reach farmers affected by the flood, we are also using cellphones through the growth enhancement support.
We are reaching 98,000 farmers affected by floods across the country with two bags of fertilizers per farmer, plus one bag of agrolyser micro-nutrient to replace some of the soil micro-nutrients that have been washed away by the flood. Such is the power of cellphones revolutionizing agriculture today in Nigeria.
A recent Groupe Spécial Mobile Association (GSMA) digital economy report has cast a spotlight on the significant contributions of Nigeria’s telecom sector to the nation’s GDP, highlighting its crucial role in driving economic growth and development.
Released amidst growing interest in the Nigerian telecom landscape, the report provides a comprehensive analysis of the sector’s impact on the country’s economic metrics. Key findings reveal that in 2023 alone, the telecom sector directly contributed 8% to Nigeria’s total GDP. However, when factoring in the wider ICT industries’ value-added contributions, this figure surged to an impressive 13.5%.
Beyond mere numbers, the report delves into the intricacies of the telecom sector’s influence on various economic sectors. It elucidates how the mobile industry’s cumulative contribution to Nigeria’s GDP reached an estimated 20 trillion NGN in 2023, accompanied by substantial tax revenue contributions totalling 2.8 trillion NGN. Such figures further highlight the sector’s role in driving fiscal revenues and national economic stability.
Moreover, the report sheds light on the transformative potential of the telecom sector in enabling digitalisation across key industries. Projections indicate that by 2028, sectors such as agriculture, manufacturing, transport, trade, and government are poised to witness a remarkable GDP increase of approximately 2 percentage points.
This surge is expected to generate an additional NGN 1.6 trillion in tax revenue, marking a significant milestone in Nigeria’s quest for economic diversification and resilience.
“The telecommunications sector is the backbone of the digital economy. We have a strong appreciation of the fact that if we are able to improve the business environment and invest in the sector, we can continue to improve the level of productivity.
A country like Nigeria has significant opportunities to contribute to the world, but this is impossible without diversifying the economy”. Dr. Bosun Tijani, Minister of Communications, Innovation and Digital Economy added.
The report also highlights the vital role of 5G networks in enhancing operational efficiency across sectors through real-time data transmission and remote monitoring.
It spotlights the immense potential of digitalisation in sectors like manufacturing and trade, with the capacity to add trillions in industry value and generate substantial employment opportunities and tax revenues.
Despite these promising revelations, the report also acknowledges the challenges faced by the telecom sector, particularly its capital-intensive nature.
The report’s findings beckon a clarion call for concerted efforts to leverage the telecom sector’s potential as a catalyst for economic advancement. With the right policies and investments, Nigeria stands poised to harness the full spectrum of opportunities offered by its vibrant telecom landscape, driving inclusive growth and prosperity for all.
While the advocacy for tariff increase remains under deliberations, revelations in the latest Groupe Spécial Mobile Association (GSMA) digital economy report have watered the ground for an increased tariff increase advocacy. The report, offering a deep dive into the sector’s dynamics, provides compelling arguments for adjusting tariffs to ensure sustainability and growth.
L-R: Juergen Peschel, Chief Executive Officer, 9Mobile; Dr. Bosun Tijani, Honourable Minister of Communications, Innovation, & Digital Economy; Dr. Aminu Maida, Executive Vice Chairman, Nigerian Communications Commission; Gbenga Adebayo, Association of Licensed Telecommunications Operators of Nigeria (ALTON); Bella Disu, Executive Vice Chairperson, Globacom; Karl Toriola, Chief Executive Officer, MTN; Angela Wamola, Head of Sub-Saharan Africa, GSM Association (GSMA); Ibrahim Dikko, Chief Executive Officer, Backbone Connectivity Networks Nig. Ltd.; at the GSMA Nigeria Digital Economy Report launch in Abuja on May 9 2024.
Highlighted in the report is the telecom sector’s significant contribution to Nigeria’s GDP. In 2023 alone, it accounted for 8% of the nation’s total GDP, a figure that swelled to 13.5% when considering the broader ICT ecosystem. The mobile industry’s overall contribution to GDP was estimated at a staggering 20 trillion NGN, with substantial tax revenues of 2.8 trillion NGN.
The sector’s potential to drive digitalisation across various domains is of paramount importance. The report projects a significant boost in GDP across sectors like agriculture, manufacturing, transport, trade, and government, translating into nearly 2 million jobs and an additional NGN 1.6 trillion in tax revenues by 2028.
The promise of 5G networks is poised to revolutionise operations, particularly in critical sectors like oil and mining, with real-time data transmission and remote monitoring enhancing efficiency. Digitalisation, especially in manufacturing and trade, holds immense potential for value addition and job creation, promising billions in additional tax revenues.
Despite Nigeria’s noteworthy internet usage figures, with 29% of the population regularly online, the sector faces challenges. The country boasts the lowest-cost data baskets in Africa, yet maintaining competitive mobile data network speeds remains essential. With an average speed of 21Mbps, Nigeria’s performance is comparable to neighbouring countries, underscoring the need for sustained investments.
However, sustaining this growth requires recognizing the capital-intensive nature of the telecom sector. Operators must continually invest in network maintenance and expansion, necessitating a conducive regulatory environment that ensures fair returns on investments.
Chairman, Association of Licensed Telecom Operators of Nigeria (ALTON), Gbenga Adebayo, commenting during the report launch, said, “We raised several issues on the state of affairs of the telecom industry, and among the challenges articulated is the return on investment, stability of the infrastructure and the need for pricing rights. As an ecosystem, tariff hike is one of the sensitive issues affecting the telecom sector and has to be addressed by all stakeholders. We need to look at the state of affairs of the industry and examine holistically. There are ongoing obligations to our end users including infrastructure security. Tariff increase is a solution to solve multiple challenges of the telecom industry.“
The GSMA report positions the ongoing tariff adjustment deliberations as a strategic move to secure the sector’s long-term viability. With Nigeria’s digital future at stake, finding a balance between affordability for consumers and sustainability for operators is paramount to ensure continued growth and innovation in the telecom landscape.
Gbenga Adebayo, chairman, Association of Licensed Telecom Operators of Nigeria (ALTON) has said the telecoms sector should not be a palliative to solve economic woes.
Gbenga Adebayo, chairman of ALTON,
He made this call during his address at the Groupe Spécial Mobile Association (GSMA) digital economy report launch which took place in Abuja.
According to Adebayo, the telecom industry faces numerous challenges that hinder its growth and development.
He emphasized the need for sustainable investment, effective regulation, and a conducive business environment to drive progress.
The GSMA digital report, launched May 9th 2024, 2024, highlights the telecom’s 8 percent contribution to Nigeria’s GDP and 13.5% when considering the broader ICT ecosystem.
The report also highlights the significant challenges plaguing the industry including investment challenges, right of way, multiple taxation, and regulation.
Adebayo highlighted the existence of over 45 associated charges and levies on operators, despite the supposed removal of right of way costs.
He said that it creates an unfavorable business environment, discouraging investment and hindering the industry’s ability to deliver quality services.
He also stressed that regulatory interference and the lack of independence for the regulator exacerbate the problem.
The price review should be a simple regulatory process.
The public debate this has gained makes it appear the industry is insensitive to people’s concern.
“While the government tries to provide incentives for the public on account of ongoing macroeconomic headwinds, the telecoms sector should not be used as a palliative to solve the people’s problem. We must price right to sustain the industry; we must price right to have the right investment,” , Adebayo said.
He concluded that the industry must be allowed to operate sustainably, with the right investment and regulation, to deliver quality services and drive economic progress; encouraging stakeholders, including policymakers, regulators, and operators, to work together to address the challenges facing the industry, in order to drive economic growth, and fulfill its potential as a critical sector in Nigeria’s economy.
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