Telecom
Digital Economy A Catalyst For Nigeria’s Development- Dr. Woherem
Dr. Evans Woherem, a foremost banker and renowned IT guru, has lauded the Minister of Communications & Digital Economy, Dr. Isa Ali Pantami, and the Federal Government, for upgrading the former Federal Ministry of Communications to that of Communications & Digital Economy.
Dr. Woherem said he was particularly delighted by the upgrade because he had for long advocated the need for the country to constitute a committee that would come up with a new policy and strategy aimed at creating a roadmap on how to turn the country into a digital economy, describing the Minister’s action as poignant and proactive.
“Take for instance as I have been pointing out lately. South Africa has a Ministry of Information Technology. To me, that’s so marvelous for a country to be so far-reaching in its thinking of the future, realizing the importance of information technology.
“The fact that it’s a catalyst for development, for energizing other parts of government or activities in an economy, to the point of creating a ministry that will run the affairs of the information technology in the country, made me applaud the South African Government.
“And again, the United Arab Emirates has something similar, and indeed, more exciting. UAE has a Ministry of Artificial Intelligence; to me, that’s something that speaks volumes. In addition to that, they also have a Ministry of Possibilities.
“It means that they are really preparing for the Fourth Industrial Revolution and beyond; they are really preparing for the new century.
“They really want to do something that nobody had thought ever before. They really want to experiment, push boundaries and use technology to go where no nation had been before,” Woherem stated.
Dr. Woherem, a former Executive Director at First Bank Plc and Unity Bank of Nigeria noted that he had always pointed out the need for Nigeria to do the right kind of thing as a nation, have the audacity to reach out to be the best, and to do things that are almost miraculous.
“By the creativity of Nigerians as individuals, by her population, and by what our youths are doing today, we need to do something that is audacious.
“We are just simply destined to do something great in leading Africa. Unfortunately, our leaders do not think long term; they rather think short term that has to do with themselves than pan-Nigeria.
“I am very glad that even in our own country, a minister is thinking along this direction to the extent of adding to the Ministry of Communications, Digital Economy. With the new ministry, we are no longer going to have the Communication Ministry as we used to know it.
“What we’ve done now with the new ministry crosses what South Africa and the UAE had done. It is a good thing to the point that it’s something that is needed.
“Simply, information technology is the major catalyst for development. Even by itself, it began to make significant contributions to the GDP. We are told that about 13.8% of the GDP is as a result of ICT contributions. That to me is herculean and portends a lot of good for the country. It means that the next 10 to 20 years, it will begin to reach about 30% or so.”
Dr. Woherem advised that information technology should be taken seriously because it is going to positively affect all the sectors of the economy, all the activities of government and even her citizens, adding that currently Nigeria and indeed Africa are still at the lower end of the spectrum of information technology.
“We are just at the foundation stages. It does not however, mean that it is like that in all the sectors of the economy. For instance, the banking sector might be at the beginning of the operational level, same as the Agricultural sector.
“Our various sectors of the economy are at various stages of development whereas all of them are supposed to be at the operational level going to strategic levels of use of information technology,” he said.
The Digital Africa Global Consult Group boss warned that as a country, Nigeria should not just be technology usersbut should participate in developing technology applications that are going to drive the 21st and 22nd centuries.
“I have always lamented about the fact that Africa is sitting idly by and letting the train of technology development pass-by. Just like we did in the first, second and third industrial revolutions, it always baffles me that we are not taking it more seriously.
“Somebody once said there is a culture of technology; every technology has a culture associated with it. Sometime, you are creating a technology without knowing you are creating a culture too.
“That being the case, why should Africa allow somebody else be solely responsible on how we are going to live in the future without our own input? So, I have always felt that Africa should be part and parcel of those developing global technology.
“Digital economy is therefore, a good thing for us as a country because it can definitely help us to not only have ICT but will add more and more to our GDP. It is also going to develop and advance each of the industries and sectors of our economy as a nation by creating a lot more employments.”
Dr. Woherem said that though kudos should be given to government for coming up with the decision to upgrade to a digital economy, he insisted that there are certain things that must be done to ensure a total paradigm shift to digital economy.
“We need to come up with a set of policies and strategies through which things can be evolved. To an extent, government has come up with something to that effect, and it is kudos to government.
“However, I would have wanted a set of Nigerians, representing certain key parts of the economy led with a representation of certain people that are truly experts in these areas that would come up with that set of policies and strategies for developing a digital economy.
“And that committee shouldn’t be an Ad hoc or one-off committee. They should be there to also oversee things and be called upon from time to time to deliberate and also make recommendations with regard to the digital economy. This should be taken serious.
“There is an organization within the European Union where all Champions for IT in different countries in Europe come together to deliberate on the future of Europe especiallyon matters of technology.
“What does that show? It means they are taking the issue of technology seriously over there. Yet, Europe is way ahead of Africa in the adoption of technology tools. If Europe that is way ahead of us in technology is taking it this serious, that means we have to be more serious. This also means there are certain things we have to put in place.”
He said that whatever Nigeria is doing with regard to digital economy is the country’s own attempt to catch up, adding that what heis expecting to see is that as a result of this subtle focus and emphasis on digital economy, that Nigeria will start thinking a lot more seriously with regards to what kind of economy she is building and the instruments to deploy to bring about developments in the various sectors of her economy.
“To actualize the digital economy of our dream as a nation, government should also build tech hubs, parks and experience centres through which people can now begin to practice these exponential technologies. Government should also encourage the private sector to be involved. We need a lot of that here in Nigeria, at least one in major cities of the country,” Woherem said.
MTN Nigeria Communications Plc has invested N202.4 billion in capital expenditure (Capex) in the first quarter of 2025, marking a 159 per cent increase compared to the same period last year.
The investment, according to the company’s unaudited financial results for the quarter ended March 31, is aimed at improving network infrastructure and enhancing service delivery to customers across the country.
The telecom giant recorded a 40.5 per cent growth in service revenue, driven by strong demand and strategic commercial execution. Data revenue surged by 51.5 per cent, supported by a growing active user base and increased data consumption.
In its fintech division, MTN Nigeria reported a 57.9 per cent rise in revenue, attributed to the strong performance of airtime lending services and higher float income.
However, its active wallet base declined by 25.7 per cent to 2.1 million, reflecting the company’s focus on quality over quantity in customer acquisition.
Despite challenges in the broader economy, MTN Nigeria posted a profit after tax of N133.7 billion, recovering from a loss of N392.7 billion in the previous year. Its EBITDA increased by 65.9 per cent, with the EBITDA margin expanding to 46.6 per cent.
Karl Toriola, chief executive officer, MTN Nigeria expressed confidence in the company’s trajectory, stating: “We are pleased with our performance in the first quarter of 2025, which reflects the continued execution of our strategic priorities and the resilience of demand for our services.
“Building on the momentum from Q4 2024, our Q1 results place us firmly on the path to restoring profitability and achieving a positive net asset position within the current financial year, while increasing our investments to improve network and service quality.”
With a free cash flow of N209.9 billion, MTN Nigeria maintains a solid funding and liquidity position, reinforcing its market leadership in the telecommunications sector.
MTN Nigeria Communications Plc has said it generated N1.0 trillion in service revenue in the first quarter of 2025, a 40.5 per cent increase from the N752.99 billion earned in Q1 2024.
MTN Nigeria said this in a corporate filing with the Nigerian Exchange Ltd. on Tuesday.
However, the company’s after tax dropped by 134 per cent, falling to N133.7 billion from N392.7 billion in the same period of 2024.
Its total subscriber base grew by 8.2 per cent to 84.1 million, with 3.2 million new additions in Q1 2025.
MTN Nigeria also said the number of its active data users rose by 13 per cent to 50.3 million, following the addition of 2.6 million users.
EBITDA climbed 65.9 per cent to N492.7 billion, while EBITDA margin improved by 7.2 percentage points to 46.6 per cent.
The company recorded free cash flow of N209.9 billion and earnings per share stood at N6.38.
Karl Toriola, MTN Nigeria CEO, expressed satisfaction with the Q1 2025 results, citing strong strategic execution and resilient service demand.
He said momentum from Q4 2024 had helped put the firm on track to restore profitability and achieve a positive net asset position.
He added that regulatory approval for price adjustments was essential to sustain investment and maintain service quality.
This approval enabled N202.4 billion in capital expenditure, up 159 per cent, aimed at expanding capacity and enhancing user experience.
Toriola said the 40.5 per cent growth in service revenue underscored strong demand and commercial discipline.
He noted that Q1 results do not yet reflect the full impact of price changes made late in the quarter.
Some federal lawmakers, yesterday, exchanged heated arguments with telecom operators in the country over the roles they are supposed to play to stem the tide of incessant kidnapping and other phone-related crimes in the country.
The lawmakers said the telcos were not doing enough to track kidnappers, despite the number of calls they make to victims’ families demanding ransom.
However, the telcos swifty responded that the lawmakers were mistaking them for security agencies, instead of the telecommunications services providers they were, clarifying that their duties were to provide telecom services to their subscribers and not to catch criminals.
They however, clarified that where and whenever the security agencies had needed their support or services in information that would lead to locating or arresting kidnappers and other criminals, who perpetrated crimes through mobile phones, they had gladly and freely rendered result-oriented support.
The scene played out at the first day of the two-day colloquium on the Nigerian Communications Act, NCA 2003, at Sheraton Hotels, Ikeja, Lagos, with the theme “22 years after: Reassessing the Nigerian Communications Act –Challenges, Opportunities, and Future Directions for a Digital Nigeria”
Ben Etanabene, member of House of Representatives, representing Okpe, Sapele and Uvwie federal constituency, Delta State, was the first to throw the salvo, wondering why despite all the money and time expended in registering phone lines in the country, kidnappers were still operating freely without telcos tracking them.
“Every part of this country, kidnappers are on the rampage, kidnapping and making demands for ransom. Why are the telecom operators not tracking and helping in arresting them before they wreak havoc?” he queried.
Etanabene, who claimed to have been a victim of kidnappers in the past, queried why the telcos and the NCC couldn’t provide geo-location services that would ensure kidnappers were located and nabbed before they carried out their actions, even when all over the world, technology deployment stemmed same crime.
Corroborating him, Ayodele Festus, another member of House of Representatives, who represents Ile-Oluji in Ondo State, said the telcos should improve their services.
He alleged that the telcos were smiling to the bank at the expense of subscribers, who hardly finish a call without it dropping at least five times.
He alleged that there was an increase in customer dissatisfaction because, according to him, “millions of subscribers are deeply frustrated.”
Also, Mr Moshood Olawale, yet another member representing Lagos Mainland in the House of Representatives, alleged that while it was expected that the Nigerian Communications Commission (NCC), and the telcos collaborated for the progress of the sector, what appeared to be playing out was connivance, explaining why telecom tariff goes up instead of coming down.
However, in a swift reaction, Gbenga Adebayo, chairman of Association of Licenced Telecoms Operators of Nigeria (ALTON), punctured the claims of the lawmakers, saying operators were doing a lot to stem phone-related crimes in the country.
Adebayo said: “In the first instance, we are clearly telecom services providers and do not have the mandate to run around arresting criminals.
“Again, kidnappers usually don’t use their own numbers to call families of their kidnapped victims for ransom. Rather, they use the phone of the kidnapped, while moving from one point to another.
“Then, also remember that there is a privacy law, which gives every subscriber right to privacy until there is a lawful reason to intercept their conversations.
“The worst is that the security agencies have not come to ask for geo-location of event and we refused giving it out. At least, there is Law of Lawful Interception, which gives them right in that regard.’’
Also responding, Tobechukwu Okigbo, Corporate Service Executive, MTN Nigeria, told the lawmakers that in terms of affordability, Nigeria was one of the cheapest country with very low tariff in Africa, meaning that their allegation that Nigerians paid the highest price for telecom services was not based on empirical facts.
He also reminded the lawmakers to consider legislating on telecom infrastructure protection which would nip the cases of theft and incessant fibre cuts and vandalism, in the bud.
On his part, Dr. Aminu Maida, executive vice chairman of NCC, corrected the impression that the commission was conniving with telcos but stressed the importance of collaboration of the two bodies to deliver quality services to Nigerians.
Credit – Vanguard
MTN Nigeria Invests N202.4Bn in Q1 2025 to Enhance Network Capacity
MTN Nigeria Reports N1 Trillion Revenue
NBS Unveils Crowd-Sourcing Initiative for Accurate Statistical Data
Lawmakers, Telcos in Heated Debate over Kidnapping, Phone Related Crimes
Emerging Technologies, Cybersecurity, Others Form Key Focus of NCA 2003 Review
Samsung Introduces Local Nigerian Languages to Galaxy Devices, Celebrating Cultural Diversity
Burna Boy, Other Nigerian Artists Pocket $38m from Spotify in 2024
MTN Appoints Egerton Idehen as Chief Broadband Officer
Mafab Communications Has Launched 5G Services- Findings
MTN Nigeria Takes Broadband Services to the Next Level with FibreX Launch
News2 days agoNBC Loses Appeal as Tribunal Upholds ₦190m Fine for Misleading Packaging
Telecom2 days agoMTN’s Talent Hunt Returns: A Stage for Nigeria’s Next Creative Stars
Telecom3 days agoMeta Challenges Nigerian Tribunal’s $220M Fine over Data Breaches
Broadcasting3 days agoAI and Cybersecurity: Balancing Innovation with Caution
E-Financial3 days agoSupreme Court Sets Aside N22 Trillion Judgement against Union Bank
E-Business3 days agoFG Warns Nigerians Against Growing Threat of Cyber Slavery in West Africa
News3 days agoEFCC Bans Cash above $10,000 from Leaving Nigeria without Declaration
E-Financial2 days agoCBN Urges Banks to Source FX for PAPSS Settlement Through NFEM