Fostering economic development in Nigeria with broadband internet penetration

Looking at Nigeria’s history of Internet connections, the journey can be traced to the 1990s. At first, it was dominated by cybercafes and just very few individuals and corporations had access to broadband Internet connections –– a privilege which was accompanied by some boasting rights. However, much has changed over the decades as it has been reported that over 100 million Nigerians are now connected to The Internet. From data made available by the Nigerian Communications Commission (NCC), no fewer than 250,000 new subscribers surfaced in the last quarter of 2019 alone.

The rise of Internet users was also seen in the first two quarters of 2020. The NCC stated in a June report that the total number of Internet subscribers in the country is 143.32 million. This is about a 2.56 million increase from the number of subscribers recorded in May of the same year. More than ever before, Internet usage in Nigeria grew astronomically during the global and nationwide lockdown to curb the spread of Covid-19.

Understandably, many physical meetings, conferences and on-site tours had been substituted with virtual meetings, webinars and virtual tours respectively. It was inevitable that the situation would put a spotlight on weak network connections. From voice slurring to annoying interruptions, poor Internet connections became intolerable for many users. Thus, the reliability and speed of a selected Internet connection became a factor in the choice of  an Internet access provider.

In another report published by NCC in June, an all-round increase in subscribers could be gleaned. The report revealed that broadband penetration in the country rose to 41.27% in April, gaining 1.13% in a month. Also, the number of 3G and 4G subscribers rose from 76.6 million to 78.7 million in June. This increase put the total active Internet subscribers in the country at over 141 million in May as against the 123 million that was recorded in 2019. While 18 million new active users were recorded in the year, 10 million of the total subscribers were added in the first five months of this year.

Impact of Internet Connectivity on Economic Growth

Still, Nigeria’s poor Internet access infrastructure has been the concern of stakeholders in the digital economy because there is a direct link between economic growth and Internet penetration. A 2009 World Bank / IFC report published as an online resource titled “IC4D, Information and Communications for Development 2009: Extending Reach and Increasing Impact” offered some insight.

The report states that for every 10 percentage-point increase in high-speed Internet connections, there is an increase in economic growth of 1.3 percentage points. The IC4D report also examines how broadband and mobile communications are driving economic growth in developing countries. It includes comparative data on ICT performance in 150 economies. IC4D also includes many new ways to measure and compare access, affordability and applications in government and business.

In the same vein, a report by two scholars, Paul Gbahabo and Samuel Ajuwon titled “Mobile Broadband and Economic Growth in Nigeria”, referenced a survey conducted by Deloitte, GSMA and Cisco in 2012 which made the discovery that a 10% expansion in mobile penetration in developing markets boosts productivity by 4.2%. If this trend is maintained, it implies that there would be a higher increase in productivity due to mobile broadband network penetration in the near future.

The aforementioned reports serve as clear indication that access to affordable high-speed Internet and mobile communications are central to economic growth and job creation in developing countries. But there is a palpable disparity in the quality of broadband service offered by broadband service providers and mobile communications companies.

In January, in a bid to tackle this disparity, the Nigerian Communications Commission (NCC) announced investment of N265bn ($732m) into revamping and building infrastructural fibre networks. The government will invest N65bn ($137m) as part of a new National Broadband Plan (NBP), with the bulk of the remaining sum to be provided by six private infrastructure companies. The joint public-private initiative hopes to achieve 70% broadband penetration by 2025, according to the Minister of Communications and Digital Economy, Dr. Isa Ali Abraham Pantami.

The search for a reliable Internet provider has opened a window of opportunities for tech businesses to flourish in Nigeria. As a pioneering and leading information and communications technology (ICT) company specialising in network connectivity and the delivery of broadband Internet and voice services, ipNX has been a true market leader by delivering Nigeria’s first 200 Mbps internet speed offering known as FOS Xtreme Fibre Broadband.

With two decades-long footprints across Nigeria, ipNX is renowned for its cutting-edge broadband service. A premium choice for business and residential real estate consumers, ipNX has been assembling the blocks for building a lasting foundation for digital transformation as well as socio-economic development in Nigeria by leveraging FTTx technology as its core access-network infrastructure alongside other innovative ideas.

Strategic Partnership to Boost Nigeria’s ICT Infrastructure

One of such ideas is ipNX’s partnership with the United States Trade and Development Agency (USTDA). Primarily, the organisation connects the U.S. private sector to infrastructure projects in emerging markets by funding feasibility studies, offering technical assistance to foster economic growth. To mark the birth of this international partnership towards the development of Nigeria’s ICT and broadband infrastructure, ipNX and the USTDA held a virtual signing ceremony on Thursday, September 17, 2020.

The partnership was established after several engagements between a USTDA delegation to Nigeria and the leadership of ipNX with the goal of playing a leading role in building Nigeria’s ICT infrastructure; a major goal of the Nigerian government and a key feature of the U.S. – Nigeria bilateral trade relationship. This partnership seeks to address the substantially underdeveloped ICT infrastructure in Nigeria, bringing significant improvements to broadband access and speed to the last-mile. Both parties agree that further development of the nation’s broadband infrastructure is key to unlocking the potential promised by Nigeria’s digital economy.

This heart-warming partnership brought about the issuance of an initial grant that will support the expansion of ipNX’s world-class FTTx network infrastructure bringing wider coverage and access to residents and businesses across Nigeria. ipNX and USTDA intend to continue to work together beyond this preliminary stage, to execute many more projects into the future that will bring about the digital transformation and socio-economic development of major cities in Nigeria in alignment with the National Digital Economy Policy and Strategy.

At the Signing Ceremony, the Group Managing Director of ipNX, Ejovi Aror, expressed his optimism on the benefits of the new partnership.

“We believe that world-class connectivity and broadband internet access will be pivotal to the digital transformation and socio-economic development of Nigeria. We are very positive that this project will play a crucial role in making our belief a reality,” he said.

Aror added that with the emergence of the COVID-19 pandemic, the case for a vibrant ICT sector has never been stronger and the new partnership will bring ipNX a step closer to achieving its mission to continually leverage technology to create innovative solutions that help mankind thrive, while making a crucial impact to the lives of Nigerians across the country.

“These projects will support the development of Nigeria’s telecoms infrastructure and help to achieve the goals of the National Broadband Plan,” said the U.S. Ambassador to Nigeria, Mary Beth Leonard.

“The U.S. Government has committed significant resources to improving telecoms infrastructure in Nigeria and this support is crucial as we believe that investment in critical ICT projects will strengthen the resiliency outlined in Nigeria’s economic sustainability plan,” the ambassador added.

Also present at the virtual event, was the Director, Technical Standards and Network Integrity of the Nigerian Communications Commission (NCC), Engr. Bako Wakil, who spoke on behalf of the Executive Vice Chairman of NCC.

He said: “The support this grant will provide to the telecommunications sector, in particular broadband, is in line with the National Digital Strategy and the National Broadband Plan. The NCC would like to congratulate ipNX as it shows the company’s integrity and commitment to be selected for this grant.”

With their partnership, both parties fully agree that further development of the nation’s broadband infrastructure is key to unlocking the potential promised by Nigeria’s digital economy.