By Nkiruka Nnorom

Absa, a pan-African investment bank, has highlighted the opportunities for new businesses in the Nigerian telecommunications sector as well as the sector’s limitless growth potential.

The bank said the opportunities and the growth potential remain strong, in spite of the challenges in the sector, and therefore called on smart investors and entrepreneurs to tap into the opportunities and expected growth.

Speaking on “The Nigeria Telecoms Sector: Exploring the Opportunities”, at a media roundtable in Lagos, Sadiq Abu, Chief Executive Officer, Absa Nigeria, said power deficit, vandalism of transmission infrastructure assets, theft, and multiple taxation are some of the issues plaguing the smooth operations of telcos in the country.

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He however said that despite the operating challenges, the sector continues to present enormous opportunities for growth, especially in relation to broadband internet, last mile connectivity and telco infrastructure (data centres, fibre optic networks, etc). There remains a vast and growing demand for data, despite the apparent maturity of voice revenue streams.

“The telecommunications industry is generating interest from local and foreign investors. This is because the capacity for growth in the industry is limitless. And telcos are already strategically developing useful business vehicles to take advantage of emerging opportunities in the industry.

“Meanwhile, the various challenges that are bedeviling the smooth operations of telcos provide expansive opportunities for smart entrepreneurs who possess an innovative and unerring vision of what can be done to help the players maintain cost advantage or protect critical transmission infrastructure assets through the provision of services that hedge against disruption in the supply chains,” Sadiq said.