PRIVATE SECTOR TO DRIVE N2tn BROADBAND INVESTMENT

Private sector to drive N2tn broadband investment The private sector will drive the projected N2tn investment target needed to grow the country’s broadband sector in the next five years, the Nigerian Communications Commission has said. KPMG, which consulted for the commission on the National Broadband Project, made the investment projection in 2014. Speaking to our correspondent on the development, the NCC’s Director, Policy, Competition and Economic Analysis, Ms. Josephine Amuwa, said government had ceased to be part of the broadband investment growth, and had allowed the private sector to drive it. “If KPMG says we need an annual investment of $2bn (N400bn) over the next five years to build a national next-generation broadband network, that is a report, which is good for the industry anyway. But as you know, Nigeria is private sector-driven and government has taken out its hands from doing what private sector should do,” she said. “So, with the KPMG estimated investment said to be needed over the next five years, we don’t believe it is the government that is going to provide the money for any investment. The private sector players will drive the investment. “What we only do as government and regulator is to continue providing and sustaining improved and friendly regulatory regime for their investment to offer them better returns and value to the final consumers,” Amuwa added. According to her, there is a need for existing operators to continue to invest in the market, especially in building better broadband infrastructure. “They cannot afford not to invest by folding their arms, otherwise, other new players will come in and invest in those areas and move ahead of them,” the NCC director said. She said the N400bn annual investment that KPMG was referring to was not just one person. “It is the totality of the investment that would be needed and it is going to be driven solely by the private sector.” She also said that KPMG was not a permanent consultant to the regulators, saying that every project done by the NCC was carried out in line with the Public Procurement Act. “I think I need to clarify certain things here. KPMG is not our permanent consultant. “They consult for us when we need them for certain projects, so, it is not like they are with us as permanent consultants. There is the Public Procurement Act, so we cannot have a permanent consultant. If there is a project, we advise and if they meet the terms of references, we appoint them,” Amuwa added.”