Nigerian GSM Operators to Investors $6bn on Infrastructure

GSM operators in Nigeria have resolved to inject over $6 billion into the telecommunication sector of the economy, with a view to improving its infrastructure.

The minister of Communication Technology, Mrs. Omobola Johnson, disclosed this Tuesday, while presenting her ministry's score card at the ongoing weekly Ministerial Platform, organised by the Federal Ministry of Information, at the Radio House Press Centre, Abuja.

The minister who said that the project would commence soon this year, also said that RLG Communications had established $20 million handset, PC, tablet factory in Osun State, expected to commence production next month, July.

She further said that RLD Communications was already providing customised ICT training to Osun State youths, adding that anther ICT company, Mi-Fone, already active in 14 other African countries, was currently setting up a $30 million handset factory in the country and its second technical team's working visit is being expected also in July this year, while full capacity production would begin in the fourth quarter of 2013.

According to Mrs. Johnson, the foregoing developments were the outcome of the ongoing collaboration with the Federal Ministry of Trade and Investment, which had, in turn, resulted in positive response from investors entering the nation's communication space and developing national local content agenda.

The minister further explained that part of the operators financial commitment to infrastructural development would include $3 billion cyndicate loan facility extended to major operator in the market; that is, the "biggest financial deal in sub-Sahara Africa communications sector", even as a request for $250 million Ecological Tax from operators to deploy Base Stations had been made.

She, however, pointed out that investment in the nation's telecommunication sector  was being hampered, among others, by increasing incidences and value of taxes and levies requested by states as well as delays in obtaining approval to build Base Stations.

On satellite transmission, she said 11 satellites were currently positioned to provide coverage over Africa and capacity utilised for delivering communications and broadcasting.