A Financial Analyst, Babajide Areola has re-iterated the pivotal role Small and Medium-sized Enterprises (SMEs) play in Nigeria’s economic development.
He stressed that most SMEs drive about 90 per cent of businesses’ growth in the country. He said this in a report titled ‘Telecommunications Infrastructure: The Bedrock of SMEs Prosperity.’

Giving statistics, he cited the first quarter of the National Bureau of Statistics (NBS), which showed that telecommunications contributed 14.13 per cent to the country’s Gross Domestic Product (GDP).

On a global scale, he said the telecommunications market is projected to grow at a Compound Annual Growth Rate (CAGR) of 6.2 per cent during the forecast period of 2023 to 2030.

He mentioned some of the challenges faced by SME owners during an era when there was no communications infrastructure to support their businesses, which he said are now appalling.

But now, Areola said that SMEs now have unique opportunities to scale their operations, access new markets, and streamline their business processes through high-speed Internet access, mobile connectivity, and reliable networks.

He said: “We now have access to telecommunications and also to the widespread towers that allow Mobile Network Operators (MNOs) to collocate their equipment on towers owned by Tower Companies (TowerCos), and extending coverage to regions where SMEs reside, providing both data and voice services and other value-added services.”

He added that TowerCos has also contributed significantly to economic growth, job creation, social connectivity, innovation, global engagement, gender inclusion and diversity.

Noting that there are challenges to consider in communications infrastructure, he said issues such as limited access to high-speed Internet and mobile connectivity in many regions of Nigeria, as well as the vulnerability of SMEs to online scammers and hackers. He suggested sensitization on cybersecurity and the development of digital skills among SMEs.

He further claimed that clear and supportive regulatory frameworks that avoid multiple taxations are necessary to encourage investments in communications infrastructure and protect the interests of SMEs.

To ensure the continued growth of SMEs in Nigeria, Areola, called for investments in communications infrastructure, along with supportive policies and initiatives, are paramount.

According to him, “Collaborative efforts from the government, industry and SMEs can help pave the way for a brighter economic future, where SMEs continue to thrive and contribute to national development.”