While the digital economy is widely recognised as a key driver of growth for any economy, its foundation rests firmly on a robust and accessible ICT/telecom infrastructure. ADEYEMI ADEPETUN in this piece, writes that Nigeria still awaits Mr. President’s digital jobs.
Tomorrow, May 29, it will be exactly two years since President Bola Ahmed Tinubu took the oath of office, carrying with him a promise that resonated deeply with Nigeria’s burgeoning youth population: the creation of one million digital jobs.
As his administration marks its second anniversary, many Nigerians are keenly assessing the progress made on this ambitious pledge, a cornerstone of his “Renewed Hope” agenda.
The promise to create a million digital jobs within his first two years in office was a response to Nigeria’s significant youth unemployment challenges and recognition of the global shift towards a digital economy. The vision aimed to leverage Nigeria’s vibrant youth demographic, fostering innovation, digital skills development, and sustainable employment in sectors like fintech, agri-tech, e-commerce, and artificial intelligence (AI).
The administration has indeed emphasised the importance of the digital economy. President Tinubu has consistently reaffirmed his commitment to youth empowerment through digital innovation and skill development, stating that it is “at the core of our administration.”
The ICT sector has shown significant growth, contributing 16 per cent to Nigeria’s Gross Domestic Product (GDP) in 2024, highlighting the potential for further expansion.
Several initiatives have been launched to support this goal. There is the 3 Million Technical Talent (3MTT) Programme by the Ministry of Communications, Innovation and Digital Economy. There is also the Labour, Employment and Empowerment Programme (LEEP), an initiative of the Federal Ministry of Labour and Employment, unveiled to create 2.5 million jobs within two years, with a strong focus on equipping Nigerians with digital and innovation-driven skills.
But 729 days into the four-year term of President Tinubu, it appears the hope of one million digital jobs creation is fading as the supposed bold economic reforms of his administration are pushing out more Nigerians into the unemployment circle.
The 3MTT and LEEP projects
LAUNCHED by the Minister of Communications, Innovation and Digital Economy, Dr Bosun Tijani, in November 2023, unveiled the 3MTT to help propel the sector for the creation of jobs, especially the digital ones; the ministry was yet to disclose the number of jobs the initiative has created. Efforts by The Guardian to get details of jobs created in the last 15 months of the creation of 3MTT were not successful as of press time as ministry officials, in their slowness, were yet to respond to the enquiries.
However, unconfirmed reports indicated that the 3MTT programme has seen over 1.7 million applications, with more than 30,000 fellows trained in its first cohort, who have in turn built over 2,000 real-world projects.
On the other hand, LEEP’s pillars include a job portal, digital nomads programme, vocational and entrepreneurship programme, digital academy, and job fairs, all aimed at connecting skilled individuals with opportunities. The government has also indicated a commitment of $500 million from the World Bank to support these efforts.
Beyond specific programmes, the administration has been working on creating an enabling environment for the digital economy. This includes efforts to address systemic challenges such as infrastructural deficits, inadequate digital skills, and regulatory bottlenecks. Discussions around accelerating the transition to IPv6, establishing digital health innovation hubs, and promoting long-term funding for digital initiatives have been highlighted by various bodies. The government has also expressed willingness to partner with global tech giants like Google, which has shown interest in supporting the creation of digital jobs in Nigeria.
However, the journey to fulfilling the one million digital jobs promise is not without its hurdles. Challenges persisted, including issues with broadband penetration. The Federal Government’s 70 per cent 2025 broadband penetration target is currently at a snail speed.
With penetration hitting 48.15 per cent as of April, it showed that Nigeria was 21.85 per cent short of the 70 per cent target as documented by the National Broadband Plan 2020 to 2025.
The NBP timelines expected the country’s broadband penetration to have hit 50 per cent as of the end of 2023. However, at the end of that year, penetration stood at 43.71 per cent and rose marginally to 44.43 per cent at the end of 2024.
There are still high Right of Way (RoW) charges, which have continued to hinder effective telecom infrastructure deployment. Today, the majority of the states still see RoW as an avenue to rake in huge internally generated revenues (IGR), they are still blinded to the economic benefits of fibre deployments, among others.
Infrastructure vandalism is very much up there. This month, operators have reported about 33 outages as a result of fibre cuts, and willful damages, among others. The sector has had to cope with foreign exchange constraints and inconsistent power supply.
These fundamental issues impede the widespread adoption of digital tools and limit access to online work opportunities, especially in rural areas. While there is hope of huge connectivity improvements with FG’s planned deployment of 7000 base stations and 90, 000km of fibre optic infrastructure by the last quarter of 2025, with the number of unconnected clusters decreasing, the digital divide remains a significant barrier to creating jobs.
Telecom sector as an enabler
AT the centre of enabling the creation of jobs is the telecom sector. It currently boasts of $76 billion investment with 173 million active telephone users. The telecom sector has enabled all other sectors, including health, education, financial, among others.
For the players, the past year has been a tumultuous yet dynamic period for the industry. A critical driver of economic growth and digital transformation, the industry has navigated a complex landscape marked by unprecedented economic pressures, continued technological advancements, and persistent infrastructural challenges.
Undoubtedly, the most significant factor shaping the sector in the last 12 months has been the radical devaluation of the Naira. For an industry heavily reliant on dollar-denominated imports for equipment, software licenses, and network infrastructure, this currency fluctuation has created a perfect storm.
Major mobile network operators (MNOs) have borne the brunt of this economic shock. MTN Nigeria, for instance, reported a staggering N400.44 billion loss after tax in 2024, a nearly 200 per cent increase from the previous year, largely due to a massive N925.36 billion foreign exchange loss. Airtel Nigeria also saw its revenue impacted by the Naira’s depreciation. This surge in operational costs, exacerbated by skyrocketing diesel prices (which have seen some telcos spend over N3 billion monthly on fuel alone), has severely squeezed profit margins. The high cost of servicing foreign currency-denominated debt has further compounded financial woes, leading to a significant drop in foreign direct investment into the sector.
However, the operators appeared to be gradually returning to profit. For instance, in its Q1 financial report released weeks back, MTN reported N1 trillion revenue.
12 years after the last tariff hike, the telecom operators, on January 20, 2025, got permission from the Federal Government after several months of agitation for a price review. They got a 50 per cent price hike, which subsequently raised the floor price of calls from N6.40 to N9.60 per minute, SMS from N4 to N6, and 1GB of data from N287.50 to N431.25. The hike, according to the telcos, has impacted them positively, stressing that it is about the sustainability of the sector.
The Chief Executive Officer, Sunil Taldar, who said an improving operating environment and focused execution contributed to strong momentum in the financial results, with constant currency revenue growth peaking at 23.2 per cent in Q4 ’25, noted that part of this acceleration in the last quarter has also been driven by the Nigerian tariff adjustments.
MTN CEO, Karl Toriola, noted that recent price adjustments have helped the telecom operators accelerate network investments with a focus on boosting capacity and improving user experience. He also noted that while the company has adjusted its prices, it does expect the full impact on usage and revenue from Q2, saying early indicators suggested continued resilience in customer demand, aided by targeted CVM initiatives.
Persistent Hurdles
DESPITE some advancements, deep-seated challenges continued to hinder the sector’s full potential. These include infrastructure vandalism, RoW charges, digital divide, power supply, multiple taxation, over regulation among others.
While about 12 states have either completely waived RoW or charged very low prices, the inconsistency and high costs of RoW charges levied by state governments remain a substantial barrier to the efficient and widespread deployment of fibre optic cables.
According to telecoms expert, Kehinde Aluko, addressing the fundamental challenges of economic stability, infrastructure protection, and harmonised RoW policies will be crucial in unlocking the sector’s immense potential and ensuring it remains a robust engine for Nigeria’s digital future.
Aluko noted that while there are various ambitious targets – including a broader plan to create five million jobs for Nigerian youths and the 3MTT program’s aim of training three million talents – concrete figures on the actual number of digital jobs created directly attributable to the initial “one million” promise are still eagerly awaited by the public. He said transparency and consistent updates on job creation metrics will be crucial in building public confidence and demonstrating tangible progress.
Going forward
THE Chairman of the Association of Licensed Telecom Operators of Nigeria (ALTON), Gbenga Adebayo, while admitting that the sector has done relatively well in the last one year, said the focus should be on deepening the level of infrastructure in the country, stressing that infrastructure protection is directly proportional to the sector’s next level of sustainability, “because the spate of damages seen in fibre cuts, vandalism if nothing is done, it will affect the industry again. The government must be commended for the CNI passage.
“Improved FX regime, stabilise and drop in energy cost, revamped economy, the CNI law should be put to test to ensure that infrastructure is protected adequately well in ensuring that the sector remains the pillar of the economy. There should also be the creation of a knowledge economy.”
Assessing the sector in the last two years, IPNX Director, Strategic Business, Olusola Teniola, appreciated the growth of the industry, thus far, saying the emphasis on AI, startups, and training of youths, among others are all welcome.
Teniola however, said going forward, the focus should now be on production, and infrastructure development, saying, “Without digital infrastructure, there cannot be any AI, startups and training will be meaningless because no infrastructure to work on, they will not be able to create jobs. So, the next two years of this current administration should focus on resolving the connectivity issues. Without meaningful connectivity, there won’t be any broadband and without broadband, no eGovernment, eHealth, eEducation and largely, no digital economy.”
