Nigeria : 100% SIM cards produced locally generate sales of over 35 million USD in two years

To fully exploit the opportunities offered by the telecoms industry, African economies, often hampered by their dependence on imported equipment, are still struggling to capture foreign currency. In response to this challenge, Nigeria has recently begun the local manufacture of SIM cards for GSM (Global System for Mobile Communications) networks. This measure is part of the strategy to promote local content and strengthen the participation of local players in the telecommunications sector.

To achieve this objective, a SIM card factory was inaugurated in Lagos in June 2022, with a production capacity of 200 million cards by year. According to Babagana Digima, this measure is already bearing fruit. He recently announced that all SIM cards used in Nigeria are now produced in the country.

Indigenous participation is one of the key areas in which Nordit has played a major role. Previously, around 99 to 100 percent of SIM cards in Nigeria were imported. And when Nordit (the Nigerian Office for the Development of the Indigenous Telecommunications Sector) arrived, we made the local manufacture of SIM cards one of our main objectives in the preceding months. We asked all mobile network operators (MNOs) to source SIM cards locally and, in fact, today 100 percent of all SIM cards used in Nigeria are manufactured locally, with no imports,

said Digima.

219.3 million telephony subscribers at March 31th, 2024

According to the latest statistics from the NCC, Nigeria had 219.3 million telephone subscribers by March 31, 2024. Abuja also intends to launch local production of telecom towers and fiber optic cables, emphasizes Babagana Digima. As a regulator, the NCC is responsible for encouraging the participation of local telecommunications companies. With this in mind, the organization has created the Nigerian Office for the Development of the Indigenous Telecommunications Sector (Nordit).

We are currently sponsoring the manufacture of a corrugated ordinal sheath, which will be the first of its kind in Africa. We are also encouraging local production of telecom towers and fiber optic cables. Coleman Cables, a local manufacturer, has overtaken the only other Egyptian producer in terms of capacity and continues to expand,

Digima said . He noted that the commission, through Nordit, engages in advocacy work to encourage indigenous participation by businesses and citizens in all aspects of telecommunications, says Nigerian news site Business Day.

Economic and social impact in the country

The initiative to produce SIM cards and other telecommunications equipment locally could have a significant economic impact. At the 2nd edition of the Nigerian Telecommunication Indigenous, NTICE Expo 2023, the executive commissioner, Technical Services, NCC, Engr. Ubale Maska representing the Executive Vice president of the NCC, Prof. Umar Danbatta, stated that the ban on the importation of SIM cards into Nigeria has not only eased the sector’s foreign exchange demand burden, but has also created a turnover of over 35 million USD ( over 21 billion FCFA and 55 billion Naira) for local SIM card manufacturers in Nigeria, which has in turn created direct and indirect employment. Commenting on the sector’s achievements, he said: “The Nigerian telecoms sector is one of the biggest contributors to the country’s socio-economic growth, as the sector’s many achievements testify. It’s not out of place to mention that the sector’s performance helped pull Nigeria out of recession with a 12.45% contribution to GDP in the fourth quarter of 2020. This figure rose to 14.13% in the first quarter of 2023.”

Recall also that the Commission has generated revenues in excess of 820 million USD between 2021 and 2022 through the auction and licensing of 3.5 GHz spectrum band to three operators to stimulate the rollout of fifth-generation, 5G, services in Nigeria. This has put Nigeria on the global 5G map, ahead of many countries in Europe, Africa and the Middle East. It creates jobs, promotes the transfer of technological skills and reduces import-related capital flight. What’s more, it strengthens the sector’s resilience in the face of international disruptions, such as component shortages or trade restrictions.

On a social level, access to affordable, quality communications technologies is essential for socio-economic development. It facilitates education, health services, commerce and financial inclusion, particularly in rural areas and marginalized communities. By investing in local production, Nigeria ensures that the benefits of the digital revolution are widely shared among its population.

Challenges and prospects

However, this path to technological self-sufficiency is not without its challenges. Establishing a reliable local supply chain, maintaining high quality standards and competing with well-established international producers represent major challenges, according to Burkinabe media outlet Radio Tankonnon. Nevertheless, with a strong commitment from the authorities and strategic investment, these challenges can be overcome, according to the same source.

The Nigerian government’s decision to ban SIM card imports and promote local production reflects a bold and visionary strategy. The future looks bright for the Nigeria’s telecom industry. Government support, combined with local innovation and growing expertise, positions Nigeria as a potential leader in Africa in the field of information and communication technologies.