Lagos-based financial advisory and research firm, the Financial Derivatives Company Limited (FDC),  have advised  the federal government that in order to harness greater output from the telecommunication industry, the federal government needs to design policies that will reinforce consumer protection.

The report emphazied the need for improved security as well as an enabling environment to encourage and enhance telecoms operators in the country.

It described Nigeria’s 87 per cent tele-density reached in only 13 years as a commendable achievement when compared with tele-density in countries such as India, Kenya and China.

Furthermore, the report pointed out that development in the telecommunication sector could drive growth in the financial services sector, specifically the banks.

It also noted that full optimisation and increased service delivery by the telecoms operators would also boost the sector’s direct contribution to Gross Domestic Product (GDP) while its indirect impact on other sectors such as agriculture, manufacturing, retail and wholesale trade as well as the services sectors would further improve the country’s development and growth prospects.

The FDC report revealed that one of the greatest challenges facing the Nigerian economy was the need to provide basic infrastructure that could stimulate and accommodate economic growth as well as uplift the average citizen from poverty.

“Internet broadband, mobile phones, and main telephone lines are among the primary telecommunication technologies identified as drivers of economic growth.

“Nigeria is faced with increased pressure from the United Nations as well as the World Bank to improve access and use of telecommunications infrastructure because the flow of information between rural and urban areas is crucial in the fight against poverty and achievement of the Millennium Development Goals,” it added.

Furthermore, it stated that mobile operators are yet to match the performance of telecommunication operation and connectivity of some other countries.

This challenge, in addition to the high cost of telephony and poor access to the internet was compared to countries like China, South Africa and Kenya.