Cardoso Advocates Deeper Backward Integration in Telecom Sector to Strengthen Naira, Boost Local Manufacturing

In a decisive push for economic self-sufficiency, the Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso, has reignited discussions on the urgent need for backward integration in the telecommunications sector. His message, delivered on February 12, 2025, during a high-level engagement with Airtel Africa’s leadership, underscored the imperative of localising critical supply chains to reduce reliance on foreign exchange and bolster Nigeria’s industrial capacity.

Reflecting on the journey over the past 16 months, Cardoso highlighted the CBN’s relentless efforts to stabilise the foreign exchange market, strengthen the Naira, and restore investor confidence in Nigeria’s economy. These gains, he stressed, must now be complemented by tangible commitments from telecom operators to manufacture essential components—such as SIM cards, cables, and telecom towers—within Nigeria. By reducing the industry’s heavy dependence on dollar-denominated imports, this shift would not only ease pressure on foreign reserves but also catalyse job creation and technological advancement in the country.

Beyond the structural changes in the telecom sector, Cardoso reaffirmed the CBN’s broader vision for financial inclusion and digital transformation. He announced plans for a high-level summit where the CBN, in collaboration with key industry players, would chart a course for expanding financial services to underserved populations. His emphasis on digitisation reflects a growing recognition of technology as a powerful enabler of financial empowerment, particularly in rural communities where access to traditional banking remains limited.

Airtel Africa’s Group CEO, Mr. Sunil Taldar, welcomed the CBN’s policy direction, acknowledging that embracing backward integration aligns with the long-term sustainability of the telecom industry. He pledged Airtel’s continued support for local manufacturing initiatives and reaffirmed the company’s commitment to deepening financial inclusion through innovative digital solutions.

This renewed call for backward integration serves as a pivotal moment in Nigeria’s economic trajectory. As telecom giants and regulators navigate this transformative shift, the industry’s response will determine the extent to which Nigeria can harness its industrial potential, strengthen the Naira, and build a resilient, self-sustaining economy.

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