KEY RISKS TO LOOK OUT FOR IN THE TELECOMMUNICATION SECTOR IN 2025

HIGH-PRIORITY RISKS (Potential Impact: High, Likelihood: High)

1. Cybersecurity Threats: Increased risk of cyberattacks, data breaches, and network compromise.
– Mitigant: Implement advanced cybersecurity measures, conduct regular vulnerability assessments, and enhance employee training.
2. Regulatory Uncertainty: Uncertainty surrounding regulatory frameworks, licensing, and spectrum allocation.
– Mitigant: Engage with government officials and regulatory bodies, conduct thorough risk assessments, and develop contingency plans.
3. Infrastructure Damage/Theft: Damage or theft of telecom infrastructure, disrupting services.
– Mitigant: Enhance security measures, conduct regular infrastructure audits, and develop contingency plans.
4. Network Outages: Frequent network outages, impacting service quality and customer satisfaction.
– Mitigant: Invest in network upgrades, conduct regular maintenance, and develop contingency plans.

MODERATE-PRIORITY RISKS (Potential Impact: High, Likelihood: High)

1. Competition from OTT Players: Increasing competition from Over-The-Top (OTT) players, impacting traditional revenue streams.
– Mitigant: Develop strategies to compete with OTT players, invest in digital services, and enhance customer experience.
2. Spectrum Interference: Interference from other spectrum users, impacting network quality.
– Mitigant: Conduct regular spectrum monitoring, engage with regulatory bodies, and develop contingency plans.
3. Environmental Risks: Environmental risks, such as climate change, impacting infrastructure and operations.
– Mitigant: Develop environmental sustainability policies, conduct risk assessments, and invest in green technologies.
4. Local Content Requirements: Increasing local content requirements, potentially impacting procurement and operations.
– Mitigant: Develop local content strategies, engage with local stakeholders, and enhance supplier development programs.

LOW-PRIORITY RISKS (Potential Impact: High, Likelihood: High)

1. Artificial Intelligence (AI) and Machine Learning (ML) Risks: Risks associated with AI and ML adoption, including data bias and system failures.
– Mitigant: Implement robust AI and ML governance frameworks, conduct regular system audits, & enhance employee training.
2. Digital Transformation Risks: Risks associated with digital transformation, including data breaches and system downtime.
– Mitigant: Implement robust cybersecurity measures, conduct regular system updates, and enhance employee training.

NIGERIA-SPECIFIC RISKS (Potential Impact: High, Likelihood: High)

1. Security Threats: Security threats from militant groups, kidnappings, and banditry.
– Mitigant: Enhance security measures, engage with government officials, and conduct regular risk assessments.
2. Economic Instability: Economic instability, impacting consumer spending and revenue.
– Mitigant: Develop contingency plans, engage with government officials, and enhance financial management.
3. Infrastructure Challenges: Inadequate infrastructure, including power supply and transportation.
– Mitigant: Invest in infrastructure development, engage with government officials, and develop contingency plans.