1. FINANCING THE TELECOM SECTOR NIGERIAN TELECOMMS INDUSTRY CAPITAL REQUIREMENTS FUNDING OPTIONS RISK ASSESSMENT SUGGESTED WAY FORWARD

2. NIGERIAN TELECOMM INDUSTRY HOSTILE ENVIRONMENT FOR INITIAL ENTRANTS LACK OF OPERATORS WITH PROVEN TRACK RECORD DIFFICULTY WITH ACQUIRING EQUIPMENT ON FAVOURABLE TERMS FROM SUPPLIERS AND BANKS

3. NIGERIAN TELECOMM INDUSTRY CONT’D OPERATORS FORCED TO SET UP SMALL POORLY CAPITALISED NETWORKS JUST TO ESTABLISH PRESENCE (<10,000 SUBCRIBERS, <8 CELL SITES) FUNDING CHARACTERISED BY SMALL EQUITY AND INAPPROPRIATE BUT EXPENSIVE SHORT TERM BANK FUNDING

4. NIGERIAN TELECOMM INDUSTRY CONT’D PROMOTERS WANT TO RUN THE COMPANIES RELUCTANCE TO GO PUBLIC - LIMITATION TO ACCESS TO EQUITY CAPITAL FOR EXPANSION

5. NIGERIAN TELECOMM INDUSTRY CONT’D NITEL TECHNICAL EXPERTISE LACKING SERVICE INDUSTRY EXPERTISE LACKING

6. RESOURCE REQUIREMENTS ADEQUATE CAPITAL - AMOUNT & DEBT/EQUITY MIX MANAGERIAL CAPACITY & EXPERIENCE NEUTRAL REGULATOR BALANCED INTERCONNECT AGREEMENT

7. CAPITAL REQUIREMENTS LOCAL - SITES, TOWERS, GENERATORS, RECURRENT EXPENDITURE FOREIGN - SWITCHES, BASE STATIONS, BILLING SYSTEM, GATEWAY ACCESS, MAINTENANCE, TRAINING ETC

8. FINANCING OPTIONS EQUITY - LOCAL & FOREIGN QUASI EQUITY TRADE/EQUIPMENT SUPPLIERS’ CREDIT MULTILATERAL FINANCE ORGANISATIONS - IFC, ADB, EXPORT CREDIT GUARANTEE SCHEMES OF VARIOUS COUNTRIES

9. FINANCING OPTIONS CONT’D LONG TERM LOANS - DEBENTURES, INSTALMENT REPAYMENT LOANS, EQUIPMENT LEASING ETC SHORT TERM CREDIT - COMMERCIAL PAPERS, BANKERS ACCEPTANCES, OVERDRAFTS

10. RISK ASSESSMENT COUNTRY RISK POLITICAL RISK REGULATORY RISK FOREIGN EXCHANGE RISK INFLATION RISK MGT AVAILABILITY

11. SUGGESTED WAY FORWARD COMPREHENSIVE REVIEW OF THE ENABLING ENVIRONMENT STABILITY OF LICENCES TO GIVE BENEFICIARIES OPPORTUNITY TO RECOUP THEIR INVESTMENTS AND ENCOURAGE LARGER SCALE INVESTMENTS

12. SUGGESTED WAY FORWARD CONT’D STIPULATE MINIMUM NETWORK SIZES FOR MAJOR COMMERCIAL CENTRES NCC SHOULD SET UP A COMPREHENSIVE INDUSTRY DATA BANK