CBN Governor Calls for Backward Integration in Telecoms
By Patience Ikpeme
Central Bank of Nigeria (CBN) Governor, Mr. Olayemi Cardoso, has reiterated the need for deeper backward integration within the telecommunications sector, stressing the importance of localizing supply chains and expanding financial services to benefit all Nigerians.
Cardoso made this call during a courtesy visit to the CBN headquarters on Wednesday, February 12, 2025, by the management team of Airtel Africa, led by its Group Chief Executive Officer, Mr. Sunil Taldar.
Governor Cardoso emphasized the necessity of reducing the telecom sector’s dependence on foreign exchange. He highlighted the CBN’s efforts over the past 16 months to stabilize the forex market, strengthen the Naira, and boost investor confidence in the Nigerian economy.
Building on these achievements, he urged telecom companies to embrace backward integration by establishing local production of essential components like SIM cards, cables, and towers. This shift, he argued, would not only alleviate pressure on dollar demand but also generate employment opportunities and bolster the overall economy.
“The CBN has spent the last 16 months stabilizing the foreign exchange market, strengthening the Naira’s competitiveness, and boosting investor confidence in the Nigerian economy,” Cardoso stated. “With these gains, telecom firms must now embrace backward integration by producing essential components such as SIM cards, cables, and towers locally. This shift will not only ease dollar demand but also create jobs and strengthen the economy.”
Beyond sector-specific reforms, Cardoso outlined the CBN’s broader vision of deepening financial inclusion and improving digital payment solutions for everyday Nigerians. He announced plans for a high-level summit where the CBN will collaborate with key industry stakeholders to develop strategies that promote accessible, efficient, and innovative financial services.
“The CBN is committed to ensuring that financial services reach more Nigerians, especially in rural and underserved communities,” Cardoso affirmed. “Through collaboration with relevant agencies and industry players, we aim to build a more inclusive and digitally-driven financial ecosystem.”
He reassured Airtel and other stakeholders of the CBN’s commitment to creating an enabling environment for financial service providers, fostering competition, innovation, and expanded access for Nigerians.
Responding to the Governor’s call, Airtel Africa’s Group CEO, Mr. Sunil Taldar, commended the CBN’s reforms and expressed support for the backward integration initiative. He acknowledged that reducing reliance on the dollar is in the long-term interest of telecom operators. Taldar was accompanied by the CEO of Airtel Nigeria, Mr. Dinesh Balsingh; Group CFO, Mr. Jaideep Paul; and Director of Corporate Communications & CSR, Mr. Femi Adeniran.
“Reducing reliance on the dollar is in the mid to long-term interest of telecom operators,” Taldar emphasized.
He reiterated Airtel’s commitment to deepening financial inclusion in Nigeria through technology-driven solutions and pledged continued collaboration with regulators to drive digitization and economic growth.
He praised the CBN’s ongoing reforms and expressed confidence in the direction of the Nigerian economy. Airtel, he said, remains committed to investing in Nigeria and supporting the CBN’s efforts to broaden financial access for all Nigerians.
The company recognizes the importance of a robust and inclusive financial system and is dedicated to playing its part in achieving that goal.
