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The Structures, Roles of Operators in the Nigerian Telecoms Sector

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By Olajide Adisa

Since Independence in 1960, the telecoms sector has impacted on the Nigerian economy in several positive ways, creating jobs and contributing to the Gross Domestic Product (GDP) of the Nigerian economy.

Before Nigeria gained independence in 1960, communication was mainly through the telegraphic wire, initiated by the colonial masters, but after independence in 1960, the Nigeria Telecommunications Limited (NITEL), was established in 1985, following the separation of postal services from telecommunications services. At that time, telecommunication was the exclusive right of the affluent in the society as only few people had access to telephony. People had to queue for hours and days, just to make international calls and sometimes local calls with the 090 NITEL line.

During that period, the existing Telecom operators were NITEL and a few other Code Division Multiple Access (CDMA) operators. However, the advent of GSM in 2001 eventually demystified telecommunications, and gave every Nigerian the access and right to communicate. The introduction of GSM in 2001, increased the number of registered lines from less than 400,000 in 41 years of independence, to over one million lines in less than one year after the introduction of GSM.

After 2001, more and more Nigerians could sit at the comfort of their homes and offices to make instant calls within and outside Nigeria, through their personal hand-held devices called the mobile phones. Banking activities are now transacted on the mobile phones, without the bank customer visiting the banks. The most eventful period was between 2001 and 2015, when the telecoms sector was deregulated.

The Structures

In preparation for the proper regulation of the telecoms sector, the Nigerian Communications Commission (NCC), the telecoms industry regulator was established by an Act of law in 2000, and in 2003, the Nigeria Telecommunications Act was enacted, which defined the structures of the Nigerian telecoms sector.

In 2001, the first set of GSM operators were licensed by NCC. They included Econet Wireless (now Airtel), MTN and NITEL. In 2003, Globacom was licensed and in 2008, Etisalat, now 9mobile, was licensed, while NTEL, the mobile arm of NITEL was licensed in 2014, but rolled out services in 2016, after the successful privatisation process, through a guided liquidation exercise.

However, following the inability of NITEL to cope with competition from GSM operators, it folded up its operations and was eventually sold to NATCOM in 2014, and later re-sold to private investor after it was unbundled and it currently trades as Ntel, under a private ownership and with the Asset Management Corporation of Nigeria as a majority shareholder.

Core Telcos

The core telecom operators (Telcos), such as MTN, Airtel, Globacom and 9mobile were initially licensed by NCC to provide mobile voice services. The NCC however licensed Globacom as a Second National Operator (SNO) to offer fixed (landline), in addition to wired and wireless (mobile) services that other core operators were offering. NCC also licensed Internet Service Providers (ISPs) to offer internet data services, but in 2005, NCC deregulated the telecoms sector and granted a five year exclusivity period to GSM operators and also extended their license to cover data service offering.

The core telecoms operators had to roll out their own telecoms infrastructure to aid network expansion across the country.

Chairman, Association of Licensed Telecoms Operators of Nigeria (ALTON), Engineer Gbenga Adebayo, said the core telcos had to reinvest their profits into telecoms infrastructure rollout because the federal government could not deploy the $285 million licence fee paid by each core operators for telecoms infrastructure rollout as early promised.

“To achieve effective network coverage, the core telcos were in building Base Transceiver Station (BTS) and connecting radio links, while at the same time, laying fibre optic cables and connecting them to BTS for effective coverage, which come at a huge cost and burden to telecoms operators. Again, the cost of maintaining BTS was on the high side, because each BTS runs on two generating sets on a 24 hours basis and the cost of diesel has continued to increase, even more so with the recent removal of fuel subsidy by the federal government, Adebayo said. He however said at a point, the core telcos had to outsource the building of telecoms masts (BTS) and the maintenance and operations to core infrastructure companies like IHS, to enable the core telecoms operators to focus on their core area of telecoms service delivery to telecoms subscribers.

Infrastructure Companies (InfraCos)

Infrastructure Companies like IHS, MainOne, Pan African Towers, SWAP Technologies, Zinox Technologies, Broadbased Communications, Brinks Integrated Solutions, O’dua Infraco Resources among others, were initially licensed as InfraCos to provide telecoms infrastructure across the six geo-political zones in the country, but the arrangement failed years later because of the difficulties most of the licensed faced in deploying telecoms infrastructure across the various regions.

The InfraCos were supposed to provide BTS also known as Base Stations, as well as fibre optic cables and radio links for the transmission of voice and data services, but they were resisted by agencies of state governments and social miscreants who demanded and to a large extent continue to demand outrageous amounts of money from them as condition for rollout of telecoms infrastructure in the various regions. Some agencies of state governments either refused to grant Right of way (RoW) permit for infrastructure rollout, or arbitrarily hiked the charges for RoW in their states, thus making it difficult for InfraCos to roll out telecoms infrastructure in most states. The situation forced some InfraCos like IHS and MainOne to return their InfraCo licence to the NCC, after paying N2.5 million for a ten-year InfraCo licence.

Some operators were licensed to deploy telecoms masts across the country, maintain the operations of telecoms masts and allow telecoms operators to collocate by fixing their radio links and antennae on the installed telecoms masts. Operators involved in providing telecoms masts include: IHS, American Towers Company (ATC), Pan African Towers, Coloplus Limited, among others.

Telecom mast providers are faced with a myriad of challenges in deploying telecoms masts across the country, a development that affects the quality of telecoms service delivery across networks. Multiple taxation, foreign exchange rate volatility and availability, vandalism, insecurity, asset theft, intra-industry indebtedness, non-designation of telecommunications infrastructure as Critical National Infrastructure and power solutions are some of the problems facing the industry sub-sector.

All these issues culminate in having an adverse impact on communications because the quality of service is ultimately affected. With a gap of approximately 40,000 towers needed (without 5G) to cover the country as has repeatedly been said by NCC, these issues need to be addressed not only to improve the quality of current service delivery but also to provide network coverage for the rest of the country.

The building of towers in close proximity to already existing towers must also be addressed if national coverage is to be achieved within a reasonable time. The network must expand to currently unserved parts of the country.

CEO of Coloplus Limited, Mr. Mike Ofili, admitted to the huge challenges faced in deploying telecom masts across the country.

According to Ofili, the telecoms mast providers must have the buying and consent of telecoms operators, before investing in a single telecoms mast (Tower), which he said, cost between N35 million to N40 million, depending on the location.

Speaking on some of the challenges in deploying telecoms masts, Ofili said: “Nigeria imports virtually everything that has to do with telecoms’ tower equipment and installation. We import the towers, generating sets, batteries, rectifiers, including iron/rod used for reinforcement. The rising cost of dollar and the weak value of the naira against the dollar, coupled with the inability to access Forex, have affected importation of equipment, thus slowed down network expansion, leading to poor telecoms’ service delivery. The issue of multiple regulation and multiple taxes imposed on telecoms’ operators by agents of governments, are also affecting the deployment of telecoms masts, which telecoms operators rely on to provide quality service to subscribers,” Ofili said.

According to him, with multiple regulations from state agencies, telcos are forced to pay for Environmental Impact Assessment fee, Right of Way (RoW) charges, mast installation charges, radioactive emission charges, among other charges that amount to multiple taxes.

“Cost of maintaining BTS is also very expensive. Nigeria has about 30,000 BTS installed across the country, with some decommissioned while about 30,000 BTS are still active, with high cost of maintenance. The cost of diesel to power a BTS is on the increase and the financial demand from non-state actors who parade themselves as social miscreants, is becoming rampant and impacting negatively on the running cost of a BTS. Network operators had tried severally to increase cost of telecoms services delivery in line with the rising cost of providing telecoms services, but the regulator, the NCC, will not agree, and the situation is adversely affecting telecoms operations across networks,” Ofili said. Other sources online put the number of installed towers in Nigeria at over 40,000 as at 2021.

The development slowed down network expansion of telecoms operators and invariably, quality of telecoms service delivery has been adversely affected.

Following the collapse of the InfraCo arrangement, telecoms infrastructure providers started making personal negotiations to roll out telecoms infrastructure, but at a very slow pace that is negatively affecting telecoms service delivery, because the telecoms operators largely depend on the telecoms infrastructure companies to deliver telecoms services to the subscribers.

Speaking on some other challenges faced by telecoms operators, the Chairman of the Association of Licensed Telecoms Operators of Nigeria (ALTON), Engr. Gbenga Adebayo, said maintenance of BTS was becoming a major challenge as cost of diesel continued to rise since the removal of fuel subsidy by the federal government. According to Adebayo, the operators have called for an increase in telecoms tariff, but the move has always been resisted by the NCC and the telecoms subscribers. According to Adebayo, all other sectors of the Nigerian economy have had reasons to increase cost of service delivery to the people because of the prevailing circumstances in the country occasioned by fuel subsidy removal, but there had always been resistance each time the telcos talk about price increase.

Value Added Service (VAS) Operators

VAS operators are another set of operators that the telecoms operators rely on in providing quality telecoms services to telecoms subscribers.

VAS operators are licensed by the NCC to provide value added services that will enable telecom operators to serve telecom subscribers in a most effective way. Although they do not have telecoms infrastructure, they ride on existing telecoms infrastructure to offer telecom services that are regarded as value added services to telecom operators.

Their services are essential because they determine the quality of service that telcos offer to their subscribers. Some of the services include: Call waiting, Call forwarding, multi-party conferencing, Short Message Service (SMS), and special ringtones. The major challenge faced by VAS operators is in the area of pricing of the solutions developed and offered by VAS operators.

National Chairman of VAS operators, Mr. Chijioke Eze, who confirmed the issue of pricing, said the issue still persists, because the sharing ratio between VAS operators and telecoms operators are never favorable to VAS operators. According to him, the telecoms operators will want to take the lion share from the proceeds of any VAS solution offered by telecoms operators, just because the telecoms operators own the telecoms infrastructure on which the VAS solution rides on.

Mobile Virtual Network Operators (MVNO)

In addition to the services that Value Added Service (VAS) operators are offering in the telecoms sector, the Nigerian Communications Commission (NCC), recently licensed 25 Mobile Virtual Network Operators (MVNO) that will also ride on the existing telecoms infrastructure to provide telecoms services that will enhance telecoms subscribers’ experience.

Although many industry analysts have blamed the licensing of 25 MVNOs, insisting it would lead to duplication of solutions and harsh competition between VAS operators and MVNOs. National Chairman of VAS operators, Mr. Chijioke Eze, however said both VAS and MVNOs could collaborate and offer quality services without any form of friction.

Internet Service Providers (ISPs)

The Internet Service Providers (ISPs) are another set of operators licensed by NCC to provide internet connectivity for data services.

Their role is interwoven with telecom operators that also offer data services, alongside voice services.

The interwoven nature of the role of both operators is causing great concern to ISPs that are smaller in size and capacity. Because the telcos have the numbers, with a subscriber base of over 220 million across networks, they appear to run out the smaller ISPs that have less subscriber base.

Commenting on the situation, the CEO of Swift Networks, Mr. Charles Anudo, who is an ISP, said most ISPs are being suffocated by Telecom operators that provide the same data service with ISP.

According to him, ISPs were originally licensed to provide data services, while telcos were originally licensed to provide voice services. He however said the deregulation of the telecoms sector, provided opportunity for telcos to offer data services, a development, he said, was already affecting ISPs. He called on the regulator to ensure protection of ISPs, especially the smaller ISPs, in order to save them from going into extinction.

From the analysis above, it is evident that the challenges in the telecoms sector is not only embedded with telecoms operators, as it cuts across several sub-sectors like VAS, InfraCos, MVNOs, and ISPs, making it a web of challenges that has to be addressed by all the players in the industry, including the regulator, the NCC.

Olajide Adisa, is a Telecoms/ICT Analysts & Commentator writes from Abuja

 


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Ugo Onwuaso is an ICT enthusiast. He believes technology should be used for general good. He holds a Master of Public Administration (MPA) degree from the Lagos state University. Dear Reader, Your support matters. But we believe that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. That is why, we have devoted our energy to independent reportage of technology and finance and how they affect lives. Our incisive and analytical view of how technology news affects the daily life help individuals and organizations make up their minds. Quality journalism costs money. Today, we're asking that you support us to do more. Kindly support our effort to deliver technology and finance journalism to everyone in the world. Donate as little as N1,000. Bank transfers can be made to: UBA Plc 1017156876 Communication Week Media Ltd

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Spotify’s Loud & Clear Report Reveals Over ₦60Bn Revenue for Nigerian Artists in 2025

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Spotify has unveiled Nigeria-specific data from its annual Loud & Clear report, highlighting how Nigerian artists generated more than ₦60 billion in revenue from the platform alone last year, amid explosive growth in streams, local consumption, and global discovery.

Spotify's Loud & Clear Report Reveals Over ₦60Bn Revenue for Nigerian Artists in 2025

The report, which analyzes millions of data points to illuminate music streaming economics, shows Nigerian artists’ revenue surged over 140% in the past two years.

This boom stems from rising global appeal and stronger domestic engagement, with 30.3 billion streams and 1.6 billion listening hours on Spotify in 2025. First-time discoveries of Nigerian music hit 1.3 billion, up 26% from 2024.

Locally, Nigerian tracks dominated Spotify Nigeria’s Daily Top 50, accounting for over 80% of features, while consumption of homegrown artists jumped 170% year-on-year.

“Nigeria’s music scene thrives on creativity, innovation, and global influence,” said Jocelyne Muhutu-Remy, Spotify’s Managing Director for Africa. “Loud & Clear spotlights how artists are forging sustainable careers and deepening local ties.”

Key highlights include:

  • 55% year-on-year growth in local streams for Nigerian female artists.

  • 75% surge in streams for independent Nigerian artists.

  • Independents and indie labels earning 58% of all royalties from Nigerian artists on Spotify.

Spotify’s editorial playlists featured nearly 2,000 Nigerian artists in 2025, boosting visibility. Nigerian music appeared in 320 million global user playlists and over 12 million in Nigeria, totaling more than 60 million playlists worldwide.

The report also notes evolving tastes, with top-growing genres in Nigeria over five years including pop urbaine, alternative pop, anime, emo, and drill.

For full details, visit spotify.com/loudandclear.


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Madonna University Taps Tech Guru Adote for Strategic Board Role

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Technology strategist Rock Adote has been appointed to the Board of Trustees of Madonna University Nigeria, a move expected to strengthen the institution’s push toward digital governance and modern technological systems in higher education.

L-r: Professor Martin Osita Anagboso, deputy vice chancellor, Madaonna University in a handshake with Rock Adote, newly appointed member of the Board of Trustees of the University

Madonna University

Adote, who has built a reputation in cybersecurity, enterprise identity management and digital transformation, brings over a decade of experience in designing secure digital infrastructure and managing identity systems for organizations.

Stakeholders believe his expertise will support the university’s efforts to strengthen data security and modernize its academic and administrative digital frameworks.

The appointment reflects the university’s growing commitment to technology-driven leadership as institutions increasingly rely on digital systems for academic operations, data management and research collaboration.

Universities today manage large volumes of sensitive digital information, including student records, research data and staff credentials, making strong cybersecurity and identity management frameworks essential.

As a member of the Board of Trustees, Adote will participate in providing institutional oversight and guiding strategic policy direction for the university.

The board is responsible for safeguarding academic standards while steering long-term development initiatives and ensuring the institution remains responsive to evolving global trends in education and technology.

Industry observers say Adote’s background in enterprise digital systems positions him to contribute significantly to the university’s digital transformation agenda, particularly in strengthening technological resilience and governance frameworks across its operations.

Other newly appointed members of the board include Sir Nwagwu Aloysius Emeka, Chief Arthur Obi Okafor (SAN), Professor Anagboso Martin Osita, Mrs. Ike Angela Unaoaku, Barrister Augustine Nenwa Obo and Rev. Fr. Stephen Ifeanyichukwu Nwatah.

Speaking on the appointment, Adote expressed appreciation for the opportunity to serve, emphasizing the importance of aligning higher education institutions with emerging technological realities.
According to him,

“Digital transformation will play a crucial role in shaping the future of academic administration, research and learning environments”.

Analysts note that the inclusion of technology leaders in university governance structures signals a growing recognition that digital transformation is becoming central to the competitiveness and sustainability of modern higher education institutions.

With Adote’s appointment, Madonna University is expected to further strengthen its technology strategy and position itself as a forward-looking institution within Nigeria’s higher education landscape.


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Healthcare Under Attack: Why Cybersecurity is Now Critical Care

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By: Kerissa Varma, Microsoft Chief Security Advisor, Africa

Africa’s healthcare sector is facing a silent emergency. Many healthcare operators, facilities and doctors across Africa already grapple with the challenges of under-resourced environments, an uneven distribution of resources and massive demand for services.

Healthcare Under Attack: Why Cybersecurity is Now Critical Care

Kerissa Varma, Microsoft Chief Security Advisor, Africa

Now healthcare administrators must turn their attention to a relatively new and extremely urgent concern. While doctors fight to save lives, cybercriminals are infiltrating hospitals, laboratories, and clinics, turning life-saving environments into digital battlegrounds.

A growing epidemic

World Health Organisation director-general Tedros Adhanom Ghebreyesus noted that the digital transformation of healthcare, combined with the high value of health data, has made the sector a prime target for cybercriminals, commenting that “At best, these attacks cause disruption and financial loss. At worst, they undermine trust in the health systems on which people depend, and even cause patient harm and death.”

Recent attacks have exposed the fragility of Africa’s medical infrastructure. In May 2025, Mediclinic Southern Africa was hit by a cyber extortion attack, compromising sensitive HR data. Later in 2025, Lancet Laboratories faced a regulatory penalty for failing to notify patients about data breaches under South Africa’s POPIA law, while a ransomware strike on the National Health Laboratory Service disrupted blood test processing nationwide, delaying critical care for millions.

M-Tiba, a Kenyan digital health platform managed by CarePay and backed by Safaricom, suffered a significant cyberattack and data breach in late 2025, while earlier this year Pharmacie.ma, a Moroccan pharmaceutical platform, was reportedly the target of an alleged data leak incident that allegedly involved the unauthorised export of a customer database. And recent research indicates that Nigeria’s private healthcare sector is now one of the most targeted on the African continent, with attacks increasing at an alarming rate.

Many incidents also go unreported, as hospitals and healthcare facilities rarely disclose them publicly, yet these incidents are not isolated, with ransomware dominating the threat landscape. Africa’s healthcare sector is heavily targeted by cybercriminals, with healthcare organisations facing an average of 3,575 weekly attacks in 2025, a 38% surge from the previous year, with encryption of patient data, temporary loss of access to hospital systems and the risk of data appearing on the dark web cited as potential impacts.

Why healthcare is a prime target

The healthcare industry in Africa, particularly in the public sector, is working with legacy systems, fragmented infrastructure, and underfunded IT teams, all of which combine to make the sector an easy target for unscrupulous bad actors.

Many medical institutions are adopting open-source AI tools for diagnostics and patient management. While cost-effective, these platforms often lack enterprise-grade security, leaving sensitive data exposed. Combined with fragmented storage of paper and electronic patient records – often unencrypted and scattered across multiple systems – the risk of breaches multiplies.

Hospitals and healthcare facilities cannot afford downtime. Every minute offline risks lives, making them more likely to pay ransoms in an attempt to regain control of their systems. Cyber insurers  indicate that in 2 of 5 cases of a ransom being paid, data and operations still cannot be recovered. Additionally, in instances where some or all of the seized data is recovered after paying a ransom, the attacker goes on to request further payments.

Medical records are also a premium target for cybercriminals. In the USA, researchers found that patient records, insurance details, and research data fetch premium prices on the dark web – up to 10 times higher than financial data, according to cybersecurity analysts. A single stolen medical record can sell for $260–$310, compared to $30–$50 for a credit card, because unlike credit cards, medical records never expire and medical information cannot be easily changed, making it useful for years. Medical records frequently include personal identifiers, insurance details, and sometimes biometric data, enabling identity theft and fraud, while criminals use medical data for fake insurance claims, prescription fraud, and targeted scams. Microsoft believes cybersecurity needs to be embedded into every technology implementation. This should be a key priority, especially with sensitive medical data and operations.

How healthcare can use modern technology safely

As Africa’s healthcare systems digitise and embrace AI, protecting the digital lifeline must become as critical as protecting the physical one. Key steps can secure healthcare organisations and facilities like laboratories and diagnostic services’ systems.

Include cybersecurity in your resilience planning

Medical professionals and healthcare facilities often prioritise the resilience of physical capabilities. Power backups, multiple devices should equipment fail, and a standby roster in the event of a practitioner being unavailable are all practices that save lives. Equally cybersecurity and safeguarding online systems needs to be built into the overall resilience planning of medical facilities and services.

Investing in cybersecurity technology that can quickly identify and contain attacker activity before it leads to system downtime or data theft can save lives. Having a response plan that is practiced and maintained in the event of a cyber breach and ensuring strong data backups could mean the difference between a total failure of health services or a minor incident. Ensuring incident response plans are aligned with local compliance laws such as South Africa’s POPIA, and Kenya and Nigeria’s Data Protection Acts is critical for healthcare providers to meet both their resilience and compliance objectives.

Prepare for AI-driven attacks that are going to increase attacker speed and success

Threat actors are increasingly exploiting the interconnectedness of modern software ecosystems and operational structures to conduct malicious activity, so regular auditing of third-party integrations, especially those involving AI or cloud services, is critical.

Adversaries are using AI to scale and tailor operations, with AI-driven phishing being 4.5x more effective than traditional phishing. However, in equal measure, AI is transforming cyber defence – it automates response and containment, detects threats faster and more accurately, and identifies detection gaps and adapts to attacker behaviour. Healthcare organisations should invest in AI-driven threat detection for faster response and anomaly detection and must also take steps to secure AI models and data pipelines by implementing robust access controls, vulnerability scanning, and regular patching for open-source tools.

Remote and wider access to patient records requires strong identity practices

As both patients and medical professionals start accessing patient records digitally, strong means of identification, verification and authentication are critical. The Microsoft Digital Defense Report 2025 notes that the abuse of valid accounts is a frequent occurrence, with malicious actors gaining access to user credentials (usernames and passwords) and using them to infiltrate systems without triggering traditional security alerts. Therefore, organisations must deploy phishing-resistant multifactor authentication (MFA) and conditional access to strengthen user defences.

Invest in people and skills

People are at the heart of robust cybersecurity measures, so it is vital to train staff against common tactics such as phishing, which is the most common entry point for attackers, and apply role-based access controls for both clinical and research data to prevent privilege misuse.

Cybersecurity is no longer an IT issue – it’s a patient safety issue. Healthcare services and providers must treat digital resilience with the same urgency as infection control. By investing in comprehensive cybersecurity strategies and leveraging AI-powered defences, Africa’s healthcare sector can position itself as a crucial front line against emerging threats and help build stronger, more resilient digital ecosystems.


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