Telecom
Adapt or Die: Nigeria’s Telecoms Sector’s Chance at Survival Amid Economic Turmoil
By Dr. Roseline Oluwaseun Ogundokun
When the Global Systems for Mobile Communications (GSM) was first introduced into the Nigerian market in 2001, the acquisition of a cellular device swiftly became a badge of distinction, signifying one’s immersion in the technological revolution of the 21st century.
Dr. Roseline Oluwaseun Ogundokun
The devices became the exclusive purview and financial burden of the elite, relegating many middle-class households to sharing a solitary device among its members. It was expected.
The cost of procuring a Subscriber Identity Module (SIM) hovered between N40,000 to N50,000 (about $384 to $480 at the time), while iconic models such as the NOKIA 3310 and Samsung series commanded prices exceeding N80,000 (about $769) to over N100,000 (about $961). At inception, networks operated within the 900 and 1800 MHz spectrum with a billing structure set at about N50 per minute, until the introduction of the per-second billing system. As such, barely 10% of the country’s 125-million population could afford to own a device with regular credit recharge.
But before the arrival of such devices with an unattainable luxury status for the economically disadvantaged, Nigerians had long grappled with problematic services from the oft-maligned Nigerian Telecommunications Limited (NITEL). Until 2001, NITEL’s 16-year operation was plagued with citizen discontent over poor management as it maintained monopoly over Nigeria’s telecommunications and data services. The arrival of GSM — spearheaded by MTN, Econet (now Airtel) and MTEL months apart in 2001, and Globacom two years later in 2003 — to relieve the troubled service provider, therefore, changed everything.
In mobile phone accessibility and internet service affordability progress since that time, the numbers have been staggering. By 2022, two decades after GSM introduction, more than 222 million mobile phone subscribers existed in Nigeria according to the Nigerian Bureau of Statistics and the Nigerian Communications Commission (NCC), out of which over 215 million were active. The projections for the future are just as phenomenal. A steady surge in smartphone adoption is expected across the country from 2024 to 2029, with the user base estimated to reach a new peak in the next five years.
Network subscriptions are also at the lowest they have ever been. Mobile data subscriptions in Nigeria, today, are available for as low as N25 while call rates go as low as 9 kobo per second. However, considering Nigeria’s frail economic climate in recent years, providing affordable services to citizens while maintaining high-standard infrastructure presents the greatest challenge for the telecommunications industry and operators in the country.
Nigeria’s economy has experienced two major recessions over the last 10 years and currently faces one of its most difficult periods of uncertainty. Recent market conditions and currency devaluation have plunged the value of the Naira in the foreign exchange market, resulting in skyrocketed prices of commodities. Unfortunately, the telecommunications sector, which contributes approximately 16% to Nigeria’s GDP, is, like other sectors, not immune to the profound repercussions of the prevailing economic upheavals.
The telecoms industry, like many others in the country, is heavily reliant on foreign exchange (FX) for the procurement of essential equipment, infrastructure, and technology. With a significant portion of telecom equipment and services being imported from foreign markets, fluctuations in currency exchange rates directly impact the cost of operations for industry players. As the value of the Naira fluctuates against major currencies such as the US Dollar and Euro, the cost of procuring equipment and services denominated in foreign currencies escalates, placing immense strain on the financial resources of telecom companies.
Mobile network operators in the telecommunications sector, whose tariffs are rigorously regulated by the NCC, therefore, face a dilemma in balancing investments towards sustaining quality and affordable services for their vast subscriber base with their goal of achieving profitability. For a sector battling various environmental and infrastructural impediments including frequent fibre cuts due to road construction and vandalism, right-of-way challenges, and exploitative rent-seeking practices, maintaining operational efficiency amidst prevalent economic adversities become increasingly daunting.
None of these existing challenges are alien to industry regulators and stakeholders. Operators’ advocacy for critical infrastructure protection in the ICT/telecommunications sector in recent years has especially served as a striking illustration of a cry for proactive actions to curtail the profound financial impact of such obstacles on its operations. Yet, while these challenges persist, mobile network operators have remained unflinching in their commitments to ensuring seamless connectivity, service reliability, and pricing affordability for their subscribers.
Despite Nigeria’s headline inflation rate surging to a 27-year peak of 29.9% in December 2023 and reaching 33.2% in March 2024, the telecoms industry, compared to other sectors adeptly adapting to Nigeria’s changing market conditions, continues to find itself traversing the intricate terrain of regulatory compliance and financial viability. In the mobile market which maintains a strong connection to the telecoms sector, for instance, prices of mobile phones, today, have nearly doubled to reflect the rising cost of production and import, while call and data tariffs largely remain the same they have been for over a decade.
A similar rise in cost has been evident in food prices which increased to over 30% in February, impacting the fast-moving consumer goods (FMCG) sector. The sector has since adjusted, with FMCG corporations including brewing companies increasing product prices in tandem with the high cost of raw materials and production. Companies in other sectors providing domestic consumer needs, such as Pay TV companies and Discos, have also duly followed suit by conducting price reviews in recent times.
While these price adjustments may be inconvenient for consumers due to limited purchasing power, they are more than necessary for businesses to continue to meet demands, deliver value to shareholders, and contribute significantly to the Nigerian economy.
It is especially pivotal to recognise the broader socio-economic implications for Nigeria if the telecoms sector sticks with its pricing plans as other sectors adapt. The industry is reputable for its crucial role in driving economic growth, creating employment opportunities, and improving digital inclusion efforts across the country.
Notably, over 15,000 people have been directly employed by licensees in Nigeria’s $75.6 billion telecoms sector, according to a December 2022 report by the NCC. Also, as of second quarter 2023, the Information and Telecommunications industry ranked highly among activity sectors contributing the most to the country’s GDP. Not least of mobile service providers’ critical contributions to socio-economic issues is their position at the forefront of Nigeria’s digital inclusion ambitions, which sees them providing more than 83 million citizens with the opportunity to benefit from prompt information access and exchange necessary for increased social and business productivity.
A lack of adjustments within the sector amidst FX-dependent pressures and rising inflation will indubitably pose a threat to these transformative indicators in the next few years. When telecom companies struggle to maintain and expand their infrastructure, there are higher chances of network congestion, dropped calls, and slow internet speeds that can undermine productivity, hinder business operations, and diminish the overall quality of communication services. Operators’ ability to invest in infrastructure upgrades, network expansion, and technological advancements could be significantly hampered, significantly impacting coverage and service quality.
They can’t afford to test consumers’ patience in this regard.
Quality of Service (QoS) in the sector is, indeed, deemed non-negotiable among consumers. Regardless of any situation within or beyond their control, operators are expected to uphold high standards of service delivery to remain competitive and retain customer loyalty, and any compromise can have far-reaching consequences. But maintaining and improving on progress made thus far in the sector would be impossible without access to adequate financial resources for further investments. It is, as such, a critical time to employ new adaptive strategies for the sector to achieve profitability and survive in an increasingly competitive landscape.
Operators such as MTN Nigeria, Airtel, Globacom, and 9Mobile have commendably demonstrated an understanding of the grim economic situation’s impact on citizens’ spending power by adhering to regulators’ rules and showing restraint in pushing for higher charges. However, their display of empathy may prove to be their Achilles’ heel in a brutal business and economic climate. Therefore, the review of tariffs to reflect new economic realities, despite regulators’ reluctance, may be long overdue.
At this critical juncture, the onus is on regulators to ensure that consumers are adequately informed about the imperative need for an upward revision of tariffs to secure the industry’s survival. This revision would provide crucial funding for network infrastructure upgrades, necessary for the continued delivery of services.
A measured review of current tariffs, with pricing plans that are adaptive and responsive to the evolving business and economic climate, would enable the industry to mitigate potential socio-economic and business risks. However, regulators must strike a delicate balance between consumer protection and the sustainability of the telecom industry.
The telcos have expressed their readiness to collaborate with regulators on reasonable adjustments in call and data tariffs to mitigate the cost of running their networks. As the Association of Licensed Telecommunications Operators of Nigeria (ALTON) recently stated, “For a fully liberalized and deregulated sector, the current price control mechanism, which is not aligned with economic realities, threatens the industry’s sustainability and can erode investors’ confidence.”
As economic pressures on the sector intensify, telcos hope that their concerns will be understood, and urgent action taken to ensure their continued capacity to offer improved services, before the damaging impact of inaction becomes more pronounced than imagined.
Dr. Roseline Oluwaseun Ogundokun serves as a lecturer and SDG 4 Cluster Team Lead at Landmark University’s Department of Computer Science. Additionally, she holds the position of Multimedia Engineering and AI Researcher at Kaunas University of Technology in Kaunas, Lithuania.
Starbase Technologies has launched Yolly, a new social entertainment platform designed to reward users for watching, streaming and creating content while promoting wholesome digital engagement.
Starbase Technologies
The company said the platform was developed to redefine participation in the digital economy by enabling viewers, creators and brands to earn value from meaningful online interactions.
According to Starbase Technologies, Yolly introduces a reward system powered by Stars, its native digital rewards currency, which users accumulate through activities such as watching videos, live streaming and creating content.
The company said the initiative was built on the belief that everyone contributing to the digital ecosystem should have the opportunity to benefit from the value they help generate.
Unlike conventional social media platforms where monetisation is often restricted to creators with large followings, Yolly allows creators to begin earning from their first stream without meeting follower thresholds.
The platform also provides emerging creators with features including gifting, Boosts and a Founder Creator badge to help them grow their communities from the outset.
Viewers are also eligible to earn Stars through the platform’s Watch+ feature, which rewards users for watching content from their first session.
For brands, the company said Yolly offers an alternative to traditional impression-based advertising by providing verified engagement metrics, real-time performance dashboards and brand safety controls to improve campaign measurement and audience interaction.
Speaking on the launch, the Head of Business at Yolly, Emeka Okenwa, said the platform was designed to create a more inclusive and rewarding creator economy.
He said the rewards ecosystem prioritises wholesome content and genuine community engagement rather than content driven solely by algorithms or viral trends.
“The platform has been developed on the premise that the future of the creator economy should be more inclusive, more rewarding and built around genuine communities rather than algorithms alone,” Okenwa said.
He added that Yolly was created to encourage family-friendly content while providing viewers, creators and brands with a trusted environment to connect, create and grow.
According to the company, the platform features content across entertainment, sports, lifestyle, education, technology and live events.
Starbase Technologies said the launch forms part of its broader vision of connecting creators and innovators through technology solutions that expand opportunities within the global digital economy.
Mcebisi Jonas, Chairman of MTN Group, has called on African leaders and businesses to deepen regional cooperation, warning that no country on the continent can achieve lasting prosperity in isolation.
Mcebisi Jonas, Chairman of MTN Group
Jonas made the call during the MTN Y’ello Chair event held on Aug. 2, where he urged Africa’s largest economies to work together to unlock the continent’s economic potential.
He said the fortunes of businesses operating across Africa were closely linked to the continent’s overall economic performance.
“Our fortunes as MTN are intertwined with the fortunes of the continent. If the continent goes down, we go down. If the continent is lifted up, we also are lifted up,” he said.
According to him, corporate success cannot be sustained where regional economies remain weak or fragmented.
Jonas cautioned major African economies, particularly Nigeria and South Africa, against adopting inward-looking economic policies, stressing that their long-term prosperity depends on stronger collaboration with neighbouring countries.
“If the continent is to be propelled beyond where it is, trade between South Africa and Nigeria must improve.
“If the big economies of the continent are not working together, are not aligned in terms of agenda and are not trading with each other, then you have a problem,” he said.
He advocated the creation of a pragmatic coalition of Africa’s leading economies, comparable to the Group of Seven (G7), to coordinate economic priorities, strengthen regional integration and accelerate development across the continent.
Jonas also called for increased investment in cross-border infrastructure, including energy, transport, logistics and financial systems, to facilitate trade and improve economic resilience.
According to him, Africa’s long-term growth will depend on its ability to function as a cohesive and interconnected economic bloc.
Recent trade figures indicate growing commercial activity within the continent.
According to the African Trade Report 2025 published by the African Export-Import Bank (Afreximbank), intra-African trade increased by 12.4 per cent to 220.3 billion dollars in 2024.
The report showed that South Africa remained the continent’s largest intra-African trading nation with 42.14 billion dollars in trade, while Nigeria’s intra-African trade rose significantly to 18.43 billion dollars, from 8.1 billion dollars recorded in the previous year.
Despite the progress, Jonas noted that regulatory bottlenecks, infrastructure deficits and other cross-border barriers continued to limit the full potential of trade among African countries.
He urged governments to pursue policies that encourage greater regional integration, describing continental cooperation as essential for sustainable economic development.
Telecom
Adefolarin Ogunsanya and the Allegations of Shareholder Interference and Self-dealing @Pan African Towers
As multiple legal disputes arising from the acquisition of Pan African Towers unfold before Nigerian courts, one name consistently appears across the proceedings: Adefolarin Ogunsanya.
Court filings involving the Board Chairman and DPI partner raise broader questions about shareholder influence, corporate governance and executive independence following the 2023 acquisition.
The relationship did not begin in conflict. According to court filings, former Pan African Towers CEO Azeez Amida played a leading role in identifying and engaging investors after the company’s shareholders decided to pursue a sale.
The filings state that negotiations led by Amida culminated in the acquisition of Pan African Towers by Development Partners International (DPI), Verod Capital Growth Fund III LP and African Development Partners International LLP in a transaction later recognised as African Deal of the Year. Less than three years later, the same acquisition has become the subject of three separate court cases, bringing its governance arrangements under judicial scrutiny.
According to separate Federal High Court filings, the Management Incentive Plan (MIP) was more than a compensation proposal—it was a key factor in Amida’s decision to select the DPI, Verod and African Development Partners consortium to join him in acquiring Pan African Towers from Chapel Hill Denham, Nigeria Infrastructure Debt Fund and Prime Infrastructure West Africa.
The affidavit states that Amida held discussions with several investment firms before ultimately recommending the consortium.
He alleges that he made it clear from the outset that management would retain a minimum 5% equity interest following the acquisition, a proposal the consortium accepted through the MIP and accompanying Term Sheets. According to the pleadings, that arrangement distinguished the consortium from competing investors and ultimately secured Amida’s support for the transaction.
The court documents place Board Chairman Adefolarin Ogunsanya at the centre of those negotiations. Among the exhibits is an email from Ogunsanya forwarding a document titled “PAT – MIP analysis.xlsx,” described as “an excel working of the incentive scheme,” together with an invitation to walk Amida through the proposed structure.
The MIP projected that Amida’s proposed 5% equity participation could generate returns exceeding $30 million, which he alleges formed a significant part of his decision to proceed with the consortium.
According to the claimant, those equity arrangements were never implemented after the acquisition closed, giving rise to the separate Federal High Court action in which he seeks damages exceeding $30 million.
DPI, Verod and their respective limited partners are yet to file a substantive defence more than twelve months after the suit was commenced.
According to filings governance tensions emerge after acquisition which Amida’s defence is in contention that governance dynamics changed significantly after the acquisition.
The filings allege that shareholder representatives and board members became increasingly involved in operational matters ordinarily reserved for executive management, particularly procurement and commercial negotiations, including advocating sourcing decisions involving companies in which they held interests.
The defence identifies Board Chairman Adefolarin Ogunsanya as one of the directors involved in those discussions, alleging that governance and procurement disagreements became a defining feature of the relationship between management and the new ownership structure. Those allegations remain disputed and will ultimately be determined by the court.
According to the filings, following the appointment of a new Chief Financial Officer, Amida deliberately stepped away from final expenditure approvals because of governance concerns and the potential for conflicts of interest.
Instead, the defence states that payments followed the company’s established approval process, with departmental reviews culminating in final approval by the Chief Financial Officer, who was hired by the consortium and remains in the company till date.
The defence argues that many of the expenditures now challenged were processed under that framework. It further notes that the Chief Financial Officer responsible for those approvals remains with Pan African Towers and has since been promoted, a fact Amida contends is relevant to the court’s assessment of responsibility for the approval process.
The defence disputes that the transactions were unilateral decisions by the former CEO, arguing that the expenditures passed through multiple approval layers involving Human Resources, Finance, Procurement, Executive Management and, where necessary, the Board. Internal emails, approval workflows, WhatsApp communications and financial records have been listed among the evidence to be relied upon at trial.
The defence further contends that the hospitality, investor engagement and related business expenses were recognised in the company’s audited financial statements and approved through established corporate processes before later becoming the subject of litigation.
Board Chairman Adefolarin Ogunsanya’s recurring role across the various proceedings is one of the more notable features of the litigation.
According to the pleadings, he participated in negotiations surrounding the Management Incentive Plan, later signed the October 2024 query issued to Amida before the Mutual Separation Agreement, and subsequently declined a demand for an amicable settlement in the National Industrial Court dispute.
Amida now alleges that Pan African Towers’ Federal High Court action is retaliatory and intended to pressure him in connection with his earlier proceedings against DPI, Verod and other parties involved in the acquisition. Those allegations remain contested and will ultimately be determined by the courts.
SERAP Asks Tinubu to Probe Alleged N6.79Bn Missing Police Funds, Firearms
FCT Court Awards Ex-Customers N15m against Stanbic IBTC over Data Privacy Breach
CBN Exposes over 13,000 BVNs Tied to Fraud as Banks Tighten Security
Atte, Nigerian Develops AI Algorithm for Hair Transplants
Dare Tackles Onaiyekan over Criticism of Tinubu, Says Economic is Working
NRC, Ponzi Scheme Collapses Resulting Loss of Billions of Naira
EFCC Busts NIS Visa Overstay Racket, Uncovers N700m in an Account
From Scarcity to Scale: What Africa Can Learn from India’s Agricultural Transformation
BON Establishes Six Ad Hoc Committees to Modernize Broadcasting
Tokenization, Blockchain Technology will Transform Financial Institutions – IMF
Broadcasting3 days agoDavido Shares Past Suicidal Thoughts, Drops Oriadé Album
E-Business3 days agoHow Temu Helped a Madagascan Vanilla Family Business Sell Direct to Consumers Across Europe
News3 days agoCisco Explores AI for Nigeria Farmers
News3 days agoAfCFTA Urges Africa to Stop Exporting Raw Materials
General News3 days agoMTN Nigeria Posts N707.5bn H1 Profit, Declares N26 Interim Dividend
E-Business3 days ago82% of Organizations Concerned about AI Risks Even as Adoption Accelerates – Survey Reveals
General News3 days agoGavi Okays $500m for Vaccines, PHCs in Nigeria
E-Business3 days agoFG Must Consider Data Security, Sovereignty in 3MTT Initiative – Stakeholders