Telecom

Encouraging Local Content in Telecom for Development

Published

16 years ago

November 2, 2009

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The fact that the country’s telecommunications sector has witnessed tremendous growth over the past eight years of its liberalization is no longer celebrating news, but how to sustain and develop the sector is now the paramount concern of stakeholders in the industry.
One likely area of emphasis in a bid to develop as well as sustain the growth is adoption of local content to replace dominant foreign content in the sector. Local content in telecommunications industry is the use or adoption of locally manufactured material and initiatives in the operation processes of telecommunications service delivery. To many, there are little or nothing that local initiatives can contribute in the telecommunications industry going by the capital intensive nature of the business, they cite instance of mobile handsets which are predominately imported and where there are no known initiative of capacity to develop it locally. More so, core network equipment such as intelligent switches and microwave equipments which are sensitive high technological equipment that will take the country decades to come to terms with, let a lone manufacturing them.
But, unknown to these school of thought, that there are other areas where telecommunications operators are spending huge of the country’s hard earned foreign exchange in import that Nigerians can effective play role in substituting with local initiatives.
Among them are billing software, cyber cables, mast, connectors, switches as well as equipment racks.
Local content policies
Local firms are ultimately and probably the most important driver of economic incomes and growth in developing countries. It has been found that local technology is spreading faster in emerging economies than in rich nations, even though the technology gap remains wide. It also found that technological progress has helped raise incomes in the developing world and reduced the share of people living in poverty from 29 percent in 1990 to 18 percent in 2004.
It has long been recognized that investment in science and technology makes a vital contribution to economic growth in terms of higher growth rate of the economy’s productivity under such conditions; the neglect of R&D in developing countries will have serious repercussion on firms’ ability to absorb and evolve new technologies and participate in their development. This may have long-term implication for the developmental efforts of these countries. But two critical questions arise: one, what were the weaknesses that resulted in the poor performance of technology policies in these countries? And two, what measures should be adopted to plug in the loopholes in these policies to make them more effective in the globalize era?
Local content means the development of local skills, technology transfer, use of local manpower and local manufacturing. It has become an increasingly important issue that could support the federal government to upgrade her manpower capacity, with results that benefit the government, private companies, and the Nigeria’s economy. However, the performance of this mission over the past decade has been a mix of successes and failures. Research performed to improve this performance by identifying the characteristics of successful public to private sector technology transfers identified several critical success factors. These include a "transfer culture" in the government laboratory and Nigerianized organization, shared personnel of the federal and local organizations throughout the transfer project life cycle; the local workforce services could be the major source of employment inside Nigeria economies, accounting for over 50 percent of jobs. Local technology services account for a much larger share of total economic output than either manufacturing or agriculture in this country. Home-grown services are the future of this country, as it is the fastest-growing component of the total GDP, particularly low-income Nigeria.
Nigeria, though embarked to the periodic development planning exercise as early as 1964, failed to realize the importance of private sector and market oriented policy in the process of overall development of the country till late eighties and this resulted to several economic distortions.
Since then, the private sector development policy has been reoriented to identifying and removing the barriers for private investments, and creating private sector friendly economic environment so that the private sector would play pivotal role in the economy. Thus shift in the role of the government from active participant to facilitator not only brought positive psychological change in the private sectors, but also added economic dynamism through the active participation of private sectors in all sectors.
Nigeria provides a classic case of a developing country where despite the presence of a wide institutional infrastructure for producing trained manpower, generating new knowledge and providing science and technology (S&T) services, the industry became increasingly dependent on foreign technologies ever since the economy became liberalized under ex-president Obasanjo’s regime.
In the early 1999’s new democratic government initiated a series of market oriented policy reforms to integrate the economy towards globalization and economic growth. A remarkable progress in terms of growth, investment and employment has been achieved. Private sector led growth was the main thrust of the policy reform initiatives taken during the millennium.
In the field of science and technology, Nigeria presents two completely contradictory faces. On the one hand, foreign observers look upon Nigeria as a bottomless container of S&T talent which in due course of time will, along with China, dominates the global scene in the second half of the 21st century. This perception is based on the success Nigeria has registered in the field of information technology in Nigeria and the achievement of African Americans in the United States. The opposite face is registered at Nigeria’s inability to solve problems of infrastructure, namely roads, power, water supply and sanitation and at the poor state of its schools and colleges. In a bid to meet this target, Nigeria joined other countries in jumpstarting the services negotiation in the local content policy implementation. The Collective Services Requests are aimed at promoting this country’s economic growth, particularly in developing economies, by improving productivity, creating jobs and improving the quality and availability of goods, agriculture and services through oil and gas root-up.
Since the country’s own technological capabilities were limited, the dual trade policy placed a continuous pressure on firms for acquiring foreign technologies. To meet the industry demand, the government encouraged the transfer of foreign technology embodied in capital goods and turnkey plants by assigning low protection to the capital goods industry. Highly restrictive policies were adopted towards FDI and technology licensing. Technical agreements were allowed only in the cases where technical assistance was needed to run the turnkey projects. Capital goods imports were given preference over the alternative modes of technology acquisition for two reasons. Light industries required simple and standardized technologies that could easily be transferred through capital goods imports. It was felt that given the training and entrepreneurship of Koreans, it would be easy to assimilate and adapt foreign technologies embodied in capital goods through reverse engineering at the production end. Though the policy led to massive imports of foreign capital goods and owing to low protection retarded the growth of the local capital goods industries, it did facilitate a rapid acquisition of technology during this phase.
Local content in telecommunications is not all about equipments, human resource is another area of local content. This requires telecommunications companies to employ greater number of Nigerians in their work force. However, trained manpower is not readily available in the industry; this is evident in the high rate of pouching in the industry, where skilled personnel move among organizations that pay high.
Engr. Lanre Ajayi, managing director, Pinet Informatics, acknowledged that there is acute shortage of trained human resources in ICT industry. According to him, any policy that requires a company to use local human resource such policy should ensure that there is enough trained human capacity available in the country. He cited instance of problem of poor quality of service in the GSM space, which he attributed lack of skilled manpower as part of the causes.
This could also be explained as responsible for Nigerian Communications Commission conception of the establishment of ICT training institute in the name of Digital Bridge institute to provide the needed skilled manpower requirement to develop the industry.
Dr. Emmanuel Ekuwem, president, Association Telecommunications Companies of Nigeria (Atcon) said that the industry requires an effective policy framework as well as enforcement to encourage local content in telecommunications development. He urged NCC and National Information Technology Development Agency (Nitda) to ensure that policies are formulated to encourage operators in the industry to use locally made equipment where necessary in the sector. This he said would go a long in solving the problem of unemployment and save the country’s foreign exchange that are used in the importation of those goods with local alternatives.
Obstacles to adoption
Nigerian psyche has been steeped in the notion that foreign made products are preferable even when there local alternatives are of higher quality and cheaper. Government officials expected to set example for private sector to follow are also cut in the web of this act as most government officials uses foreign made goods against the locally produce ones. This accounts for lack of vigor required in the enforcement local content policies in the different sectors of the economy.
Liberalization is not an end in itself; however it could enhance the capability of the local content to the asses of capital, technology and knowledge by which the overall objective of economic development could be achieved. Local workforce and home-grown technology as the main actor in the process of liberalization of telecom can inject more capital, acquire new and modern technology, generates additional resources for telecom development. The process of integration possesses various opportunities and challenges and such challenges which are complex as well as need competitiveness have to be dealt with joint effort of the regulatory authorities and local input inside the telecom space through appropriate institutional mechanism.

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Telecom

From Import Dependency to Local Capacity: Nigeria’s Tech Manufacturing Journey

Published

1 day ago

April 7, 2026

Ugo Onwuaso

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The recent escalation in the US-Israel conflict with Iran has delivered a sharp reminder of Nigeria’s economic vulnerability. As oil prices surged past $100 per barrel and fuel costs climbed by 35% at Nigerian pumps, a troubling paradox emerged: Nigeria, a major crude oil producer with Africa’s largest privately-owned refinery now operational, still found itself buffeted by global energy shocks originating thousands of miles away.

From Import Dependency to Local Capacity: Nigeria's Tech Manufacturing Journey

Zinox

The closure of the Strait of Hormuz and resulting disruptions to global energy markets exposed the deeper structural challenge facing Nigeria’s economy. Despite domestic crude production and the operational Dangote Refinery, Nigeria has struggled with rising inflation, which reached approximately 27% in 2025. The crisis illuminated an uncomfortable truth: decades of import dependency have left Nigeria’s economy precariously exposed to external shocks, even in sectors where the country possesses natural advantages.

This vulnerability extends beyond energy. Nigeria’s technology sector offers a particularly instructive case study in the costs of import reliance, and the transformative potential of local capacity as the pathway to economic stability and technological sovereignty.

Against this backdrop, Zinox Technologies stands as a compelling counternarrative. Founded in 2001 by technology entrepreneur Leo Stan Ekeh, Zinox operates West Africa’s only computerized digital assembly plant. As Nigeria’s first indigenous computer manufacturer, Zinox demonstrates what becomes possible when vision, investment, and commitment to local capacity converge.

The company’s reach extends beyond traditional computing. Zinox’s innovation spans renewable energy through iPower and home electronics with iTEC, addressing Nigeria’s chronic power challenges with locally-assembled solar solutions and backup systems designed for Nigerian conditions. This diversification reflects sophisticated understanding: true technological sovereignty requires integrated capabilities.

Zinox’s journey offers a clear case study in how indigenous companies can drive transformation. By focusing on local assembly and manufacturing of computer hardware and digital devices, the company has contributed to building a domestic technology ecosystem that supports government institutions, educational systems, and private enterprises. This approach not only reduces reliance on foreign imports but also creates jobs, transfers knowledge, and strengthens national capacity.

The implications are significant. Every locally assembled device represents a step away from foreign exchange exposure. It also signals a shift in mindset — from consumption to production. In a country where demand for technology continues to rise, especially with the acceleration of digital adoption, the importance of local manufacturing cannot be overstated.

Beyond economics, there is also a strategic dimension. Technology is no longer just a commercial tool; it is a defense tool and a national asset. Countries that control their technology supply chains are better positioned to innovate, secure their data, and compete globally. In this context, companies like Zinox are not merely businesses; they are enablers of national development.

Furthermore, local capacity development has a multiplier effect. It stimulates ancillary industries such as logistics, retail, maintenance, and technical services. It also fosters entrepreneurship, as more Nigerians gain access to affordable and reliable technology tools needed to participate in the digital economy.

Yet, while progress has been made, there is still work to be done. Scaling local manufacturing requires sustained policy support, infrastructure investment, and a deliberate focus on skills development. It also calls for stronger collaboration between the public and private sectors to create an environment where indigenous innovation can thrive.

Encouragingly, the momentum is building. There is a growing recognition that Nigeria must move beyond being a consumer market to becoming a production hub. This shift is not only necessary, it is urgent. Global uncertainties will continue to test economies, and only those with strong internal capabilities will remain resilient.

The current global crisis offers clarity. If the Strait of Hormuz is not reopened or supply chains to imports are fractured, only countries with strong domestic manufacturing capacity will weather the storm. Those dependent on imports suffer disproportionately.

The story of Zinox Technologies underscores what is possible. It shows that with the right mix of vision and execution, Nigeria can chart a new course, one defined by self-reliance, innovation, and sustainable growth. As the country navigates an increasingly complex global landscape, the message is clear: the future belongs to economies that build, not just buy.

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Telecom

Airtel Becomes World’s Second Largest Telco as Global Customer Base Surpasses 650 Million

Published

2 days ago

April 7, 2026

Chike Onwuegbuchi

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Bharti Airtel has announced a major milestone in its global operations, crossing 650 million mobile subscribers worldwide, a scale that now positions the company as the second-largest telecommunications operator on the planet by customer base.

Crossing this threshold reflects a network of immense scale, the capacity to reach customers across diverse markets with consistent quality, and the ability to deliver experiences shaped by sustained innovation.

In Nigeria, Airtel has continued to scale infrastructure at a pace unmatched in its recent history. Over the past three years, the company has increased its national site count from just above 13,000 to nearly 17,200 sites, including more than 1,560 added in the last twelve months. This expansion deepens capacity in high-demand corridors and extends high-speed coverage to previously underserved regions.

The latest industry data from the Nigerian Communications Commission (NCC) underscores the significance of this growth. As of December 2025, Nigeria recorded 145,141 base stations across 2G, 3G, 4G and 5G layers. Of this national infrastructure, Airtel accounts for 46,918 base-station layers, reflecting its substantial contribution to the country’s radio access network and its push to absorb rising data consumption.

Nearly 99 percent of Airtel Nigeria’s sites are now 4G-enabled, positioning the operator as one of the few with a near-ubiquitous high-speed broadband footprint. Thousands of sites have been upgraded for capacity in the past year alone, enabling improved speeds and more stable performance during peak usage.

That expansion underpins Nigeria’s rising internet adoption. According to the latest regulator figures, Nigeria’s internet penetration recently climbed above 50%, with Airtel recording among the largest monthly increases in new internet subscribers, driven by network upgrades across states and rural corridors.

Strategic Connectivity and Redundancy

Airtel is also tackling a critical infrastructure challenge for the Nigerian digital economy: reliance on a single international internet gateway. The company is advancing plans for its second submarine cable internet breakout point at Kwa Ibo in Akwa Ibom State, early in the 2Africa cable system rollout, to provide faster and more resilient national connectivity across regions. This significant investment aligns with global best practices in network diversity and redundancy, ensuring a more stable digital experience for consumers and enterprises alike.

Digital Finance at Scale: SmartCash

Airtel’s digital finance arm, SmartCash, has gained traction in Nigeria’s competitive mobile money ecosystem, now serving over 3 million active users. The platform is supported by an expansive agent network and digital services that lower barriers for everyday financial transactions and savings.

Outstanding Human Touch: Retail Reach

Across Nigeria, Airtel’s retail distribution network stands as one of the sector’s most extensive, with approximately 4,000 exclusive outlets bringing services, support, and products closer to customers in small towns, communities, and high-traffic urban hubs. That footprint drives both access and engagement in a market where localized presence remains a competitive differentiator.

As Nigeria’s digital economy continues to evolve, Airtel is committed to sustained innovation — from expanded fibre backbones and advanced mobile broadband to future-ready services that include satellite-enabled solutions and enterprise-grade digital platforms. These efforts help ensure that connectivity, commerce, and creativity thrive across Nigeria and beyond.

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Telecom

Compensation for Poor Service Quality is Automatic- NCC

Published

3 days ago

April 6, 2026

Ebere Melum-Nwogbo

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Nigerian Communications Commission (NCC) has said that compensation of subscribers for poor service quality, such as persistent network outages or failed calls is automatic.

Compensation for Poor Service Quality is Automatic- NCC

This initiative aims to ensure fairness by mandating that operators provide automatic compensation, such as airtime credits, for failing to meet regulatory Quality of Service Key Performance Indicators (KPIs).

According to the NCC, operators are required and mandated to identify affected subscribers and provide compensation directly.

In a framework for compensation of consumers published on its website, NCC said that it has directed Mobile Network Operators (MNOs) to compensate subscribers affected by prolonged or repeated poor quality of service experience within specific Local Government Areas where operators fail to meet regulatory Quality of Service Key Performance Indicators (KPIs).

The NCC also stated that the directive does not replace existing consumer protection mechanisms.

The NCC, said the directive adds a direct compensation mechanism for affected subscribers and aligns with measures set in existing legislations such as the Consumer Code of Practice Regulations 2024 and the Quality of Service Regulations 2024.

This directive applies to only Mobile Network Operators licensed and operating in Nigeria that have failed to meet their Key Performance Indicators on Quality of Service. For Internet Service Providers (ISPs) operating in Nigeria, a compensation framework is already in place.

To be eligible to receive compensation

. You experienced poor network service in an affected Local Government Area; and

You made at least one outgoing revenue generating event (billed call, SMS, or data session) during the relevant period.

The compensation covers service failures affecting voice, data, or SMS services.

Operators are required and mandated by existing regulations to monitor their network performance across locations and service disruptions against Quality of Service KPIs.

This enables them to identify affected subscribers without the need for individual complaints.

Only service failures that fall below the defined thresholds set by the Quality of Service Regulations issued by the NCC will qualify for compensation.

Short, isolated interruptions and immediately remedied interruptions may not qualify

Compensation will be provided in the form of airtime credits.

This airtime credit will not have utilisation restrictions, and subscribers will be able to use it for voice calls, USSD sessions, data subscriptions, etc on the operators’ network.

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