Telecom
New Interconnect Rate: Providing Opportunities for CDMA Operators
The new interconnect rate just issued by Nigerian Communications Commission (NCC) has been greeted with fixed feelings. Some sections of the industry stakeholders led by Deolu Ogunbanjo, president, National Association of Telecommunications Subscribers of Nigeria (Natcoms) are arguing that the new rate will not achieve its desired objective going by what it term ‘price cap’ directive given by the NCC which is yet to be reviewed.
‘Price cap’ is the tariff limit that any telecommunications operator offering voice service is eligible to charge in the industry. According to Natcoms president, the price cap has been pegged at N50 per minute, which means that operators are at liberty to charge within N50 per minute.
Ogunbanjo insists that unless this directive is reversed, the hope of operators reducing call tariff to reflect the new interconnect rate will not be realized. This argument has been shared by many others who have decried the inability of operators to reduce both voice and short message service (SMS).
However, other section of the industry comprising mostly of operators maintained that ‘Price cap’ has little or nothing in determining call tariff and that it is partly interconnect rate as well as individual operators decision. They explained interconnect rate as the commercial settlement rate between telecommunications operators and could also serve as basis for determining tariff charged by telecom operators in the country.
According to the group, the interconnect rate as issued by NCC is provision of direction on how the market will go, and that the decision to reduce tariff is a commercial one that is determined by the market forces, as well as individual operators. They added that reduction in interconnect rate does not translate to reduction in the tariff payable by end users.
In whichever way it is viewed, the underlining fact is that operators are at liberty to adjust their tariff plan based on the new interconnect rate.
NCC noted that a benchmark of Nigerian operators’ SMS retail tariffs reveals huge differences between On-Net and Off-Net tariffs. The tariff plans of some Nigerian operators give Off-Net tariffs that are three times as high as the On-Net tariffs. Such differences are usually used by operators to promote closed user groups, i.e. to force subscribers to follow friends or family to the network operator they use, since On-Net tariffs are much cheaper. This lock-in effect the commission said is intensified in countries with low income levels since the affordability of services is an important issue for the majority of the population.
International benchmarks show furthermore that the main users of SMS services are young subscribers between ages 12 and 24 years. This user group is characterised by much lower income than the average levels, and therefore more attracted to the benefits related to the lock-in effect.
The case of CDMA operators
Contrary to what obtains in most countries such as United States of America and India, Code Division Multiple Access (CDMA) operators in the country’s telecommunications space are lagging behind in terms of subscribers. This could be attributed to the fact that, it is expensive to deploy the technology compared to Global System for Mobile communications (GSM) as well as regulatory hindrance such as limited mobility which prevented roaming service for CDMA operators outside their jurisdiction they have secured license. These were some of the reasons their rolling out plan was not as fast as GSM operators.
In all of these, the story of CDMA operators have not being too bad as there has been a boomlet among CDMA-based fixed-wireless operators in Nigeria — Starcomms, Multi-Links, Reliance Telecommunications (ZOOMmobile) and most recently Visafone. These players had their regionally based licenses upgraded to unified access service licenses (UASLs) in 2006, allowing them to extend their reach beyond traditional geographical limits and compete in both the fixed and mobile markets. It’s therefore not surprising that these operators have gladly extended their services into mobile markets and now pose a threat to the three established GSM-based operators, MTN, Zain and Globacom, both in terms of chipping into their revenues and snatching GSM subscribers.
The number of mobile CDMA subscriptions in Nigeria grew from just 380,000 in 2007 to more than 7m at year-end 2009 — that’s from 1% to 10.6% of all mobile lines in just one year. The top three GSM mobile operators are expected to keep their grip on the mobile market because the total number of GSM subscribers also increased by about 56% in the same period, but they will face increasing competition from CDMA operators. This means the trio will generate 64% of Nigeria’s telecom revenue in 2014, down from their 74% share in 2008.
The advantage that the CDMA operators have in Nigeria is that they are able to charge lower on-net and off-net call charges than GSM operators. Also, CDMA operators have fewer subscribers and less strain on their networks, which means they can provide better service quality. They also provide very cheap and partly subsidized mobile handsets that will appeal to the low-end market, especially those who have never been able to afford a handset. For instance, Visafone launched services in March 2008 and started selling handsets at ridiculously low prices, starting at just N2000. The operator’s customer base jumped from just 60,000 subscribers in March to 2.25m at the end of 2008, with the majority purchasing handsets for the first time.
It is believed that the key to success for CDMA operators and the reason why they are becoming more popular in Nigeria is their strategy to penetrate into rural, underserved communities and to provide affordable, effective services that appeal to the less fortunate among Nigeria’s 146m inhabitants. It is on this basis that the new interconnect rate provides an opportunity for CDMA operators to further penetrate into the market by reducing their call tariff for both on-net and off-net tariffs.
In 2008, mobile CDMA service accounted for an estimated 6.3% of the market’s $8.6bn in total revenue, and we expect this share to grow to 11% by 2013. We also expect that, barring major changes in market conditions, CDMA operators will grab 20% of mobile subscriptions by 2014. Our Country Intelligence Report on Nigeria provides more comprehensive insight into the country’s communications market.
A survey carried out in Nigeria’s capital, Abuja has indicated a growing demand in the GSM dominated market for CDMA based mobile phones. The survey, carried out by ‘The Tide’ cited the regular problems with network congestion on the GSM networks in the city for the increased interest in CDMA operators. Currently there are four CDMA operators in the city, Multi-links, Visafone, Starcomms and Reltel.
The respondents hinged their optimism on clarity of communication and affordability of CDMA phones, when compared with GSM phones.
"For instance, with as little as N1,500, you can get a phone and a line on the CDMA network, while for a GSM line, a subscriber may need to pay at least twice that amount," claimed respondents to the survey.
Mr. Wakili Shehu, a telecommunications consultant said that "the technology also provides the capacity for quicker transmission of data and Internet, unlike the GSM which has limited capacity," but he warned that the use of the CDMA technology in the country was also fraught with challenges, such as limited coverage of cities and towns, unlike the GSM.
In spite of the progress recorded so far by CDMA operators, there are still a lot of grounds to cover if they are to compete with the GSM operators especially as NCC is planning to introduce Number Portability.
According to subscriber’s statistics released by NCC for the month of October last year, mobile CDMA figure stood at 7,291,714, fixed wireless subscribers which are also from the table CDMA is put at 1,366,269. This is far from 63,250,377 subscribers of GSM operators.
The low subscriber base of CDMA operators has raised serious concern as this has really affected their profitability. This situation demands a radical approach for them to match GSM operators or move closer to them.
What can CDMA Operators Do
The new interconnect rate which took effect from December 31, 2009 allows operators to exchange traffic for mobile (voice) termination by new entrants in Nigeria irrespective of the originating network at N10.12. The interconnection rate for mobile (voice) termination provided by other operators in Nigeria irrespective of the originating network is now N8.20 from December 31, 2009.
NCC also put the interconnection rate for SMS termination provided by new entrants in Nigeria irrespective of the originating network as follows: N1.94 from December 31, 2009; The interconnection rate for SMS termination provided by other operators in Nigeria irrespective of the originating network which took effect from the 31st of December 2009 is now N1.02.
The opportunity provided by this scenario is that CDMA operators can now irrespective of what GSM operators are charging now reduce their call tariff to N15 and N25. By so doing, they are most likely in view of the nature of Nigeria subscribers most of who would prefer operators whose tariff is cheaper, recorded tremendous growth in their subscriber base.
Telecom
Onafriq, PAPSS Launch Wallet-Based Payments Pilot from Nigeria to Ghana

Onafriq Nigeria Payments Ltd, a CBN licenced payment service provider, partners with The Pan-African Payment and Settlement System (PAPSS) to pilot the continent’s first wallet-based outbound payments from Nigeria to Ghana – fully in Naira and instant, without relying on hard currency conversion, in partnership with Banks and Mobile Money Operators.

The pilot service, approved by the Central Bank of Nigeria (CBN), enables cross-border intra-Africa payments for individuals, merchants, and traders.
In particular, the service will benefit SMEs, the real engine of intra-African trade; all now have access to a faster, cheaper way to reach customers and suppliers across the border.
By reducing barriers to cross-border trade, the new service will allow these businesses to grow their addressable markets and activity. From the 1st of December, this service will be fully operational for a 6-month period.
Through the partnership with PAPSS, Onafriq is supporting the operationalization of the AfCFTA (Africa Continental Free Trade Area) mandate.
The mandate itself is driving tariff-free trade for the 54 member states of AfCFTA. Within the partnership itself, Onafriq provides the mobile money rails, with an ecosystem consisting of over 1 billion mobile wallets.
Meanwhile, PAPSS brings a network of over 160 commercial banks, representing an ecosystem of more than 400 million bank accounts across its 19 African countries of operation.
The two partners are essentially seamlessly connecting two worlds: mobile money and banking. As a consequence, intra-African trade transactions will take place more easily and opportunities will be created.
Currently, Africa is made up of bank and mobile-led markets, with siloes often inhibiting transactions between these economies. However, this partnership will remove these boundaries. With over one billion mobile wallets and 500 million bank wallets across Africa, this partnership will allow for cross-border collaboration at scale.
This partnership builds on Onafriq and PAPSS’ existing partnership for payments into Ghana, announced earlier this year.
Mxolisi Msutwana, Managing Director Anglophone West Africa said, “Our work with PAPSS shows what collaboration at scale can unlock—seamless, secure connections between banking systems and mobile money ecosystems.
“This is how we open bi-directional trade corridors, reduce costs for businesses, and give African enterprises the rails they need to trade with confidence in their own currencies. The vision is continental, but it starts with practical steps like this one.”
Ositadimma Ugwu, Chief Information Officer, PAPSS, added “Too often, African businesses and individuals see borders as roadblocks instead of opportunities. With this step, we’re challenging that mindset, giving Nigerians the ability to send value next door with the same ease as sending a text message.
“Our vision is simple: make Africa’s borders invisible to payments. This pilot makes that a reality, moving us closer to a continent where payments don’t pause at the border.”
This new Nigeria-to-Ghana outbound capability builds on the successful Ghana-to-Nigeria instant payments corridor launched earlier this year – further proof that Africa’s payments future is local, instant, and inclusive.
Telecom
MTN Powers 6,000 Young SMEs with Digital Skills in Economic Backbone Boost

MTN Foundation has kicked off the year with its five-week Digital Skills Training programme, upskilling 6,000 young Nigerians. The programme, which is in its fifth week commenced in January 2026.

MTN
The seventh phase of the project is focused on supporting Nigeria’s microbusiness to embrace digital transformation, at a time when SMEs remain the backbone of the Nigerian economy.
According to the National Bureau of Statistics (NBS), SMEs account for over 90 per cent of businesses in Nigeria and employ a significant portion of the country’s workforce, underscoring the importance of initiatives that strengthen their productivity and sustainability.
Following a one-month call for applications in September 2025, which saw almost 64,000 entries from Nigerians between the ages of 18 and 35, the 6,000 selected microbusiness owners have embarked on a five-week training that will end in February 2026.
The virtual training programme began with a general onboarding session that brought together participants across four business tracks and set the foundation for a four-week programme focused on practical digital strategies for business growth.
Microbusiness owners from sectors including circular economy, agriculture, food services, fashion, retail, logistics, beauty, and printing attended the training.
At the heart of the training is the principle that digital transformation has the capacity to enable small businesses scale and become more efficient. Participants were encouraged to start small, digitise repetitive tasks, and scale gradually using the Kaizen approach of continuous improvement.
This mindset allows them to see technology as a practical enabler of growth rather than a barrier. As the training progressed, the participants also learned about telesales and cybersecurity.
Speaking on the importance of the initiative, Odunayo Sanya, Executive Director of the MTN Foundation, said the programme is designed to equip young microbusiness owners with skills that directly address real business challenges.
“Small businesses are the backbone of our economy, and enabling young people adopt simple digital tools can make a real difference in productivity, sustainability, and long-term growth,” she said.
She also mentioned that the top-performing 600 participants will receive equipment grants of N600,000 each at the end of the programme.
Participants will continue to access learning materials and session recordings for the 5-week course, ensuring that digital adoption extends beyond the classroom. By combining practical guidance, relatable case studies, and continued support, the programme reinforces the message that digital growth for SMEs is achievable leveraging on technology.
Telecom
Airtel Nigeria Commits to Boosting Nigeria’s Digital Infrastructure

Airtel Nigeria has reaffirmed its long-term commitment to strengthening Nigeria’s digital infrastructure and data access to bridge gaps in connectivity and unlock new opportunities in the country.

The company restated this commitment during a recent high-level inspection tour of the Nxtra Data Centre that is being developed through Nxtra by Airtel Africa at Eko Atlantic, Lagos, the highly rated smart city with ambition to become the Data Centre hub of Nigeria.
The inspection tour was led by the Chief Executive Officer of Airtel Nigeria, Dinesh Balsingh and the Chief Executive Officer of Nxtra by Airtel Africa, Yashnath Issur, with the esteemed chairman of Eko Atlantic Mr. Gabbi Massoud, the CEO of the lead Engineering firm Design Group Limited, Mr. Bayo Odunlami and tech journalists.
The Nxtra Data Centre went through a stringent design validation process and cleared the approval to proceed construction from Eko Atlantic.
Commenting on the developments, Mr Issur said the site visit was a milestone marker and an indication of the company’s commitment to delivering the world-class digital facility on time and ensure that, ultimately, the investments deliver reliable, secure, world-class services for Nigeria and the rest of the continent.
“This Nxtra Data Centre in Lagos represents a critical part of our long-term vision for Nigeria’s digital ecosystem. Today’s visit allows us to review progress, engage our stakeholders, and ensure that our infrastructure investments continue to meet global standards and local needs.
“This data centre will deliver critical high multi megawatt capacity in line with hyperscale customers and enable high density environment. We are putting the infra to bring the cloud to Nigeria,” he said.
The data centre, set to be the largest in Nigeria, is being established to deliver hyperscale and edge facilities across key African markets. With a load of 38 Megawatts, the Lagos facility is expected to serve as a major hub for data hosting, cloud services, content distribution, artificial intelligence, and enterprise solutions in West Africa.
In his remarks, Mr Balsingh reiterated that the data centre was progressing steadily towards the previously announced 2028 go live date.
“Since the announcement of this project, our focus has been on building a world-class facility that supports Africa’s digital transformation agenda. We are encouraged by the progress recorded so far and remain committed to delivering a secure, energy-efficient, and future-ready data centre for Nigeria,” he said.
During the tour, stakeholders were ushered through key sections of the site, including piling zones, where required structural requirements have been tested. Technical teams provided briefings on infrastructure design, security architecture, redundancy systems, and sustainability measures being implemented to ensure reliability and operational excellence.
Strategically located close to major fibre routes and undersea cable landing stations, the Eko Atlantic data centre is designed to enhance Nigeria’s data sovereignty, reduce latency, and improve access to reliable digital services for private and enterprise customers, significantly boosting the country’s data hosting capacity and supporting emerging technologies such as artificial intelligence and cloud computing.
Mr. Massoud noted that the inspection tour underscored the city’s dedication to infrastructure of global relevance.
“Eko Atlantic as a city with high quality infrastructure will contribute positively to boost the economy of Nigeria and is a perfect place for the development of the digital infrastructure of Nigeria. The Nxtra data centre reflects the calibre of projects we seek to attract — long-term, technology-driven investments built to the highest global standards.
Today’s visit affirms the rigour of the planning and execution process by Nxtra, and the commitment of Eko Atlantic to facilitate and promote the Nigeria’s evolving digital ecosystem,” he said.
Through this ongoing investment, Airtel Nigeria and Nxtra continue to demonstrate their commitment to building infrastructure that enables innovation, supports economic development, and accelerates Nigeria’s digital transformation.
Nxtra by Airtel is developing a network of hyperscale data centres across the continent. Besides Lagos, construction of a new data centre has also commenced in Nairobi, Kenya and the Democratic Republic of Congo.
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