Telecom
As Nigeria Celebrates Seven Years of GSM
This month of August marks seven years since the country began the liberalization of telecommunications industry through adoption of Global System for Mobile communications (GSM) technology.
The Nigerian telecommunications industry has experienced significant growth in the last seven years, following the successful take-off of the digital mobile telephone services, using GSM technology. From less than 500,000 active fixed telephone lines as at mid 2001, to a population of over 120 million, the total number of connected fixed and mobile telephone lines increased to about 53 million both active and inactive lines this June.
However the entrance of the GSM technology has brought about such a revolutionary transformation that millions of Nigerians with no access to telecommunications now clutch mobile phones in their millions. It is a common sight these days to see traders, fish sellers, hawkers, motorcycle riders among others using mobile phones. The staggering number of subscribers on the three major GSM networks of MTN, Globacom and Zain as Nigeria celebrates 7 years of operations, is a testimony to the hunger of Nigerians for communications.
It is clear that Nigeria cannot celebrate the advances recorded in the communications sphere without acknowledging the contributions of Ernest Ndukwe, the executive vice chairman of the Nigerian Communications Commission (NCC). Ndukwe has over the years emerged as the face of GSM in Nigeria through his transparent handling of the regulatory affairs of the telecoms sector.
Since February of 2001 when he supervised the auctioning of GSM licences in the country, he has conducted the affairs of the regulatory functions of the commission in such a way that other countries in Africa now come to Nigeria to understudy the regulatory processes that has seen the sector emerge as the largest and fastest growing in Africa and the 3rd fastest growing in the world.
Several research firms across the globe have commended the Nigerian government and Ndukwe, one of the most sought-after telecom resource persons in the telecommunications industry in Africa for an effective transparent and foreign investment attracting regimes in the continent. In spite of the recent downturn in the quality of service dished out by operators characterized by drop calls, undelivered text messages, Ndukwe’s starling qualities as a regulator of note is still intact.
However, beyond the celebration of seven years of GSM, the NCC had taken several measures to tackle the issues of quality of service. One of the ways the NCC has shown that it was serious in tackling issues of quality of service was in the area of the enforcing its regulatory powers to stop operators from further promos that has been a major cause of network congestion witnessed in recent times. By this action the NCC sent a message that no operator is above the law and that they must conform to measures that will save the sector from further deterioration due to their poor service delivery. The commission has also procured equipments that will enable it monitor congestion and service quality of the various networks in the country.
It also ensured that operators paid their subscribers N175 compensation for poor quality of service experienced in January this year, even as some operators protested by taking the commission to court. It stood its ground and made this happened.
Benefits
In the last seven years, since the GSM revolution hit the nation, a lot of benefits have been enjoyed by the Nigerian subscriber who was hitherto at the mercy of the almost nonexistent epileptic services rendered by the Nigerian Telecommunications Nitel. Since then, the monopoly of non effective service rendered by Nitel has been broken and communication across regions enhanced by GSM thus encouraging the socio economic growth of the nation, enhancing business and social relationships. The fact is that effective communication is crucial and cannot be overemphasized. With a teledensity presently below 35 % and a subscriber base of 53 million as at the end of June, one could say that a feat has been achieved by the GSM revolution in connecting Nigerians to a critical service given the fact that before the advent of GSM, teledensity was less than 4% and only about five hundred thousand Nigerians had access to telephony services in a nation of over a hundred million people.
Then having a telephone was a class thing and only the rich could afford the luxury and the muscle to withstand the stress of Nitel technicians who used to hold subscribers to ransom at every little opportunity. Then it was a common sight to see the technicians asking for ladder and cables and all sorts to fix a line anytime a problem arises, it was indeed a nightmare. One could easily recall the stress of keeping vigil at the offices of Nitel in a bid to make calls and be confronted with the common problem of no tone come back tomorrow and so on. But thanks to President Obasanjo and the coming of GSM all that is now history.
The GSM revolution in the country has indeed contributed over 80 percent of $12 billion private investment in the sector as well as account for $10 billion foreign direct investment. It has also stimulated local investment and increased job opportunities. It is a common scene in urban areas of young men and women sitting under an umbrella provided for them by GSM operators making calls for people at token. This umbrella call centre initiative is today providing food to greater percentage of unemployed Nigerians, aside this are others who are trading in recharge cards and other products of GSM operators.
The benefit of GSM technology is enormous and still increasing as it gets expanded, we may not easily forget that Nigerians are now turning GSM engineers, these are our young countrymen and women who eke their living through repair of mobile handsets. The popular Otigba computer village is no longer computer village in its sense as the sale of mobile handset has almost taken over business at the market.
The revolution has also indirectly stimulated development and vibrancy of some sectors of the economy, such sectors are leveraging on the technology deployed by GSM operators to provide services to their customers, A case in point is the banking sector, where banks are offering mobile banking which give customer the opportunity to monitor and carry out transactions on the move through their mobile phones. Most Automated Teller Machines (ATM) deployed by banks is working with the help of GSM General Package Radio Service (GPRS) deployed by operators.
There has been an increased turnover for advertising and marking communications services basically because of the GSM operators that uses the channel often times to reach their subscribers as campaign for more subscribers.
Challenges
In spite of the benefits Nigerians are enjoying from the advent of GSM technology, the operators are not finding it a world of roses in rendering services. The much talked about poor quality of service is a function of weak infrastructure base, operators have been powering their equipment with generators which are not the case in most environment. This is attributed to inefficient public power system. Nigeria CommunicationsWeek investigations reveal that the three major operators in this space, MTN, Glomobile and Zain are powering their over 14,000 base transceiver stations with 28,000 generators. They are also providing security for their equipment which has not deterred unscrupulous Nigerians from stealing these generators and diesel. At last count in December last year Zain, Glomobile and MTN lost a total of 290 generators and over a million litres of diesel, this is indeed a huge lost to bear by operators.
There is also the problem of area boys. One of the operators has had to shutdown one of its sites in Lagos due to incessant demand of huge settlements by Area Boys. In the Niger-Delta area, one of the operators reported that over 30 of its sites have become inaccessible due to militant youths, who have refused them to refuel or maintain the sites except they parted with huge sums of money. It is unfair on the GSM operators, who unlike the oil companies are not taking any natural resource but building telecommunications infrastructure around the country.
Operators are also face with multiple taxation imposed on their equipment by different tiers of government, Abuja capital development authority had impose N3 million annual fee on each base station in the metropolis. More so, Association of Licensed Telecommunications Operators of Nigeria (Alton), the umbrella body of the telecom operators, are in court with Lagos state government over the later imposition of N500,000 fee per base station in the state.
The regulatory body also needs to ensure that competition is enshrined in all market segment of the sector as well as maintain favourable regulatory and investment climate, required for the protection of consumers. This is necessary in view of anti competitive behavour of some GSM operators.
The next phase of the Telecommunications growth will come from the rural areas. With a paltry 40 percent of the country being covered with telecommunications services, it is obvious that a huge gap needs to be tapped and already the focus for now by stakeholders and investors is on the rural area and how ICT services can be deployed to the rural communities. Investors are falling over themselves to come to Nigeria and do business mostly as a result of the fact that in spite of the infrastructural problems posed by lack of power, roads among other, Nigeria has a high return on investments rate. It is a fertile ground for any investor to recoup their investments, because of its population. Before now, the country has witnessed higher investments in the urban areas as opposed to lower investments in the rural areas by telecoms operators. In order to bridge this gap, telecommunications and internet services need to be deployed to the rural areas.
The NCC under Ndukwe should not relent in its efforts of playing its regulatory functions in an effective manner. Nigeria has a lot to gain and cannot afford to loose sight of the fact that an effective regulatory environment has to a large extent helped in steering the ship of the nation’s telecoms revolution.
As Nigeria celebrate this seventh year of Global System for Mobile communications (GSM), subscribers await the introduction of number portability which is believed will in no small measure help in address the quality of service issues.
NCC need to be commended for rising up to the challenges of regulation, especially with SIM registration, call centre initiative, consumer parliament and its current effort at ensuring that physically challenged group in the society are fairly treated by operators.
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.
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