Telecom
Stimulating Investment in Telecoms
Nigeria as one of the largest and fastest growing markets offers particularly attractive opportunities, starting with the fact that less than 40 percent of the country has been covered with telecommunications access as well as its large population which is the basis for telecommunications business.
In spite of huge success recorded so far in the sector especially in the mobile space of the industry growing to about 53 million, there is need for more investors and existing operators to increase their investment in providing capacity. Existing players in all market sectors require additional funding for expanding their networks and services at record pace in order to keep up with demand, and the unified licensing regime opened up new opportunities to existing and new players alike for the provision of next-generation converged mobile, fixed and Internet services.
The few investors who entered the Nigerian market in 2001 and 2002 when it was still considered very risky have experienced triple-digit growth rates every year and amassed huge profits. In the improved economic and operating environment, the market is now also attracting strong interest from leading global telecoms players and international investors, but new technologies, a decline in infrastructure costs and continuing deregulation will maintain opportunities for smaller players as well. This report provides potential investors with an overview and analysis of the Nigerian telecommunications market and delivers insights into current and future investment opportunities that exist in the various market segments while at the same time pointing out the problems and risks involved.
The first seven years of the 21st century have continued to witness an upsurge in the application and use of telecommunications and information technology in nearly all aspects of human endeavor. The wireless revolution, the pre-paid billing platform and the Internet phenomenon have accelerated access to information resources and changed the way people live and transact business. Telecommunications/information technology industry has therefore continued to take center stage in world affairs and will continue to be so far into the foreseeable future.
The wave of Market liberalisation sweeping across the world has positively impacted the continent with several countries opening up to foreign direct investment in the telecommunications sector. It is reassuring to note that it is now widely acknowledged that Africa currently represents a most fertile ground for telecom investment. Notable success stories have been recorded since several African countries embraced market liberalisation, thus encouraging others to move in the same direction.
For instance in Nigeria, Engr Ernest Ndukwe, executive vice chairman, Nigerian Communications Commission (NCC) said that the country’s telecom sector currently growing at 6 million per year which is standing at peak-high level of 45.9m by end of March 2008, both fixed and mobile. Active subscriber rate, by December according to him, will stand at 55 million.
Giving a tip of what the market can still offer, Ndukwe pointed out that the market is expected to hit 8 million subscribers annually for the next five years.
But what the NCC plans to do, according to him may increase the figures. Explaining that the role of the Commission is to encourage investment and protect all stakeholders in the industry, he explained that the advent of new technologies like broadband would encourage penetration to remote areas of the country and help bridge digital divide.
He promised new regulations that would urgently promote broadband technology and encourage investors to come into the sector.
Today, owing to several factors including government’s genuine deregulation policy, and the huge potential of the Nigerian market, so much has been achieved within a very short time. Through the national regulatory authority, the Nigerian Communications Commission (NCC), government has proved itself fully committed to the liberalization of the telecom market. Since year 2000, Nigeria has transparently licensed major competitive operators, settled interconnection disputes, constantly held open consultations with stakeholders, enacted new telecom laws, regulations and guidelines, and provided custom duty concession on equipment imports, among others.
These activities have encouraged investment and promoted competition in the industry, resulting in the exponential growth in the number of subscriber lines. It is instructive to note that the growth in subscriber lines has come as a result of a boom in private investment in the telecommunications sector. Recognizing the huge unmet demand and hunger of consumers for phone services and the potential of the Nigerian market, investors pumped in close to $4.00 billion USD into the sector by December 2003. Today, investment in the telecom sector ranks second only to that in the oil industry. According to Ibrahim Nakande, Minister of State for Information and Communications, since the liberalization of the telecom sector and the advent of GSM in Nigeria, Direct Foreign Investment of over $12 billion has flowed into the country. Aside the $2.6 billion generated through licensing fees alone notable investment witnessed in the sector especially through acquisition of local operators by foreign operators these include, Telkom of South Africa acquisition of 75% equity in Multi-Links for $280 million, MTN acquisition of VGC Communications at $65 million, MTN acquisition of XS broadband for $32.1 million and Zain acquisition of over 60% stake in Vmobile for $1billion among others. These are outside huge investment made by these operators and others in the sector in building their network as well as expansion.
In summary seven years of Telecom Sector Reform has brought about substantial private sector investment, increase in number of market players, Unprecedented Growth in the Network, Expanded geographical coverage, empowerment of the citizenry, employment Creation and economic Stimulus.
The role of a regulator in a developing economy is typically very demanding and encompasses far-reaching and multi-disciplinary issues. To be successful, the function should be based upon a well defined set of objectives which typically includes attracting investment, infrastructure planning and development, sector efficiency improvement, quality of service improvement, encouragement of competition, eliminating barriers to market entry for new operators, protection and empowerment of the consumers and promotion of the general socio-economic well being.
Regulatory functions cover virtually every aspect of telecommunications network and service provision including tariff, technical standards, allocation of scarce resources, fair competition and inter-operator issues such as interconnectivity and interconnect termination rate.
The state has a duty to encourage investment in the sector with the sole aim of making access to good quality Information and Communications Technology resources available to all its citizens at affordable prices. Regulation therefore draws its relevance from the widely accepted role of the State as a motivator and impartial umpire.
In order to optimize and accelerate growth in telecoms sector in Nigeria, attention must continue to be paid to key issues that affect investment flow such as: sound economic and fiscal policies; minimum investment risk; guaranteed investment protection; improved support infrastructures; minimum political and bureaucratic interference; stability of government and government policies; independent and strong regulatory institution; good enabling laws for the sector, and so on.
Telecommunications technology has been nationally acknowledged as presenting copious opportunities for the creation of unprecedented wealth for Nigeria. Thankfully, former president Obasanjo’s government demonstrated the political will necessary to foster an environment conducive for investment in this sector. Nigeria has progressed from the telecommunications dark ages before the year 2000, to a telecommunications revolution that is opening up new possibilities and frontiers across business, political, social and economic landscape.
The sector today requires massive inflow of private investments for infrastructure upgrade and expansion. Half-hearted market liberalization measures have denied many African countries access to investment dollars that could have been available to the sector both from within and outside such countries. Governments must therefore resist pressures to protect incumbent operators to the detriment of timely establishment of truly competitive markets.
The need for Government to provide the right environment that will attract serious investors and for market forces to thrive cannot be over emphasized. All policies must of necessity be aimed at attracting new sources of capital, accelerating network expansion, improving pricing, enhancing quality of service, introducing of new technologies and providing access to ICT resources to all citizens at affordable prices.
The expansion of our telecommunications facilities must go side by side with the development of the human resource capacity that will support the industry. We must develop knowledge, skills and competencies to understand, plan and deploy the complex networks of wireless systems, fiber optics, satellite systems, computers, Internet webs and a host of other telecommunications and information technologies.
Manpower requirements for ICT infrastructural development does not only stop with the engineers and technicians. Well trained personnel in other specialist areas such as financial planning, law, accountancy consultancy services, business management, personnel management, among others, are also required. Such skilled staffs, which are mostly needed in the middle and upper management levels, need to be well trained and up-to-date. Network operators should see development of human capital as an integral aspect of their investment in network expansion in order for such network elements to perform optimally.
National Information Technology Development Agency (NITDA) has reaffirmed its commitment to building a coordinated and inclusive digital ecosystem in Nigeria, further strengthening its role as an ecosystem orchestrator.
NITDA
This was disclosed during a working visit centred on Nigeria’s startup ecosystem framework, where the Director General of NITDA, Kashifu Inuwa, was represented by the Director of Stakeholders Management and Partnerships, Dr Aristotle Onumo.
Speaking during the visit, the DG said NITDA was established to drive coordinated and sustainable information technology development in Nigeria, leveraging both its regulatory and developmental mandates, serving as an ecosystem orchestrator that fosters collaboration, innovation, and growth across the digital economy.
He stated that these reforms are aligned with the Federal Government’s Eight-Point Agenda and reflected in NITDA’s Strategic Roadmap and Action Plan (SRAP 2.0), which is built around eight strategic pillars designed to accelerate the growth of Nigeria’s digital economy.
According to him, a key objective of the roadmap is to position Nigeria as a technologically driven nation that promotes inclusive economic development through innovation. He highlighted digital literacy as a major priority, with NITDA targeting 70 percent digital literacy by 2027 under the National Digital Literacy Framework, with a long-term goal of achieving 95 percent by 2030.
Other priority areas, he said, include ecosystem development, IT talent advancement, expansion of digital infrastructure, policy implementation, and research-driven innovation.
The visiting delegation from Angola’s National Institute of Support for Micro, Small and Medium Enterprises (INAPEM), led by Chairman of the Board of Directors (PCA) and Chief Executive Officer, Bráulio Augusto, commended Nigeria’s progress in implementing the Nigeria Startup Act and described the country as a valuable model for shaping Angola’s own startup legislation.
Augusto disclosed that Angola’s Startup Law has received initial parliamentary approval and is now entering the implementation stage. He expressed interest in understanding how Nigeria transitioned from legal adoption to practical execution, particularly in areas such as startup labelling, incentive management, ecosystem mapping, investor registration, and the operation of the Nigeria Startup Portal.
According to him, Angola is currently developing the Startup Angola Programme under its Digital Entrepreneurship Support Programme, aimed at building a structured and integrated startup ecosystem rather than isolated interventions.
The programme will focus on institutional strengthening, startup funding, support for business development service providers, expansion of innovation hubs, and partnerships with international accelerators.
He added that Nigeria’s experience is especially relevant as Angola seeks solutions to challenges including informality, limited access to finance, youth unemployment, digital inclusion gaps, and restricted market access for small and medium-sized enterprises.
The INAPEM chief also requested further technical insights into Nigeria’s National Startup Council, its member selection process, and the governance structure of the Nigeria Startup Portal.
The visit highlights growing collaboration among African nations in digital policy development and further reinforces Nigeria’s position as a reference point in shaping startup ecosystem frameworks across the continent.
Kashifu Inuwa, National Information Technology Development Agency (NITDA), has reaffirmed the Agency’s commitment to deepening collaboration with the Federal Ministry of Communications, Innovation and Digital Economy (FMCIDE) to accelerate Nigeria’s digital transformation and strengthen policy alignment across the sector.
The Director General of the National Information Technology Development Agency (NITDA), Kashifu Inuwa, taking the Permanent Secretary of the Federal Ministry of Communications, Innovation and Digital Economy, Mr. Nadungu Gagare, on a tour of the newly commissioned Innovation Space during the Permanent Secretary’s working visit to the Agency’s corporate headquarters.
Speaking during a courtesy visit by the Permanent Secretary of the Ministry of Communications, Innovationand Digital Economy, Mr. Nadungu Gagare, to NITDA headquarters, Inuwa described the engagement as a significant demonstration of the Ministry’s support and leadership, noting that sustained collaboration between both institutions is essential to delivering Nigeria’s digital economy agenda.
The NITDA Director General recalled previous engagements with the Ministry, including a familiarisation visit during which the Agency shared its strategic roadmap and ongoing initiatives, noting that continuous dialogue has strengthened alignment between both institutions.
He highlighted key policy areas requiring continued collaboration, including the development of a national sovereign cloud infrastructure and a comprehensive cybersecurity policy framework.
“We are awaiting the Ministry’s guidance on how to move forward, particularly on the national cloud and cybersecurity policies,” he said, while emphasising the importance of clear institutional boundaries and mutual respect in enhancing operational effectiveness and inter-agency cooperation.
Inuwa also revealed that NITDA has been at the forefront of implementing the Performance Management System (PMS), having introduced the framework internally several years before its adoption across the Federal Civil Service.
“We started PMS about four years ago. What we have now at the national level actually originated from our internal reforms,” he disclosed, adding that initiatives such as Project NEXT have strengthened accountability, role clarity, and measurable outcomes across the Agency.
“If you perform well, you are rewarded. If not, there are consequences. Even promotions are tied to performance,” he added.
The Director General further highlighted NITDA’s transformation from a traditional regulatory institution into a dynamic ecosystem enabler focused on innovation, inclusion, and national development.
“We are building a high-velocity organisation—one that is agile, inclusive, and driven by innovation,” he said, explaining that the Agency is embracing a more flexible and entrepreneurial culture that empowers staff to contribute ideas and drive institutional growth.
In his remarks, the Permanent Secretary of the FMCIDE, Mr. Nadungu Gagare, reaffirmed the Ministry’s commitment to strengthening collaboration with its agencies, describing partnership as fundamental to achieving sustainable progress in Nigeria’s digital transformation journey.
“If there is no partnership, there is nothing that can be achieved. But with partnership and collaboration, a lot can be accomplished, and that is exactly what we are seeing now,” he stated.
Gagare explained that the visit forms part of the Ministry’s ongoing engagement with agencies under its supervision to strengthen policy coordination, assess progress, and address operational challenges requiring higher-level intervention.
He commended the management and staff of NITDA for their dedication to advancing Nigeria’s digital innovation ecosystem, acknowledging the Agency’s contributions to digital literacy, innovation, cybersecurity awareness, and the creation of opportunities for startups and young innovators.
“NITDA has continued to play a pivotal role in shaping Nigeria’s digital future through the promotion of information technology development, digital literacy, innovation, and regulatory standards,” he said.
The Permanent Secretary also stressed the importance of policy coherence among institutions within the Ministry, noting that agency mandates are interconnected and must be implemented seamlessly.
“Your mandates are inputs into one another. That is why we need tight collaboration so implementation can go smoothly,” he said, while assuring NITDA of the Ministry’s continued guidance and institutional support.
He further highlighted ongoing Federal Civil Service reforms, particularly the adoption of the Performance Management System, which promotes accountability, clear target-setting, and measurable performance outcomes.
“When everything needed for performance is made available and targets are not met, consequence management follows. Where targets are exceeded, there is reward. This is how we drive performance in the service,” he noted.
The visit showcases the shared commitment of both FMCIDE and NITDA to advancing Nigeria’s digital economy through stronger collaboration, innovation, and effective governance, with the strengthened partnership expected to play a critical role in delivering inclusive growth, improved service delivery, and sustainable national development.
Upperlink has announced its collaboration with the Internet Corporation for Assigned Names and Numbers (ICANN), the United Nations Educational, Scientific and Cultural Organization (UNESCO), and the Universal Acceptance Steering Group for UA Day 2026 to host a global awareness event focused on promoting a more inclusive and multilingual internet ecosystem.
The event, themed “Building a Truly Global, Multilingual #Internet4All”, will hold virtually on Monday 18 May 2026 by 10:00AM WAT, bringing together stakeholders across government, academia, technology, digital policy, and the Internet community to discuss the future of Universal Acceptance and digital inclusivity.
The Upperlink, ICANN, UNESCO and Universal Acceptance Steering Group’s UA Day 2026 will feature live demonstrations, expert-led strategy sessions, and conversations around enabling Internet systems, applications, and digital platforms to support all domain names and email addresses, regardless of language, script, or character length.
Speaking on the importance of the initiative, Akano Olusegun, the managing director and CEO of Upperlink Limited, noted that Universal Acceptance is critical to ensuring that billions of Internet users around the world can fully participate online using their native languages and local digital identities.
“As Africa’s digital economy continues to grow, there is an urgent need to build Internet systems that reflect linguistic diversity and provide equal access for all users. UA Day 2026 is an opportunity for stakeholders to collaborate and shape a more inclusive digital future,” Olusegun stated.
The event aligns with ongoing global efforts championed by ICANN and UNESCO to promote digital inclusion, local language accessibility, and universal Internet participation.
Developers, tech ecosystem players, policymakers, educators, Internet governance stakeholders, students, startups, and digital rights advocates are encouraged to participate in the session.
Registration
Participation is free, but interested participants are required to register to attend the event via the official registration link here (https://us06web.zoom.us/webinar/register/WN_nklQmJObT8OtS2AF_bE0fA#/registration) or QR code provided on the event flyer.
Jumia Nigeria Records Strong Q1 2026 Growth as Technology-Led Strategy Drives Market Expansion
Lagos Plans New Cybersecurity Centre
LG Electronics Strengthens Household Energy Efficiency in Nigeria with Advanced Inverter Refrigerator Solutions
Only 1 in 3 Families Fully Secure their Devices, Kaspersky Study Reveals
NITDA Showcases Nigeria’s Startup Framework as Model for Angola
MTN, VDT, Zoracom, Digital Realty Back 2026 Girls in ICT Campaign
Vitel Wireless Partners Fintechs to Expand Access to Services
Kaspersky Discovers Vulnerability in Qualcomm Snapdragon Chips that can Lead to Data Loss & Device Compromise
MTN Suspends Data, Airtime Borrowing Service over New FCCPC Lending Rules
Bank Customers to Pay N1,500 for ATM Card Issuance, Replacement – CBN
Telecom2 days agoNCC Says Telecom Industry on Course to Improve Quality of Service
News2 days agoKaspersky Challenges IT Leaders with Next-generation Cyber Protection Simulations
Telecom2 days agoAfrica to get AI Data Centres Through Three-way Partnership
General News2 days agoFG to Balance Innovation with National Security with Stronger Drone Regulations
News2 days agoFG, World Bank Launch $65m SPESSE Funding for 24,000 Nigerians
Broadcasting2 days agoFG to Launch Nationwide Free Digital TV Platform June 17
Telecom2 days agoDistinguished Industry Veteran Dr. Olusola Teniola to Chair NDSF 2026
General News2 days agoOlusi, BOI MD Harps on the Media as Nigeria’s Biggest Development Partner