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Nigeria’s VAS Market Hit ₦79Bn, yet Unhealthy

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Nigerian Value Added Services (VAS), market is valued at about ₦79 billion. Yet, it is dangerously going in comatose.

 

The business which until recently, appeared the most innovative segment of the Nigerian technology ecosystem, has lost its glory due to continued allegations and counter-allegations.

 

There are allegations of sharp and underhand practices against the VAS providers, particularly on their billing method.

 

Another dangerous factor sounding the death knell for the market is the revenue sharing dispute between the VAS providers and the telecom operators, whose platforms, the providers use.

 

There is also the alleged high handed regulatory methods, which the providers complain stifle their operations and revenue base.

 

In all of these factors, the VAS operators, under the aegis of Wireless Application Services Providers of Nigeria, WASPAN,Nigerian telecom operators and the Nigerian Communications Commission, (NCC) are locked into argument of who is at fault.

 

However, all, ironically, agree there is urgent need of VAS market rebirth.

 

Value added services, are regarded as all services beyond voice calls and fax transmissions but non-core offerings used to promote primary or core telecom businesses.

 

They include; contest and voting messages, devotional applications, live streaming, location-based services, miss call alert and voicemail box, mobile advertising, mobile money and m-commerce services among others.

 

The market, according to NCC, is estimated to grow beyond ₦200 billion by year end, 2021.

 

It was imported from saturated technology markets in developed economies, 17 years ago.

 

The earliest challenge of the services was patronage but the ingenuity of the earliest service providers opened up interests. Two services, monotones and short message services, SMS, among all others,made sense to Nigerian users and the earliest service providers capitalised on them to provide the razzmatazz that was to rapidly grow the industry and eventually fizzled out due to revenue sharing disputes and alleged regulatory incapacitations.

 

The Nokia push email compliant phones and ringtone facilities of providers like Mtech, helped to build the market.

 

The services evolved from the earliest two, to Enhanced Messaging Services, EMS, to Multi-Media Services, MMS, and spread to what are today considered Over The Top (OTT) Services like WhatsApp, facebook, netflix and all.

 

Apparently trying to take the bull by the horn, the Nigerian Communications Commission engaged stakeholders in a town hall meeting, meant to stimulate a reawakening of the VAS segment of the Nigerian telecom sector.

 

At the meeting in Lagos, NCC announced that despite challenges, there were still over 200 VAS providers in the country, a signal that the segment holds great potential to the country’s economic reawakening.

 

Making the announcement, Engr. Ubale Maska, executive commissioner, Technical Services, said that growth of VAS in Nigeria, despite challenges, indicated the growing interest in VAS provision and how innovative Nigerians are becoming in using technology to solve problems affecting the sector and Nigeria generally.

 

Maska, represented by Deputy Director, Technical Standards, Engr. Bako Wakil, said: “As the ICT ecosystem develops daily, there are bound to be challenges and stakeholders in the sector have to collaborate to proffer solutions together in order to get full benefits of the innovation that VAS can bring. That is the essence of this stakeholders’ forum.”

 

He averred that the forum makes it all the more interesting because it will go a long way in harmonising ideas and strengthening VAS operations and services for the benefit of all.

 

Also, presenting a short code harmonisation project by the commission, Engr. Tony Ikemefula, head, Fixed Networks and Wireless Services, said that one of the problems encountered in VAS operations in the country is the proliferation and duplication of short code numbers amongst operators.

 

He revealed that the Commission had decided to harmonise short codes including those used in air time top ups among operators to make it easier for subscribers to memorise.

 

He, however, allowed the VAS operators the opportunity to carry out internal harmonisation amongst their members, aligning with the new short code plans and report back results to the NCC.

 

Representing the VAS operators, Mr. Chijioke Ezeh, national coordinator, Wireless Application Services Providers of Nigeria (WASPN), said that most of the problems in the VAS space are not new but induced by its own evolution.

 

He, however, said they would have been contained if the regulator that was supposed to be the intercessor between the VAS operators and telecom operators had a good knowledge and full grasp of VAS operations.

 

According to him, “As our market began to evolve, revenue imbalance, share imbalance among stakeholders, imbalance in demographics, wide imbalance in purchasing power among subscribers, imbalance of tech standards and offerings and imbalance in licence offerings, set in.

 

“In 2011, the regulator stepped in, to provide licensing which will balance the market. But unfortunately, it yielded the exact opposite result, apparently because it lacked the understanding of VAS operations.

 

“Today, it appears the industry, despite the huge financial numbers, is dying.”


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MTN Foundation Commits N32Bn in Projects across Nigeria

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The MTN Foundation has disclosed that it has committed more than N32 billion to social intervention programmes across Nigeria.

MTN Foundation Commits N32Bn in Projects across Nigeria

It said over 32 million people benefited from the scheme since its establishment in 2004.

The interventions, it noted, have reached thousands of communities nationwide through initiatives focused on education, healthcare, youth development and economic empowerment.

Speaking at the Anti-Substance Abuse Programme (ASAP) stakeholders’ conference in Ilorin, Joseph Akpata, Kwara State Manager, Development Portfolio, said the organisation has sustained its commitment to improving lives through impactful and measurable investments.

According to him, the foundation was created as the corporate social investment vehicle of MTN Nigeria and has continued to implement programmes designed to address critical social and developmental challenges.

“Since we started in 2004, we have invested over N32 billion in impactful projects across the country, and we have been keeping our records,” Akpata said.

He stated that the foundation’s interventions have so far impacted more than 32 million people in over 30,000 communities and scores of local government areas across the federation.

Akpata noted that the fight against substance abuse among young people remains a major priority for the organisation, prompting the launch of the Anti-Substance Abuse Programme in 2019.

He explained that the initiative was designed to reduce the number of first-time drug users through sustained advocacy, awareness campaigns and educational interventions targeted at young Nigerians.

“Our goal for the Anti-Substance Abuse Programme is to contribute to reducing the number of first-time users of drugs and other substances through advocacy, education and empowerment programmes,” he said.

The MTN Foundation official revealed that the programme has already reached more than 50,400 students across Nigeria, while over 1,500 teachers have received specialised training to support the campaign.

Mrs Mosun Belo-Olusoga, chairperson of the MTN Foundation, said the organisation remains committed to safeguarding the future of young Nigerians by equipping them with the knowledge and support needed to make informed choices.

Represented by Valentina Obayemi, she said the foundation’s belief in the potential of Nigeria’s youth inspired the launch of the anti-substance abuse initiative and continues to shape its interventions.

“This year, we are taking our message directly to 50 public secondary schools across 10 states and the Federal Capital Territory, reaching more than 20,000 students at a critical stage in their lives where the right information can shape their future,” she said.

Belo-Olusoga added that the foundation plans to train 250 additional teachers to identify, support and guide students participating in drug education and quiz competition programmes.

She said the intervention is also being extended beyond secondary schools through increased engagement with tertiary institutions and grassroots advocacy platforms.

According to her, the foundation is strengthening its partnership with the National Youth Service Corps to widen awareness campaigns while continuing support for the National Drug Law Enforcement Agency’s 24-hour toll-free psychosocial support helpline.

She noted that the collaboration is aimed at ensuring individuals battling substance abuse can access professional assistance and counselling whenever needed.


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NCC Begins Review Telecom Termination Rates after 8 Years

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Nigerian Communications Commission (NCC) has commenced a comprehensive review of Mobile Termination Rates (MTR) eight years after the current rates were introduced, citing changing economic realities, technological advancements and shifts in telecommunications traffic patterns.

NCC Begins Review Telecom Termination Rates after 8 Years

Mobile Termination Rates are regulated fees paid by one operator to another to complete calls across networks.

They influence competition, investment, and retail pricing.

The exercise, kicked off in Lagos at a mobile termination rate stakeholder forum on Tuesday, brought regulators, operators and industry participants into a structured process to reassess wholesale pricing rules that govern payments between networks for completing voice calls.

Speaking at a stakeholders’ engagement in Lagos, Mrs Omotayo Mohammed, head of Competition and Tariff at the NCC, said the review had become necessary because the existing rates no longer reflect prevailing operational and economic conditions in the telecommunications sector.

According to her, the current MTR stands at N3.90 per minute for generic operators and N4.70 per minute for new entrants, rates that have remained unchanged since 2018.

Mohammed noted that the telecommunications landscape has undergone significant changes over the years, driven by naira depreciation, rising inflation, escalating energy costs and evolving consumer behaviour.

“The foundation of wholesale interconnection affects every stakeholder in this room. Misaligned termination rates can enable dominant operators to foreclose smaller competitors, deter infrastructure investment and ultimately burden consumers through inflated retail prices,” she said.

She explained that the deployment of 5G networks, artificial intelligence (AI)-driven services and Internet of Things (IoT) applications has altered network usage patterns beyond what was envisaged in the 2018 cost model.

Mohammed further observed that over-the-top (OTT) platforms such as WhatsApp and Telegram now account for a significant share of voice and messaging traffic, reducing dependence on traditional interconnection services.

To drive the review process, the NCC has engaged KPMG as consultant for the study and stakeholder engagement exercise, which is expected to last four months.

The exercise will also examine issues relating to Unstructured Supplementary Service Data (USSD) services and application-to-person (A2P) short message service (SMS), both of which have become increasingly critical to Nigeria’s digital economy.

Mohammed stated that the review is being conducted in line with Sections 4, 96, 97 and 108 of the Nigerian Communications Act 2003, which empower the commission to promote investment, protect consumers and ensure fair competition.

She said the study would establish a cost-reflective MTR framework across different technology generations, operator categories and clearing house arrangements.

The review will also cover international termination rates (ITR) to tackle grey-route traffic concerns, develop a pricing framework for mobile virtual network operators (MVNOs) and assess the current asymmetric rate structure between established operators and new entrants.

“The consultancy adopts an evidence-based and consultative approach. Stakeholders will have opportunities to submit their views and validate assumptions before any determination is made,” Mohammed assured.

She added that the review is expected to enhance retail affordability, improve access to digital financial services and enable operators to recover costs in line with prevailing capital and operational expenditure realities.

According to her, transparent and cost-reflective rates will encourage infrastructure investment and boost investor confidence in Nigeria’s digital economy.

Mohammed also assured stakeholders that the NCC would make its methodology, key assumptions and cost model parameters available throughout the process to ensure transparency and accountability.

In her remarks, Mrs Nnenna Ukoha, director of Public Affairs at the NCC,  noted that mobile termination rates remain central to pricing structures, competition, service quality and overall consumer experience.

“We are particularly encouraged by the rapt attention, intellectual rigour and keen interest demonstrated by participants throughout today’s session.

“This active engagement reflects not only the relevance of the issues discussed but also a shared commitment to the sustainable growth and development of Nigeria’s telecommunications sector,” Ukoha said.

She stressed that discussions at the forum highlighted both the challenges and opportunities associated with the MTR determination process and underscored the need for sustained stakeholder engagement.

Ukoha reiterated that the consultation window remains open and encouraged industry stakeholders to submit additional inputs, data and perspectives to support a balanced, forward-looking and sustainable outcome for the sector.

She reaffirmed the NCC’s commitment to collaboration and inclusive regulation aimed at building a resilient, competitive and future-ready telecommunications industry.


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Airtel Africa Foundation Completes Year One Scholarship Disbursement for 100 Tech Scholars in Nigeria

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The Airtel Africa Foundation, through Airtel Nigeria, has completed the disbursement of first year funding to the first cohort of 100 beneficiaries under its flagship Airtel Africa Tech Fellowship Programme.

The initiative, which was launched to support high-performing but financially disadvantaged 100-level students studying technology-related courses in public universities, covers tuition, accommodation, stipends, and other essential materials such as laptop computers.

Each of the beneficiaries received an average of ₦500,000, making a total of ₦50 million disbursed as of May 29, 2026.  Funding will continue, the Foundation has said, through the duration of the students’ four-to-five-year academic programmes.

The 100 recipients, referred to as Airtel fellows, were selected through an independent process from accredited public universities across Nigeria and are enrolled in courses including Computer Science, Information Technology, Data Science, Software Engineering, Cybersecurity, Artificial Intelligence, among others.

Participating institutions in the first batch of the scholarship scheme are the University of Lagos (UNILAG), the University of Nigeria, Nsukka (UNN), Ahmadu Bello University (ABU), the University of Benin (UNIBEN), Obafemi Awolowo University (OAU), the University of Ilorin (UNILORIN) and Tai Solarin University of Education (TASUED).

Commenting on the milestone, Chairman of Airtel Africa Foundation, Dr. Segun Ogunsanya, said, “We are not just funding education; we are building a pipeline of skilled innovators who will contribute meaningfully to Africa’s digital economy. The transparency of this process and the full delivery of our commitment to these 100 scholars are matters of great pride for the Foundation.”

Also speaking on the progress, the Chief Executive Officer of Airtel Nigeria, Dinesh Balsingh, noted that the initiative reflects Airtel’s long-standing commitment to empowering the youth through education and digital inclusion.

“At Airtel Nigeria, we believe that the future of our country lies in the hands of our youth. This ₦50 million disbursement is proof that when we say we are committed to empowering young Nigerians, we mean it fully and transparently. I congratulate every scholar and encourage you to make the most of this opportunity. Your success is our success,” he said.

The Airtel Fellowship Tech Fellowship forms part of the Foundation’s efforts to equip African youth with advanced digital and technical skills, within its broader F.E.E.D agenda which focuses on Financial Inclusion, Education, Environmental protection and Digital Inclusion.

Beyond financial support, the initiative is designed to equip beneficiaries with the skills, mentorship, and exposure required to thrive in an increasingly digital world.


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