Telecom
A4AI says Drop in Data Prices in Africa not Enough to Improve Access
The cost of mobile data for consumers in low and middle-income countries has fallen across all regions, driven by, among others, falling broadband prices, according to new research from the Alliance for Affordable Internet (A4AI), an initiative of the Web Foundation.
A4AI says low-income countries saw the most improvement, which is described as an historic reversal with progress of poorer countries previously lagging behind middle-income countries.
According to the research, falling broadband prices has driven affordability in certain African countries. The average cost for 1GB data as a percentage of average monthly income declined by 11%, from 5.8% of average monthly income in 2018 to 4.7% today.
In Sierra Leone, the relative cost of 1GB data tumbled from 25.9% to 9.9% after the introduction of a number of more affordable data plans by the largest operator. In Burkina Faso, reduced prices halved the cost of 1GB from 14.8% to 7.8% of monthly income. In countries such as Zimbabwe, a rise in incomes made broadband data more affordable, dropping relative cost from 19.8% to 10.1% of monthly income.
A4AI adds that declining costs meant seven new countries reached the international threshold of affordability for the first time in 2019, making internet affordable for most people, including those at below average income levels in Algeria, Bangladesh, Cabo Verde, Colombia, Ecuador, Namibia, and Paraguay.
A4AI developed the 1 for 2 affordability target – meaning 1GB of data should cost no more than 2% of average monthly income in order to be affordable for most people. To date, the target has been adopted by the UN Broadband Commission, the Economic Commission of West African States (ECOWAS), Nigeria, and Ghana.
Of the 100 countries included in this study, only 37 meet the 1 for 2 target. The total population of the remaining 63 countries tops 1 billion people, meaning over 1 billion people live in countries that do not meet the affordability target.
In Africa, currently only 9 countries meet this target: Egypt, Mauritius, Gabon, Tunisia, Botswana, Nigeria, Namibia, Algeria, and Sudan.
Because high costs keep people offline, the countries and regions with the least affordable data are also those with the fewest people connected to the internet, the A4AI claims. In Africa, where data is the least affordable at 7.1% of average monthly income, only 24% of the population is online, compared with 51% globally.
A4AI puts this in perspective and says 4 out of every 5 people living in countries with unaffordable data live somewhere in Africa.
“This demonstrates that affordability is a particularly deep challenge for the region in confronting the digital divide and requires African policymakers to step up and connect their countries into the global economy. The cost of data remains prohibitively high for many across Africa,” the organisation continues.
While progress has been made, the cost of broadband is prohibitively high.
A4AI says the average African earner must pay 7.1% of their monthly income for 1GB of data. Here average monthly income is based on GNI/capita/month for 2018. Translated to a US context, where the average earner earns US$62,850 (GNI per capita), 1GB of data would cost US$373 on average (7.1% of GNI per capita/12).
As more people, including more women, can afford to come online, national economies will grow. For every 1% increase in the number of people using mobile broadband, countries will see a 0.15% increase in GDP, according to the ITU.
Dhanaraj Thakur, Research Director of A4AI and Web Foundation, said: “Access to a meaningful internet connection means access to transformational and life-changing tools. This notable drop in costs, especially across Africa, will make it easier for millions around the world to benefit from internet access.
“While we welcome this progress, millions remain offline because they cannot afford the cost of data. Urgent action is required – failure to deliver affordable internet access will drive inequality as those offline are further pushed to the margins of society.”
The A4AI says while regions do differ and the range of policy decisions will affect the price of the internet, research shows that countries that prioritise a clear national broadband plan, invest heavily in universal and public access, and effectively and transparently allocate spectrum see the greatest gains in internet affordability.
“Governments must take urgent action to make internet access affordable for more people. By improving competition in telecommunications markets and investing in public access solutions in places like libraries, schools, and community centres, governments can lower the cost to connect and in turn bring more people online,” the organistion states.
Wireless Application Service Providers Association of Nigeria (WASPAN) has asked the Court of Appeal to suspend the enforcement of the Federal Competition and Consumer Protection Commission’s (FCCPC) Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025 (DEON Regulations).
WASPAN warned that the implementation before the determination of its appeal could expose telecom value-added service providers to sanctions and disrupt their operations.
Millions of subscribers across the country rely on borrowed airtime to communicate.
Seun Sofoluwe, an Abeokuta, Ogun State resident, said another interruption would have severe consequences for many Nigerians who depend on airtime and data lending services for their daily communication needs.
“A lot of people depend on the services, and it will be very bad for them, especially those who are so reliant on it that they do debt-to-debt servicing,” he said.
Debt-to-debt servicing refers to the practice of repaying an outstanding airtime loan immediately to qualify for another advance, underscoring the extent to which some subscribers depend on the facility to remain connected.
Sofoluwe’s concerns echo the experience of Lagos-based employee Farouk Rabiu, who recounted the hardship caused by the six-month suspension of airtime lending services before they were restored.
“I was devastated because, after exhausting my data, I was hoping to borrow credit to access my bank account. Instead, it was a major disappointment,” Rabiu had said after the services resumed.
Adding another dimension to the debate, Gbenga Adebayo, chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), said the earlier disruption showed that airtime credit had evolved far beyond a conventional telecommunications offering.
“What this episode demonstrated is that airtime credit is not a financial product in the way regulators initially characterised it. It is economic infrastructure that approximately 40 million people use regularly, with the vast majority of them at the base of the economy,” Adebayo said.
WASPAN, which represents licensed value-added service providers, has asked the Court of Appeal to restrain the FCCPC from enforcing the DEON Regulations pending the hearing of its appeal against the July 20 judgment of the Federal High Court in Lagos.
The association argued that immediate enforcement would expose operators to sanctions, create regulatory uncertainty and disrupt telecom-enabled services, including airtime credit and data advances, used daily by millions of Nigerians.
The FCCPC, however, has defended the resumption of enforcement, insisting the regulations are intended to sanitise the digital lending industry, curb predatory debt recovery practices, protect consumer data and eliminate illegal digital lenders.
The Court of Appeal is expected to determine whether enforcement of the regulations should remain suspended while it considers WASPAN’s appeal, a decision that could shape the future of telecom-based digital lending services and determine whether subscribers continue to enjoy uninterrupted access to airtime and data credit.
Nigerian Communications Commission (NCC) and the Rural Electrification Agency (REA) have entered into a partnership to deploy renewable energy solutions for telecommunications infrastructure in rural and underserved communities, a move expected to reduce operators’ energy costs and improve network availability.
Abraham Oshadami, executive commissioner for Technical Services at the NCC, disclosed this during the signing of a memorandum of understanding (MoU) in Abuja.
According to Oshadami, the NCC-REA Stakeholder Forum and MoU signing ceremony will enable telecom base stations located near mini-grids to access cleaner and more affordable electricity, reducing their reliance on diesel-powered generators.
He said the agreement came at a time when telecom operators are facing rising operational costs due to increased spending on diesel to power network sites amid unreliable electricity supply from the national grid.
The partnership reflects the growing relationship between the power and telecommunications sectors, as both rely on each other to deliver essential services.
Oshadami explained that while telecom infrastructure requires a steady power supply to remain operational, digital connectivity also supports electricity services such as smart metering, electronic payments and remote customer management.
According to him, the collaboration is aimed at improving access to reliable electricity and telecommunications services, particularly in remote communities where inadequate power supply has slowed digital inclusion.
He said both agencies had identified telecom base stations located within one to two kilometres of existing mini-grids, allowing the implementation of the initiative to begin immediately.
“Where mini-grids exist, we are able to identify nearby base stations and connect them to those power sources,” Oshadami said.
He added that future mini-grid projects would be planned with telecommunications infrastructure in mind, ensuring that electricity investments also support the expansion of digital services.
Telecom
Ex-Pan African Towers CEO Alleges DPI, Verod Using Court Suit to Pressure Him in $30m Buyout Dispute
A fresh twist has emerged in the legal disputes surrounding the acquisition of Pan African Towers (PAT), with the company’s former Chief Executive Officer, Azeez Amida, alleging that a lawsuit filed against him is retaliatory and intended to pressure him over an ongoing $30 million management buyout dispute.
Pan African Towers
The allegation is contained in Amida’s Statement of Defence and Witness Statement filed before the Federal High Court in Lagos in response to claims instituted by Pan African Towers.
According to the court filings, Amida argued that the latest suit should be viewed within the context of several pending disputes involving the company’s shareholders, including Development Partners International (DPI), Verod Capital Growth Fund III LP and African Development Partners International LLP.
The defence stated that Amida had already commenced separate legal proceedings against the investors over the management buyout transaction, seeking damages exceeding $30 million, while also pursuing claims against Pan African Towers arising from a Mutual Separation Agreement executed after his departure from the company.
He alleged that instead of filing substantive responses to those actions, Pan African Towers initiated fresh proceedings at the Federal High Court over expenditure approvals and procurement decisions made during his tenure as chief executive.
Amida maintained that the action was retaliatory and intended to exert pressure on him in relation to the earlier disputes.
The defence further explained that he had deliberately distanced himself from final expenditure approvals during his time as CEO because of disagreements over procurement practices and governance issues involving the board and shareholders.
According to the filings, following the appointment of a new Chief Financial Officer (CFO), financial approval responsibilities were structured to ensure the CFO retained final approval authority, while the CEO’s role was limited to endorsing requests that had already undergone departmental reviews.
The defence argued that many of the transactions now being challenged were processed through that governance framework, with approvals passing through the Finance and Human Resources departments before payment.
It added that the CFO, who remains with the company and has since been promoted, exercised the final approval authority over the disputed expenditures.
Amida also contended that the transactions cited in the lawsuit were not unilateral decisions but formed part of the company’s established governance and approval procedures involving multiple departments, executive management and, where necessary, the board.
According to the defence, documentary evidence, including internal emails, approval workflows and payment records, would be presented during the trial to support those claims.
The filings further stated that hospitality expenses, investor engagement costs and related business expenditures challenged in the suit were incurred in the ordinary course of business, known to directors and shareholders, reimbursed through established procedures and reflected in the company’s audited financial statements.
Amida also argued that the allegations only surfaced after his exit from the company despite extensive internal reviews conducted before both parties executed a Mutual Separation Agreement in November 2024.
He maintained that the agreement required any allegations of misappropriation unrelated to released assets to be investigated, supported by credible evidence and communicated to him within six months, with an opportunity to respond before legal proceedings could commence.
In a separate application, Amida challenged the jurisdiction of the Federal High Court, arguing that the dispute arose from his employment relationship and the Mutual Separation Agreement, matters he said fall within the exclusive jurisdiction of the National Industrial Court.
He also argued that a related case remains pending before the National Industrial Court and that the Federal High Court proceedings amount to an abuse of court process.
The defence indicated that it would rely on a range of documentary evidence during the trial, including audited financial statements, board communications, internal approval emails, banking records, employment documents, shareholder communications and the Mutual Separation Agreement.
The Federal High Court is yet to rule on the substantive claims or the preliminary jurisdictional objections.
While Pan African Towers’ allegations remain before the court, Amida has denied any wrongdoing and maintained that the action forms part of a broader pattern of litigation connected to the acquisition of the company.
The court is expected to determine the merits of the claims after hearing both parties.
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