Telecom
USPF, Stakeholders Seek New ICT Growth Paradigm
The Universal Service Provision Fund (USPF) was established with a mandate to ‘achieve universal access, universal coverage and universal service through a public-private partnership framework that stimulates economic and social development, private sector investment and market-based provision of basic affordable and quality ICT infrastructure and services to unserved and underserved areas, communities and populations.’
But sadly, the fund since establishment has struggled to meet its basic tenets. However, at a recent stakeholders’ conference in Lagos to preview its Strategic Management Plan – 2013 – 2017, the general consensus was that time has come for a new approach to streamline the Fund with the realities and demands of the ICT market.
Specifically, it was noted that the Fund would henceforth work in tandem with stakeholders and industry operators to give them greater opportunities.
Maikano Abdullahi, secretary of the USPF, agreed in his own words that the Fund had not met its set out goals. He pleaded with stakeholders to give the Fund the benefits of doubt as it was set for a new season of mutual cooperation.
“In the past, there has been this mutual distrust between the operators (especially the major players), and the Fund. Whereas, the Fund expected them (operators) to take what we give them, the operators see things differently. They first look at projects on basis of returns-on-investment. How beneficial would the project be to them economically? I think we have looked at all these issues and we’re ready to dialogue with every player in the industry to ensure full participation,” said Abdullahi.
And to ensure that the new SMP strategy would not be another ‘white Elephant’, Abdullahi said so much work has been included in the new plan which would see an addition of about 3,000 kilometres of fibre and 1000 Base Stations, deployed across Nigeria every year. Admittedly, noted that the last SMP which expired in 2011 had minimal success.
He noted that the last SMP which ran from 2007 to 2011 had targeted provision of 291 community communications centres across the six geo-political zones (which will provide shared access to telephone and internet services in the rural areas).
Sadly, at the close of the period, it ended up providing 224 which represented 77 percent of the target.
It also targeted deployment of 490 base stations which would subsidize the lot that operators have to deploy in rural Nigeria, but it succeeded in awarding subsidies for only 74 BTS which represented just 12 percent of its target.
Consequently, the Fund would now adopt a holistic approach to project selection by determining specific ICT gaps in regional clusters within the country and tailoring its projects and service delivery models to suit identified needs within the clusters. With this approach, the USPF shall ensure that its projects are relevant and appropriate for its beneficiaries,” said Abdullahi.
The new published SMP strategy also emphasized the need for the USPF to actively involve all stakeholder groups in the planning and execution of its programmes and projects in order to effectively address and close Nigeria’s universal access and service gaps.
The aim is to avoid previous operational model collapse due to its one-size-fits-all approach. It is also aimed at arresting operators’ apathy due to perceive non-economic viability by engaging in frank dialogue before a project is awarded, using the cluster-development group model.
It noted that the “USPF’s experience over the past five years and the lessons gleaned from the review of the USP service delivery models in other jurisdictions have indicated that USP projects implemented in rural areas often difficult to sustain doe to high costs associated with operating these projects. In a number of cases, operational costs have been known to outweigh the initial capital outlay required for implementing USP projects. Consequently, the USPF will ensure its subsidies take into consideration operational costs associated with running USP projects over a defined period.
This is expected to provide service providers with a ‘grace’ period within which they will have built up a stable clientele and established demand for the service being provided. The period over which operational support will be granted will be determined based on assessment of the time required for each project to generate revenues capable of meeting its operational costs.”
It also expects to “develop and implement a robust monitoring and evaluation framework which will define the metrics/indicators that would be used to determine effectiveness of UAS programmes and their impact on beneficiary communities. The defined metrics should measure the relative cost and benefits of each programme and must ties back into the overarching objectives of the USPF. “
Abdullahi said “effective monitoring and evaluation of USP projects will facilitate the early detection of potential projects sustainability issues and help to address and rectify these issues early on in the implementation process.”
In arriving at the new SMP, the USPF also took into consideration factors such as Nigeria’s macroeconomic review and outlook, political landscape and outlook and an overview of the country’s telecommunication industry.
On the Macroeconomic review and outlook, the Fund notes that “Nigeria is a middle income and emerging economy which is predominantly agricultural – agriculture is the single largest contributor to GDP and is estimated to have contributed about 40.24 percent of the GDP in 2011.
However, while agriculture remains the largest employer of labour, petroleum, the leading mineral in Nigeria, is currently the major source of revenue (especially foreign exchange) for the country. Macroeconomic reforms introduced within the country since 2003 have created an environment for strong and sustained economic growth over the past few years and Nigeria is currently ranked 30th in the world in terms of GDP (purchasing power parity) as at 2011.”
Although the sustained civil democratic governance since 1999, (the longest since independence in 1960) has led to unprecedented economic growth, especially the attraction of foreign direct investment (FDI), there are grey areas posing as new strands of challenges to this growth paradigm.
Chiefly, the recent escalation of security in North and the not so comfortable calm in the oil and gas producing Niger Delta belt is seen as a major threat to this political-economic stability.
The Nigeria telecom industry’s exponential growth since its deregulation is in 2001 has seen its rise to become the leading market in the Africa and Middle East (MEA) region.
With active subscribers in excess of 102 million, and teledensity of over 70 percent, Nigeria no doubts is seen as a fertile market. But despite these, there has been a steady decline in year-on-year growth in the past two eyar, declining ARPUs and a decrease in minutes of usage (MoU) indicate that the telephony market is Nigeria is fast approaching maturity.
However, data services have seen an upward growth in the last decade. The landing on the shores of Lagos of four submarine cables has increased bandwidth intake, thereby making broadband availability even at cheaper cost.
The mobile segment of the telecom industry continues to rule with much the growth coming from the GSM sector, while the CDMA operators lay prostrate.
The fixed line sector is non-existent in this market as there are no new infrastructural investments and operators seem to stay off course.
The USPF however believe, it could fasttrack development in the ICT sector through three strategic planks, viz-a-viz facilitation of an enabling environment for ICT (especially promotion of rollout of sustainable ICT service in rural, un-served and underserved areas), promotion of universal access and universal service that facilitate connectivity for development and Institutional development.
While stakeholders applauded the new USPF approach, they also expressed cautious optimism over the Funds’ ability to keep to its terms of engagement.
Ms. Funke Opeke, CEO of MainOne Cable, West Africa’s first open access submarine cable operator noted that the Fund’s implementation module has not transited to new reality of large the volume of bandwidth available in the country. She believes it could do better if it effectively engages every operator and stakeholder as promised in the new SMP.
Engr. John Ayodele, director of Post and Telecommunications in the Ministry of Communications Technology notes that government was addressing all grey areas that stand as cog in the wheel of ICT growth in the economy.
Amongst such impediments, the issue of right of way (RoW) is getting urgent government attention, he noted. While admitting that states have rights to legislate on relevant laws to increase revenue base, Ayodele stated all levels of government was discussing to address the issues of RoW and redress the much maligned multiple tax conundrum.
Titi Omo-Etu, former president of association of telecom operators of Nigeria (ATCON), welcomed the new SMP, but cautioned both operators and the Fund to stay on course to achieve the set goals.
“There appears to be a paradigm shift, because in the past, the USPF has failed to communicate effectively with operators. And this shift also calls for operators to give the Fund the benefit of the doubt so that together, we can all work together to achieve our objective of developing the industry of our dream,” said Omo-Etu.
Dr Karl Toriola, chief executive officer, MTN Nigeria, has assured its subscribers that another telecom tariff increase is not imminent.
Dr Karl Toriola, chief executive officer, MTN Nigeria
He also clarified his recent comments on unlimited mobile data, saying they were taken out of context.
Toriola who spoke during an interview on TVC’s Beyond the Headlines, said his remarks at MTN’s Data on Trial public engagement were intended to explain the technical limitations of mobile networks rather than suggest that consumers could never access unlimited data.
According to him, excerpts of his comments circulated online did not reflect the full context of the discussion.
“People took snippets of the conversation, and the entirety of the conversation is available on YouTube. There’s nothing to be hidden there, and they took it slightly out of context,” he said.
Toriola explained that mobile networks are constrained by finite spectrum resources, making unrestricted data usage technically impossible without affecting the quality of service for other subscribers.
“Mobile wireless technology to offer data is limited by one factor—spectrum—and spectrum is a finite resource. You cannot put an excessive load of data traffic onto a mobile network without having a degradation of the quality of service for other people,” he said.
He added that while many telecom operators market data plans as unlimited, such packages are generally governed by fair usage policies, under which internet speeds are reduced after subscribers exceed specified usage thresholds.
Toriola said MTN is working towards introducing similar products but noted that they would also be subject to fair usage limits to protect network quality.
Addressing concerns over rapid data depletion, the MTN chief executive said operators do not deliberately consume customers’ data, attributing much of the usage to background activities such as automatic cloud backups on applications including WhatsApp, Google Cloud and iCloud.
“A significant amount of data that’s consumed on your handsets is done without your realisation,” he said.
He advised subscribers to review their device settings and configure cloud backups to run only over Wi-Fi or at less frequent intervals.
To illustrate the point, Toriola said an audit of the phone of one of MTN’s chief officers, who had complained about unusually high data usage, revealed that WhatsApp was automatically backing up about 120 gigabytes of data.
On telecom pricing, Toriola said another tariff increase is not expected in the near term, although future reviews would depend on prevailing economic conditions and the cost of sustaining network operations.
“The increment is not imminent. But over time, depending on economic conditions, there might be possible tariff increases,” he said.
He maintained that the tariff adjustment implemented in 2025 was necessary to ensure the sustainability of the telecommunications industry after more than a decade without a price review despite rising operating costs.
Toriola also disclosed that MTN invested ₦390 billion in capital expenditure during the first quarter of the year, exceeding its ₦359 billion profit after tax for the same period.
He identified fibre cuts, vandalism, unreliable electricity supply and restricted access to telecom infrastructure as major factors affecting service quality.
“We have more fibre cuts in a day than the whole Kingdom of Saudi Arabia has in a year,” he said.
Responding to calls for sanctions against MTN over recurring xenophobic incidents in South Africa, Toriola said MTN Nigeria is a Nigerian company in ownership and operations, noting that it is listed on the Nigerian Exchange, has only four expatriates in its workforce and has millions of Nigerian shareholders through direct investments and pension funds.
“We unequivocally condemn any form of xenophobia, any form of violence, any form of attacks against any community in the world,” he said.
Telecom
Airtel Africa Foundation Equips 200 Young Women with Digital Skills to Drive Nigeria’s Tech Economy
Airtel Africa Foundation, through Airtel Nigeria and in partnership with the Ishk Tolaram Foundation, Co-Creation Hub (CcHub), and SAIL Innovation Lab, has commenced the DigiLeap Women in Tech Programme, a transformative initiative designed to equip 200 young women from underserved communities in Ikorodu, Lagos, with industry-relevant digital skills and pathways into Nigeria’s rapidly expanding technology sector.
The programme, hosted by the SAIL Innovation Lab Ikorodu, comprises a 12-week immersive learning experience from June to September 2026, designed to prepare participants for careers in Product Design, Software Development, Digital Marketing, and Data Analytics.
Beyond technical training, beneficiaries will receive leadership development, structured mentorship from Airtel Nigeria professionals, and internship opportunities that provide practical workplace experience and exposure to industry best practices.
Commenting on the programme kick-off, Segun Ogunsanya, Chairman of the Airtel Africa Foundation, said empowering young women with digital skills represents one of the most sustainable investments in Africa’s future.
He also noted that the initiative reflects Airtel Africa Foundation’s continued commitment to expanding access to digital education while creating opportunities for young Africans to participate meaningfully in the continent’s digital transformation.
“We encourage every participant to approach this programme with purpose, discipline, and curiosity. The knowledge, networks, and mentorship you gain over the coming weeks have the potential to transform not only your own future but also the lives of your families, communities, and the next generation of girls who will look up to you. This is how lasting impact is created,” Ogunsanya said.
Also speaking on the initiative, Dinesh Balsingh, Chief Executive Officer of Airtel Nigeria, highlights that the initiative aligns with the company’s commitment to building an inclusive digital economy by ensuring more young Nigerians, particularly women, are equipped for the jobs of the future.
Balsingh said, “Nigeria’s digital economy presents enormous opportunities, but participation must be inclusive if we are to realise its full potential. Through the Airtel Africa Foundation, we are intentionally investing in young women because we recognise the immense value they bring to innovation, technology, and economic growth.
“DigiLeap is designed to equip participants with practical, industry-relevant skills that employers are looking for today while also giving them the confidence, mentorship, and professional exposure needed to build successful careers.”
According to the DigiLeap curriculum, participants will engage in intensive classroom instruction, hands-on projects, mentorship sessions, and internship placements designed to bridge the gap between learning and employment.
Airtel Nigeria professionals will serve as mentors, providing career guidance and sharing real-world industry insights to help participants transition successfully into the technology workforce.
The DigiLeap Women in Tech Programme spotlights the Airtel Africa Foundation’s growing investment in digital inclusion and youth empowerment across Africa. By creating pathways for more women to access technology careers, the Foundation continues to contribute to Nigeria’s digital transformation agenda while helping build a diverse pipeline of talent capable of driving innovation, creating businesses, and shaping the future of the country’s digital economy.
Karl Toriola, chief executive officer, MTN Nigeria, has stated that the telecom company is “a Nigerian company through and through,” emphasising that it belongs as much to Nigerians as to its global investors, with over 11 million Nigerians holding indirect stakes through pension funds.
Toriola also defended the federal government’s approval of telecom tariff adjustments, noting that the move helped prevent a financial crisis in the sector and enabled the company to ramp up capital expenditure to about N1 trillion in 2025 to improve network quality.
Speaking during an interview on Arise News, the MTN boss dismissed claims that the company is solely South African, despite its origins.
According to him, MTN Nigeria is incorporated locally, listed on the Nigerian Exchange, pays taxes in Nigeria, and is largely managed by Nigerians.
“We are labelled as a South African company because MTN Group was founded in South Africa. But the reality is that MTN Group has a very diverse global shareholding. Only about 50 percent of the shareholding is African, while the rest is held by investors from North America, Europe, the United Kingdom, the Middle East and Asia-Pacific,” he said.
Speaking further on MTN Nigeria’s identity, Toriola stressed the company’s deep roots in the Nigerian economy.
“MTN Nigeria is a Nigerian company through and through. We are domiciled in Nigeria. We are listed on the Nigerian Exchange. We pay all the taxes, duties and levies expected of us, and we are run by Nigerians.
“I am Nigerian. Apart from one executive, every member of our executive committee is Nigerian, while our entire expatriate workforce in Nigeria is just four people.
“We have over 201,000 retail investors, while about 11 million Nigerians own MTN shares indirectly through pension funds. We are very proud of our Nigerian identity,” he stated.
On the recent telecom tariff adjustment, Toriola said the increase was driven by necessity rather than profit motives, noting that operators were struggling to meet basic financial obligations before the review.
“People perceived the tariff increase as an aspiration for profitability, but the reality was that we were on our knees financially. We couldn’t even pay our month-to-month bills with the revenues we were generating. The tariff adjustment was an absolute necessity. It enabled us to stay alive,” he said.
He added that the improved revenue base has enabled MTN to scale up infrastructure investments to enhance service delivery.
“In the first quarter of this year alone, we spent N390 billion on capital expenditure, compared with a profit after tax of N359 billion. That shows our commitment to improving quality of service,” he said.
Addressing concerns over poor network quality, Toriola attributed the challenges to increasing demand, infrastructure gaps, vandalism, insecurity, and unreliable power supply.
“There are people who deliberately pour petrol into our manholes and set them on fire. A single incident can knock out services for millions of subscribers. We also face security challenges that prevent our engineers from quickly accessing some sites.
“In addition, we operate about 18,000 sites nationwide, each requiring generators, batteries, rectifiers and constant fuelling because of inadequate public electricity supply. All these affect quality of service,” he explained.
While acknowledging that service quality still needs improvement, he assured customers of continued investment.
“We are not perfect, but we are investing aggressively and continuously striving to do better,” he added.
On allegations that telecom operators deliberately deplete customers’ data, Toriola said findings often point to background data usage by smartphone applications.
“There is a perception that MTN goes and takes customers’ data, but our studies have shown repeatedly that background applications are consuming much of that data.
“I encourage customers to check their device settings. Daily automatic backups are unnecessary for many users. If possible, carry out backups over Wi-Fi instead of mobile data,” he advised.
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