Telecom
Danbatta, Others Extol Benefits of Data in Development of Digital Economy
Professor Umar Garba Danbatta, Executive Vice Chairman and Chief Executive Office (EVC/CEO) of the Nigerian Communications Commission (NCC) has said that real value can only be driven from data when it is gathered completely and accurately, connected to other relevant data, and done in a timely manner.
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He stated this while delivering a keynote address at the 2021 edition of the Nigeria ICT Impact CEO Forum held on Friday, at Oriental Hotel, Lagos.
The event themed: “Data the New Oil of the Digital Economy” had ICT policymakers and policy enablers in attendance.
The EVC noted that data when properly refined could quickly become a decision-making tool – information – that allows companies to react to market forces and be proactive and intentional in their decision-making.
He further expressed delight in the significant contributions of telecommunications sector in the development of the Nigerian economy.
According to him, “It is gratifying that in the last few years, the telecommunications sector has consistently driven the digital economy agenda of the government, as it provided the necessary impetus for the support of the Nigerian economy in the digital space.
“It is pertinent to add that the information and communication sector recorded a growth of 6.31% in Q1 2021, which was largely driven by the growth in the telecommunications sub-sector (+7.69%).
“This growth trend has rekindled the hope that economic diversification can be realised in Nigeria.
“Also one of the most dynamic developments related to the digital economy has been the rise of social network platforms which have set the stage for unprecedented social 2 interactions, dialogue, exchange and collaboration.
“These platforms have opened up multiple avenues for entrepreneurship, business connectivity and engineered several activities that support ease of doing business in Nigeria”.
Danbatta further stated that the Commission is currently working on a regulatory instrument to manage data collection and utilisation in the Nigerian communications sector.
The process, according to him, is going through the Commission’s collaborative rule making approach and will provide all stakeholders with ample opportunities to participate.
Engr Ikechukwu Nnamani, CEO – Medallion Communications Limited and President of Association of Telecommunications Companies of Nigeria (ATCON), speaking on the Topic titled: “Building Blocks to a Data Based Digital Economy” said that digital economy is the network of economic activities, commercial transactions and professional interactions that are enabled by information and communications technologies.
He noted that the benefits of digital economy span across, Job creation, Rise in E-commerce, Expansion in business opportunities, Transparency, Improvement in public services, Digital delivery of goods and services and others.
He equally said that Nigeria is still far from generating the volume of data that will make data the new oil for Nigeria, noting that there is still need for more local content data generation in Nigeria for its Data to move from people and business based to machine based if we are to generate adequate data to make data Nigeria’s new oil.
According to him, “Nigeria is missing in key cloud services platform location.
“Hyperscale datacenters must be located within Nigeria to make the key cloud service platform to be located within the country.
“Edge datacenters are needed for effective storage and distribution of content across the country to ensure efficient service delivery.”
Earlier, Tayo Adewusi, editor-in-Chief of ICT Watch magazine, the organizers of the event, said that Data in the 21st Century is like Oil in the 18th Century: an immensely, untapped valuable asset.
He noted that Data is the key to smooth and efficient running of everyday life, including in both public and private sectors.
“Like oil, for those who see Data’s fundamental value and learn to extract and use it there will be huge rewards.
“We are in a digital economy where data is more valuable than ever. It’s the key to the smooth functionality of everything from the government to local companies. Without it, progress would halt”.
Oluwarotimi Arakunrin Akeredolu, SAN, Governor of Ondo State, speaking at the event via virtual platform, emphasized the importance of Data to all stakeholders in Nigeria’s economy, noting that it’s the lifeblood of any digital economy.
He said, “The importance of data cannot be overemphasised in the economy of nations because data is the lifeblood of digital economy.
“We are in digital economy where data is more valuable than ever.
“Hence, it is not surprising that data has of late been referred to as ‘the new oil’. Data is an essential resource that powers the present digital economy”.
Mr Kashifu Inuwa, the Director-General, National Information Technology Development Agency (NITDA) speaking on the topic: Nigeria Data Protection Regulation (NDPR) and the Future of Data Governace, said the world has gradually evolved into a digital platform in which everything we do appears to be linked to technology in some way.
He noted that the digitalization phenomenon has now elevated digital platforms to become drivers of the economy rather than enablers.
The DG added that digital economy is highly dependent on the availability of data and the requisite skills to process such data to extract maximum economic and social value.
Abiodun Omoniyi, CEO, VDT Communications Limited, who spoke on the theme: ‘Why Data will be the New Oil in the Digital Economy’, said that data is now world’s most valuable resource.
He stated that it will not be right to say that data will be the new oil, but that it is already the new oil.
On the contributions of Telecom industry in the Nigerian economy, Omoniyi said, “Telecom is already the new oil especially in Nigeria with the highly dwindling oil fortunes.
“The fact that telecoms globally and in Nigeria are largely driven by the private sector gives it tremendous room for growth.
“However, governments around the world and including Nigeria need to create growth-oriented policies and provide enabling environments for the full potentials of data to be harnessed.
“Data has enormous potentials to displace oil in leading the global economic growth now and the foreseeable future”.
Senate has moved closer to making it mandatory for global social media companies operating in Nigeria to establish physical offices in the country following widespread support for the proposal at a public hearing in Abuja.
The proposed legislation, sponsored by Sen. Ned Nwoko (Delta North), seeks to amend the Nigeria Data Protection Act, 2023, to require social media platforms providing services to Nigerians to maintain operational offices within the country.
The public hearing, organised by the Senate Committee, also received support for a separate bill seeking the establishment of an Artificial Intelligence (AI) Academy in Omuo-Ekiti, Ekiti State.
Representing Senate President Godswill Akpabio, Deputy Senate Leader Sen. Lola Ashiru said the proposed legislation was not intended to discourage technology companies from investing in Nigeria but to strengthen accountability, engagement and regulatory cooperation.
According to him, the objective is to ensure that global technology companies have a stronger presence in Nigeria’s digital ecosystem.
Speaking during the hearing, Nwoko said the bill was designed to deepen the relationship between technology companies and Nigeria rather than create obstacles for innovation.
“This bill is neither punitive nor hostile to innovation. It is not designed to frustrate investment or discourage technology companies from operating in Nigeria.
“On the contrary, it seeks to deepen their engagement with Nigeria by encouraging them to become true corporate citizens of our country,” he said.
The lawmaker argued that several countries had successfully attracted major technology companies to establish local operations by adopting similar policies.
He listed the United Kingdom, India, the United Arab Emirates, South Africa and Brazil as countries that have secured local offices from global technology firms, resulting in increased employment opportunities, improved tax revenue and stronger innovation ecosystems.
According to him, those countries recognised early that the digital economy has become as important as the traditional economy.
“The question, therefore, is simple: if countries with significantly smaller populations and digital markets than Nigeria have secured these investments and benefits, why should Nigeria continue to stand on the sidelines?
“Why should Africa’s largest digital market not enjoy the same opportunities?” Nwoko asked.
He maintained that requiring global social media companies to establish local offices would enhance regulatory engagement, improve service delivery, stimulate job creation and strengthen Nigeria’s digital economy.
The Senate committee said it would review memoranda and submissions received from stakeholders during the public hearing before preparing its report for consideration by the Senate.
If passed and signed into law, the amendment would require major social media companies operating in Nigeria to maintain a physical corporate presence within the country.
The GSM Association (GSMA) has urged African governments to reduce taxes and levies on entry-level smartphones as part of efforts to accelerate digital inclusion and ensure millions of Africans are not excluded from the emerging artificial intelligence (AI) revolution.
The association warned that about 961 million Africans who are currently covered by mobile broadband networks are not using the services due to affordability challenges, particularly the high cost of smartphones.
The call was made at the Digital Africa Summit, organised by GSMA in partnership with the African Telecommunications Union (ATU), which brought together regulators, policymakers and industry stakeholders to discuss strategies for improving connectivity and driving digital transformation across the continent.
Speaking at the event, Caroline Mbugwa, senior director, Public Policy and Communications, GSMA Africa, said affordable smartphones and reliable connectivity were essential for unlocking the benefits of AI across sectors including healthcare, education, transport and commerce.
Mbugwa noted that while mobile broadband coverage has expanded significantly across Africa, a large number of people remain unable to access digital services because they cannot afford smartphones.
She stressed that fiscal reforms, particularly the removal of taxes on entry-level devices, were urgently needed to make smartphones more accessible to low-income users.
According to her, South Africa’s decision to remove a nine per cent luxury goods tax on entry-level smartphones helped accelerate adoption of smart devices and reduce dependence on feature phones.
“We are now entering what we call the era of intelligence, and the era of intelligence requires that we have an already existing robust infrastructure, robust connectivity that can support the growth of artificial intelligence on the continent.
“We have a whole 961 million Africans that are covered by mobile broadband services but are not using the service. This is what we refer to as a usage gap. If this remains unaddressed, it means that this number will be left behind when it comes to the adoption of AI.
“This signals that there is demand for adoption of smart devices. Customers are willing to actually use the service. Affordability is the challenge,” she said.
Also speaking, Michaela Angonius, head of Global Policy and Regulatory Team at GSMA, said African countries must adopt policy reforms that encourage investment, expand connectivity and reduce barriers to digital access.
Angonius, who oversees global regulatory and policy issues covering areas such as fiscal policy, competition and network deployment, cautioned against adopting a one-size-fits-all approach to reforms across the continent.
She said findings from the Digital Africa Index showed that while some countries, including South Africa, had made significant progress, others still needed deeper regulatory reforms to improve their digital ecosystems.
She identified three major areas requiring attention: modernising licensing frameworks, improving the use of Universal Service Fund (USF) resources and adopting smarter approaches to quality of service regulation.
According to her, many African countries still operate technology-specific licensing systems, which do not align with the rapid evolution of digital technologies.
Angonius advocated for technology-neutral licensing frameworks that would allow different communication providers, including satellite operators, mobile network operators and internet service providers, to operate under the same regulatory principles.
She explained that the growth of satellite services had exposed weaknesses in existing licensing structures, as regulators often struggle to determine how to classify new technologies.
On Universal Service Funds, Angonius said the existence of unused funds in many countries effectively creates an additional tax burden on telecom operators, which eventually increases costs for consumers.
She warned that such additional costs could worsen the digital divide at a time when Africa is already struggling with smartphone affordability and connectivity challenges.
The GSMA executive also called for a review of quality of service regulations, arguing that countries with the best digital service quality are not necessarily those with the most detailed regulatory requirements.
She said governments should instead focus on policies that encourage investment, expand coverage to underserved communities and improve access for people who remain disconnected.
Angonius further advised finance ministers across Africa to remove levies placed on entry-level smartphones to lower the cost of first-time device ownership.
“Those countries with the best quality of service are not necessarily the countries that have detailed quality of service regulation. Rather, they have focused on how to get the investment right.
“If you have a levy on any handset, firstly, if you can, as a finance minister, remove it. If you can’t, at least remove it from those entry-level handsets that should be affordable for everyday users,” she said.
She added that Nigeria, like other African countries, could benefit from reforms that promote investment, address societal needs and ensure consumers gain long-term value from digital transformation.
Airtel Africa has confirmed that the London Stock Exchange is its preferred listing venue for Airtel Money in 2026, as the group looks to unlock value from its fast-growing fintech business.
The highly anticipated listing aims to maximise market opportunities, with analysts reportedly anticipating a valuation of around $10 billion.
The announcement came as the telecoms operator reported strong first-quarter (Q1) results on Thursday, with surging data usage and mobile money transactions driving double-digit revenue growth across its markets.
The group reported revenue of $1.85 billion, up 31% in reported currency and 21.1% in constant currency, underscoring robust demand for digital and financial services.
Mobile money remained a standout performer, reinforcing its role as a key growth engine. Total transaction value reached an annualised $245 billion, up 51.5%, while the customer base grew 23.3% to 56.5 million users.
“Our focus on deepening financial inclusion through increased customer adoption, broader use cases and a stronger digital payments ecosystem enabled higher usage and facilitated continued average revenue per user growth, reinforcing Airtel Money’s growing role as a trusted digital financial services provider,” the company said.
Sunil Taldar, CEO of Airtel Africa, said the company is leveraging digital platforms, data and artificial intelligence to enhance customer experience and support long-term growth.
“We have started this year with another pleasing performance. Our continued focus on the customer experience translated into accelerating customer base growth across all business segments,” he said.
Taldar said a London listing would provide access to a broader international investor base and support the telco’s ambition to unlock long-term value from one of Africa’s leading fintech platforms.
Data usage per customer rose from 7.8GB to 10.6GB per month, driving a 56.3% increase in network traffic, while smartphone penetration reached 51%, reflecting continued digital adoption.
Accelerated network investment drove capital expenditure (capex) of US$389 million, up from $121 million in the corresponding period last year.
“Supported by an elevated pace of deployment, we added more than 920 sites during the quarter, our highest first-quarter site rollout, while further expanding our fibre network to 82,100km,” the company said.
Airtel’s cost-efficiency programme supported EBITDA margin resilience, with the margin remaining at 50.1% in Q1.
However, the company warned that higher energy costs linked to geopolitical developments could increase inflationary pressures and weigh on margins in the near term.
Despite this outlook, the operator said its investment programme remains on track, with spending brought forward to support demand and capture growth opportunities linked to Africa’s digital transformation.
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