Telecom
As NCC Moves to Address Industry Challenges
Insecurity which manifests in wanton theft and vandalization of telecommunications equipment is costing service providers in the country several millions every month.
Findings show that at least three generating sets, a number of air conditioners, batteries and generator parts are stolen every day as armed robbers break into the shelter at base stations at will.
Theft and vandalization of the equipment result in the base stations being cut off from the network meaning that subscribers within the affected base station will be experiencing poor service because the microwave equipment that transmits calls from subscriber’s phone within the base station to the nearest switching centre for completion will cease to work as a result of outage.
It would be recalled that service providers have since resorted to the use of generators to power their operations as a result of unreliable state of public power supply.
Highest hit by the activities of vandals are Global System of Mobile communications (GSM) operators: MTN, Globacom, Zain and Etisalat.
This situation has been giving operators and managed services providers who now manage some base stations for service providers’ serious concerns.
Mr. Wale Goodluck, corporate service executive, MTN, said that the company spends some N100 million a month on security guards and police that provide security on their equipment.
Other service providers including internet service providers are also affected by the activities of the vandals and are believed to spend money on security.
The presence of security guards has not deterred thieves from carrying out their nefarious activities as they have had to kill security guards at base stations in a bid to steal.
Vandalisation is an act before now was synonymous with the oil and gas sector of the country’s economy, where petroleum pipe lines are vandalized with the aim of siphoning petroleum products from the pipes.
The growth of telecommunications in the country as witnessed in the spread of coverage by global system for mobile (GSM) communications saw this ‘bad word’ extending its tentacle to the sector that has been adjudged the fastest in terms of growth in Africa. It started as activities of areas boys who depended for settlement from telecom operators before they could site their base stations in their areas and has today, grown to menacing propotions.
Some two years ago, Nigeria witnessed it worst quality of service issue in GSM service delivery that led to Nigerian Communications Commission (NCC) slamming blanket ban on MTN and Zain from running promo and directed that they pay compensation to their subscribers; the operators argued that they were not responsible for the poor quality of service attributing it to vandalization and theft of their equipment.
This argument was not acceptable; maybe NCC and National Assembly saw it as an afterthought as such issue was not raised before the hammer fell on them. But, today, the matter that was relegated to the background has turned out to be a subject for discussion by the industry stakeholders.
Prof. Dora Akunyili, minister of Information and Communications, few weeks ago held stakeholders’ forum where she mandated NCC under the leadership Dr. Bashir Gwandu, acting executive vice chairman of the commission to address problems that are affecting operators in delivering quality service and reducing tariff.
To this end, NCC hosted operators to a forum in Lagos on ways to move the industry forward. At the parley, the issue of vandalization, theft and multiple taxes were identified as major challenges operators face in their effort to deliver quality service as well as reduce tariff.
NCC and telecommunications operators also resolved to address problems associated with delivering of broadband internet services such as citing internet hot spots at airports, spectrum harmonization and national fibre optic initiatives.
NCC also decries high charges by state governments in granting operators right of way to deploy fibre optic infrastructure which is inimical to the growth and development of telecom in the country. The commission however, called for streamlining of ‘right of way’ approval cost.
Dr. Gwandu noted that none availability of transmission infrastructure is partly responsible for high cost of rendering service in the industry especially for small operators, and therefore reiterated the determination of the commission to identify bad spots on existing national fibre optic rings which are vandalized with the view of resolving them.
Impact on operators
According to Mr. Karl Toriola, chief technical officer, MTN, said that vandalizaion of about 500 sites and sabotage of MTN’s transmission infrastructure led to significant downtime last year. These figures may have doubled going by increase activities of these vandals and thieves.
Toriola noted that repeated and multiple cuts to its fibre optic network disrupt service, defeat redundancy and self healing architecture of fibre rings as damage to one microwave tower will often affect several others in line of sight causing widespread transmission outrages. “Increasing community agitation and militancy across the six geographical zones with greatest incidence in Lagos, Niger-Delta, South-East also affected our services,” he said. According to him, about 50 sites were rendered inaccessible per day on account of community issues. He added that increasing robbery and banditry hamper the ability to provide reactive maintenance within preferred best practice response times. Zain on the other hand lost 500 generators last year which has doubled as at last month. Although Globacom and Etisalat have not disclosed the number of its generators and other equipments lost to vandalism and theft, it is believed that it could still be in the same range with its competitors as they are not operating in a different environment. However, these thieves overpower security guards guiding these base stations with sophisticated weapon to carry out their unscrupulous act.
Nigeria CommunicationsWeek gathered that there are a total of 20,000 base stations as at the end last year. GSM operators are using generating sets because of the unreliable nature of Nigeria’s public power supply.
Options
Mr. Gbenga Adebayo, chairman, Association of Telecommunications Operators of Nigeria (Alton) suggested that the Federal Government should present a bill to the National Assembly, to advance a law that will stipulate stiffer penalties of up to 10 years imprisonment for apprehended vandals of base stations and other infrastructure like optic fibre cables.
According to Adebayo, Alton was actually at the forefront of the plans to sponsor the bill at the National Assembly, even as he expressed optimism that having been a problem that affects all, the bill would not have much problem being passed into law.
He cited the scenario of the 80s when it was a serious offence punishable by a long stretch of prison sentence, to vandalize Nitel property and wondered why the same protection is not extended to today’s telecom operators who are largely private firms.
He said his association has over time, articulated and packaged submissions to the Federal Government by writing to relevant agencies, ministries and related authorities over what they have been going through in the hands of vandals and thieves who steal and damage facilities, and the need to be given some kind of protection to enable them focus on delivering better quality of service to the subscribers.
“We cannot fold our arms and watch things continue the way they are going,” he said.
Adebayo cautioned that with the astronomical growth of telecome subscribers on the networks, government should at least provide those basic things to help the operators in providing quality and seamless services or risk having the networks collapse with inestimable drastic effects on the economy of the country.
Franchising option should be also looked into by operators to address this menace especially in rural areas, just as Zain’s Rural Acquisition Initiative (RAI). Zain’s RAI is targeted at low income consumers in most rural and poorest parts of Nigeria. Franchises selected for the programme are the drivers of the programme as local entrepreneurs and in turn recruit representatives from their locality to sell services and protect local base in their area. They are given necessary technical, marketing, sales and financial support by Zain to help grow their business.
Fola Odufuwa, founder of eShekels limited, a pioneer ICT researcher in sub-Saharan Africa, said franchising has ability to speedily start a new business based on a proven template. It also ensures expansion of operations more rapidly.
According to him, Nigerian entrepreneurs do not really need subsidies but a level playing field, access to capital and fair access to existing networks, adequate profit sharing structure and legal protection for their investments.
In the context of telecoms, it means that the service provider transfers to the small enterprenuer, the whole process including technical expertise, training systems, marketing, management methods and relevant information on provision of telecoms services to rural areas for an agreed fee or proportion of profit on the business.
Industry analysts say franchising can to an extent, assist in cubing theft and vandalization of telecomm equipment. For instance, if operators franchise their base stations, products and distribution outlets in a community to an indigene of such community, chances are that such franchise will provide adequate security for those equipments knowing fully well that he or she has stakes in the business and if anything happens to the equipment, he stands to lose money. Moreso, his people will see such equipment as belonging to a local not the major network operator and then be more willing to protect them.
The telecom franchise programme initiative is designed to involve rural residents in base station management and distribution programme, creating jobs, wealth, and improved products and services availability in the process.
With its meteoric rise in data centre development and it accounting for 20% of the global population, Africa still only has 0.6% of global data centre capacity.
This is based on the 2026 Economic Report: Data Centres in Africa, published by Africa Data Centres Association (ADCA), in partnership with Rising Advisory.
The US hosts about 45% of the world’s data centres, while Africa accounts for less than 1% of global capacity.
According to the report, Africa’s active capacity stands at 360MW, with 238MW under construction and 656MW in the pipeline.
By comparison, global active capacity is at 5.5GW, with 1.5GW under construction and a development pipeline of 13.5GW.
Even if all of Africa’s announced projects materialise, says the report, the continent is projected to maintain rather than increase its global share, as hyperscale expansion accelerates elsewhere.
“This is not a catch-up cycle; it is a race to avoid deeper structural marginalisation in global compute,” notes Faith Waithaka, chairperson of ADCA.
“Capacity development in Africa must be approached with a long-term perspective, recognising that infrastructure growth will precede full utilisation as digital ecosystems continue to evolve.
“Sustainability is now a central consideration for the sector. Improving energy-efficiency and integrating renewable energy sources are essential to the viability of data centre operations. Africa is uniquely positioned in this regard, with vast untapped potential across solar, wind, hydro and geothermal resources. Leveraging these assets can support greener data centres, while strengthening energy security and long-term competitiveness.”
Africa’s data centre market is projected by Mordor Intelligence to reach $4.36 billion by 2031, with the South African market considered a “sweet spot” due to its favourable position on the African continent.
South Africa is the largest data centre market on the continent, with55 data centres already built. The country’s geographical position also makes it a strategic hub for regional and international connectivity.
Firms such as Digital Realty-owned Teraco, Vantage Data Centres, Open Access Data Centres and Equinix have expanded their data centre footprint in SA, while hyperscalers Amazon Web Services (AWS), Google and Microsoft Azure have also built local data centre facilities.
The country’s data centre momentum has been highlighted by president Cyril Ramaphosa on several occasions, notably stating that more than R50 billion in investment is expected in the local data centre space over the next three years.
The data centre capacity buildout has also resulted in government calling for accelerated cloud migration, as the state’s digital transformation efforts require greater use of cloud.
Digital rush
The report notes that the global data centre industry is booming as demand for this “digital gold” accelerates.
Valued at $243 billion in 2025, the market is projected to double by 2032, according to the World Economic Forum.
Meanwhile, UN Trade and Development reports that data centre projects accounted for over one-fifth of all greenfield foreign direct investment in 2025.
“This surge reflects the growing need for artificial intelligence (AI) infrastructure, cloud services and digital networks, positioning data centres as indispensable assets driving global growth strategies,” states the report.
“Several converging trends are driving this expansion. Cloud adoption continues to shift workloads off-premises, while AI and big data are reshaping infrastructure needs.”
On the other hand, hyperscale facilities − operated by giants like AWS, Microsoft, Google and Alibaba − have doubled in number roughly every five years, with hyperscale capital expenditure rising nearly 58% year-on-year in 2024.
“Governments across Asia, the Middle East and Africa are offering incentives to attract greenfield projects, recognising data centres as foundations for innovation, skilled employment, and adjacent industries like fintech and AI. Yet Africa faces a stark challenge.
“The continent’s share is expected to expand only in line with global growth, rather than closing the gap. This opportunity has not stayed unnoticed, and investors, expecting high returns, have poured funds into increasing the sector’s capacity by approximately two-thirds.”
Legal steps
According to the report, the heightened activity in the data centre market has resulted in data sovereignty becoming policy reality.
It notes that as of early this year, over 40 African nations have enacted data protection legislation or established data protection authorities, while five additional countries are drafting laws.
Additionally, 15 countries have formalised national AI strategies.
As noted in the ADCA report, the frameworks aim to protect citizens’ rights, while providing legal certainty for investors and digital service providers.
“Governments are increasingly recognising data centres as critical national infrastructure, central to digital sovereignty, financial stability and AI competitiveness.
“As Africa’s digital economies expand, the rules governing ‘where’ and ‘how’ data is stored, processed and transferred are becoming central to economic competitiveness and state capacity.
“Data sovereignty – the principle that data generated within a country should be governed by that country’s laws – has evolved from a legal aspiration into a strategic policy lever, shaping investment patterns, infrastructure deployment and the localisation of digital value chains.”
Even with the frameworks, enforcement capacity often lags legislative ambition, states the report.
“World Bank and GSMA assessments highlight constraints linked to staffing, funding and technical expertise. Yet this enforcement gap also represents a growth opportunity: stronger, more predictable regulation is increasingly seen by investors as a prerequisite for scaling local digital infrastructure. And well-functioning regulation is increasingly functioning as a demand signal.
“Clear localisation and data-protection requirements create predictable demand for compliant, in-country infrastructure, improving bankability for data centre projects and attracting long-term capital.
“Data localisation policies are emerging as part of this broader regulatory maturation. When aligned with market realities, localisation can strengthen oversight, improve accountability and support the development of domestic data centre ecosystems.”
GigaLayer, a prominent player in Africa’s cloud infrastructure and domain services sector, has announced the acquisition of Registeram, a Nigerian domain registration and hosting firm.
GigaLayer
This move marks a significant consolidation in the local tech ecosystem, as GigaLayer continues its aggressive expansion strategy to dominate the digital infrastructure market in Nigeria and across the continent.
Consolidating the Digital Backbone
The acquisition of Registeram, which has been operational since 2008, is the latest in a series of strategic buyouts by GigaLayer.
The company has previously integrated brands such as Trudigits, Hub8, MainOne’s SMEinaBox, and LagosHost, effectively positioning itself as a primary consolidator in a fragmented hosting industry.
According to Ahmad Mukoshy, Founder and CEO of GigaLayer, the deal is less about increasing headcount and more about infrastructure resilience.
“This acquisition reinforces our commitment to building resilient, locally operated cloud and domain infrastructure for African businesses. We are not just acquiring customers; we are strengthening Africa’s digital backbone,” Mukoshy stated.
What this means for Registeram customers
GigaLayer has assured Registeram’s existing clientele of a seamless transition with no immediate service disruptions.
Key highlights of the integration include:
Infrastructure Upgrade: Services will be migrated to GigaLayer’s enterprise-grade platform to improve performance and redundancy.
Security & Support: Users will gain access to enhanced security standards and GigaLayer’s robust support system.
Product Expansion: Existing customers will now have access to broader cloud compute and high-availability hosting solutions.
Focus on Local Cloud Sovereignty
As Nigerian businesses face increasing pressure to comply with local data residency regulations, GigaLayer is doubling down on local cloud sovereignty.
The company currently operates infrastructure across two data centers in Lagos, focusing on bare-metal and cloud compute capabilities designed for enterprise workloads.
By reducing reliance on offshore providers, GigaLayer aims to provide high-performance solutions that are both compliance-ready and tailored for the Nigerian economic climate.
“We believe Africa’s digital future must be built on African infrastructure,” Mukoshy added.
Strategic Outlook
The founders of Registeram are expected to exit to pursue other ventures, while GigaLayer takes full operational control of the assets and client portfolio.
This acquisition signals a maturing market where local players are scaling up to compete with global giants by offering localized support, Naira-based pricing stability, and low-latency infrastructure.
Olugbenga Agboola, Flutterwave CEO has joined a $22 million funding extension for Nigerian defensetech start-up Terra Industries as Africa’s fast-growing drone and security technology sector begins to attract capital far beyond traditional venture circles.
The round was led by Lux Capital, with participation from Agboola through Resilience17 Capital and returning investors including 8VC and Nova Global.
It follows an $11.75 million raise just weeks earlier, bringing Terra’s total funding to $34 million as the company accelerates expansion into high-risk security markets.
Terra, founded in 2024 by 24-year-old chief engineer Maxwell Maduka and CEO Nathan Nwachuku, builds autonomous drones and surveillance systems designed to protect critical infrastructure such as energy facilities, logistics corridors and industrial sites. The startup says it is already safeguarding assets worth billions of dollars while securing early federal and commercial contracts.
Agboola’s involvement highlights a broader shift in African tech investment patterns. While fintech has long dominated venture flows, escalating infrastructure sabotage and terrorism threats have elevated demand for locally developed security hardware.
“Nigeria’s drone ecosystem is rapidly evolving from hobbyist and mapping use cases toward industrial monitoring, border surveillance and energy protection, areas increasingly seen as foundational to economic stability.
“This is about backing infrastructure security at scale. Africa’s growth depends on resilient systems that protect critical assets,” said Agboola.
Terra CEO Nwachuku is adamant that locally engineered systems are better suited to African operating conditions. “We are building tools designed for the realities on the ground. Security technology should not always be imported when local innovation can respond faster and more effectively,” he stated.
Lux Capital partner Brandon Reeves underlined that the investor appetite, which has drawn fintech heavyweight interest such as Agboola, reflects rising cross-sector confidence in African defense technology as a commercial category. “Security is a prerequisite for economic growth,” he said.
“As Terra ramps production and expands regionally, its funding milestone illustrates a wider transformation. Drone and autonomous security platforms are no longer peripheral experiments but emerging pillars in Africa’s technology landscape, where fintech leaders and venture capital converge around safeguarding the infrastructure powering the continent’s next growth phase,” said Reeves
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