Telecom
Digital Economy A Catalyst For Nigeria’s Development- Dr. Woherem
Dr. Evans Woherem, a foremost banker and renowned IT guru, has lauded the Minister of Communications & Digital Economy, Dr. Isa Ali Pantami, and the Federal Government, for upgrading the former Federal Ministry of Communications to that of Communications & Digital Economy.
Dr. Woherem said he was particularly delighted by the upgrade because he had for long advocated the need for the country to constitute a committee that would come up with a new policy and strategy aimed at creating a roadmap on how to turn the country into a digital economy, describing the Minister’s action as poignant and proactive.
“Take for instance as I have been pointing out lately. South Africa has a Ministry of Information Technology. To me, that’s so marvelous for a country to be so far-reaching in its thinking of the future, realizing the importance of information technology.
“The fact that it’s a catalyst for development, for energizing other parts of government or activities in an economy, to the point of creating a ministry that will run the affairs of the information technology in the country, made me applaud the South African Government.
“And again, the United Arab Emirates has something similar, and indeed, more exciting. UAE has a Ministry of Artificial Intelligence; to me, that’s something that speaks volumes. In addition to that, they also have a Ministry of Possibilities.
“It means that they are really preparing for the Fourth Industrial Revolution and beyond; they are really preparing for the new century.
“They really want to do something that nobody had thought ever before. They really want to experiment, push boundaries and use technology to go where no nation had been before,” Woherem stated.
Dr. Woherem, a former Executive Director at First Bank Plc and Unity Bank of Nigeria noted that he had always pointed out the need for Nigeria to do the right kind of thing as a nation, have the audacity to reach out to be the best, and to do things that are almost miraculous.
“By the creativity of Nigerians as individuals, by her population, and by what our youths are doing today, we need to do something that is audacious.
“We are just simply destined to do something great in leading Africa. Unfortunately, our leaders do not think long term; they rather think short term that has to do with themselves than pan-Nigeria.
“I am very glad that even in our own country, a minister is thinking along this direction to the extent of adding to the Ministry of Communications, Digital Economy. With the new ministry, we are no longer going to have the Communication Ministry as we used to know it.
“What we’ve done now with the new ministry crosses what South Africa and the UAE had done. It is a good thing to the point that it’s something that is needed.
“Simply, information technology is the major catalyst for development. Even by itself, it began to make significant contributions to the GDP. We are told that about 13.8% of the GDP is as a result of ICT contributions. That to me is herculean and portends a lot of good for the country. It means that the next 10 to 20 years, it will begin to reach about 30% or so.”
Dr. Woherem advised that information technology should be taken seriously because it is going to positively affect all the sectors of the economy, all the activities of government and even her citizens, adding that currently Nigeria and indeed Africa are still at the lower end of the spectrum of information technology.
“We are just at the foundation stages. It does not however, mean that it is like that in all the sectors of the economy. For instance, the banking sector might be at the beginning of the operational level, same as the Agricultural sector.
“Our various sectors of the economy are at various stages of development whereas all of them are supposed to be at the operational level going to strategic levels of use of information technology,” he said.
The Digital Africa Global Consult Group boss warned that as a country, Nigeria should not just be technology usersbut should participate in developing technology applications that are going to drive the 21st and 22nd centuries.
“I have always lamented about the fact that Africa is sitting idly by and letting the train of technology development pass-by. Just like we did in the first, second and third industrial revolutions, it always baffles me that we are not taking it more seriously.
“Somebody once said there is a culture of technology; every technology has a culture associated with it. Sometime, you are creating a technology without knowing you are creating a culture too.
“That being the case, why should Africa allow somebody else be solely responsible on how we are going to live in the future without our own input? So, I have always felt that Africa should be part and parcel of those developing global technology.
“Digital economy is therefore, a good thing for us as a country because it can definitely help us to not only have ICT but will add more and more to our GDP. It is also going to develop and advance each of the industries and sectors of our economy as a nation by creating a lot more employments.”
Dr. Woherem said that though kudos should be given to government for coming up with the decision to upgrade to a digital economy, he insisted that there are certain things that must be done to ensure a total paradigm shift to digital economy.
“We need to come up with a set of policies and strategies through which things can be evolved. To an extent, government has come up with something to that effect, and it is kudos to government.
“However, I would have wanted a set of Nigerians, representing certain key parts of the economy led with a representation of certain people that are truly experts in these areas that would come up with that set of policies and strategies for developing a digital economy.
“And that committee shouldn’t be an Ad hoc or one-off committee. They should be there to also oversee things and be called upon from time to time to deliberate and also make recommendations with regard to the digital economy. This should be taken serious.
“There is an organization within the European Union where all Champions for IT in different countries in Europe come together to deliberate on the future of Europe especiallyon matters of technology.
“What does that show? It means they are taking the issue of technology seriously over there. Yet, Europe is way ahead of Africa in the adoption of technology tools. If Europe that is way ahead of us in technology is taking it this serious, that means we have to be more serious. This also means there are certain things we have to put in place.”
He said that whatever Nigeria is doing with regard to digital economy is the country’s own attempt to catch up, adding that what heis expecting to see is that as a result of this subtle focus and emphasis on digital economy, that Nigeria will start thinking a lot more seriously with regards to what kind of economy she is building and the instruments to deploy to bring about developments in the various sectors of her economy.
“To actualize the digital economy of our dream as a nation, government should also build tech hubs, parks and experience centres through which people can now begin to practice these exponential technologies. Government should also encourage the private sector to be involved. We need a lot of that here in Nigeria, at least one in major cities of the country,” Woherem said.
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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