Telecom
Global Financial Crisis: What It Holds for Nigeria Telecoms Sector
When the global financial crisis started to show its effects in the middle of 2007 and into 2008 in United States of America and Europe, little did people know that it will spread to developing countries in spite of their generally weak integration with the rest of the global economy. It started gradually with the world stock markets falling, to large financial institutions collapsing or even been bought out, and governments in the wealthiest nations coming up with rescue packages to bail out their financial systems.
On one hand, many people are concerned that those responsible for the financial problems are the ones being bailed out; while on the other hand, global financial meltdown will affect the livelihoods of almost everyone in an increasingly inter-connected world.
Today, almost every sector of the economy has been affected by the crisis; telecom industry is not left out.
In many countries, traditional telecom infrastructure has been excessively developed, and the saturation of remaining markets has reached critical mass. Bubbles have also emerged in the traditional operations market. Inflation rates are notably higher in emerging markets than in developed countries, and inflation may get out of control in some emerging markets. In some regions, due to slowdown of GDP growth, telecom operators will have weakened investment ability and willingness to do so. Only the strong will survive if there is a negative growth rate of -5%.
According to a recent World Bank release on the effect of the current global financial meltdown on emerging markets, there is going to be financial shortfall of between $270 billion and $700 billion of investment into emerging markets’ economies. This, the bank said will be as a result of private financial organizations shunning the market in view of the global financial crisis.
Telecom investments largely consist of financial capital or sovereign wealth funds, with an emphasis placed on long-term returns. If the markets are stagnant and the economic downturn is chronic, investors cannot see expected returns and they will slow down or stop investing, particularly during transformation in the early stages of telecom development when the balance sheets are still in the red.
The financial storm will expose the contradiction in the transformation of the traditional telecom industry, and the contradiction between the saturation of per capita access demand and per capita bandwidth demand. It will correct the course of bad investment as in the past, bringing more attention to per capita bandwidth, and cause some market bubbles to burst.
Market growth
The growth of market demand will slow and customers will reduce procurement, leading to a dramatic decrease in operating income for the IT and telecom industries. Financial institutions, large enterprises, and governments are always large consumers of telecom and IT services, spending heavily to replace equipment and upgrade networks each year. The financial crisis will make the financial chain tauter and lead to more complex embedded restrictions.
This position was corroborated by Mr. Bayo Banjo, managing director, Disc Communications. According to him, Nigerian operators are likely to feel the hit of the current global financial meltdown in the area of investment required for network expansion.
He explained that operators seek for facility from financial institutions to import telecommunications equipment for expanding network coverage as well as upgrade, but when the institutions are not strong to advance the facility, it will invariably slow down development in the sector.
He noted that Nigeria operation of some telecommunications equipment vendors may not downsize their staff because they are engaged in more of buying and selling as against manufacturing that is undertaken in the home country operation, which are affected because of low demand for their equipment.
Regulatory effort
Nigerian Communications Commission had responded to this situation when it organized a forum to determine the impact of the current situation on the development of telecommunications in Nigeria.
The forum drew telecom experts and economists to deliberate on the effects of the global economic crisis on the ICT industry in Nigeria and proffer solution on how to ensure that the crisis does not affect the ICT sector in Nigeria.
For telecom operators, it was an opportunity to seek attention to their growing cost of doing business and thereby requested for reduction in fees payable to government, a move they believe is panacea to the effect of the global economic meltdown on the sector and also will allow for inflow of more capital into the economy by no known means.
Chief Bayo Ligali, chief executive officer of Zain Nigeria, said that for the telecom operators to successfully thrive at this critical moment of global economic melt down there is the need for the government to reduce regulatory fees.
He stressed that there should be liberal interpretation and application of the regulatory provisions that have financial implication to stimulate growth in the sector.
Ligali requested for two years waiver on annual numbering fees as well as two years waiver on Microwave transmission fees, and expected government to also help operators resolve interconnect debt problems.
The Zain boss appealed for waivers of tax noting that tax paid on bad debt by the operators is a burden which NCC should help on by following the definition of revenue as stated by the International Accounting Standard Board on payment of tax on bad debt.
He proposed that the payment limit period should be reduced to three months instead of nine months which is obtainable presently because the early refund of the debt will form at least close to 300 base stations.
Engr. Ernest Ndukwe, the executive vice chairman, NCC, said that the continued success of Nigerian information and communication technology (ICT) is critical to the nation’s ability to ameliorate the effect of the global economic crisis on Nigeria.
He noted that the ICT industry is one private sector that is capable of providing an economic stimulus for the nation; adding that there is the need to evolve innovative ways of employing that industry as a catalyst for economic recovery in Nigeria
Ndukwe pointed out that there have been concerned voices within Nigeria, on the impact the crisis will have on the continued expansion and growth of the ICT industry in Nigeria. “Mobile technologies are the most powerful tools for combating extreme poverty in the most isolated part of the world.”
"As the regulator of the ICT industry and one of the advisers to the government on ICT matters, the NCC has found it expedient to convene the public forum so that as industry players, we can together address our concerns as well as proffer solutions to challenges that have the potential of affecting investment flow to the sector,” he said.
According to him, digital technologies will play a core role in ending poverty and enabling the world to join together through markets, social networks, and cooperative efforts to solve our common challenges.
The EVC observed that Nigeria is already feeling the effect of the global crunch with the oil and gas sector been severely hit leading to a sharp decline in the federal government revenue, stressing that in this period of the crisis only improvement on the ICT can salvage the nation.
Industry watchers that spoke to Nigeria CommunicationsWeek argued that some of the demands by operators to cushion the effect of the current financial crisis are frivolous, citing the issue of tax waivers where the income of operators are not affected due to the culture of Nigerians who prefer making calls to eating food.
They explained that phone usage in the country is not likely to be affected by global financial turmoil, due to Nigerians’ love for telephone.
Since 2008 Q3, more than 90% of enterprises around the world have experienced negative year-on-year growth. 43% of enterprises have started to cut IT spending, and 49% of financial institutions have started to reduce IT budgets. Almost all enterprises have started to cut expenditures in 2008 Q4. In 2009, all enterprises will invariably cut their expenses. Due to various reasons, downsizing has begun in the information industry and around 10% of the total workforce has lost their jobs; and this is in an industry where the number of employees has already been declining.
New dimensions
As governments tighten up monetary policies and financing costs increase, over-expanded and fragile links of the industry chain will run the risk of their finances drying up. This is especially true for newly established companies that rely on venture capital, and many of them happen to be the "anchors" of future supply chains. They will bear the brunt of the trauma. As credit and loans become difficult to obtain and liquidity drops, the traditional telecom industry will see slow development.
Multinational operators must also face the risks of exchange rates and inflation because their revenue is generated in local currencies. Due to the impact of the US dollar economy, most countries have experienced inflation (depreciation of currencies). As a result, most multinational operators’ revenues started to decrease in 2008, and revenues from operating companies will continue to drop. At the same time, multinational operators’ operational baseline is rising with associated growing costs. Job-cutting and other cost reduction measures become an inevitable choice.
The cost of debt and inflation will dramatically increase an operator’s cost. Financing will become a precondition to contract signing for operators both in developed and developing countries. Operators will also adopt light-asset operation models, putting greater pressure on equipment vendors to adopt new models like managed service and capacity service.
Consumers will not give up mobile voice or fixed broadband for now. Internet-related applications and solutions like mobile broadband and mobile Internet devices (MID)/PC-like terminals will become the new stars. In the terminal market, the high-end and the low-end segments will become the focus; iPhone, GPhone, and simplified black-and-white terminals will become primary choices for most people.
Airtel Nigeria has secured a fresh 10-year renewal of its spectrum licence from the Nigerian Communications Commission (NCC), reinforcing the telecom operator’s long-term commitment to expanding broadband connectivity and improving digital access across the country.
The renewed licence covers Airtel’s spectrum holdings, which are critical to the delivery of voice and high-speed data services, providing regulatory certainty for continued investments in network expansion, capacity upgrades and improved customer experience.
According to the company, the renewal underscores confidence in Nigeria’s telecommunications sector and will support its ongoing efforts to bridge the country’s digital divide by extending quality connectivity to more underserved communities.
Sunil Taldar, chief executive officer, Airtel Africa, said the renewal provides the company with the confidence to continue investing in Nigeria’s digital infrastructure.
He said, “The spectrum renewal reaffirms our long-term commitment to Nigeria, our largest market. It gives us the certainty required to continue investing in network expansion, improve service quality and accelerate digital inclusion for millions of Nigerians.”
Taldar added that Airtel remains focused on expanding broadband access and supporting Nigeria’s digital economy agenda through sustained investments in telecommunications infrastructure.
He further said, “We appreciate the Nigerian Communications Commission and the Federal Government for their continued support in creating an enabling environment for investment. We remain committed to delivering reliable and affordable connectivity while contributing to Nigeria’s socio-economic development.”
Meanwhile, Industry observers said the licence renewal removes regulatory uncertainty and allows Airtel to pursue long-term capital investments, including the expansion of 4G and 5G networks, as demand for mobile data and digital services continues to grow across Nigeria.
The renewal comes as telecom operators continue to invest heavily in broadband infrastructure to meet rising data consumption and support government efforts to achieve Universal digital access.
Furthermore, It also aligns with the NCC’s objective of ensuring efficient spectrum management while encouraging sustained private sector investment in the country’s telecommunications industry.
Telecom
GSMA Supports Abuja Declaration on Meaningful Connectivity for Africa, Joins Partners to Launch ATLAS Umoja
The GSMA supports the Abuja Ministerial Declaration on Meaningful Connectivity for Africa by Ministers and Heads of Delegation at the African Telecommunications Union (ATU) Conference of Plenipotentiaries (CPL-2026), describing it as an important milestone in strengthening Africa’s digital future through evidence-based policy, investment and regional collaboration.
The Declaration commits African governments to advancing policies that promote meaningful connectivity, digital inclusion, technology-neutral regulation, resilient digital infrastructure and locally relevant digital services. It also reinforces the importance of collaboration between governments, industry and development partners to close the continent’s connectivity and usage gaps.
Throughout the conference, the GSMA has worked alongside governments, regulators and industry leaders to support these shared ambitions through practical policy engagement, evidence-based research and new collaborative initiatives designed to accelerate Africa’s digital transformation.
Speaking during the ATU-GSMA African ICT Regulatory Leaders’ Forum, policymakers and regulators explored how stronger evidence-based regulation, greater regulatory harmonisation and future-ready policy frameworks can create an enabling environment for investment, innovation and sustainable digital growth across Africa. Drawing insights from the GSMA’s Digital Africa Index, participants also examined future-ready approaches to satellite regulation, highlighting how technology-neutral licensing frameworks can support innovation while extending connectivity to underserved communities.
Caroline Mbugua, Senior Director, Public Policy, Africa, GSMA, said: “The Abuja Ministerial Declaration sends an important signal that African governments share a common vision for delivering meaningful connectivity through modern, evidence-based and investment-friendly policy. Its emphasis on digital inclusion, technology-neutral regulation, resilient infrastructure and stronger regional collaboration reflects the practical policy foundations needed to accelerate Africa’s digital transformation.”
Launching ATLAS Umoja AI
Supporting the ambitions set out in the Abuja Declaration, the GSMA, Nigeria’s Ministry of Communications, Innovation and Digital Economy, Togo’s Ministry of Digital Economy and Transformation, Kenya’s Ministry of information, Communications and the Digital Economy, Namibia’s Ministry of Information and Communication Technology, Benin’s Ministry of Digital Transformation and Innovation, Awarri, Zindi, Pawa AI and Mozisha today announced ATLAS Umoja AI –a new pan-African initiative to strengthen collaboration on African language AI.
Designed to complement national AI programmes, ATLAS Umoja will bring together governments, industry and researchers to share expertise, datasets and best practice, helping develop trusted, scalable AI that better reflects Africa’s languages, cultures and development priorities. The initiative aims to accelerate innovation, attract investment and scale African language AI across the continent.
The launch builds on the momentum of the newly established AI for Good Global Commission. Ministers from Nigeria, Namibia and Togo, who serve on the Commission, have committed to support Africa Umoja, demonstrating how African leaders are turning global ambitions for trusted and inclusive AI into practical regional collaboration.
Angela Wamola, Head of Africa, GSMA, said: “Africa’s AI future must reflect Africa’s own languages, communities and development priorities. ATLAS Umoja brings together governments, industry, researchers and innovators to build African language AI at scale. By making AI and digital services available in the languages people speak every day, the initiative will help tackle two of the biggest barriers to internet adoption – digital literacy and locally relevant content – supporting efforts to close Africa’s usage gap and expand meaningful connectivity across the continent.”
Dr. Bosun Tijani, Honourable Minister of Communications, Innovation and Digital Economy of Nigeria said:“Artificial Intelligence will be a defining technology for Africa’s future, but its benefits must be built on our own languages, cultures and knowledge systems. Nigeria is proud to have taken the first step through N-ATLAS and is equally proud to see that vision evolve into the continental ATLAS Umoja AI.
“By working together with governments, researchers and ecosystem partners across Africa, we can build AI that is more inclusive, locally relevant and accessible to millions of people, while strengthening Africa’s digital sovereignty and creating new opportunities for innovation, education and economic growth.”
Silas Adekunle, Founder & CEO, Awarri added: “Awarri is proud to support The ATLAS Umoja AI and contribute lessons from N-ATLAS, which has demonstrated what is possible when African language data, local technical talent and practical AI applications are brought together. This is an important opportunity to help build AI systems that work for African languages and communities.”
Celina Lee, CEO & Co-Founder, Zindi concluded: “Africa’s AI future will be built by the people who best understand its languages, cultures and communities. Through ATLAS Umoja AI, we have an opportunity to empower local researchers, data scientists and developers to solve meaningful challenges, strengthen national AI capabilities and ensure African language AI is developed by Africans, for Africans.”
Alongside the launch of ATLAS Umoja AI, the GSMA continued discussions with policymakers at the ATU Conference on future-ready regulatory frameworks, including satellite connectivity, spectrum policy and technology-neutral licensing.
Drawing on the GSMA Satellite Regulatory Playbook, discussions explored how modern regulation can encourage investment, expand meaningful connectivity and support the ambitions of the Abuja Declaration.
Together, the Abuja Declaration, ATLAS Umoja and continued collaboration between governments, regulators and industry represent an important step towards expanding meaningful connectivity, accelerating digital inclusion and supporting Africa’s digital transformation.
Samsung has unveiled its most advanced foldable smartphone lineup yet, the Galaxy Z Fold8 Ultra, Galaxy Z Fold8, and Galaxy Z Flip8. The tech conglomerate now sets a new benchmark for premium mobile innovation.
Konga
Nigerian customers can now pre-order the new devices on Konga, Samsung’s trusted e-commerce partner, and stand a chance to receive Samsung gift items worth up to ₦1 million, making this one of the most rewarding smartphone launches of the year.
Designed for productivity, creativity, and everyday convenience, the new Galaxy Z series introduces Samsung’s most refined foldable experience to date.
The Galaxy Z Fold8 Ultra combines an expansive display with AI-powered productivity, a powerful 200MP camera, an ultra-thin design, and enhanced durability for users who demand the very best.
The Galaxy Z Fold8 delivers immersive entertainment and seamless multitasking in a lighter, wider form factor, while the Galaxy Z Flip8 elevates self-expression with its sleek design, smarter FlexWindow, and intelligent Galaxy AI features for effortless interaction on the go. Powered by Samsung’s latest AI experiences, the new devices redefine how users create, communicate, and stay productive.
The availability of the new Galaxy Z Fold8 series on Konga further reinforces the long-standing partnership between Samsung and Konga, built on trust, authenticity, and a shared commitment to delivering genuine technology to Nigerian consumers. Through Samsung’s official store on Konga, customers are assured of authentic products, reliable after-sales support, and a seamless shopping experience.
The pre-order offer is available for a limited period. To be one of those who get to experience the new device, tech enthusiasts are encouraged to visit Konga’s Samsung Official Store to reserve their preferred Galaxy Z Fold8 or Z Flip8 device and qualify for exclusive Samsung gifts worth up to ₦1 million, while stocks last.
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