Telecom
Increasing Investment for the Next Frontier in Telecom
Having made appreciable progress in the tele-density in country’s telecommunications space with 56.4, operators are now looking at the next stage of service delivery which will centre on providing internet services as well as other value added services.
This is coming against the backdrop of recent development in the sector such as the landing and commercial rollout of service by MainOne Cable and Glo. Also, West Africa Cable System is expected to land by next year. These initiatives have further helped in the availability of bandwidth which before was scarce and costly.
Nigeria CommunicationsWeek gathered that already price war has begun in the bandwidth market which saw MainOne and Glo 1 slashing price from $800 per mega byte to $300 per mega byte.
More so, Nigerian Communications Commission is making effort to kick start delivery of mobile broadband through the licensing of spectrum for that purpose. What these means is that operators need to make reasonable investment in this direction to plug into the broadband revolution. Telecommunications operators require a lot bandwidth to offer various lines of services be it voice or data related.
Nigeria as one of the largest and fastest growing markets offers particularly attractive opportunities, starting with the fact that less than 40 percent of the country has been covered with telecommunications access as well as its large population which is the basis for telecommunications business.
In spite of huge success recorded so far in the sector especially in the mobile space of the industry growing to about 76 million, there is need for more investors and existing operators to increase their investment in providing capacity. Existing players in all market sectors requires additional funding for expanding their networks and services at record pace in order to keep up with demand, and the unified licensing regime opened up new opportunities to existing and new players alike for the provision of next-generation converged mobile, fixed and internet services.
The few investors who entered the Nigerian market in 2001 and 2002 when it was still considered very risky have experienced triple-digit growth rates every year and amassed huge profits. In the improved economic and operating environment, the market is now also attracting strong interest from leading global telecoms players and international investors, but new technologies, a decline in infrastructure costs and continuing deregulation will maintain opportunities for smaller player as well.
This report provides potential investors with an overview and analysis of the Nigerian telecommunications market and delivers insights into current and future investment opportunities that exist in the various market segments while at the same time pointing out the problems and risks involved.
The first seven years of the 21st century have continued to witness an upsurge in the application and use of telecommunications and information technology in nearly all aspects of human endeavor. The wireless revolution, the pre-paid billing platform and the internet phenomenon have accelerated access to information resources and changed the way people live and transact business.
Telecommunications/information technology industry has therefore continued to take center stage in world affairs and will continue to be so far into the foreseeable future.
The wave of market liberalization sweeping across he world has positively impacted the continent with several countries opening up to foreign direct investment in the telecommunications sector. It is reassuring to note that it is now widely acknowledged that Africa currently represents the most fertile ground for telecom investment. Notable success stories have been recorded since several African countries embraced market liberalization, thus encouraging others to move in the same direction.
For instance in Nigeria, Dr. Eugene Juwah, executive vice chairman, Nigerian Communications Commission (NCC) said that the role of the commission is to encourage investment and protect all stakeholders in the industry, he explained that the advent of new technologies like broadband would encourage penetration to remote areas of the country and help bridge digital divide.
He promised new regulations that would urgently promote broadband technology and encourage investors to come into the sector.
Today, owing to several factors including governments’ genuine deregulation policy, and the huge potential of the Nigerian market, so much has been achieved within a very short time. Through the national regulatory authority, the Nigerian Communications Commission (NCC), government has approved itself fully committed to the liberalization of the telecom market. Since year 2000, Nigeria has transparently licensed major competitive operators, settled interconnection disputes, constantly held open consultations with stakeholders, enacted new telecom laws, regulations and guidelines, and provided custom duty concession on equipment imports, among others.
These activities have encouraged investment and promoted competition in the industry, resulting in the exponential growth in the number if subscriber lines. It is instructive to not that the growth in subscriber lines has come as a result of a boom in private investment in the telecommunications sector. Recognizing the huge unmet demand and hunger of consumers for phone services and the potential of the Nigerian market, investors pumped in close to $4.00 billion USA into the sector by December 2003. Today investment in the telecom sector ranks second only to that in oil industry. In Nigeria, the telecom liberalsation has allowed the inflow of investment in the sector from USD50 million in the year 2000 to over USD 12 billion as at present.
Operators have made huge investment in the sector in building their network as well as expansion. Notable among them are Globacom’s national optic fibre, MTN Yello Bam among others. India’s largest phone operator Bharti Airtel said it will invest 600 million dollars in Nigeria’s mobile market following a huge recent acquisition deal spanning 15 African nations.
The nine years of Telecom Sector Reform has brought about substantial private sector investment, increase in number of market players, unprecedented growth in the Network, Expanded geographical coverage, empowerment of the citizenry, employment creation and economic stimulus.
The role of a regulator in a developing economy is typically very demanding and encompasses far reaching and multi disciplinary issues. To be successful, the function should be based upon a well defined set of objectives which typically includes attracting investment, infrastructure planning and development, sector efficiency improvement, quality of service improvement encouragement of competition, eliminating barriers to market entry for new operators, protection and empowerment of the customers and promotion of the general socio-economic well being.
Regulatory functions cover virtually every aspects of telecommunications network and service provision including tariff, technical standards, allocation of scarce resources, fair competition and inter-operator issues such as interconnectivity and interconnect termination rate.
President Goodluck Jonathan had said at the 3rd Ordinary Session of the African Union Communication and Information Technologies Ministerial Conference that his government have plans to set up an Internet Exchange Point project to ensure broader internet penetration to all parts of the country.
The president further stated that Nigeria’s satellite, NigcomSat-1 which developed technical problem after its launch in 2003 would be re-launched next year to enhance ICT penetration in the country. He added that ICT was being deployed in the postal sector in conformity to the international postal and financial systems, adding that the postal sector would soon be liberalized to open it up to private participation and inflow of capital and innovative ideas.
The state has a duty to encourage investment in the sector with the sole aim of making access to good quality information and communications technology resources available to all its citizens at affordable prices.
Regulation therefore draws its relevance from the widely accepted role of the state as a motivator and impartial umpire.
In order to optimize and accelerate growth in telecoms sector in Nigeria, attention must continue to be paid to key issues that affects investment flow such as: sound economic and fiscal policies; minimum investment risk; guaranteed investment protection; improved support infrastructures; minimum political and bureaucratic interference; stability of government and government policies; independent and strong regulatory institution; good enabling laws for the sector, and so on.
Telecommunications technology has been nationally acknowledged as presenting copious opportunities for the creation of unprecedented wealth and employment in Nigeria.
Former President Obasanjo’s government demonstrated the political will necessary to foster an environment conducive for investment in this sector. Nigeria has progressed in the telecommunications revolution, which is opening up new possibilities and frontiers across business, political, social and economic landscape.
The sector today requires massive inflow of private investments for infrastructure upgrade and expansion. Half-hearted market liberalization measures have denied many African countries access to investment dollars that could have been available to the sector both from within and outside such countries.
The need for government to provide the right environment that will attract serious investors and for market forces to thrive cannot be over emphasized.
All policies must of necessity be aimed at attracting new sources of capital, accelerating network expansion, improving pricing, enhancing quality of service, introducing of new technologies and providing access to ICT resources to all citizens at affordable prices.
The expansion of telecommunications facilities must go side by side with the development of the human resource capacity that will support the industry. We must develop the complex networks of wireless systems, fibre optics, satellite systems, computers, internet webs and a host of other telecommunications and information technologies.
Manpower requirements for ICT infrastructural development do not only stop with the engineers and technicians. Well trained personnel in other specialized areas such as financial planning, law, accountancy consultancy services, business management, personnel management, among others, are also required. Such skilled staff, which are mostly needed in the middle and upper management levels, need to be well trained and up-to-date.
Network operators should see development of human capital as an integral aspect of their investment in network expansion in order for such network elements to perform optimally as they prepare for the next frontier in development of the scetor.
Airtel Nigeria is approaching the 18,000-cell-site mark as the telecommunications operator accelerates network deployment across the country, adding more than 1,000 new sites annually and extending high-speed mobile connectivity deeper into rural communities.
The expansion places Airtel as an operator making one of the largest sustained infrastructure commitments to Nigeria’s digital economy, with the company’s network now spanning all 774 Local Government Areas in the country.
More than 99 percent of Airtel Nigeria’s sites are 4G-enabled, with the company continuing to add new capacity and upgrade existing infrastructure as demand for mobile connectivity rises. Airtel Africa’s latest annual report said the Nigerian operation added more than 1,050 new sites during its 2025-26 financial year.
The pace represents a significant increase from the approximately 15,000 sites Airtel operated two years ago. By early 2026, the operator had crossed 17,000 sites, after adding about 2,000 sites in two years.
The current expansion has also taken the network further into locations that have historically been underserved by telecommunications infrastructure. These communities include Kukawa, Borno State; Okomu-Udo, Edo State; Chimbi, Niger State; Orile Ijaiye, Oyo State; Kopii, Benue State; and Aran-Orin, Kwara; among others.
Airtel has previously said a significant portion of its network investments is targeted at deep rural communities, small towns and the fringes of major cities. At a media roundtable in February, Chief Executive Officer, Dinesh Balsingh, said the company intended to maintain the large scale of network expansion during 2026.
“Everyone has the right to digital connectivity, including people in deep rural markets and small communities,” Balsingh said.
The impact of the growth extends beyond the ability to make calls or browse the internet. Wider network availability gives families more reliable access to one another, enables businesses to communicate with customers and suppliers, and supports access to digital banking, education, healthcare and government services.
For farmers in remote areas, mobile connectivity can provide access to current crop prices, weather information, market information and agricultural advisory services. For small businesses, reliable mobile data supports payments, customer acquisition, logistics and digital commerce. For communities, connectivity can improve access to health and social services and help residents participate more fully in the digital economy.
Airtel’s network strategy is also increasingly focused on improving the experience delivered through the infrastructure already in place. In 2025, the company upgraded capacity on about a quarter of its existing sites, deploying higher-capacity radios and moving portions of its backhaul from microwave to fibre.
The operator has also reported a continued addition of spectrum to strengthen its spectrum position. Since November 2025, it has added 20MHz spectrum, which is on track for full integration on all sites this quarter.
Balsingh said the company’s investment programme was designed to improve coverage, capacity and resilience, with the benefits ultimately reflected in the quality of service experienced by customers.
“We have invested with discipline and clarity to strengthen our network nationwide. Those investments are now translating into measurable improvements in performance, customer experience and reach, including in underserved communities,” he said.
Third-party measurements have also continued to provide evidence of changing network performance in Nigeria. Ookla’s Speedtest Global Index, for example, reported a median mobile download speed of 97.74 Mbps for Nigeria in June 2026.
For Airtel, the network expansion not only extends the geographical footprint; but also increases the speed, capacity and stability available to existing customers.
Director of Marketing, Ismail Adeshina, said the company’s network investments were ultimately aimed at making connectivity more useful in the everyday lives of Nigerians, as increasing numbers of consumers, families and businesses depend on mobile services for communication, commerce and access to essential services.
Airtel’s infrastructure programme is also contributing to the wider development of Nigeria’s digital economy.
“With mobile connectivity increasingly serving as the platform for financial services, commerce, education, healthcare, agriculture and enterprise, expanding the physical network effectively increases the number of Nigerians able to participate in those activities,” Adeshina said.
National Information Technology Development Agency (NITDA) is calling for a unified, cross-sector push to translate the framework of the Nigerian Startup Act (NSA) into practical benefits for local entrepreneurs and investors.
The Director-General of the National Information Technology Development Agency (NITDA), Kashifu Inuwa, CCIE, represented by the National Coordinator, Office for Nigerian Digital Innovation (ONDI), Ms Victoria Fabunmi, in a group photograph with participants from various Ministries, Departments and Agencies (MDAs) at the Nigerian Startup Act (NSA) Incentives Activation Co-Creation Workshop in Abuja.
Speaking at the NSA Incentives Activation Co-Creation Session in Abuja, organised by NITDA’s subsidiary, the Office for Nigerian Digital Innovation (ONDI), the NITDA boss stressed that while enacting the legislation was a historic milestone, its ultimate success will be measured by its tangible impact on everyday tech ventures.
Delivering remarks on behalf of NITDA Director-General Kashifu Inuwa, ONDI National Coordinator Victoria Fabunmi emphasised that Nigeria must now transition from policy design to operational delivery.
Inuwa noted that while early structural achievements such as setting up the Startup Consultative Forum and launching the digital startup portal have established vital channels for dialogue, the true test of the law lies in whether founders can easily access the relief and resources promised to them.
He said the establishment of the Startup Consultative Forum and its governance structures had created an important platform for sustained engagement among stakeholders, but stressed that the real test of the legislation would be its impact on businesses operating within the innovation ecosystem.
According to him, government agencies, private-sector actors and other ecosystem stakeholders must work collectively to remove institutional bottlenecks and ensure that startups can access the opportunities created by the Act.
Inuwa said the participating institutions possessed different mandates, resources and policy instruments that, if properly coordinated, could significantly improve the operating environment for Nigerian startups.
“We want to go to the next level. We want to be able to say that the actors in our ecosystem have been able to benefit significantly from the legislation that has been passed, and it wouldn’t happen without everyone sitting in this room,” he said.
He urged stakeholders to shift attention from the mere existence of the legislation to its practical implementation, particularly the activation of incentives designed to promote investment, innovation and enterprise growth.
The DG noted that the implementation of the NSA involved institutions across several sectors, including trade, finance, communications, innovation, digital economy, science and technology.
He said bringing these institutions together was necessary to identify gaps, clarify responsibilities and develop workable mechanisms for delivering the incentives to intended beneficiaries.
Inuwa also urged stakeholders to embrace continuous engagement and feedback, noting that the success of the Act would depend largely on the ability of implementing institutions to work together and respond to the evolving needs of the startup ecosystem.
He said recommendations from the session would contribute to ongoing efforts to strengthen the implementation framework and create an environment where Nigerian startups could scale, attract investment and compete effectively in global markets.
In a context-setting presentation, “Operationalising the Incentive Provisions of the Nigerian Startup Act,” Ms Elma Andah, Acting Lead, Strategy, Research and Analytics at ONDI, said the Act provides more than 31 incentives distributed across six major categories.
She identified the categories as tax and fiscal incentives, regulatory support, funding access, exports and trade, ecosystem enablers, and training and capacity building.
Andah explained that implementing the incentives required the participation of more than 15 government institutions, making inter-agency coordination central to the success of the legislation.
She said the Nigerian Startup Act, signed into law on October 19, 2022, was designed to promote innovation, improve access to funding, strengthen collaboration and position Nigeria as a leading technology and innovation-driven economy in Africa.
According to her, Nigeria’s startup ecosystem has continued to demonstrate significant potential, with more than 3,000 startups and several globally recognised technology companies.
She added that Nigerian startups attracted about $410 million in funding in 2024, despite the challenging economic environment.
Andah highlighted several areas of progress under the Act, including engagements with states on adoption, the operational startup support engagement portal, improved startup labelling timelines, the Startup Consultative governance framework, the Startup Investment Seed Fund framework and ongoing efforts to operationalise the regulatory sandbox framework.
She, however, stressed that the interconnected nature of the incentives meant that no single institution could deliver them independently.
“No single institution can deliver all these incentives alone. Implementation requires coordination across more than 15 MDAs,” she said.
Using practical examples, Andah explained that a startup seeking funding could simultaneously require tax incentives, while an enterprise seeking to export its products might need regulatory approvals. Investors seeking tax credits could also depend on access to the startup labelling system.
She consequently challenged participating institutions to clearly establish ownership of the incentives assigned to them, strengthen coordination, simplify access procedures and introduce effective monitoring and accountability mechanisms.
The session therefore provided stakeholders with an opportunity to identify implementation gaps and develop practical approaches for ensuring that the incentives contained in the Startup Act are accessible to startups, investors, innovation hubs and other beneficiaries.
The outcome, stakeholders noted, is expected to support a more coordinated implementation of the NSA and strengthen its contribution to Nigeria’s innovation, investment and economic development objectives.
Telecom
GSMA Industry Services Unveils Circularity Services to Help Operators Reduce E-Waste and Unlock Value
GSMA Industry Services have announced the launch of its new Circularity Services offering, designed to help mobile operators and ecosystem partners extend the life of devices, reduce e-waste, and unlock greater value from existing assets.
The offering launches with two commercial partners: Closing the Loop, whose ‘One for One’ service links one new mobile device sold by an operator to the collection and responsible recycling of one end-of-life device, and RGX, a neutral, online marketplace for enterprise asset disposition.
As the mobile industry continues to grow, operators are increasingly looking for practical ways to both meet sustainability commitments and enhance commercial performance.
GSMA Circularity Services has been developed to address these challenges by providing access to trusted partners and proven solutions that support the recovery, reuse, refurbishment and responsible recycling of ICT assets – helping organisations deliver on customer needs, reduce costs and generate value from equipment that might otherwise sit idle.
The ‘One for One’ service provides a practical and measurable way for organisations to incorporate circularity into their device propositions. Vodafone, Samsung and T-Mobile have successfully used the customer-centric program for devices sold in Europe, while Google is a global user.
One for One leads to electronic waste reduction around the world and has created positive impact in countries where formal waste collection and recycling infrastructure is often limited. Closing the Loop is an award-winning social enterprise, supported by UNIDO, UNEP and GIZ.
Joost de Kluijver, Co-founder and CEO, Closing the Loop, said: “The GSMA is globally respected as a unifier of the mobile ecosystem, and we’re excited to work together to expand the value that our ‘One for One’ service can deliver across the industry.
“By linking one new device sold to the collection and responsible recycling of one end-of-life phone, we help operators take practical action on waste reduction while supporting their wider circularity ambitions.
“One for One is also a differentiator at the point of sale that adds clear, value for customers and the brand. Through this partnership, we look forward to helping more organisations use circular thinking to excite customers.”
Michael Jungwirth, Head of Sustainability, Vodafone Germany explains why One for One is important to them and the broader ecosystem: “E-waste is a global problem. That’s why our solutions must not end at national borders.
“With One for One, we take responsibility and set an example for the industry. Not just a sign of change, but a sign of action. We close the loop for our customers. For one new phone Vodafone brings into circulation, we retrieve an old one.”
Addressing another aspect of the circularity challenge, RGX provides a neutral, online marketplace for e-waste management and enterprise asset disposition that connects organisations with service providers through a single automated platform.
The service is designed to help businesses optimize returns from redundant devices and equipment through competitive bidding and effective resource management, while ensuring responsible disposal practices. Initially available in the United States, the offering is expected to expand internationally over time.
Sean Miles, Co-founder, RGX said: “Innovation is only as good as its ability to scale. Through our partnership with GSMA Industry Services, we have an opportunity to help a broader part of the mobile ecosystem put circularity into place.
“RGX helps organisations manage enterprise asset disposition and e-waste more efficiently through a trusted, transparent marketplace. By working together, we can help operators recover value from redundant equipment, support responsible recycling practices and help operators turn circularity ambitions into action.”
Roman Smith, Director, Global Environmental Sustainability, AT&T commented on their collaboration with RGX: “RGX has been a valued strategic collaborator as we’ve developed our retail e-waste initiative.
“Their platform and expertise have helped support practical circularity solutions, and we appreciate the work they’ve done with our teams to advance more sustainable device recovery and recycling opportunities”
Sianne Ryder, Chief Executive Officer, Events and Industry Services, GSMA, said: “The launch of Circularity Services, together with partners Closing the Loop and RGX, marks an important step in helping operators take practical action on circularity. By bringing together solutions that support both responsible recycling and asset recovery, we are making it easier for organisations to reduce waste while unlocking greater value from existing assets.
“Through these partnerships, operators can access proven services that help accelerate their circularity ambitions and respond to growing demand for more sustainable approaches to device lifecycle management. The opportunity is a win-win: circular approaches are both more sustainable and deliver meaningful operational and commercial benefits for the industry.”
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