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Investing for growth By Engr. Gbenga Adebayo

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The Nigerian Communications Commission (NCC) has made the vital decision to allow Telecom companies to increase their tariffs for the first time in more than 12 years. It was a brave decision that should be recognised and commended.

All the customers of our member operators are understandably disappointed that they will have to pay more to stay connected. We recognise that. We know that Nigerians have been through a series of even more substantial price increases in other sectors like fuel and power.

That is why it is so important for us to set out why the tariffs need to go up, how the revenue from the price increases will be used and how long it is going to take us to deliver the improvements that our customers will be able to see and appreciate.

The telecom sector is capital-intensive. It requires constant investment to maintain the infrastructure that we use to deliver connectivity, ensuring that we can deliver the quality of service that our customers demand and continue to upgrade to the latest technologies like 5G.

In 2024, the telecoms sector faced a perfect storm. The need for our member operators to continue to invest in their infrastructure remained, but the cost of operating their networks increased significantly. In isolation, that might have been manageable, but it followed 12 years of progressively increasing costs during which they could not increase prices.

Despite that, the telecoms industry has continued to grow. We have been able to expand voice connectivity, introduce world class data services and diversify into value added services like payments and platforms. But at some point, something had to change if we want to have the digital economy we all know Nigeria deserves.

While we have continued to invest, we were not able to do so at the speed and scale that we would have liked to ensure we deliver service quality at the levels we want, or to roll-out the products we want our consumers to have access to. In 2024, the significant losses across the industry meant that investment slowed considerably to a level that would be simply unsustainable for Nigeria going forwards.

The process of securing the price increases was a long and deliberate one, under the strong leadership of President Bola Ahmed Tinubu, the NCC and the Minister of Communications and Digital Economy, Dr. Bosun Tijani. It was a process that sought to find the right balance that unlocks investment, while minimising the impact on consumers. Our collective goal has been to enable the investment needed to give Nigerians the best service, while continuing to do so at a price that is as competitive as possible from a global perspective.

The 50% increase is a reflection of this, and it is important to assess how this compares to our regional contemporaries. Following the increase, the cost of 1GB of data in Nigeria will remain lower than it currently costs in Kenya, Ethiopia and South Africa and will be just 9.5% of the cost of 1Gb in the USA. Nigeria will continue to have low-cost connectivity that enables the broadest possible access.

Following the decision, all our member operators will now be able to activate investment plans that will drive improved quality of service, new technologies and expanded reach. But the impact of this will not be felt immediately. It is not something we can just switch on. We cannot address a protracted period of under-investment overnight. The supply chain for the telecom industry is global and competitive. The hardware required must be fabricated by the original equipment manufacturers, shipped to Nigeria, cleared and installed, and this needs to happen at a large scale.

Following the tariff increase, the acquisition, importation and installation of the equipment can now begin. All our member operators have planned for this moment. We know what to do.

The journey to improved service delivery, more advanced technical solutions and a better customer experience has started. The progress Nigeria has made in the growth and development of the digital economy can, and will continue, and the potential to drive social and economic transformation is incredible. We believe in that vision, and the government does too. They have recognised its strategic importance and demonstrated the leadership required to put us on the path to progress.

All hands are now on deck!

Engr. Gbenga Adebayo is the Chairman of the Association of Licensed Telecom Operators of Nigeria (ALTON).

 

 

 

 

 

 


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Ugo Onwuaso is an ICT enthusiast. He believes technology should be used for general good. He holds a Master of Public Administration (MPA) degree from the Lagos state University. Dear Reader, Your support matters. But we believe that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. That is why, we have devoted our energy to independent reportage of technology and finance and how they affect lives. Our incisive and analytical view of how technology news affects the daily life help individuals and organizations make up their minds. Quality journalism costs money. Today, we're asking that you support us to do more. Kindly support our effort to deliver technology and finance journalism to everyone in the world. Donate as little as N1,000. Bank transfers can be made to: UBA Plc 1017156876 Communication Week Media Ltd

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Identy.io Targets Nigeria, Kenya in Its Africa Expansion Strategy

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Nigeria and Kenya are the next target markets for Identy.io, a global provider of digital identities, as it expands into Africa. Facial, fingerprint, and palm identification are among the safe, mobile biometrics that the company specialises in.

According to Indenty.io, its platform runs locally on smartphones, eliminating cloud storage while maintaining security and privacy.

It goes to say this is achieved by leveraging standard smartphones for fingerprint and face scans, the company aims to bridge the continent’s digital divide, where a significant number of adults still lack basic identification.

To spearhead this rollout, the firm has appointed a specialised regional leadership team, including industry veterans from Nigeria’s Bank Verification Number programme, to integrate their automated Biometric Identification System into national digital public infrastructure.

The company says the significance of this move lies in the departure from traditional, “clunky” biometric models.

Historically, digital ID enrollment in Sub-Saharan Africa has been throttled by the high cost of specialised scanners and the logistical nightmare of deploying them to rural areas.

Identy.io notes that its approach shifts the heavy lifting to mobile software.

Identy.io is positioning itself to capture a market the World Bank’s Identification for Development initiative identifies as critical for financial inclusion.

If successful, this could accelerate government-to-person payments and healthcare access in regions where coverage currently sits below 70%.

“We are transforming the traditional industry model, which often relies on expensive and inflexible digital infrastructure,” says Antony Vendhan, Co-founder of Identy.io. “This allows our clients to reach underserved communities by providing individuals with multimodal access to secure their digital identities.”

The company will face established players like IDEMIA and Thales, who have long dominated government contracts.

Furthermore, Identy.io will face competition from up-and-coming regional fintech identity firms such as Smile ID, which already has a significant presence in Know Your Customer services throughout Africa.

To gain an edge, Identy.io has aligned itself with Modular Open Source Identity Platform (MOSIP).

By being listed on the MOSIP marketplace, the company says its tech becomes “plug-and-play” for governments building open-source national ID systems, a growing trend among nations wary of “vendor lock-in.”

While the primary focus remains on Nigeria and Kenya, Identy.io’s long-term roadmap includes a phased rollout to other emerging markets.

 


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Russia Blocks WhatsApp, Pushes State App Max as Alternative Amid Telegram Clampdown

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Russia has confirmed the blocking of popular messaging platform WhatsApp, directing its citizens to switch to the state-backed Max messenger, in a move escalating restrictions on foreign digital services.

Russia Blocks WhatsApp, Pushes State App Max as Alternative Amid Telegram Clampdown

Russia

The decision, announced by Kremlin spokesperson Dmitry Peskov on Thursday, stems from WhatsApp’s parent company Meta’s alleged failure to comply with Russian laws, though specifics were not disclosed. This action follows days after authorities intensified curbs on Telegram, another widely used app among millions, including military personnel, officials and state media.

Peskov described Max as “an affordable alternative on the market for citizens, a developing national messenger,” emphasising its role in replacing non-compliant foreign platforms. WhatsApp, owned by Meta—which also operates the already banned Facebook and Instagram—responded sharply, accusing Moscow of attempting a full block to force users onto a “state-owned surveillance app.” The company stated: “Trying to isolate over 100 million users from private and secure communication is a backwards step and can only lead to less safety for people in Russia,” vowing continued efforts to reconnect users.

The block is not isolated. Earlier this week, Roskomnadzor, Russia’s communications regulator, announced further restrictions on Telegram for refusing to remove “criminal and terrorist” content, throttling its performance nationwide. Telegram founder Pavel Durov countered that such pressures would not deter the platform’s commitment to “freedom of speech and privacy.” This builds on prior measures, including August 2025 restrictions on video and voice calls on both WhatsApp and Telegram to combat criminal activity, which WhatsApp then decried as access limits.

Max, developed by VK and launched in beta in March 2025, positions itself as a WeChat-like super-app with messaging, voice/video calls, group chats up to 1,000 users, cloud storage, end-to-end encryption for private chats, payments via Russia’s Faster Payment System, and integrations for government services and identity verification. Since September 2025, it has been pre-installed on all new smartphones, tablets and smart TVs sold in Russia, alongside the RuStore app store, as part of a broader “sovereign internet” strategy to monitor communications and replace Western tech amid geopolitical tensions.

Users report partial WhatsApp access via VPNs, but Russian authorities have ramped up countermeasures, restricting 439 VPN providers and enacting a September 2025 law banning ads for bypass tools while deeming VPN use an “aggravating circumstance” in crimes. Fines for individuals deliberately accessing blocked content via VPNs reach 5,000 rubles (about $64). Critics warn these steps enhance state surveillance, while state media insists Max requires fewer user data permissions than rivals.

The clampdown reflects Moscow’s long-running push for digital control, with over 60 percent of VPN users previously accessing banned social media. As Russia promotes domestic alternatives, the moves could reshape communication for its 100 million-plus messaging users, raising global concerns over privacy and internet freedom.


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Nigeria Market Powers Jumia’s Momentum as E-commerce Platform Demand Accelerates

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Nigeria powered Jumia Technologies AG’s strongest growth in 2025, cementing its position as the company’s most important market as rising consumer demand, SME activity and logistics expansion boosted performance across the e-commerce platform.

In the fourth quarter of 2025, Jumia’s Nigeria operations recorded a 50% year-on-year increase in Gross Merchandise Value (GMV) and a 33% rise in orders. The performance highlighted growing adoption of online shopping and Jumia’s increasing relevance to African consumers.

Nigeria’s momentum helped drive 36% year-on-year GMV growth and 34% revenue growth across the group in the quarter, alongside a 26% increase in quarterly active customers. Growth was supported by stronger customer retention and higher order frequency.

Beyond sales growth, Jumia said its Nigeria operations are delivering wider economic impact. The platform supports thousands of local SMEs, enabling them to reach customers nationwide, while continued investment in fulfilment centres and last-mile delivery is creating income opportunities for logistics partners and sales agents.

Efficiency gains were also evident. Fulfilment costs per order declined 12% year-on-year, contributing to a 39% reduction in operating losses and a 47% drop in adjusted EBITDA losses in the fourth quarter. Cash used in operating activities fell sharply to $1.7 million, compared with $26.5 million a year earlier, while liquidity stood at $77.8 million at year-end.

Temidayo Ojo, Chief Executive Officer of Jumia Nigeria, said the results reflect growing trust from consumers and businesses. “Nigeria is central to Jumia’s growth,” Ojo said. “Each order supports local sellers, delivery partners and jobs, while improving access to affordable products for consumers.”

For the full year, Jumia reported 14% GMV growth and 13% revenue growth, with losses narrowing significantly. Looking ahead, the company expects Nigeria to remain a key growth driver as it targets 27–32% GMV growth in 2026 and aims to reach adjusted EBITDA breakeven by the fourth quarter of 2026.

 


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