Telecom

Is MTN Being Shaken Down By Buhari’s Government?

Published

7 years ago

September 17, 2018

Comms Week

President Muhammadu Buhari

Kindly share this post

Nigeria’s costly claims against the South African company raise questions about investment security in Africa’s largest economy, according to Peter Fabricius, a consultant with Institute for Security Studies (ISS)

ISS partners to build knowledge and skills that secure Africa’s future.

Fabricius said that there’s something suspicious about the two large and unexpected charges Nigerian President Muhammadu Buhari’s government has just imposed on the largest cellphone operator in the country, South Africa’s MTN.

“Last month the Nigerian central bank ordered MTN to return US$8.1 billion in dividends it allegedly illegally transferred out the country between 2007 and 2015. The bank also slapped US$16 million in fines on several foreign banks for facilitating these transfers.

Then the attorney-general’s office demanded US$2 billion in back taxes from MTN, which vowed it was innocent of all the charges and would vigorously oppose them. The double whammy helped knock MTN’s share price by about a third, boosting shareholders’ losses to well over R100 billion since the start of 2018.

Coming on top of the US$5 billion fine – later negotiated down to US$1.7 billion – that Nigeria hit MTN with two years ago for failing to disconnect unregistered subscribers, this has raised questions about the motives of Buhari’s government.

He faces a difficult re-election campaign in February. A major part of his mandate from his first election in 2014 was to combat corruption and enforce financial regulations. So is clamping down on MTN a genuine attempt to improve governance? Or is it more about fleecing an easy target – a rich foreign company – when low oil prices and mismanagement of the economy have slashed revenue and badly depleted foreign reserves?

There are good reasons to be sceptical about the hit on MTN. For one thing, as Dobek Pater, director of business development at Africa Analysis, told Biznews, how was it that the Central Bank of Nigeria and the tax authority failed to detect both the allegedly illegal transfer of dividends and the failure to pay tax for so many years?

He said this suggested either a failure by the Nigerian authorities to do their job of monitoring such large financial movements, or a deliberate laxness. If the latter, why did they suddenly decide to enforce the regulations now? It also seems improbable, merely on face value, that after being hit with that huge fine two years ago, MTN would have flouted the regulations again so soon.

Pater noted that other mobile phone operators in Nigeria had not come under the same scrutiny as MTN, which was an ‘easy target’ because it was profitable and because its operations were transparent, unlike some other mobile phone operators in the country. Also, no doubt, because it’s foreign.

Vestact CEO Paul Theron told Bloomberg that Nigeria’s move was ‘pathetic, nationalistic and immature’ and could ‘severely weaken Nigeria’s economy in the years to come’. MTN has been among the most committed foreign investors in recent decades, the money manager said.

Nigeria’s move has also cast doubt on MTN’s plans to list on the Nigerian stock exchange which it promised to do after the fiasco two years ago. Pater told Biznews he thought it unlikely that MTN would want to list in Nigeria under the cloud of alleged flouting of regulations and with its share price at home so far down.

Alastair Jones, an analyst at the London-based New Street Research, told South Africa’s Business Times that if MTN failed to avoid the huge claims, the listing might never occur, as this would raise questions about MTN Nigeria as a going concern.

Pater told Biznews that perhaps the Nigerian government was trying to get its house in order, adding that ‘from history, MTN does not have a squeaky clean reputation, and there have been some transgressions in the past’.

But if indeed the Nigerian authorities were merely shaking down MTN to replenish the country’s foreign exchange coffers and plug the holes in the budget, as some were alleging, this could harm the country’s investment prospects in the long term.

MTN would probably not decide to exit Nigeria this time, as the country remained a big earner for it. It provides the largest number of subscribers – about 27% of the total in the 23 countries where it operates across Africa and the Middle East. Nigeria also earns MTN some 25% of its total revenue, second only to its earnings in South Africa.

And Pater pointed out that while the South African market was mature, Nigeria’s was still growing. Even so, if the company continued to be hit by such large penalties, it might eventually reconsider the viability of its Nigerian investment, he said.

It was likely that another large operator would then move in to take MTN’s place. Pater suggested though that Nigeria would be lucky to find another mobile phone operator with the same commitment to the country as MTN. And potential new investors with no existing commitments to Nigeria would be discouraged.

Atiku Abubakar, a former vice president who is running against Buhari for the main opposition People’s Democratic Party next year, told Bloomberg the way the central bank had targeted MTN would only serve to discourage foreign investors.

‘Even in a worst-case scenario where there were breaches of financial laws and regulations, there are much better ways to deal with it than by the public exposure that MTN has been subjected to,’ Abubakar said. ‘It is bound to send the wrong signal to foreign investors.’

The saga is already affecting investment prospects, it seems. Alan Pullinger, CEO of FirstRand, which is managing the Nigerian listing for MTN, told Business Times that MTN’s experience had made his group more cautious about doing an acquisition in Nigeria.

For some analysts and investors, MTN’s high-profile experience has only served to advertise the hazards of investment in Africa and reinforce an opinion – some would say a prejudice – that Africa as a whole is not a safe destination for one’s money.

David Shapiro, deputy chairman of Sasfin Wealth, told Business Day that the news reinforced his ‘sceptical’ stance towards investments in Africa. Despite the continent’s potential, ‘you have governments, and I must include SA, that are largely unpredictable’.

For the short-term gain of re-election next year, it seems, Nigeria is risking ‘killing the geese that lay the golden eggs’, as Pater warned.”

Peter Fabricius, ISS Consultant

Kindly share this post

Telecom

Grey Expands Cross-Border Banking with USD Accounts, USDC Support

Published

24 hours ago

February 25, 2026

Ugo Onwuaso

Kindly share this post

Grey, a cross-border payments provider, has rolled out USD business accounts, bulk payments, and USDC stablecoin integration on one platform to streamline international transactions for emerging market firms.

Grey

The upgrade lets businesses open USD corporate accounts, collect from global clients, and execute payouts to 170+ countries—including bulk transfers—in minutes, slashing World Bank-noted 6-7% fees, multi-day delays, hidden charges, and forex opacity.

Idorenyin Obong, Co-founder and CEO of Grey said: “Global banking access lags for high-growth markets; we’re bridging that with faster, transparent money movement regardless of client location.”

COO Joseph Femi Aghedo added: “Unpredictable payments stall growth—Grey cuts friction for payroll, suppliers, and partners, now with USD and stablecoins for broader reach.”

Launched in Africa in 2020 with US, UK, Europe presence and recent Latin America/Southeast Asia expansion, Grey offers multi-currency accounts, cheap transfers, virtual USD cards, expense tools, and strong security.

Kindly share this post

Telecom

GSMA Launches Innovation Fund to Accelerate Green Transition Through Mobile Technology

Published

2 days ago

February 24, 2026

Chike Onwuegbuchi

Kindly share this post

The GSMA yesterday announced the global launch of a new Innovation Fund offering grants of £100,000 to £200,000 to support small and growing enterprises using mobile and digital technologies to accelerate the green transition in low- and middle-income countries (LMICs).

The GSMA Innovation Fund for Green Transition for Mobile (the Innovation Fund), a GSMA-funded initiative supported by its members, builds on the GSMA’s commitment to advance inclusive and sustainable connectivity, and the mobile industry’s ambition to achieve net zero emissions.

The Innovation Fund will support commercially viable innovations that expand access to clean energy and promote circularity in mobile devices – including renewable energy solutions, smart metering, refurbishment models and responsible e-waste management – to advance digital inclusion and industry climate action.

The initiative aligns with the United Nations Sustainable Development Goals, recognising the critical role of mobile technology in enabling inclusive, sustainable development.

Targeting enterprises operating across Africa, Central and South America, and South and Southeast Asia, the Innovation Fund will focus on solutions that strengthen digital inclusion, affordability and socio-economic empowerment, while delivering environmental impact.

Philippe Bellordre, Acting Head of Mobile for Development, GSMA, said: “Through this Innovation Fund, we are investing directly in enterprises that are using mobile and digital technology to advance digital inclusion and enable a clean energy transition – while also scaling practical, circular solutions that extend the life of mobile devices and make connectivity more affordable for underserved communities.”

Driving circularity and improving handset affordability

Another core focus for the Innovation Fund is extending the lifespan of mobile devices through circular economy approaches, including repair, refurbishment and reuse, reducing e-waste while increasing access to affordable handsets for underserved populations.

The Innovation Fund will support solutions such as take-back and trade-in schemes, leasing models, refurbished device marketplaces, traceability tools, and responsible e-waste collection and recycling. By keeping devices in circulation for longer, these initiatives lower environmental impact while reducing the cost of ownership and expanding connectivity for low-income communities.

Building evidence for industry climate action

Beyond supporting individual enterprises, the Innovation Fund is designed to generate practical insights and lessons that contribute to the mobile industry’s wider climate and ESG priorities. This includes evidence that supports enabling environments for clean energy and circular economy solutions, informs policy discussions, and helps scale sustainable business models across emerging markets.

Who the Innovation Fund is for:

The Innovation Fund is open to for-profit small and growing enterprises with up to 250 employees that are:

Operating in LMICs across Africa, Central and South America, or South and Southeast Asia

Using mobile or digital technology as a core part of their solution

Demonstrating commercial revenue and active users

Able to contribute at least 25% matching funding

What the Innovation Fund provides:

Selected enterprises will receive:

Grants of £100,000 to £200,000 over 15-18 months

Technical assistance

Support to connect with investors and build partnerships with mobile network operators

Monitoring, evaluation and learning support

Visibility through GSMA platforms, publications and industry engagement

Kindly share this post

Telecom

Prof. Adeyanju is Strengthening Nigeria’s Digital Backbone for a Connected Future in Two Years of Purposeful Leadership

Published

2 days ago

February 24, 2026

Chike Onwuegbuchi

Kindly share this post

Two years ago, the President of the Federal Republic of Nigeria, Asiwaju Bola Ahmed Tinubu (GCFR), appointed a new Executive Management Team at Galaxy Backbone Limited (GBB) and this marked a defining moment in Nigeria’s digital evolution.

Today, as the organisation marks the second anniversary of the appointment of four distinguished Nigerians; Prof. Ibrahim A. Adeyanju, as Managing Director/Chief Executive Officer, Honourable Olusegun Olulade, Executive Director Customer Centricity and Marketing, Muhammed Sani Ibrahim; Executive Director, Finance and Corporate Services and Olumbe Akinkugbe, Executive Director, Digital Exploration and Technical Services to Galaxy Backbone Limited, the story is not one of rhetoric, but of infrastructure strengthened, partnerships deepened, and national capability measurably advanced.

From the onset, the mandate was clear: to anchor Nigeria’s digital transformation on secure, sovereign infrastructure while improving service delivery across Ministries, Departments, and Agencies.

The Executive team immediately aligned execution with strategy through the launch of the Integrated Digital Transformation Strategy (IDTS) 2023 to 2028. The focus evolved from simply providing connectivity to leading a digital ecosystem that integrates infrastructure, platforms, policy alignment, value creation, and people.

Within two years, Galaxy Backbone significantly expanded national digital access. Broadband connectivity was delivered to nine underserved Local Government Areas under Project 774, extending inclusion to communities previously beyond reliable access.

Fibre-to-Hostel projects were completed at the University of Lagos, University of Abuja, and University of Jos, strengthening academic research and digital learning environments. Connectivity to strategic national assets, including the Nnamdi Azikiwe International Airport and key Federal Secretariats, was enhanced to improve operational efficiency and service reliability.

In a major step toward long-term resilience, GBB executed strategic business partnership with one of Africa’s leading provider of inter-connected carrier scale digital Infrastructure Companies, West Indian Ocean Cable Company (WIOCC), reinforcing Nigeria’s national fibre backbone, improving redundancy, and enabling scalable broadband expansion across more states and underserved communities.

This strategic move significantly strengthened the country’s digital resilience architecture.

Beyond infrastructure expansion, the leadership deepened Nigeria’s sovereign digital capabilities. The 1Government Cloud platform was optimized and expanded to support more MDAs with operational efficiency, secure hosting and shared services.

GovMail, a locally developed email solution by GBB, for Federal Government Public and Civil Servants was birthed and today is enhancing trusted government communication for over 100,000 professionals currently on the platform. Cybersecurity posture was reinforced through 24/7 monitoring and strengthened controls, while colocation services and data centre operations were upgraded for greater resilience. Under this leadership, GBB’s Service desk now operates 24/7, 365 days a year.

The deployment of Government as a Platform (GaaP) framework, improvements to the Government Service Portal, ISO recertification milestones and the implementation of an Integrated Management System (IMS) further institutionalized governance, accountability, and operational excellence.

The journey has not been without challenges. Fiscal constraints, legacy systems, increasing cyber threats, and rising expectations for digital public services required decisive leadership.

Through disciplined financial management, strategic partnerships, stronger stakeholder engagement, and operational reforms, the Executive Management stabilised systems, improved service quality, and positioned Galaxy Backbone as a trusted enabler of public sector transformation.

Support from the Honourable Minister of Communications, Innovation and Digital Economy, Dr. Bosun Tijani, the Secretary to the Government of the Federation, Senator Dr. George Akume who chairs the GBB Board, and the Head of the Civil Service of the Federation, Mrs. Didi Esther Walson Jack and other top Government leaders across the arms of Government, have all been instrumental in aligning policy direction with execution momentum, ensuring that national priorities translate into tangible digital outcomes.

Over the past two years, Galaxy Backbone has earned over 20 reputable recognitions, including the NET5.5G Pioneer Award, the inaugural Artificial Intelligence Award, the Overall Winner award at the Nigeria @ 65 Independence Kitty, the BPSR Website Performance Award, and Best ICT Provider Company of the Year at the International Standard Excellence Awards and so on. GBB’s MD/CEO, Prof. Adeyanju has also been named as one of the top 100 leading Personalities in the Telecoms Industry in Nigeria.

These honours reflect not just institutional visibility, but measurable transformation in governance standards, infrastructure resilience, and service delivery impact.

Two years on, Galaxy Backbone stands stronger — not merely as an infrastructure provider, but as a strategic custodian of Nigeria’s sovereign digital backbone.

With clarity of vision, disciplined execution, and sustained collaboration across government, the organisation continues to deepen connectivity, strengthen cybersecurity, expand cloud sovereignty, and build a resilient digital foundation for national development.

The progress achieved affirms a simple truth: purposeful leadership, aligned with national vision and supported by strategic partnerships, can translate ambition into enduring capability. Galaxy Backbone remains committed to powering a secure, connected, and digitally enabled Nigeria for generations to come.

Kindly share this post