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Nigeria’s Smartphone Uptake Set to Improve in 2018

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Analysts at Counterpoint Research expect the smartphone market in Nigeria to grow in double digits in CY 2018, driven by the entry of new players and changing OEM strategies.

According to analysis firm’s Market Monitor research focused on the Nigerian handset market, the feature phone market grew 15% annually, offsetting the smartphone decline in 2017, due to a recent economic recession.

The research is comprised of shipment estimates based on vendors’ investor relations results, vendor sales, supply chain checks and secondary research.

Research analyst Anshika Jain said the overall Nigerian handset market declined 8% Y-o-Y in 2016, as the economy (highly dependent on oil exports) witnessed a major downfall in GDP due to plummeting oil prices which triggered a recession, affecting buying power.

This adversely affected the purchasing power of the people. “The overall handset market experienced modest growth of 6% p.a. in CY 2017 as the market is slowly moving out of recession. The situation is likely to improve in 2018,” said Jain.

According to Counterpoint Research, the over smartphone market in 2017 contributed to 52% of the total handset volume, declined by 1% YoY.

Samsung led the overall smartphone market with 34% share in terms of shipments volume, it added

“Samsung still retains the top position with more than one-third share in the total smartphone market. While in the feature phone segment, the market is dominated by a single OEM with 76% share. This highlights the dominance of Chinese players in the feature phone market,” The research stated.

According to Jain, the top two OEMs – Samsung and Transsion Holdings (which owns Tecno, Itel, and Infinix) captured two-thirds of the total smartphone market. “Apart from these two, other leading smartphone players include Huawei, Lenovo, Fero, Alcatel, Gionee, and Apple. These brands capture a smaller share of the overall Nigerian smartphone market.”

Tarun Pathak, Associate Director at Counterpoint Research said almost one-third of mobile subscribers currently use smartphones in Nigeria. “Operators like Airtel and MTN will also look forward to partner with OEMs and Microfinance companies to drive smartphone penetration across the country.”

According to the GSMA’s Mobile Economy 2018 report, mobile subscriber penetration in Sub-Saharan Africa will reach 52% in 2025 compared to 44% in 2017 and 48% in 2020. “In terms of mobile penetration of population, Sub-Saharan Africa will have the largest increase between 2017 and 2025 (8 percentage points).”

Some of the challenges faced by the overall African smartphone market, according to Jain, include affordability and costs, low internet penetration, and a weaker economic climate.

She says Africa is one of the largest continents with more than a billion people, but remains highly underpenetrated in terms of mobile connectivity.

“Less than half of the population still doesn’t own a mobile phone and thus offers a great opportunity for every player in the mobile value chain. Due to this offline is the major channel for mobile device sales.

“Due to lack of infrastructure, it is a challenging task to leapfrog into semi-urban and rural markets. Additionally, the economic slowdown has adversely affected the purchasing power because of which people upgraded to low-cost feature phones rather than smartphones.”

“However, as per our estimates, smartphone adoption is likely to grow in Nigeria and other African countries in coming years as smartphone Average Selling Price is declining and more brands are entering into the mobile ecosystem.”


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Telecom

NCC Bars Ex-Officials from Joining Telecom Firms for 5 Years

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Nigerian Communications Commission (NCC) has introduced strict corporate governance rules that will bar its top officials from taking up roles in telecom companies they regulate until five years after leaving office.

NCC Bars Ex-Officials from Joining Telecom Firms for 5 Years

Under the new Corporate Governance Guidelines for the Communications Industry, the Chairman, Executive Vice-Chairman, and Board Commissioners, both executive and non-executive, are barred from being appointed to any position in a licensed telecom company until five years after their exit from the Commission.

Similarly, Directors of Departments at the NCC face a three-year cooling-off period before they can take jobs with any licensee under the Commission’s supervision.

The move, announced on August 11, 2025, seeks to enhance transparency, accountability, and ethical standards in Nigeria’s fast-growing telecommunications industry.

Departmental directors face a three-year cooling-off period before joining any licensee under the agency’s oversight.

This policy aims to prevent conflicts of interest and ensure impartial regulation.

By creating a clear separation between regulators and the industry, the NCC hopes to curb undue influence and maintain public trust.

]The guidelines reflect a global trend in regulatory bodies enforcing cooling-off periods.

Similar measures exist in industries like finance and energy to safeguard against regulatory capture.

For Nigeria’s telecom sector, this is a significant step toward aligning with international best practices.

The NCC’s new framework also targets telecom operators’ internal governance.

Board chairmen or vice-chairmen are barred from holding executive powers or serving as MD/CEO of a licensee.

Former board chairmen and non-executive directors must wait five years before assuming executive roles in the same company or its affiliates.

Additionally, no more than two family members can serve on a licensee’s board simultaneously.

These measures aim to promote balanced board structures and reduce nepotism.

Dr Aminu Maida, executive vice-chairman, NCC, emphasised the importance of these reforms.

“Corporate governance is no longer a soft requirement. It is now a strategic imperative,” he said during the guidelines’ launch in Lagos.

Maida highlighted that robust governance correlates with better business performance, citing an NCC internal review. Companies with strong governance frameworks consistently outperform peers in service delivery, financial management, and regulatory compliance.

Nigeria’s telecom sector is a cornerstone of its digital economy. With over 222 million active mobile subscriptions as of Q1 2025, the industry supports critical sectors like finance, healthcare, and education.

However, challenges like cybersecurity threats, energy shocks, and rising consumer demands have exposed governance weaknesses. The NCC’s new rules aim to address these by fostering transparency, accountability, and innovation.

The guidelines apply to all communications companies holding individual licences and paying Annual Operating Levies (AOL) under the AOL Regulations 2022.

The NCC has indicated flexibility in applying the rules across different licence categories, with phased compliance measures to be communicated in writing. While the rules may cause short-term disruptions for operators, the NCC insists that long-term benefits, like improved service quality and market trust, will outweigh these challenges.

 


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Airtel, Vodacom sign Network Infrastructure Agreement to Drive Digital Inclusion

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Airtel Africa and Vodacom Group have announced a strategic infrastructure sharing agreement in key markets including Mozambique, Tanzania and the Democratic Republic of Congo (DRC), subject to regulatory approvals in the various countries.

The agreement marks a transformative milestone in promoting digital inclusion and expanding access to reliable connectivity across Africa.

The initial partnership focuses on sharing fibre networks and tower infrastructure, to accelerate the roll-out of digital services in these markets, increasing connectivity for customers while reducing operators’ infrastructure costs and improving speed to market.

By leveraging existing infrastructure, the collaboration aims to deliver improved connectivity, faster internet speeds, and more reliable services. This will not only enhance customer experience but also assist with providing access to digital services for a broader population, particularly those in underserved areas, helping to bridge the digital divide in Africa.

Vodacom Group’s chief executive officer Shameel Joosub said: “Providing connectivity to empower people is at the core of our strategy. Our partnership with Airtel Africa is a proactive step forward in creating a sustainable, inclusive, and connected digital future for the continent.

Through infrastructure sharing, we can provide cost-effective services to more people, more rapidly, ensuring that no one is left behind in the digital age. As we fulfil our ambition to connect 260 million customers by 2030, the need for scalable and cost-efficient network solutions becomes increasingly significant.

This partnership provides us with the opportunity to narrow the digital divide, empowering more individuals and communities through digitalisation across the continent. It is aligned with our purpose to connect for a better future,” concludes Joosub.

Airtel Africa’s chief executive officer Sunil Taldar said: “This partnership is aligned with our unwavering commitment to delighting our customers by always making our network available to them even in the remotest locations.

“Working with Vodacom, we will open greater access to digital and financial opportunities which will transform the lives of our customers while complying with all regulatory requirements.

“Even as competitors, it has become a business imperative for us to collaborate in the provision of critical infrastructure required to build resilient network with strong capacity to support the emerging digital technologies as well as the growing need for data-enabled products and services.

“Accelerating the deployment of fibre connectivity is a key enabler in the acceleration of 4G and 5G technologies in Africa to deliver the high-speed, low-latency, and reliable connections needed for modern digital applications.

“This partnership allows for further opportunities for both operators to enhance network performance, extend coverage, and increase mobile, fixed, and financial services leveraging a broader footprint on the continent.”


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Truecaller Crosses 100m Users in MEA Region

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Truecaller, a global caller ID and spam prevention platform, has reached 100 million active users in the Middle East and Africa (MEA) region, representing a 19% year-over-year increase.

According to the platform, the region’s main markets include Egypt, Nigeria, South Africa, Kenya, Algeria, Ghana, and Jordan.

Truecaller is routinely utilised on 20% to 45% of connected cellphones in these areas, including Android and iOS devices, according to the business.

The app has gained traction across the African continent with its concept of resolving communication issues for individuals and businesses by blocking unsolicited calls.

It has also collaborated with local businesses, forming major partnerships including a recent cooperation with Telecom Egypt to change consumer communication and experience by providing safe, customised, and seamless calling experiences.

Truecaller’s CEO, Rishit Jhunjhunwala, stated that the service has grown organically in markets such as MEA and India due to the mobile first environment, which uses a user’s mobile number as the primary identifier of calls. He under-lined that the MEA market provides a growth-enabling environment.

“We’re continuing to strengthen our organisation and our partnerships in the region, because we believe that the MEA is poised for significant growth for many years ahead,” said Jhunjhunwala.


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