Telecom
Nigeria’s Telecom Sector: A Beacon of Hope amidst Challenges
By Johnson Ademola
In the midst of political tumult and upheaval, there is a tale of remarkable progress emerging from Nigeria’s telecom landscape. It’s a story that should be celebrated, for it signifies a beacon of hope in a time of widespread despair.
At the helm of this transformative journey is Umar Garba Danbatta, a professor of telecommunications engineering, and the Executive Vice Chairman (EVC) of the Nigerian Communications Commission (NCC).
The numbers tell a compelling story. Since the advent of GSM and the expansion of broadband infrastructure, Nigeria’s telecom sector has attracted a staggering $77 billion in investment. What’s even more impressive is that $39 billion of this sum flowed into the sector during Danbatta’s eight-year tenure as the regulator.
Moreover, the sector now contributes a substantial 16 percent to the nation’s Gross Domestic Product (GDP), a remarkable increase from the 8 percent it contributed in 2015 when Danbatta assumed the role of EVC.
This meteoric rise in the telecom sector reflects the surging demand for telecommunications services across various sectors of the Nigerian economy, from agriculture and commerce to education. It’s a testament to the resilience and adaptability of the industry, which weathered global challenges like the COVID-19 pandemic and economic recessions while maintaining its bullish stance.
Danbatta credits this remarkable journey to “thorough sustained regulatory excellence and operational efficiency” by the NCC. Indeed, telecom has become a shining example of local content development, with significant growth in digital innovation, human capital development, and skills acquisition among Nigeria’s youth. This has enabled them to compete on a global stage, earning recognition from multinationals and international agencies alike.
In financial terms, the telecom sector continues to make a significant contribution to the national economy. A report from the National Bureau of Statistics (NBS) indicates that telecom and information services added a substantial N2.508 trillion to Nigeria’s GDP in the first quarter of 2023, representing 14.13 percent.
One of the sector’s forward-looking strategies is the adoption of 5G technology, positioning Nigeria as one of the early adopters in the global digital economy. This bold move paid off handsomely, generating $820.8 million for the federal government from 5G spectrum license fees paid by operators like MTN, MAFAB, and Airtel.
But that’s not all. The recent launch of Starlinks broadband services, a satellite-based wireless broadband offering with nationwide coverage potential, is another feather in Danbatta’s cap. This service, made possible by the NCC’s issuance of a license to Elon Musk-owned SpaceX, is already available in various parts of the country.
Under Danbatta’s leadership, the number of telephone users in Nigeria has surged to 218.9 million, while internet subscribers and broadband users now stand at 159.5 million and 88.7 million, respectively.
These figures, coupled with the creation of jobs, both direct and auxiliary, during a period when other sectors were shrinking, have earned Nigeria the respect of international bodies like the International Telecommunication Union (ITU).
The telecom sector’s growth, as evidenced by its consistent 16 percent contribution to GDP, demonstrates its resilience in the face of socio-economic and political challenges.
It prompts us to ask how such growth was achieved in an environment plagued by erratic electricity supply, ethnic and religious divides, Right of Way (RoW) disputes, fiber cuts, high capital requirements, multiple taxations, infrastructure vandalism, and regulatory hurdles.
The answer lies in Danbatta’s unwavering commitment to innovation and active engagement with stakeholders, all for the betterment of the sector and the nation’s economy at large.
Nigeria can draw inspiration from the telecom sector’s success story. If the goal is to elevate Nigeria into the ranks of the world’s top 20 economies, the federal government must replicate the triumphs of the telecom sector in other industries. Danbatta’s leadership has shown that with vision and dedication, Nigeria can indeed achieve greatness.
In the grand scheme of economic transformation, the telecom sector’s journey under Danbatta’s stewardship has been nothing short of awe-inspiring. Beyond its undeniable contributions to the GDP and job creation, it has paved the way for profound advancements in entertainment, banking, agriculture, e-commerce, and various primary sector frontiers.
The steady rise in quarterly GDP contribution, now at a phenomenal 16 percent, means that the telecom sector has successfully insulated itself from the socio-economic and political vagaries that have stymied growth in other sectors.
So, how did Danbatta and other stakeholders in the telecom industry achieve this remarkable feat? It’s a question that warrants deeper exploration. How did telecom transition from mere kilobytes to terabytes in growth, market size, and innovativeness in an environment where electricity supply remains horrendously erratic?
How did it rise above the divisive forces of ethnicity and religious affiliations that have plagued the nation’s public discourse and rendered it ineffective? The telecom sector’s resilience in the face of challenges like Right of Way (RoW) disputes, fiber cuts, high capital requirements, multiple taxations, infrastructure vandalism, and complex regulations deserves a closer look.
The answers to these questions lie in the unwavering commitment of Danbatta and his team to finding innovative solutions and actively engaging stakeholders for the greater good of the sector and the larger economy. They have demonstrated that a robust regulatory environment, coupled with visionary leadership, can lead to extraordinary growth and prosperity.
Nigeria now stands at a pivotal crossroads. The success of the telecom sector serves as a blueprint for what can be achieved in other industries. If the vision is to leapfrog Nigeria into the exclusive club of the world’s top 20 economies, then the federal government must replicate the summer success recorded in telecom across various sectors.
Danbatta’s leadership has shown that with dedication, innovation, and visionary leadership, Nigeria can indeed become a global economic powerhouse.
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Lebara Nigeria is building excitement for its upcoming Mobile Virtual Network Operator (MVNO) launch, giving customers a chance to secure a personalized piece of their mobile identity.
The company has opened a Number Reservation Portal, allowing users to reserve their preferred mobile numbers before the official service goes live in the third quarter of 2025.
This strategic move is all about giving customers a sense of ownership from day one. Using the carrier’s 0724 prefix, users can choose a number that’s meaningful to them, whether it’s a birthday, a lucky number, or an easy-to-remember pattern.
The reservation process is straightforward. Users must be at least 13 years old and provide a few basic details to get a one-time password via email.
Once verified, they’ll need to enter their National Identification Number (NIN), which the system uses to confirm personal information.
After this, a list of available numbers appears, and a final confirmation email completes the reservation.
Lebara, a London-based global MVNO, according to yozzo.com, is no stranger to the telecom world, with a strong presence as a mobile virtual network operator (MVNO) across Europe and other regions.
Its entry into Nigeria is a calculated move to carve out a space in the highly competitive market.
By allowing customers to pick their numbers early, Lebara hopes to build loyalty and highlight its customer-first philosophy.
The company plans to operate a lean, technology-driven model by leveraging existing network infrastructure, which will help keep costs low and make its pricing competitive.
At launch, Lebara will offer nationwide coverage, a dedicated 0724 number series, and both SIM and eSIM options.
Beyond traditional connectivity, Lebara is also partnering with local government and the Ministry of Arts, Culture, Tourism, and Creative Economy to launch public Wi-Fi hubs and promote digital inclusion for creators and underserved communities.
The core of its proposition is affordability, transparent billing, and a strong customer service model designed to challenge established players.
Lebara’s entry won’t be without its challenges.
It will face off against many other competitors in Nigeria’s emerging MVNO space.
This wave of new entrants comes after the Nigerian Communications Commission (NCC) issued 46 MVNO licenses, with many of the licensees expected to have already launched.
Despite this, the local media’s focus has largely been on only a couple of them, Vitel and now Lebara.
Telecoms stakeholders have cautioned that many Mobile Virtual Network Operators (MVNOs) in Nigeria could struggle to survive unless they address infrastructure gaps, target niche markets, and adapt to local realities.
The warning came during the sixth edition of the Telecoms Sector Sustainability Forum, organised by Business Remarks in Lagos on Tuesday.
According to the stakeholders, securing a license from the Nigerian Communications Commission (NCC) is not enough to ensure survival in a market dominated by major Mobile Network Operators (MNOs) like MTN, Airtel, and Glo.
Chidi Ajuzie, director of USK Mobile, highlighted the stark reality facing MVNOs, noting that none of the over 40 licensed operators have fully launched services.
“Licenses are not cash cows. Too many people think that once you get a license, the money will start rolling in. The truth is, you must build infrastructure, study the market, and create services that meet consumer needs. Without that, many MVNOs will die out quickly,” Ajuzie said.
Ajuzie pointed out that smaller operators, particularly those in Tier 4 and Tier 5 categories, face significant financial hurdles in building their own infrastructure to support capacity.
However, he sees this as an opportunity for innovation, urging MVNOs to target niche markets such as youth, migrant workers, or fintech services, as seen in successful models in South Africa and India.
“Half of us may launch, but only those with clear strategies will survive,” he warned, predicting mergers and consolidations in the coming years.
Tony Emoekpere, president of the Association of Telecommunications Companies of Nigeria (ATCON), echoed Ajuzie’s concerns, stressing that market differentiation is critical for MVNO survival.
“The MNOs already provide enterprise services, internet, and fintech. MVNOs must find gaps and focus on those,” Emoekpere said.
He cited Kenya’s M-Pesa, which revolutionized payments by targeting rural and low-income users, as a model for local innovation.
Emoekpere suggested that MVNOs could capitalize on Nigeria’s underserved rural areas, where millions lack access to reliable telecom and financial services. “Something as simple as a low-data package for POS machines in rural areas could be a game-changer,” he added.
Olusola Teniola, director, IPNX, cautioned against adopting foreign business models without considering Nigeria’s unique environment. “In some villages, people still travel by canoe or horse for hours to access basic services. If your business model doesn’t account for that, it will fail,” Teniola said.
He urged MVNOs to focus on the bottom of the pyramid, where millions lack basic connectivity, rather than competing for urban smartphone users.
Teniola also warned that failure to strengthen indigenous companies could lead to more profits leaving Nigeria through foreign-owned operators, emphasizing the need for policies to protect data sovereignty and foster local innovation.
The stakeholders said while MVNOs have the potential to expand Nigeria’s telecom sector and increase consumer choice, their survival hinges on strategic planning, niche targeting, and a focus on rural connectivity.
Without urgent action to address infrastructure challenges and adapt to local needs, many MVNOs risk disappearing before they can establish a foothold in Nigeria’s competitive telecom landscape.
Nigerian Communications Commission (NCC) has defended the recent upward review of telecom tariffs, insisting that Nigeria’s rates remain among the cheapest in the world due to strong industry competition.
Speaking at a media briefing in Abuja recently, Dr. Aminu Maida, executive vice chairman, NCC, said that despite a 50% hike in tariffs, call rates have only moved from ₦15 per minute in the early 2000s to about ₦18–₦19 per minute today.
“Even with the increase, not all operators adjusted their tariffs. Some are still undercutting others. That is competition at work,” Maida explained.
He assured that the commission will continue to strengthen regulations to encourage competitiveness and transparency.
According to him, NCC is adopting an information disclosure strategy to enable consumers to make informed choices.
Maida also cautioned Nigerians against relying on Truecaller for identity verification, stressing that it is not linked to Nigeria’s SIM registration database and often provides misleading results.
He noted that while all SIMs in use are registered, some individuals deliberately use proxies, including domestic staff, to register SIMs an act he described as a crime.
The NCC boss disclosed that in September, the commission will launch a coverage and tariff map to help subscribers compare network quality and pricing across operators.
He further revealed plans for spectrum trades and leases to optimise usage and improve service delivery, adding that most Nigerian phones already support 4G, which remains the “sweet spot” for mobile broadband.
Maida emphasised the need for fresh capital and stronger corporate governance within the sector to sustain growth, enhance service quality, and strengthen national security.
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