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Nigeria’s Telecom Sector: A Beacon of Hope amidst Challenges

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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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Meta Challenges Nigerian Tribunal’s $220M Fine over Data Breaches

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Meta has announced its intention to appeal the decision of the Competition and Consumer Protection Tribunal (CCPT), which upheld a $220 million fine imposed by the Federal Competition and Consumer Protection Commission (FCCPC) over its data practices.

The penalty follows a 38-month investigation conducted by the FCCPC, in collaboration with the Nigeria Data Protection Commission (NDPC), which ran from 2021 to December 2023.

The investigation found evidence of unauthorised data sharing, insufficient user consent mechanisms, and discriminatory practices that treated Nigerian consumers differently from those in other regions.

In July 2024, the FCCPC imposed the $220 million fine on Meta and WhatsApp, citing violations of Nigeria’s data protection and consumer rights laws. Additionally, the ruling mandated corrective actions to ensure that Meta’s business practices comply with Nigerian regulations.

In a decision delivered on Friday, April 25, the tribunal upheld the fine, reaffirming the FCCPC’s authority and investigative processes. The tribunal also ordered Meta to pay an additional $35,000 to cover the costs incurred during the investigation.

However, Meta expressed disagreement with the tribunal’s ruling, stating in a statement on Saturday, April 26, that it would urgently seek to appeal the decision and apply for a stay of execution.

“We are urgently applying to stay the order and appeal today’s decision to avoid any impact to users,” WhatsApp said.

The company also contested the tribunal’s findings, claiming that the ruling misrepresented how WhatsApp operates and contained inaccuracies regarding its data practices.


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Tribunal Upholds FCCPC’s $220m Fine against Meta, WhatsApp

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Competition and Consumer Protection Tribunal has upheld a $220 million fine imposed by the Federal Competition and Consumer Protection Commission (FCCPC) on Meta Platforms Inc. and WhatsApp LLC for data privacy violations in Nigeria.

Tribunal Upholds FCCPC’s $220m Fine against Meta, WhatsApp

The Tribunal also awarded $35,000 in investigative costs to the country’s Federal Competition and Consumer Protection Commission .

In a statement issued by the FCCPC, the Tribunal delivered its judgment in the appeal filed by Meta Platforms Incorporated (Facebook) and WhatsApp LLC against the Federal Competition and Consumer Protection Commission (FCCPC), affirming the Commission’s authority and ruling in favour of its actions on nearly all contested issues.

According to the statement by the FCCPC, “The Tribunal specifically determined that the Commission adhered to prevailing laws, fulfilled its mandate, and exercised its powers by the 1999 Constitution (as amended).

“It ruled that the multiple actions by WhatsApp and Meta, for which the Commission made findings of violations, were correctly identified, and that the Commission did not err in making those findings.”

The statement revealed that WhatsApp and Meta’s legal team was led by Professor Gbolahan Elias (SAN), while the FCCPC was represented by Babatunde Irukera.

It added that both legal teams presented their final arguments on behalf of their respective clients on January 28, 2025.

“The FCCPC had on July on July 19, 2024, issued a Final Order imposing a $220 million administrative penalty after concluding that the companies engaged in discriminatory and exploitative practices against Nigerian consumers, the investigation started in 2020.

“The case arose from a 38-month joint investigation initiated by the FCCPC and the Nigeria Data Protection Commission (NDPC) into the conduct, privacy practices, and consumer data policies of Meta Platforms and WhatsApp.

“Dissatisfied with the Order last year, Meta and WhatsApp appealed to the Tribunal, challenging both the legal basis and the findings of the Commission,” FCCPC said.

The Tribunal upheld the FCCPC’s authority and investigative procedures in Meta and WhatsApp’s appeal, resolving most of the contested issues in the Commission’s favour.

It confirmed that the FCCPC acted within its constitutional and statutory mandate, particularly regarding fair hearing, data protection, and consumer rights.

While it dismissed the majority of the appellants’ objections, it set aside one specific order (Order 7) for lacking sufficient legal basis.

While expressing satisfaction with the judgment, Tunji Bello, executive vice chairman/CEO,  commended the Commission’s legal team for their exceptional diligence and forensic expertise in assembling evidence and presenting their case.

He reaffirmed the FCCPC’s unwavering commitment not only to protecting the rights of Nigerian consumers but also to promoting fair business practices in line with the FCCPA (2018) and the Renewed Hope Agenda of the Nigerian government.

 

 

 

 

 

 

 


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Legend Internet Plc Makes History as First Indigenous Telecom Firm on NGX

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Nigerian Exchange Limited (NGX), has made history with the listing of Legend Internet Service Plc  as the first company in its Telecoms sector and the first company to be listed this year.

Legend Internet Plc Makes History as First Indigenous Telecom Firm on NGX

Legend’s N2 billion ordinary shares, with a par value of 50 kobo each, were listed at N5.64 per share.

Dr Umaru Kwairanga, chairman of NGX Group,  who welcomed Legend’s board and management, commended the company for its successful listing on the Exchange

He highlighted that listing signifies an elevated commitment to corporate governance and provides opportunities to leverage the Exchange’s diverse asset classes for capital raising.

He stated, “As we celebrate this listing, with many more in the pipeline, I commend the management of Legend Internet Plc for this remarkable milestone.

“This bold step demonstrates confidence in your business model and growth vision.

It also marks the formal emergence of a broadband service as a distinct sub-sector on our Exchange.

Legend has evolved from a focused digital network provider to a diversified technology player, achieving significant advancements in broadband infrastructure development and data services.

We anticipate continued growth in the future.

“We are still bringing many companies on board the NGX, including Dangote, NNPC and others.

“As Africa’s leading exchange, NGX has consistently championed innovation, transparency and sustainable value creation through our investment in cutting-edge infrastructure and a comprehensive range of product offerings, spanning equities, bonds, ETFs and derivatives

Speaking at the Facts Behind the Listing Ceremony, Dr Ladi Bada, chairman,  Legend emphasised that the company, as the first indigenous telecommunications company on NGX, has substantial value to offer the market.

Bada encouraged Nigerians to embrace the broadband industry, recognizing it as the fastest-growing sector globally.

He noted that the company had been instrumental in laying fiber optic cables connecting 250 homes in the Suleja and Abuja environs.

He expressed optimism that the Exchange would serve as a catalyst to replicate such commendable projects across other regions of Nigeria.

“We are here to create an enabling digital infrastructure to achieve the projected one-trillion dollar economy.

“On this special day, Legend Internet takes a bold step forward, not just for itself, but for the broader ecosystem of technology, infrastructure, and enterprise in Nigeria.

“As we begin this exciting new chapter as a publicly listed company, we do so with humility and boldness.

We remain committed to continuous innovation, expanding our reach, and delivering value to shareholders and society

“A listing on the Nigerian Exchange is more than a financial event. It is a signal and a declaration that a business is ready to be held to the highest standards of governance, performance, and public trust,” he said

Providing insights into the company’s development, Ms Aisha Abdulaziz, chief executive officer of Legend Internet Plc, stated that the company had evolved from an internet service provider to a comprehensive digital service provider.

Abdulaziz noted that with broadband penetration in Nigeria being less than one per cent, Legend Internet was strategically positioned to deepen access

She affirmed the company’s commitment to taking Nigeria’s digital economy to the next level

“When we started Legend, we weren’t just building an internet company; we were building a movement

A movement fueled by the belief that every Nigerian deserves access to premium, reliable, and high-speed internet, regardless of their location or occupation

“From late nights in our first office to laying fiber across Abuja, to launching products that made people’s lives easier and faster, our journey has always been about connections

“Connecting people to opportunities, connecting homes to entertainment, connecting Nigeria to the digital future it deserves. Our journey has always been about a better way to live.

“This listing is a symbol of our commitment to transparency, sustainable growth, and the kind of excellence that outlives hype.

“Legend’s primary focus now is on unlocking digital value at the household level,” she said.

Mr Jude Chiemeka, chief executive officer of NGX, congratulated the company for making the strategic decision to list.

Mr Chiemeka noted that Legend’s listing on NGX now brings the total number of listed securities to 322

Also, Mr Temi Popoola, chief executive officer of the Nigerian Exchange Group, encouraged the investing public to support the newly listed company.

 


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