Connect with us

Telecom

Nigeria’s Telecoms Sector Threatened by Economic Challenges – Ikemesit Effiong

Published

on

Kindly share this post

Ikemesit Effiong, Chairman of the Technology Committee of the Nigerian Bar Association Section on Business Law, has raised concerns about the sustainability of Nigeria’s telecoms sector amid ongoing economic challenges.

In an insightful article titled “The Imperative of Upholding Nigeria’s Telecoms Lifeline,” Ikemesit delves into the sector, emphasizing its pivotal role as both an economic engine and societal enabler. With approximately 15,000 direct employees and a significant 16% contribution to Nigeria’s GDP, the sector’s health is crucial for the nation’s well-being.

Ikemesit highlights various obstacles facing the telecoms industry, including frequent fibre optic cable cuts due to road construction and vandalism, multiple taxations, and challenges in acquiring rights-of-way. These issues, compounded by exploitative rent-seeking practices, have persisted despite efforts to resolve them.

“Central to the sustenance of any industry is a conducive economic environment that allows for sustainable growth and innovation,” writes Ikemesit. However, regulatory constraints that limit tariff adjustments hinder the sector’s ability to adapt to market dynamics unlike other industries.

Recent data from the National Bureau of Statistics (NBS) indicates a rise in inflation to 33.20% in March 2024, up from 31.7% in February 2024. This poses significant challenges for businesses striving to manage staff welfare and make necessary investments amid economic strains.

The inflationary pressures have led to price increases across various sectors, including agriculture, beverages, and services. Companies such as Nigerian Breweries Plc and Netflix have adjusted prices multiple times this year to cope with rising costs.

Recently, the quality of service has become a significant concern for subscribers across the country. Available data indicate that this issue may persist for the foreseeable future. The 70% broadband penetration target set by Bosun Tijani, Nigeria’s Minister of Communication, Innovation, and Digital Economy, was severely impacted in 2023, experiencing a decline of 14.2% from a peak of 48.28% in March to 41.87% in November.

With operators reporting financial losses in 2023 and a challenging outlook for 2024, it is evident that funding will pose a significant challenge for the necessary investments needed to transform the sector.

Describing the challenges of the sector in 2023, Engr. Gbenga Adebayo, Chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), said, “ALTON’s members currently pay at least 49 different taxes and levies. Additionally, our members continue to bear the brunt of multiple taxation and coerced compliance with tax and levy demands that have no legal basis by sub-nationals. This threatens investment, sustainability, and industry growth.

“Instances include – exorbitant Right of Way fees, increases under the Finance Act 2023 (such as an upward review of Tertiary Education Trust Fund Tax from 2.5% to 3%, imposition of Value Added Tax on cell towers (Base Stations), imposition of import levy on goods, removal of capital allowance on telecommunications goods and services under Section 32 of the amended Companies Income Tax Act), amongst others.”

In the past 10 years, telcos have maintained the same charges for calls and data, despite inflation rising from 8.05% in 2014 to 33.20% in 2024, and the dollar increasing from 185 naira in 2014 to about 1,000 naira in 2024.

Considering that this sector supports Nigeria’s 221.7 million active voice subscriptions and 160.2 million data subscriptions, with immense consequential economic and social value, leaving it to resolve its challenges independently or risk collapse poses significant threats to Nigeria’s socio-economic stability. Stakeholders in the sector are urging the government to either invest in the sector as needed or adopt a cost-reflective tariff to facilitate necessary investments.


Kindly share this post

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

Telecom

MTN Suspends Data, Airtime Borrowing Service over New FCCPC Lending Rules

Published

on

Kindly share this post

MTN Nigeria has announced the temporary suspension of its airtime and data advance service, Xtratime, following new regulatory requirements introduced by the Federal Competition and Consumer Protection Commission (FCCPC).

MTN Suspends Data, Airtime Borrowing Service over New FCCPC Lending Rules

The telecom giant disclosed the development in a filing to the Nigerian Exchange Limited (NGX) on Thursday, stating that the move is necessary to comply with the FCCPC’s Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025.

Xtratime, widely used by prepaid subscribers, allows customers to borrow airtime or data and repay on their next recharge.

In the disclosure signed by Uto Ukpanah, company secretary, the firm confirmed the halt, noting, “MTN Nigeria Communications PLC hereby notifies the Nigerian Exchange Limited and the investing public that the company has temporarily suspended its airtime and data credit advance service (‘Xtratime’).”

The company explained that the service now falls within the scope of the FCCPC’s expanded regulatory framework, which mandates fresh licensing and stricter compliance procedures for digital credit providers.

“The suspension relates to the implementation of processes under the Digital, Electronic, Online or Non-Traditional Consumer Lending Regulations, 2025, which introduced a new compliance and licensing framework for entities providing digital or non-traditional consumer credit services,” the statement added.

Despite the suspension, MTN reassured subscribers that alternative channels for purchasing airtime and data remain fully operational. It also downplayed the financial impact of the move.

“Given the scale within the revenue mix, we do not expect the temporary suspension to have a material impact,” the company said, adding that it is closely monitoring customer behaviour and will provide further updates in its first-quarter 2026 results.

The FCCPC’s 2025 regulations significantly broaden oversight of Nigeria’s digital lending ecosystem, bringing telecom operators and other providers of short-term credit services under stricter scrutiny. Companies offering such services are now required to register and obtain regulatory approval to continue operations.

The Commission had initially introduced a framework for digital lending in 2022, but expanded it in 2025 amid rising concerns over consumer debt, data privacy and lending practices.

 

 

 


Kindly share this post
Continue Reading

Telecom

Nokia, Orange Partner on AI-native 6G Networks

Published

on

Kindly share this post

Nokia and Orange are co-developing new strategies to maximise spectral efficiency across existing and future mobile bands, including the upper 6 GHz range, as networks transition toward 6G.

This follows an announcement of a partnership with NVIDIA to develop and evaluate Artificial Intelligence Radio Access Network (AI-RAN) technologies.

The initiative will combine the anyRAN 5G software of Nokia with the AI infrastructure of NVIDIA to improve network performance and energy efficiency.

The collaboration aims to transform service delivery for Orange across Europe, the Middle East, and Africa, says Nokia.

Under a new structured co-innovation framework, the partners will explore how GPU-based radio processors can boost performance via advanced receivers.

The goal is to integrate artificial intelligence (AI) directly into the RAN to automate environments, support sensing services and drive resource utilisation.

“By collaborating with Nokia and NVIDIA, we can better understand how the AI-native architecture enabled by AI-RAN can improve the efficiency of key radio algorithms such as scheduling, beamforming, and power optimisation — enhancing both spectral efficiency and energy performance, while also enabling advanced capabilities like predictive optimisation and radio sensing. This collaboration is an important step in our long-term network strategy,” says Laurent Leboucher, group chief technology officer at Orange.

Pallavi Mahajan, chief technology and AI officer at Nokia, comments: “AI is reshaping how networks are designed, introducing new levels of intelligence and flexibility across the radio layer.

“Through this collaboration with Orange, we are exploring how Nokia and NVIDIA’s AI-RAN solution brings advanced AI and RAN functions together in a unified architecture. This will be instrumental in enabling the industry’s transition toward cognitive, AI native networks.”

Orange is currently the fourth-largest telecoms operator in Africa with 18 markets on the continent. The partnership marks a significant attempt to leverage AI to accelerate digital transformation as the first wave of 6G approaches.


Kindly share this post
Continue Reading

Telecom

Zoho Nigeria champions women’s digital empowerment at the Guardian Women Festival

Published

on

Kindly share this post

Zoho Nigeria partnered with Guardian Newspapers for the Guardian Woman Festival, a month-long initiative celebrating women’s contributions to business, governance, and social development while promoting digital empowerment for female entrepreneurs.

Zoho Nigeria champions women’s digital empowerment at the Guardian Women Festival

Kehinde Ogundare

Held at the Federal Palace Hotel in Victoria Island, Lagos, the festival focused on the theme “Reciprocity,” encouraging the exchange of value, networks, and digital innovation to strengthen women-led businesses and foster collaboration.

During the event, Kehinde Ogundare, Country Head of Zoho Nigeria, delivered a keynote address titled “Give Value, Gain Growth: Women Driving Reciprocal Innovation in the Digital Economy”. In his remarks, he highlighted the urgent need to bridge the digital gap for female entrepreneurs.

While Nigeria has the highest concentration of women-owned businesses in Africa, fewer than 30% currently use digital tools to manage or grow their operations. Ogundare noted that technology does not replace the strengths women already bring to business, such as relationship building and community engagement. Instead, it amplifies them, enabling entrepreneurs to reach wider audiences and scale more efficiently.

“The difference is not talent. Not capital. Not ambition. It is digital adoption,” said Ogundare during his keynote. “Smart tools create smart businesses. Smart businesses create strong economies. When women entrepreneurs and leaders have access to the right tools, the possibilities for growth are limitless.”

Zubaida Aliyu, Sales Manager at Zoho Nigeria, also brought her expertise to the festival’s panel session on ‘Women in the Business of Digital Innovation’. She highlighted how women are uniquely positioned to create shared value in digital spaces by building platforms that encourage knowledge sharing, mentorship, and collaboration.

Aliyu also challenged organisations that continue to view women’s digital inclusion primarily as corporate social responsibility rather than a strategic business priority.

“Tech creates a level playing field,” she said, noting that digital platforms remove limitations related to location and infrastructure size. Addressing organisations that overlook the economic value of inclusive digital strategies, she added, “They are leaving money on the table — they need to think of it as a strategy not charity”.

Through its participation in the Guardian Woman Festival, Zoho reaffirmed its commitment to providing affordable and accessible enterprise-grade technology to businesses of all sizes. By helping women transition from manual effort to digital efficiency, Zoho aims to support entrepreneurs build scalable enterprises and ensure their sustained success in Africa’s digital economy.


Kindly share this post
Continue Reading

Trending