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Telecom

Operators Say Funding, Others Hamper ICT Development in Nigeria

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Ikechukwu Nnamani, chief executive officer, Medallon Communications
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Telecommunications operators in the country have said that funding is the biggest challenge they face in their efforts to ensure increased access and affordability of telecommunications services in the country.

 

According to them, right funding for the development of transmission infrastructure which is necessary for increased access and affordability of telecom services is lacking in the country.

 

Ikechukwu Nnamani, chief executive officer, Medallon Communications, a data centre operator, told Nigeria CommunicationsWeek that the biggest challenge in information and communications technology today is right funding.

 

“It has been identified that cost of leasing transmission infrastructure in the country is very high because of the fact that operators that built these transmission infrastructure have borrowed money with high interest rate and will have to pay back in record time.

 

Banks in the country charges interest rate of 35 percent. How can you borrow money with 35 percent interest rate to execute a long term project and still charge reasonable cost? They have no option than to charge high to enable them to have quick return on investment.

 

“More so, ‘Right of Way’ issues as we are witnessing today is also tied to right funding.

 

He said that since the country does not have venture capital firms that can fund long term capital projects, “our best alternative is for the federal government to borrow money to finance the building of telecommunications transmission infrastructure that operators can lease to deliver services at cheaper cost as well as reliable.

 

“Since government can borrow money to finance railway project which is long term project that helps to ease means of transportation at reduced cost, it is not out of place to extend same to ICT development knowing that availability of telecommunications services has a wide range of positive impact on the economy.

 

“Today we complain of impediments to broadband penetration, inability to reach 30 percent target. Even where we have access, reliability is a problem due to high cost of backbone infrastructure. Federal government needs to come out with right funding mechanism to address these problems,” he stated.

 

Mohammed Rudman, managing director, Internet Exchange Point of Nigeria, IXPN, said that the issue of right of way has been there for a very long time and that the best solution to the problem is for all the various stakeholders to come together.

 

“All the right actors should come together. As it is today the industry is a bit fragmented, we need to really come together, have a strong voice and ensure that the highest authority in the country is aware of the current situation and propose solutions to the problem.

 

“For instance, the president of Nigeria should be aware of these inconsistences in the prices of right of way that the telecommunications operators in Nigeria are facing in various states and it should be address at Federal Executive Council.

 

“They need to approve a common rate across all the states and the states should be in agreement with the presidency and if the presidency wants to do this I think it is possible for them to push the states to agree certain conditions.

 

“Not only right of way, there are constant bottle necks in terms of regulations just to boost internally generated revenue for the states, there are various kinds of regulations. As at the last time I checked there are 38 different levies and taxes on telecommunications operators across the federal, states and local government areas.

 

“This is huge. It doesn’t make sense. What should happen is for each state to possibly harmonize and get under one ministry where all the telecommunications related taxes and regulations can be pursued and be paid their instead going to various ministries departments and agencies,” he added.


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Nigeria CommunicationsWeek believes that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. So since 2007, we have devoted our energy to independent reportage of technology and how they affect lives.

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Telecom

MTN @ Swish Fusion Summit, Showcases 5G Rollout Strategy

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MTN Nigeria Communications Plc has joined other professionals across media, technology, and business gathered in Lagos for the Swish Fusion Tech and Media Summit.

MTN @ Swish Fusion Summit, Showcases 5G Rollout Strategy

Themed ‘Africa: Big Wins & New Breaks’, the summit drew thousands of attendees and featured more than 40 speakers exploring the intersection of innovation, regulation, and economic growth across the continent.

Among the sessions, MTN Nigeria presented a detailed look at the company’s ongoing 5G deployment efforts and its role in shaping enterprise infrastructure.

Njideka Jack, senior manager for Partnerships in MTN’s Enterprise Business Division,  shared details of the investments, reiterating the company’s commitment to delivering high-quality 5G-powered services.

The company’s 5G rollout timeline began in 2022 with license acquisition from the Nigerian Communications Commission. In 2023, MTN moved into pilot testing and infrastructure investment.

By 2024, coverage had expanded to key cities and business hubs.

The company now plans to extend access to more underserved areas throughout 2025 while deepening collaboration with OEMs and regulators.

Beyond the rollout itself, Jack also spoke on the potential of private 5G networks for Nigerian enterprises.

With the ability to offer secure, high-speed, low-latency connectivity, these networks are increasingly being adopted in manufacturing, healthcare, education, and logistics sectors.

The summit’s broader agenda reflected a similar sense of urgency around Africa’s digital future.

Panels and breakout sessions tackled topics ranging from mobile-first product design and regulatory frameworks to the rise of AI in content creation and the realities of funding early-stage tech ventures on the continent.

Speakers from companies like Jumia, Stears and local startups provided perspectives on both the barriers and breakthroughs in building scalable African solutions.

The sessions also sparked conversations about how African businesses are adapting to consumer behaviour shifts and infrastructure limitations.


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Telecom

PAT Taps Osi as CEO

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Pan African Towers (PAT), a Nigerian infrastructure provider serving 9mobile and Spectranet, has appointed Echezona Osi as chief executive officer.

PAT Taps Osi as CEO

Echezona Osi

Adefolarin Ogunsanya, company’s, board chairman,  explained in a statement that Osi would succeed Oladipo Badru, whose tenure lasted nine months in acting CEO position. Osi has more than 28 years of experience in the telecommunications sector across various regions of Africa.

Prior to his appointment as CEO, he had served as the head of network deployment at Airtel Nigeria, operations director and chief technical information officer at MIC Tanzania, chief technology officer roles at IPT PowerTech Nigeria, Rhino Niger Networks and Biswal Nigeria.

He obtained a degree in electrical/ electronic engineering from the University of Benin and a postgraduate diploma in data science and business analytics from the University of Texas.


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NCC Introduces N10m Licence Fee for Bulk SMS Service

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Companies sending bulk international text messages, also known as Application-to-Person (A2P) messages, will now have apply for a licence that costs N10 million.

NCC Introduces N10m Licence Fee for Bulk SMS Service

This is part of new rules introduced by the Nigerian Communications Commission (NCC) aimed at cleaning up the system, fighting fraud, blocking spam messages and stopping money from leaving the country unchecked.

These A2P messages are the kind customers get from banks, online stores, hospitals and political campaigns, automated texts sent from apps to their phones.

According to the commission, the bulk international text message system has been poorly regulated, allowing misuse and invasion of privacy.

“The International SMS Service Ecosystem in Nigeria has not been fully brought under regulatory control. It has been observed that the excessive use of the Short Message Service has led to fraud, spam and illegal activities,” the NCC said.

The regulator warned that without action, the problem would worsen as more people use mobile phones and digital services.

To solve this, the NCC is creating a central platform, or gateway, through which all international bulk text messages must pass through.

The agency said this would help to monitor messages in real time, ensure proper fees are paid, and make sure the money stays in Nigeria where it can contribute to the economy.

As part of the incoming change, service providers must follow strict rules, including strong data protection, spam filters, and message encryption.

Also, they must also work with local mobile networks and make sure all messages come from a verified sender

The NCC warned that any message without a proper sender ID will be blocked and not delivered to users.

To protect users from unwanted texts, the new rules say companies must get clear permission before sending any promotional content.

The rule also says people must also be able to choose whether they want to receive such messages or not.

Companies are now required to keep records of all messages for at least six months and must clearly state all charges involved.

The NCC said fees for help requests, cancellations, or service info must be transparent and not include hidden charges.

The commission will issue licences to several providers to encourage healthy competition but may limit new licences if needed.

Only companies that show they can stop fraud and safely deliver messages will be allowed to operate. They must also regularly report their message traffic and finances to the NCC.

It warned that any company that breaks the rules risks getting fined, suspended, or having its licence revoked.

Offences like charging illegal tariffs, ignoring security rules, or avoiding taxes will be punished, the NCC said.

The commission added that the new rules follow the Nigerian Data Protection Act 2023 and support the federal government’s goal of strengthening cybersecurity and controlling Nigeria’s digital space.

The framework will also be reviewed from time to time to keep up with new technology and market trends.


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