Telecom
Smile Communications Says Nigeria Well-Positioned for Digital Economy
Smile Communications Nigeria Limited, the 4G LTE broadband provider of choice, has described the Nigeria’s digital economy as huge, and will impact virtually all segments of the economy.
‘Digital Economy’ was coined by Don Tapscott in 1995 to imply an economy chiefly triggered by digital computing technologies.
Thus, in the face of dwindling oil revenue with increasingly pressure on the economy evident in budgets deficit, infrastructural deficit, high unemployment rate, harsh business environment, corruption, amongst others, Mr. Michiel Buitelaar, managing director, Smile Communications Nigeria Limited, said that leveraging digital economy should be regarded as a sine qua non in sustaining the economy by the incoming administration led by Muhammed Buhari.
Buitelaar who was speaking during a panel discussion at the sixth (6th) Annual Pan-African 1:1 Investor Conference organized by Renaissance Capital in Lagos, identified infrastructural advancement as overriding factor for the immediate expansion of sectors such as agriculture, transportation, banking & finance, health-care/medicine, and education.
He said that Smile Communications aligns itself with the key statistics expected for the Nigerian Digital Economy by 2018 as released by the Federal Ministry of Communication Technology, especially for the emergence of an industry that is less fragmented.
According to the country’s target, the industry expects to attain 30 per cent broadband penetration by 2018 from the present less than 10 per cent.
The Smile MD said, “There are various advantages the digital economic providers have over the traditional. However, to make this happen faster, there are catalysts required for it to even drive other sectors outside the ICT. Digital economy will be the driver of the agricultural, transport, health-care/medicine, education, banking & finance, among others. In our company, for instance, we are talking to companies in those sectors and one recently said that ‘the software is eating the world’.
“We do believe the new digital ICT will influence other sectors. For example, in agriculture; like I have seen in other countries, the efficiency and productivity is very likely to explode once all the digital economy has entered into their arena. It is also our expectation that the impact will become more pronounced within the next ten years. For emphasis sake, sectors like agricultural, transport, health-care/medicine, education, commerce, in fact, the whole move of digitization will have impact on the emerging economy and Nigeria’s economy is well positioned to make their journey better than many others,” the Smile Communications boss said.
Specifically on expected broadband impact on digital economy, Buitelaar, extolled the outgoing administration of President Goodluck Jonathan for approving the National Broadband Plan (NBP), expressing confidence in the Buhari government’s compelling posture for firm implementation of the plans.
“I think the Federal Government is doing a quite well, especially, by releasing a National Broadband Plan (NBP), but I will argue that the next Government continues with the plan in an even ‘forceful’ manner. Similarly, spectrum allocations should be looked at too; it is more of technical, but very important in the nation’s quest for more ubiquitous broadband. There are sub-sectors that the broadband availability will immediately impact their operations such as the delivery viz a viz ecommerce, e-payment, education and other clusters of business. These are crucial reasons the digital economy should be allowed to blossom,” he said.
“Having been here for six months, Nigeria is a wonderful country. At the same time, the incoming government should do something as regards the image of the country and perception in the rest of the world. That alone is capable of convincing foreign investors about the country’s business climate. Secondly, on infrastructure, I do believe that the whole country will benefit in smart investments in infrastructure. There are issues in transport, power and payment systems; if these issues can be addressed, with a couple of other commitments, I believe in the next few years the country will be reaping large chunk of benefits from them,” he said.
Buitelaar added that the Company will not rest on its oars until Nigerians have access to qualitative and affordable broadband services.
He said, “From the Smile Communications’ perspective, we have penchant interest in the provision of high quality service. Later this year we will rollout service in a couple of other cities. We are serious about providing superfast broadband, high availability, high-quality and reliable offering, because Nigerians deserve qualitative service. If a small scale business is using your service, they ought to get maximum benefit; that is the way they can grow and employ more people. In that way you have impacted lives and the country’s GDP will feel the boost as well”.
Earlier, the Keynote speaker, Professor Pat Utomi, while addressing investors and captains of industries at the Conference, shared similar views with Mr. Buitelaar.
He said that thrust of the in-coming administration should be centered on making corruption costly and unattractive through public service entrepreneurship and goal oriented; reinvent sectors like mining and building clusters of strong institutions, leveraging ICT, among others.
Also, Global Chief Economist at Renaissance Capital, Mr. Charles Robertson, noted: “We see great long-term potential across Africa, particularly, in Nigeria, Kenya and Egypt.”
“We believe Nigeria will be a trillion dollar economy by 2025 and it will keep doubling in size every 10 years. GDP per capita is likely to reach around $15,000 by 2050. Following the April elections, the new government represents the best opportunity in recent years to push forward reform for Africa’s largest economy,” he said.
The sixth (6th) Annual Pan-African 1:1 Investor Conference organized by Renaissance Capital in Lagos attracted over 150 investors representing both global and frontier funds and 50 companies from across the African continent.
Smile Communications Nigeria Limited was founded in 2007 with the transformative objective of using the best and most innovative technologies to provide its customers with high quality, easy to use and affordable communication services.
Its vision and mission is to be the broadband provider of choice in Nigeria and enable its customers to fully benefit from the Internet world. Smile launched West Africa’s first true 4G LTE network in Ibadan in 2013 thereby revolutionizing the way people access the Internet.
MTN Group has revealed that the board of IHS Towers accepted its offer of US$8.50 per share, positioning MTN to boost its stake to 100% ownership following IHS’s divestment of Latin American assets.
MTN Group
The potential transaction is subject to various approvals and the delisting of IHS from the New York Stock Exchange (NYSE).
Upon the completion of IHS’s announced disposals (on 11 February and 17 February 2026) of its Latin American assets, it is intended that MTN will acquire 100% of IHS’s remaining business.
IHS is one of the world’s largest tower companies, with nearly 29 000 high-quality towers in Africa serving various mobile network operators in five key MTN markets.
The proposed transaction, which follows discussions noted on 5 February 2026, marks an important step to unlock compelling value for MTN and strengthen and
reintegrate its ownership of critical digital infrastructure across Africa. For IHS shareholders, it provides them with an attractive opportunity to crystallise value.
The funding for the proposed transaction of the remaining shares MTN does not already own, for a consideration of some US$2.2 billion, will be through cash of
approximately US$1.1 billion on IHS’s balance sheet, along with available liquidity and debt from MTN.
MTN has approximately 24.7% shareholding in IHS. As part of the transaction, it intends to take the company private through the acquisition of all outstanding
shares it does not own, pursuant to a cash merger.
By reintegrating the tower assets, MTN will be able to internalise the margin currently paid to IHS, benefit from current and future incremental third-party
revenues, improve cost predictability and unlock significant long-term value embedded in its existing investment.
“This proposed transaction is a pivotal step in further strengthening MTN Group’s strategic and financial position for a future where digital infrastructure will become ever more essential to Africa’s growth and development,” said MTN Group President and CEO Ralph Mupita.
“This transaction gives us a unique opportunity to buy back our towers and strengthen our ability to be partners for progress to the nation states in which we operate.”
“For IHS customers and partners across the continent, we commit to continuing high standards of service and the right governance of what is the largest standalone and
integrated tower company in Africa, enabled by the excellent people within IHS.”
Through this transaction, shareholders of IHS will receive US$8.50 per share. This translates to an 9.7% premium to the 30-day volume-weighted average price as at
4 February 2026 (the last day of trading before the release of MTN’s cautionary announcement) on the NYSE, enabling them to unlock the value of their investment.
Long-term IHS shareholder Wendel has provided a letter of support to vote in favour of the transaction and will receive full liquidity on its shares upon closing.
With support from Wendel (and certain affiliates) and MTN being able to vote at a general meeting, ~40% has already been secured of a minimum two-thirds approval
of voting shareholders.
IHS Chairman and CEO Sam Dawish commented: “The proposed transaction deepens our long-standing partnership with MTN as it combines Africa’s largest
mobile network operator with one of its largest digital infrastructure platforms and underscores the strong connection between IHS Towers and the African continent.”
In structuring this transaction, MTN remains focused on disciplined capital allocation inclusive of shareholder remuneration going forward. No new equity issuance will be required at the MTN Group level and the funding plan allows for a short-term increase in leverage. The transaction is forecast to be accretive to net income and cash flow.
The proposed transaction is subject to IHS shareholder approval, regulatory approvals in the relevant markets and customary closing conditions.
Nigerian Exchange Group (NGX) hosted its annual Made of Africa (MOA) 2025 Awards on Monday, February 4, 2026. The event, held during the NGX year-end celebrations, brought together regulators, listed companies, and market operators such as MTN, BUA, Dangote, Transcorp, to celebrate achievements in compliance, sustainability, and market performance.
In his opening remarks, Dr. Umaru Kwairanga, the Chairman of Nigerian Exchange Limited, said “Excellence in compliance, sustainability, and several other categories recognises the fact that capital market operators and quoted companies must be standards not only in terms of the size of their operations but also adherence to regulations and best practices of corporate social responsibilities.”
He emphasised that the awards serve as a benchmark for excellence. He noted that the 2025 honourees demonstrated significant improvements in branding, customer service, and operational standards despite a challenging economic environment in Nigeria.
Among the evening’s significant winners was MTN Nigeria, which was honoured for its commitment to corporate transparency. The technology giant received the award for Leadership in Sustainability Reporting, emerging as the winner in a category that included Seplat Energy, BUA Cement, and Transnational Corporation of Nigeria PLC.
The award recognised the brand’s adherence to both national and global reporting standards, reflecting its role in advancing environmental, social, and governance (ESG) practices within the Nigerian corporate space.
Tobe Okigbo, Chief Corporate Services & Sustainability Officer, MTN Nigeria, said “This recognition for Leadership in Sustainability Reporting underscores our commitment to transparency and aligning with global best practices.
“As the capital market moves toward greater accountability, MTN Nigeria remains dedicated to demonstrating resilience and faith in the Nigerian economy through comprehensive and standard-compliant reporting.”
The ceremony saw several other major players in the financial sector secure multiple accolades. Chapel Hill Denham emerged as one of the night’s most successful firms, winning in categories including Fund Manager with the Largest Listed Fund Size and Market Operator with the Highest Value of Foreign Portfolio Investment (FPI) Transactions.
Other notable winners included: Cardinal Stone Securities Limited, named Broker of the Year and Equity Trader of the Year, Dangote Cement was awarded Best Issuer in terms of Fixed Income Listings, BUA Cement PLC was recognised as the Most Compliant Listed Company, and Transnational Corporation of Nigeria (Transcorp) PLC received special recognition for Capital Market Excellence in Equity.
Mr. Jude Chiemeka, the Chief Executive Officer of Nigerian Exchange Limited, congratulated the recipients, noting that the market saw a 51% close in the All-Share Index last year, making it the second-best performing market globally. He urged winners and nominees alike to continue striving for excellence to further the aspiration of a $1 trillion Nigerian economy.
Nigeria’s broadband landscape remains anchored by 4G LTE at 52.95% market share in December 2025, with 2G holding steady at 37.37%, while 5G penetration crawls at just 3.77%, per Nigerian Communications Commission (NCC) data.
4G’s dominance stems from urban smartphone migrations and MTN-Airtel infrastructure expansions, fuelling the digital economy, as 2G persists in rural areas due to feature phone reliance and a stubborn device gap.
5G growth stalls from high smartphone costs amid inflation, telco preference for 4G’s quicker returns over capital-heavy 5G rollouts, and limited mainstream apps beyond elite urban streaming in Lagos and Abuja.
Broadband subscriptions topped 112 million, lifting penetration to 51.97%—up from 42.2% in October 2024—crossing the halfway mark for the first time, though monthly gains of 2-3 million slowed mid-year amid population growth and regional disparities.
The NCC’s 70% target stays elusive, highlighting sustained urban-rural demand but underscoring needs for affordable devices, infrastructure, and use cases to accelerate high-speed access nationwide.
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