Telecom
Startups Ecosystem Critical to the Future Of Nigeria – Osibanjo
Professor Yemi Osibanjo, Vice President of Nigeria has said that startup ecosystem is one of the vital tools in finding solutions to Africa’s various challenges, according to him, these challenges will determine if the continent’s future as the next frontier for economic opportunities will fully be realised.
The VP, represented by Director General, National Information Technology Development Agency (NITDA), Mallam Kashifu InuwaAbdullahi, said this at the Startup and Developer event organised by Google.
He stated the topic – The African Start-up Ecosystem Opportunity – is exciting because startup ecosystem is extremely critical to the future of Nigeria and Africa at large.
“Globally, the Startup ecosystem is the most viable platform for innovators and entrepreneurs to take their ideas from inception to impact. It brings relevant stakeholders together to collaborate and bring something new to the world or new to an industry.
“There will never be a more perfect time to strengthen the African startup ecosystem than now, on the verge of the 4th industrial revolution,” he said.
Osibanjo noted that the 3rd industrial revolution was pivotal to unprecedented global economic growth in the 21st century, as it disrupted traditional service delivery channels and accelerated the automation of factories and manufacturing processes, using electronics and information technologies to expand the reach and create prosperity but Africa hopped along and missed out.
“The countries that captured maximum value from the 3rd industrial revolution have become more prosperous and built solutions that improved service delivery in all aspects of lives, from education, healthcare and food production to efficiency and speed in manufacturing.
“Today, Africa is presented with another opportunity, the 4th industrial revolution, which is shaping and creating economic activities. It is proving to be the catalyst for future economic activities that will bridge the divide between rich and developing countries, and remove physical borders and barriers while maximising the utilisation of digital technologies as a source of inspiration across economic sectors,” he added.
“The African startup ecosystem opportunity is hinged on two key factors, which are anchored on the 4th industrial revolution and driven primarily by digital technologies. The first factor is innovation capacity, and the second one is entrepreneurial capacity. Both capacities depend on four key indicators, Human Capital, Infrastructure, Funding and Demand.
“Human capital being the first indicator means that African startups must realise that they are only as strong as the value of the human resources they have. Therefore, startups like Andela, Wootlab Innovations and Decagon are vital as they are involved in producing skilled talent.
“With this, Africa can become the next hotbed for professional talent that will provide local solutions and export their skills and solutions to a global market that actively seeks such value. This is why we highly valued Google Developer Space in Lagos. It is the first in Africa and speaks to the position of Nigeria as a leader in the digital skills and startup ecosystem in Africa.
“The investments attracted by our startups confirm the position. Recently, Flutterwave announced new funding of $170m, and Stripe acquired Paystack for more than $200m. Other Nigerian technology companies like Interswitch have raised funding in hundreds of millions of dollars,” he noted.
The VP stated that according to startup Genome report, Lagos is the most valuable startup ecosystem on the continent, having 400 to 700 active startups valued at over $2B with Fintech being the most prominent in the Lagos technology startups ecosystem.
However, other industries are emerging with startups like Flying Doctors, 54gene, Helium Health and Life Bank blazing the trail in the healthcare sector andThrive Agric, Afex Commodities, and Probity Farmsmaking waves in the agriculture and commodities exchange space.
He said the opportunities for investment and disruption remain very high in the continent; same as the opportunity for hubs and other innovation centres to serve as enablers and anchors for our promising startups.
“As Government, we are working with the relevant stakeholders in the public and private sector to ensure that startups receive every support they require to take their ideas from inception to impact. As part of our Ease of Doing Business Reforms, we instituted the Visa on Arrival Policy which allows any person outside ECOWAS to get a visa on arrival in Nigeria.
“This policy means all African startups and entrepreneurs seeking to expand their business into Nigeria will have a more straightforward process.
“We are also re-convening the Technology and Creativity Advisory Council, made up of public and private sector stakeholders in the ecosystem to advise Government on policies and programs to support the ecosystem.
“Through the work of this council, we are currently engaging with the African Development Bank to setup a $500million US Dollar Innovation Fund, which will provide support for the ecosystem across four pillars which includeInfrastructure support, Finance, Skills Development and Technical Assistance.
“In 2019, the Federal Government of Nigeria launched the National Digital Economy Policy and Strategy (NDEPS) for Digital Nigeriaas a sustainable roadmap to accelerate the development of the Digital Economy in Nigeria.
“The policy is designed to catalyse the digital ecosystem development in Nigeria and deepen innovation qualityto promote innovation-driven enterprises that target the global market.
“We also have many initiatives to support the ecosystem through various agencies.In this regard, the National Information Technology Development Agency (NITDA) has been at the forefrontof supporting Nigeria’s digital innovation ecosystem.
“Last year, as the COVID-19 pandemic wreaked havoc worldwide, NITDA engaged the ecosystem to devise strategies to aid business continuity for startups and developed schemes to support and sustain the ecosystem.
The engagement led to initiatives such as Technology Innovation and Entrepreneurship Support (TIES) Scheme, National Centre for Artificial Intelligence and Robotics, National Innovation and Entrepreneurship Centeretc, as sustainable programmes to continuously up-skill and supports the startup ecosystem.
“Secondly, the Nigerian Export Promotion Councilintroduced the Export Expansion Grant, which can be accessed by companies with a minimum annual export turnover of N5 million. This is particularly useful to Nigerian startups seeking an expansion into other African countries and those seeking to take advantage of the African Continental Free Trade Area.
“Other opportunities, such as the Central Bank of Nigeria’s Creative Sector Loan in collaboration with the Bankers’ Committee and the Bank of Industry’s Technology Fund, are designed to create different ways through which startups can access the value they need to keep expanding their businesses.
“I must further re-iterate that there is no exhaustive list of approaches to make sure our Government creates an enabling environment.
“For example, we are working through the Federal Ministry of Communications and Digital Economy to deepen digital identity through NIN registration and build broadband infrastructure backbone across the country, this is part of our National Broadband Plan, which is designed to deliver data download speeds across Nigeria of a minimum 25Mbps in urban areas, and 10Mbps in rural areas, providing access to at least 90% of the population by 2025 at affordable prices.
“Broadband infrastructure and digital identity are two critical factors that accelerate the digital economy.These are all avenues aimed at inspiring our startups to disrupt the conventional ways of service delivery,” he concluded.
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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