Telecom
Stimulating Investment in Telecoms
Nigeria as one of the largest and fastest growing markets offers particularly attractive opportunities, starting with the fact that less than 40 percent of the country has been covered with telecommunications access as well as its large population which is the basis for telecommunications business.
In spite of huge success recorded so far in the sector especially in the mobile space of the industry growing to about 53 million, there is need for more investors and existing operators to increase their investment in providing capacity. Existing players in all market sectors require additional funding for expanding their networks and services at record pace in order to keep up with demand, and the unified licensing regime opened up new opportunities to existing and new players alike for the provision of next-generation converged mobile, fixed and Internet services.
The few investors who entered the Nigerian market in 2001 and 2002 when it was still considered very risky have experienced triple-digit growth rates every year and amassed huge profits. In the improved economic and operating environment, the market is now also attracting strong interest from leading global telecoms players and international investors, but new technologies, a decline in infrastructure costs and continuing deregulation will maintain opportunities for smaller players as well. This report provides potential investors with an overview and analysis of the Nigerian telecommunications market and delivers insights into current and future investment opportunities that exist in the various market segments while at the same time pointing out the problems and risks involved.
The first seven years of the 21st century have continued to witness an upsurge in the application and use of telecommunications and information technology in nearly all aspects of human endeavor. The wireless revolution, the pre-paid billing platform and the Internet phenomenon have accelerated access to information resources and changed the way people live and transact business. Telecommunications/information technology industry has therefore continued to take center stage in world affairs and will continue to be so far into the foreseeable future.
The wave of Market liberalisation sweeping across the world has positively impacted the continent with several countries opening up to foreign direct investment in the telecommunications sector. It is reassuring to note that it is now widely acknowledged that Africa currently represents a most fertile ground for telecom investment. Notable success stories have been recorded since several African countries embraced market liberalisation, thus encouraging others to move in the same direction.
For instance in Nigeria, Engr Ernest Ndukwe, executive vice chairman, Nigerian Communications Commission (NCC) said that the country’s telecom sector currently growing at 6 million per year which is standing at peak-high level of 45.9m by end of March 2008, both fixed and mobile. Active subscriber rate, by December according to him, will stand at 55 million.
Giving a tip of what the market can still offer, Ndukwe pointed out that the market is expected to hit 8 million subscribers annually for the next five years.
But what the NCC plans to do, according to him may increase the figures. Explaining that the role of the Commission is to encourage investment and protect all stakeholders in the industry, he explained that the advent of new technologies like broadband would encourage penetration to remote areas of the country and help bridge digital divide.
He promised new regulations that would urgently promote broadband technology and encourage investors to come into the sector.
Today, owing to several factors including government’s genuine deregulation policy, and the huge potential of the Nigerian market, so much has been achieved within a very short time. Through the national regulatory authority, the Nigerian Communications Commission (NCC), government has proved itself fully committed to the liberalization of the telecom market. Since year 2000, Nigeria has transparently licensed major competitive operators, settled interconnection disputes, constantly held open consultations with stakeholders, enacted new telecom laws, regulations and guidelines, and provided custom duty concession on equipment imports, among others.
These activities have encouraged investment and promoted competition in the industry, resulting in the exponential growth in the number of subscriber lines. It is instructive to note that the growth in subscriber lines has come as a result of a boom in private investment in the telecommunications sector. Recognizing the huge unmet demand and hunger of consumers for phone services and the potential of the Nigerian market, investors pumped in close to $4.00 billion USD into the sector by December 2003. Today, investment in the telecom sector ranks second only to that in the oil industry. According to Ibrahim Nakande, Minister of State for Information and Communications, since the liberalization of the telecom sector and the advent of GSM in Nigeria, Direct Foreign Investment of over $12 billion has flowed into the country. Aside the $2.6 billion generated through licensing fees alone notable investment witnessed in the sector especially through acquisition of local operators by foreign operators these include, Telkom of South Africa acquisition of 75% equity in Multi-Links for $280 million, MTN acquisition of VGC Communications at $65 million, MTN acquisition of XS broadband for $32.1 million and Zain acquisition of over 60% stake in Vmobile for $1billion among others. These are outside huge investment made by these operators and others in the sector in building their network as well as expansion.
In summary seven years of Telecom Sector Reform has brought about substantial private sector investment, increase in number of market players, Unprecedented Growth in the Network, Expanded geographical coverage, empowerment of the citizenry, employment Creation and economic Stimulus.
The role of a regulator in a developing economy is typically very demanding and encompasses far-reaching and multi-disciplinary issues. To be successful, the function should be based upon a well defined set of objectives which typically includes attracting investment, infrastructure planning and development, sector efficiency improvement, quality of service improvement, encouragement of competition, eliminating barriers to market entry for new operators, protection and empowerment of the consumers and promotion of the general socio-economic well being.
Regulatory functions cover virtually every aspect of telecommunications network and service provision including tariff, technical standards, allocation of scarce resources, fair competition and inter-operator issues such as interconnectivity and interconnect termination rate.
The state has a duty to encourage investment in the sector with the sole aim of making access to good quality Information and Communications Technology resources available to all its citizens at affordable prices. Regulation therefore draws its relevance from the widely accepted role of the State as a motivator and impartial umpire.
In order to optimize and accelerate growth in telecoms sector in Nigeria, attention must continue to be paid to key issues that affect investment flow such as: sound economic and fiscal policies; minimum investment risk; guaranteed investment protection; improved support infrastructures; minimum political and bureaucratic interference; stability of government and government policies; independent and strong regulatory institution; good enabling laws for the sector, and so on.
Telecommunications technology has been nationally acknowledged as presenting copious opportunities for the creation of unprecedented wealth for Nigeria. Thankfully, former president Obasanjo’s government demonstrated the political will necessary to foster an environment conducive for investment in this sector. Nigeria has progressed from the telecommunications dark ages before the year 2000, to a telecommunications revolution that is opening up new possibilities and frontiers across business, political, social and economic landscape.
The sector today requires massive inflow of private investments for infrastructure upgrade and expansion. Half-hearted market liberalization measures have denied many African countries access to investment dollars that could have been available to the sector both from within and outside such countries. Governments must therefore resist pressures to protect incumbent operators to the detriment of timely establishment of truly competitive markets.
The need for Government to provide the right environment that will attract serious investors and for market forces to thrive cannot be over emphasized. All policies must of necessity be aimed at attracting new sources of capital, accelerating network expansion, improving pricing, enhancing quality of service, introducing of new technologies and providing access to ICT resources to all citizens at affordable prices.
The expansion of our telecommunications facilities must go side by side with the development of the human resource capacity that will support the industry. We must develop knowledge, skills and competencies to understand, plan and deploy the complex networks of wireless systems, fiber optics, satellite systems, computers, Internet webs and a host of other telecommunications and information technologies.
Manpower requirements for ICT infrastructural development does not only stop with the engineers and technicians. Well trained personnel in other specialist areas such as financial planning, law, accountancy consultancy services, business management, personnel management, among others, are also required. Such skilled staffs, which are mostly needed in the middle and upper management levels, need to be well trained and up-to-date. Network operators should see development of human capital as an integral aspect of their investment in network expansion in order for such network elements to perform optimally.
Telecom
No Plans for Fresh Tariff Hike – MTN

Dr Karl Toriola, chief executive officer, MTN Nigeria, has assured its subscribers that another telecom tariff increase is not imminent.

Dr Karl Toriola, chief executive officer, MTN Nigeria
He also clarified his recent comments on unlimited mobile data, saying they were taken out of context.
Toriola who spoke during an interview on TVC’s Beyond the Headlines, said his remarks at MTN’s Data on Trial public engagement were intended to explain the technical limitations of mobile networks rather than suggest that consumers could never access unlimited data.
According to him, excerpts of his comments circulated online did not reflect the full context of the discussion.
“People took snippets of the conversation, and the entirety of the conversation is available on YouTube. There’s nothing to be hidden there, and they took it slightly out of context,” he said.
Toriola explained that mobile networks are constrained by finite spectrum resources, making unrestricted data usage technically impossible without affecting the quality of service for other subscribers.
“Mobile wireless technology to offer data is limited by one factor—spectrum—and spectrum is a finite resource. You cannot put an excessive load of data traffic onto a mobile network without having a degradation of the quality of service for other people,” he said.
He added that while many telecom operators market data plans as unlimited, such packages are generally governed by fair usage policies, under which internet speeds are reduced after subscribers exceed specified usage thresholds.
Toriola said MTN is working towards introducing similar products but noted that they would also be subject to fair usage limits to protect network quality.
Addressing concerns over rapid data depletion, the MTN chief executive said operators do not deliberately consume customers’ data, attributing much of the usage to background activities such as automatic cloud backups on applications including WhatsApp, Google Cloud and iCloud.
“A significant amount of data that’s consumed on your handsets is done without your realisation,” he said.
He advised subscribers to review their device settings and configure cloud backups to run only over Wi-Fi or at less frequent intervals.
To illustrate the point, Toriola said an audit of the phone of one of MTN’s chief officers, who had complained about unusually high data usage, revealed that WhatsApp was automatically backing up about 120 gigabytes of data.
On telecom pricing, Toriola said another tariff increase is not expected in the near term, although future reviews would depend on prevailing economic conditions and the cost of sustaining network operations.
“The increment is not imminent. But over time, depending on economic conditions, there might be possible tariff increases,” he said.
He maintained that the tariff adjustment implemented in 2025 was necessary to ensure the sustainability of the telecommunications industry after more than a decade without a price review despite rising operating costs.
Toriola also disclosed that MTN invested ₦390 billion in capital expenditure during the first quarter of the year, exceeding its ₦359 billion profit after tax for the same period.
He identified fibre cuts, vandalism, unreliable electricity supply and restricted access to telecom infrastructure as major factors affecting service quality.
“We have more fibre cuts in a day than the whole Kingdom of Saudi Arabia has in a year,” he said.
Responding to calls for sanctions against MTN over recurring xenophobic incidents in South Africa, Toriola said MTN Nigeria is a Nigerian company in ownership and operations, noting that it is listed on the Nigerian Exchange, has only four expatriates in its workforce and has millions of Nigerian shareholders through direct investments and pension funds.
“We unequivocally condemn any form of xenophobia, any form of violence, any form of attacks against any community in the world,” he said.
Telecom
Airtel Africa Foundation Equips 200 Young Women with Digital Skills to Drive Nigeria’s Tech Economy

Airtel Africa Foundation, through Airtel Nigeria and in partnership with the Ishk Tolaram Foundation, Co-Creation Hub (CcHub), and SAIL Innovation Lab, has commenced the DigiLeap Women in Tech Programme, a transformative initiative designed to equip 200 young women from underserved communities in Ikorodu, Lagos, with industry-relevant digital skills and pathways into Nigeria’s rapidly expanding technology sector.

The programme, hosted by the SAIL Innovation Lab Ikorodu, comprises a 12-week immersive learning experience from June to September 2026, designed to prepare participants for careers in Product Design, Software Development, Digital Marketing, and Data Analytics.
Beyond technical training, beneficiaries will receive leadership development, structured mentorship from Airtel Nigeria professionals, and internship opportunities that provide practical workplace experience and exposure to industry best practices.
Commenting on the programme kick-off, Segun Ogunsanya, Chairman of the Airtel Africa Foundation, said empowering young women with digital skills represents one of the most sustainable investments in Africa’s future.
He also noted that the initiative reflects Airtel Africa Foundation’s continued commitment to expanding access to digital education while creating opportunities for young Africans to participate meaningfully in the continent’s digital transformation.
“We encourage every participant to approach this programme with purpose, discipline, and curiosity. The knowledge, networks, and mentorship you gain over the coming weeks have the potential to transform not only your own future but also the lives of your families, communities, and the next generation of girls who will look up to you. This is how lasting impact is created,” Ogunsanya said.
Also speaking on the initiative, Dinesh Balsingh, Chief Executive Officer of Airtel Nigeria, highlights that the initiative aligns with the company’s commitment to building an inclusive digital economy by ensuring more young Nigerians, particularly women, are equipped for the jobs of the future.
Balsingh said, “Nigeria’s digital economy presents enormous opportunities, but participation must be inclusive if we are to realise its full potential. Through the Airtel Africa Foundation, we are intentionally investing in young women because we recognise the immense value they bring to innovation, technology, and economic growth.
“DigiLeap is designed to equip participants with practical, industry-relevant skills that employers are looking for today while also giving them the confidence, mentorship, and professional exposure needed to build successful careers.”
According to the DigiLeap curriculum, participants will engage in intensive classroom instruction, hands-on projects, mentorship sessions, and internship placements designed to bridge the gap between learning and employment.
Airtel Nigeria professionals will serve as mentors, providing career guidance and sharing real-world industry insights to help participants transition successfully into the technology workforce.
The DigiLeap Women in Tech Programme spotlights the Airtel Africa Foundation’s growing investment in digital inclusion and youth empowerment across Africa. By creating pathways for more women to access technology careers, the Foundation continues to contribute to Nigeria’s digital transformation agenda while helping build a diverse pipeline of talent capable of driving innovation, creating businesses, and shaping the future of the country’s digital economy.
Telecom
Xenophobia: MTN Nigeria Belongs to Nigerians, Not Only South Africans — Toriola

Karl Toriola, chief executive officer, MTN Nigeria, has stated that the telecom company is “a Nigerian company through and through,” emphasising that it belongs as much to Nigerians as to its global investors, with over 11 million Nigerians holding indirect stakes through pension funds.

Toriola also defended the federal government’s approval of telecom tariff adjustments, noting that the move helped prevent a financial crisis in the sector and enabled the company to ramp up capital expenditure to about N1 trillion in 2025 to improve network quality.
Speaking during an interview on Arise News, the MTN boss dismissed claims that the company is solely South African, despite its origins.
According to him, MTN Nigeria is incorporated locally, listed on the Nigerian Exchange, pays taxes in Nigeria, and is largely managed by Nigerians.
“We are labelled as a South African company because MTN Group was founded in South Africa. But the reality is that MTN Group has a very diverse global shareholding. Only about 50 percent of the shareholding is African, while the rest is held by investors from North America, Europe, the United Kingdom, the Middle East and Asia-Pacific,” he said.
Speaking further on MTN Nigeria’s identity, Toriola stressed the company’s deep roots in the Nigerian economy.
“MTN Nigeria is a Nigerian company through and through. We are domiciled in Nigeria. We are listed on the Nigerian Exchange. We pay all the taxes, duties and levies expected of us, and we are run by Nigerians.
“I am Nigerian. Apart from one executive, every member of our executive committee is Nigerian, while our entire expatriate workforce in Nigeria is just four people.
“We have over 201,000 retail investors, while about 11 million Nigerians own MTN shares indirectly through pension funds. We are very proud of our Nigerian identity,” he stated.
On the recent telecom tariff adjustment, Toriola said the increase was driven by necessity rather than profit motives, noting that operators were struggling to meet basic financial obligations before the review.
“People perceived the tariff increase as an aspiration for profitability, but the reality was that we were on our knees financially. We couldn’t even pay our month-to-month bills with the revenues we were generating. The tariff adjustment was an absolute necessity. It enabled us to stay alive,” he said.
He added that the improved revenue base has enabled MTN to scale up infrastructure investments to enhance service delivery.
“In the first quarter of this year alone, we spent N390 billion on capital expenditure, compared with a profit after tax of N359 billion. That shows our commitment to improving quality of service,” he said.
Addressing concerns over poor network quality, Toriola attributed the challenges to increasing demand, infrastructure gaps, vandalism, insecurity, and unreliable power supply.
“There are people who deliberately pour petrol into our manholes and set them on fire. A single incident can knock out services for millions of subscribers. We also face security challenges that prevent our engineers from quickly accessing some sites.
“In addition, we operate about 18,000 sites nationwide, each requiring generators, batteries, rectifiers and constant fuelling because of inadequate public electricity supply. All these affect quality of service,” he explained.
While acknowledging that service quality still needs improvement, he assured customers of continued investment.
“We are not perfect, but we are investing aggressively and continuously striving to do better,” he added.
On allegations that telecom operators deliberately deplete customers’ data, Toriola said findings often point to background data usage by smartphone applications.
“There is a perception that MTN goes and takes customers’ data, but our studies have shown repeatedly that background applications are consuming much of that data.
“I encourage customers to check their device settings. Daily automatic backups are unnecessary for many users. If possible, carry out backups over Wi-Fi instead of mobile data,” he advised.
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