Telecom
Telecoms Boom Leaves Rural Nigeria, Others Behind
While mobile phone usage has exploded across Africa over the last decade, transforming daily life and commerce for millions, it’s a revolution that has left behind perhaps two thirds of its people.
Poor or no reception outside the towns helps explain why the continent’s mobile penetration, in terms of the percentage of the population using the service, is far lower than previously thought, and the cost of providing that service to impoverished, sparsely populated areas remains prohibitive.
According to Reuters, in rural Sierra Leone, a country where GDP per capita is less than US$400 a year, money doesn’t grow on trees, but mobile reception can, says street trader Abass Bangura in Freetown, the West African country’s capital.
In parts of Tonkolili, a district in the centre of the country, or Kailahun to the east, it’s the only way you can get reception, he said.
“You climb stick, like mango tree, before you have network,” he said.
In South Sudan, the world’s newest state, it’s a similar story. Less than a year old, the country already has five mobile operators, and its capital, Juba, is teeming with giant billboards advertising mobile phones, but go just a few kilometres beyond a handful of fast-growing towns, and mobile phones become useless.
Multiple SIM cards help users navigate patchy network coverage and take advantage of price promotions from rival operators.
That is typical of much of the continent.
With a population of just over a billion people, Africa has over 700 million SIM cards, but with most users owning at least two cards, penetration is only about 33 per cent, according to a study released in November by industry research firm Wireless Intelligence.
“If we look at the fact that the rural population of Africa is about 60-70 per cent of the population, and if we look at the degree of penetration into the rural market, it’s very, very low,” said Spiwe Chireka of advisory firm IDC.
In Nigeria, Africa’s most populous country, there are more than enough SIM cards for everyone, but penetration is only 61 per cent, according to a last year study by research firm Informa.
The average mobile phone user in Nigeria owns an average of 2.39 SIM cards. Globally, only Indonesia is higher, with an average of 2.62 SIM cards per user.
Even in Africa’s biggest economy, South Africa, SIM numbers comfortably exceed the population, but given the number of people using multiple devices, actual population penetration is closer to 80 per cent, says market leader Vodacom.
“You’ve got a lot of people buying SIMs, but maybe not enough phones to put it in,” said Olayemi Jinadu, an executive with the Sierra Leone arm of Indian telco Bharti Airtel .
The unserved rural millions could represent another growth opportunity for Africa-focused telcos like South Africa’s MTN Group, Bharti Airtel and Kuwait’s Zain, but first they have to figure out a cost-effective way to push into sub-Saharan Africa’s remote corners.
“There’s great potential, but the big concern for us is operational costs,” said Andre Claasson, chief operating officer at Zain South Sudan.
In rural Africa, the cost of running a network tower often exceeds the revenue it reaps. Fuel is typically about 40 per cent of a tower’s operating cost, and in remote areas companies burn more diesel by bringing fuel to towers than is used powering them.
Although roughly 73 per cent of Africa’s land has mobile phone coverage, according to market research firm IDC, that still leaves vast tracts of rural Africa without network access.
Africa has 170,000 mobile towers now and needs another 60,000, according to tower company IHS Group, which at an average $200,000 each means an outlay of $12 billion.
“If you are an operator asked to spend $200,000 to build a site and another $2,000 a month to run it in an area with 500 people herding cows, it doesn’t make sense,” said Issam Darwish, IHS’s chief executive.
Average revenue per user is also low. It can vary between $1 and $10 per month, much lower than in developed markets such as the United States, which delivered ARPU of $51 last year or Britain, $27.
Bharti, sub-Saharan Africa’s third-largest telecom group, says it makes $6.40 per user in Africa, which is higher than its home Indian market, where it makes only $3.30 a month, but the cost of operating in Africa is much higher and there isn’t a comparable middle class ready and able to spend more.
“You either have a handful of people in the affluent part of the society or you have lots of people who can’t afford the services,” its chairman, Sunil Mittal, said last year.
Operators can save money by sharing towers, but even then, some sites will never make sense without government subsidies, analysts say.
African expansion has not been cheap for telcos. Over the past five years, mobile operators have spent a combined US$16.5 billion on capital expenditure in the key markets of South Africa, Nigeria, Kenya, Senegal and Ghana, according to Wireless Intelligence.
Bharti has earmarked US$1.5 billion for capex this year, while fourth-placed France Telecom is spending US$9.3 billion between 2010 and 2015.
Spare cash is increasingly rare for debt-strapped European telecoms operators, which are cutting their dividends to cope with falling revenues and network upgrade costs in their home markets.
Some African regulators have set up funds to promote coverage, to which operators are expected to contribute.
In Sierra Leone, the Universal Access Development Fund (UADF) is yet to subsidise the cost of putting up a single mast, though it has been active for several years. The regulator complains networks do not contribute the fees they should.
“If we can’t subsidise, they’ll never erect towers there,” said Bashir Kamara, Project Manager at UADF.
National Information Technology Development Agency (NITDA) has reiterated the Federal Government’s commitment to leveraging innovation, digital skills, and emerging technologies to accelerate Nigeria’s transition into a globally competitive digital economy.
NITDA
This commitment was reaffirmed at the Port Harcourt Tech Expo 2026, held at the EUI Centre, Port Harcourt, Rivers State, where NITDA participated as a key stakeholder in discussions aimed at advancing technology-driven economic growth and innovation across Nigeria.
Dr. Kashifu Inuwa Abdullahi, CCIE, Director-General/Chief Executive Officer of NITDA, who is represented by the Director of Stakeholder Management and Partnerships, Dr. Aristotle Onumo, delivered the Opening Keynote Address at the two-day event themed “Syntropy: Collective Futures – Systems, Solutions, Synergy and Societies.”
Addressing policymakers, technology leaders, startup founders, investors, academics, development partners, and young innovators, Kashifu emphasized that the future of Nigeria’s prosperity would increasingly be determined by its ability to harness technology, innovation, and human capital rather than reliance on natural resources.
According to him, the global digital economy presents unprecedented opportunities for Africa and Nigeria to create jobs, attract investments, and improve productivity through emerging technologies such as Artificial Intelligence (AI), data analytics, cloud computing, cybersecurity, and digital platforms.
“The future is not something we inherit; it is something we build. Nigeria’s greatest resource is not oil but its people. Our ability to develop digital talent, foster innovation, and create enabling ecosystems will determine our competitiveness in the digital age,” he stated.
He noted that AI and digital technologies are rapidly transforming industries across the world and urged stakeholders to embrace innovation as a catalyst for economic diversification and sustainable development.
He further highlighted NITDA’s ongoing implementation of the Strategic Roadmap and Action Plan (SRAP 2.0), which focuses on digital literacy, emerging technologies, innovation, cybersecurity, digital infrastructure, and inclusive economic growth.
The keynote also underscored the need for stronger collaboration among government, industry, academia, development partners, and the startup ecosystem to unlock the immense potential of Nigeria’s youthful population.
The Port Harcourt Tech Expo brought together a broad spectrum of stakeholders to deliberate on issues relating to Artificial Intelligence, startup development, digital skills, innovation financing, technology adoption, entrepreneurship, and ecosystem growth.
Participants explored opportunities for positioning the Niger Delta as a major hub for technology, innovation, and digital entrepreneurship while discussing strategies for addressing challenges related to skills development, startup financing, infrastructure, and technology commercialization.
During the event, NITDA engaged with technology companies, startups, innovation hubs, academic institutions, and development partners on potential areas of collaboration aimed at advancing digital inclusion and innovation-led development.
The Agency also used the platform to amplify the several of its flagship initiatives, including the Digital Literacy for All (DL4ALL) programme, the National Centre for Artificial Intelligence and Robotics (NCAIR), and programmes under the Office for Nigerian Digital Innovation (ONDI).
Observers at the event commended NITDA’s leadership in driving Nigeria’s digital transformation agenda and noted the growing impact of the Agency’s interventions in supporting startups, promoting digital literacy, and strengthening the country’s innovation ecosystem.
The Expo concluded with a renewed commitment by stakeholders to deepen collaboration, support innovation, and create opportunities for young Nigerians to participate actively in the digital economy.
As Nigeria continues its digital transformation journey, NITDA reaffirmed its commitment to fostering partnerships, developing talent, enabling innovation, and creating a technology-driven economy that delivers sustainable prosperity for all citizens.
Mr Khalil Suleiman Halilu, executive vice chairman and chief executive officer of the National Agency for Science and Engineering Infrastructure (NASENI), has reaffirmed the Agency’s commitment to strengthening Nigeria’s healthcare sovereignty through local manufacturing of medical diagnostic technologies.
L-R: CEO/Co-Founder, NASENI-Troment Biotechnologies Limited, Dr. Selim Hani; Team Lead, Science of Defeating Malaria initiative, Professor Dyann F. Wirth; EVC/CEO of NASENI, Khalil Suleiman Halilu; and Dr. Sami Hani, Board Member, NASENI-Troment Biotecnnologies during the dinner organized for the delegates of the initiative in Abuja at the weekend.
Halilu made the remark while hosting participants of the Harvard University-led Science of Defeating Malaria programme at a closing dinner in Abuja at the weekend, following their visit to the NASENI-TROMENT Biotechnologies Factory, where they commended the facility’s role in advancing disease control and healthcare innovation in Africa.
The delegation, led by Professor Dyann F. Wirth of Harvard University and comprising about 85 global health professionals, scientists and policymakers, toured the state-of-the-art facility and described it as a significant step towards combating malaria and other infectious diseases across the continent.
Speaking at the dinner, Halilu noted that the commendation further validated the vision behind the NASENI-TROMENT Biotechnologies Factory, a strategic project initiated 18 months ago to reduce Nigeria’s dependence on imported diagnostic kits and strengthen local healthcare manufacturing capacity.
He explained that the facility is designed to produce up to 600 million diagnostic kits annually, enough to meet about 80 per cent of Nigeria’s diagnostic testing needs while creating opportunities for export to other African countries and global markets.
The factory manufactures rapid diagnostic tests (RDTs) and in-vitro diagnostic (IVD) products under the N-CheckUP brand for diseases and conditions including malaria, hepatitis B and C, HIV, typhoid, syphilis, COVID-19, pregnancy and blood glucose monitoring.
According to Halilu, the project aligns with NASENI’s broader mandate of deploying science, technology and innovation to address national challenges, create jobs and build industrial capacity.
He expressed appreciation to Professor Wirth and members of the Harvard delegation for their recognition of the progress made at the facility and reaffirmed NASENI’s commitment to developing innovative solutions that improve lives and position Nigeria as a leading healthcare manufacturing hub in Africa.
The Science of Defeating Malaria programme, which was held in Abuja from June 7 to 13, brought together global experts committed to advancing strategies for malaria elimination and strengthening public health systems worldwide.
National Information Technology Development Agency (NITDA) has entered into a strategic partnership with the Development Agenda for Western Nigeria (DAWN) Commission through the signing of a Memorandum of Understanding (MoU) aimed at accelerating digital literacy, innovation development, and economic growth across Southwest Nigeria.
Director General NITDA, Kashifu Inuwa CCIE, Director General DAWN Commission Dr Seye Oyeleye alongside representatives of both organisations, display signed copies of the Memorandum of Understanding (MoU) upon its signing at NITDA Headquarters, Abuja.
Speaking at the signing ceremony in Abuja, NITDA Director General, Kashifu Inuwa, described the agreement as a significant step toward leveraging human capital and fostering regional collaboration to drive sustainable national development.
He commended the Southwest region for its longstanding culture of cooperation, noting that collective action remains essential for national progress.
“The Southwest continues to inspire when it comes to collaboration because no one succeeds in isolation. Other regions can learn from this model of cooperation.
“For Nigeria to grow, we must understand our strengths at both the state and regional levels and build on them,” he said.
Inuwa emphasised that Nigeria’s greatest resource is its people, stressing that investments in digital skills, innovation, and technology are critical to creating prosperity and expanding economic opportunities.
According to him, the partnership will facilitate knowledge exchange, capacity building, and innovation-driven initiatives capable of empowering citizens to develop local solutions with national and global impact.
Highlighting NITDA’s ongoing efforts to deepen digital transformation nationwide, he said the Agency is scaling digital literacy programmes, supporting innovation hubs, and promoting technology development across the country.
He noted that innovation flourishes where talent, infrastructure, and supportive policies intersect, making it important for every region to identify and strengthen its comparative advantages.
“Lagos has already established itself as a fintech hub and the commercial centre of the country. Abuja is emerging as a GovTech cluster, while other regions can develop specialised ecosystems around manufacturing, commerce, and other sectors.
“Every region possesses unique strengths that can be transformed into thriving innovation clusters,” he stated.
The NITDA boss expressed optimism that the collaboration would accelerate the implementation of the Agency’s strategic initiatives throughout the Southwest.
He added that both organisations had already begun working together prior to the formalisation of the agreement and called for swift action following the signing.
“We are excited about this partnership and look forward to translating our shared vision into tangible outcomes. While engagements have already commenced, I would like to see even greater momentum after the signing of this MoU,” he added.
In his remarks, the Director General of the DAWN Commission, Seye Oyeleye, highlighted the importance of digital literacy in preparing citizens for future opportunities and ensuring meaningful participation in the digital economy.
He noted that the Commission, which coordinates development initiatives across Ekiti, Lagos, Ogun, Ondo, Osun, and Oyo States, views the partnership as a strategic vehicle for advancing Nigeria’s digital transformation agenda.
Oyeleye highlighted Nigeria’s target of equipping 100 million citizens with digital skills by 2030 through the Digital Literacy for All Initiative, stressing that the Southwest has a pivotal role to play in achieving the national objective.
“Nigeria has committed to equipping 100 million citizens with digital skills by 2030. Southwest Nigeria is not merely a contributor to that vision; it is central to its success,” he said.
He explained that the MoU formalises a shared commitment to ensuring the effective implementation of NITDA’s programmes, particularly the National Digital Literacy Framework, across the region.
He added that the Commission would leverage its extensive network and partnerships across the six Southwest states to bridge federal digital initiatives with local communities, institutions, and young people.
“We will work to ensure that NITDA’s frameworks are not only implemented but strengthened. Our reach across the Southwest positions us to connect federal digital infrastructure and programmes with communities and young people who require the skills needed to thrive in the digital economy,” he stated.
Oyeleye further assured NITDA of the Commission’s commitment to delivering measurable results throughout the five-year duration of the agreement, noting that the true value of development institutions lies in the impact they create rather than the agreements they sign.
The MoU reflects the shared determination of both organisations to advance digital literacy, strengthen innovation ecosystems, and create sustainable economic opportunities for citizens across Southwest Nigeria, further supporting the country’s journey toward a robust and inclusive digital economy.
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