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Telecoms Sector Soars, Adds N1.398Trillion to GDP in Q3 2016

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With a contribution of nearly N1.4 Trillion (1.11 percent growth in the real term) to the Gross Domestic Product (GDP) in the third quarter of 2016, the telecommunications sector still remains the toast of the economy.

Reports released on November 21, 2016 by the National Bureau of Statistics (NBS) state that telecommunications contributed N1.398Trillion representing 1.11percent addition to the GDP. Although this figure is slightly lower than the N1.5 trillion recorded in quarter 2 of 2016, the NBS says the figures reflect the signs of the times.

The GDP for Telecommunication as at Q3 of 2016 under Information and Communication contracted 0.95% in Q3 2016 from 1.49% in Q2 2016 and 4.69% in Q3 2015.

The Information and Communication Sector contributed 9.9% to total Nominal GDP in third quarter of 2016, which is the same rate as recorded in the same Quarter of 2015, but lower than the 12.6% it contributed in the preceding quarter.

The sector grew by 1.11% in real terms, year on year in the Q3 of 2016 from the recorded rate in the period of 2015, which was 4.16% point lower and also lower by 0.25% points when compared with the rate recorded in the second quarter of 2016.

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The International Standard Industrial Classification (ISIC Revision 4.0); is the international reference for the classification of productive activities. Its main purpose is to provide a set of activity categories that can be used for the collection and reporting of statistics.

Revisions of the ISIC on the Gross Output is based on the Revenue from telephone, telex, facsimile, telegraph and other income from satellite and internet services.  The Intermediate consumption while Transit fees, operational expenditure, minor repairs and maintenance and other expenses of the telecommunication and information services are recorded in the ISIC Report.

The Gross Domestic Product constant basic prices for information and communication under the Telecommunications and Information Service as at Q1 of 2015 is N1.3Trillion and Q2 of 2015 is N1.5Trillion and Q3 of 2015 is N1.3Trillion and Q4 of 2015 is N1.6Trillion which is a total of N5.9Trillion for the year 2015.

Mobile telephone subscription increased from 149million in Quarter 2 of 2016 to 153million as at September, 2016 (Q3) and teledensity now is 109percent.

There are currently five Mobile Network Operators(MNOs) viz Airtel Nigeria Limited, Etisalat Nigeria, Globacom Nigeria Limited, MTN Nigeria Communications Limited and NATCOM Consortium trading as ntel.

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Fixed/Fixed Wireless Operators include IPNX, 21st Century Nigeria Limited, Glo Wired and MTN Wired in that order who have contributed to the growth of the sector meaningfully.

There is a new entrant, Smile Communications providing Voice Over Internet Protocol services among others.

In general terms, MNOs control about 99 percent market share while 0.2 percent is reserved for other operators.

Internet subscriptions rose from 31.1million in 2012 to 93.6million as at September, 2016 representing about 200% growth rate.

In terms of market shares by GSM operators or (MNOs), MTN controls about 40percent of the market with 60.5million active subscribers base.

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Globacom has 36.9million subscribers while Airtel and Etisalat have 32.7million and 22.5million subscribers respectively.

With anticipated new investments in the areas of broadband Infrastructure in the next few months, the sector which already has about $68Billion total investments so far is likely to add more to the National GDP.


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GSMA Says High Smartphone Costs Threatens Africa’s AI Future

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The GSM Association (GSMA) has urged African governments to reduce taxes and levies on entry-level smartphones as part of efforts to accelerate digital inclusion and ensure millions of Africans are not excluded from the emerging artificial intelligence (AI) revolution.

GSMA Says High Smartphone Costs Threatens Africa’s AI Future

The association warned that about 961 million Africans who are currently covered by mobile broadband networks are not using the services due to affordability challenges, particularly the high cost of smartphones.

The call was made at the Digital Africa Summit, organised by GSMA in partnership with the African Telecommunications Union (ATU), which brought together regulators, policymakers and industry stakeholders to discuss strategies for improving connectivity and driving digital transformation across the continent.

Speaking at the event, Caroline Mbugwa, senior director, Public Policy and Communications, GSMA Africa, said affordable smartphones and reliable connectivity were essential for unlocking the benefits of AI across sectors including healthcare, education, transport and commerce.

Mbugwa noted that while mobile broadband coverage has expanded significantly across Africa, a large number of people remain unable to access digital services because they cannot afford smartphones.

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She stressed that fiscal reforms, particularly the removal of taxes on entry-level devices, were urgently needed to make smartphones more accessible to low-income users.

According to her, South Africa’s decision to remove a nine per cent luxury goods tax on entry-level smartphones helped accelerate adoption of smart devices and reduce dependence on feature phones.

“We are now entering what we call the era of intelligence, and the era of intelligence requires that we have an already existing robust infrastructure, robust connectivity that can support the growth of artificial intelligence on the continent.

“We have a whole 961 million Africans that are covered by mobile broadband services but are not using the service. This is what we refer to as a usage gap. If this remains unaddressed, it means that this number will be left behind when it comes to the adoption of AI.

“This signals that there is demand for adoption of smart devices. Customers are willing to actually use the service. Affordability is the challenge,” she said.

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Also speaking, Michaela Angonius, head of Global Policy and Regulatory Team at GSMA, said African countries must adopt policy reforms that encourage investment, expand connectivity and reduce barriers to digital access.

Angonius, who oversees global regulatory and policy issues covering areas such as fiscal policy, competition and network deployment, cautioned against adopting a one-size-fits-all approach to reforms across the continent.

She said findings from the Digital Africa Index showed that while some countries, including South Africa, had made significant progress, others still needed deeper regulatory reforms to improve their digital ecosystems.

She identified three major areas requiring attention: modernising licensing frameworks, improving the use of Universal Service Fund (USF) resources and adopting smarter approaches to quality of service regulation.

According to her, many African countries still operate technology-specific licensing systems, which do not align with the rapid evolution of digital technologies.

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Angonius advocated for technology-neutral licensing frameworks that would allow different communication providers, including satellite operators, mobile network operators and internet service providers, to operate under the same regulatory principles.

She explained that the growth of satellite services had exposed weaknesses in existing licensing structures, as regulators often struggle to determine how to classify new technologies.

On Universal Service Funds, Angonius said the existence of unused funds in many countries effectively creates an additional tax burden on telecom operators, which eventually increases costs for consumers.

She warned that such additional costs could worsen the digital divide at a time when Africa is already struggling with smartphone affordability and connectivity challenges.

The GSMA executive also called for a review of quality of service regulations, arguing that countries with the best digital service quality are not necessarily those with the most detailed regulatory requirements.

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She said governments should instead focus on policies that encourage investment, expand coverage to underserved communities and improve access for people who remain disconnected.

Angonius further advised finance ministers across Africa to remove levies placed on entry-level smartphones to lower the cost of first-time device ownership.

“Those countries with the best quality of service are not necessarily the countries that have detailed quality of service regulation. Rather, they have focused on how to get the investment right.

“If you have a levy on any handset, firstly, if you can, as a finance minister, remove it. If you can’t, at least remove it from those entry-level handsets that should be affordable for everyday users,” she said.

She added that Nigeria, like other African countries, could benefit from reforms that promote investment, address societal needs and ensure consumers gain long-term value from digital transformation.

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Airtel Africa Backs London Listing

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Airtel Africa has confirmed that the London Stock Exchange is its preferred listing venue for Airtel Money in 2026, as the group looks to unlock value from its fast-growing fintech business.

The highly anticipated listing aims to maximise market opportunities, with analysts reportedly anticipating a valuation of around $10 billion.

The announcement came as the telecoms operator reported strong first-quarter (Q1) results on Thursday, with surging data usage and mobile money transactions driving double-digit revenue growth across its markets.

The group reported revenue of $1.85 billion, up 31% in reported currency and 21.1% in constant currency, underscoring robust demand for digital and financial services.

Mobile money remained a standout performer, reinforcing its role as a key growth engine. Total transaction value reached an annualised $245 billion, up 51.5%, while the customer base grew 23.3% to 56.5 million users.

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“Our focus on deepening financial inclusion through increased customer adoption, broader use cases and a stronger digital payments ecosystem enabled higher usage and facilitated continued average revenue per user growth, reinforcing Airtel Money’s growing role as a trusted digital financial services provider,” the company said.

Sunil Taldar, CEO of Airtel Africa, said the company is leveraging digital platforms, data and artificial intelligence to enhance customer experience and support long-term growth.

“We have started this year with another pleasing performance. Our continued focus on the customer experience translated into accelerating customer base growth across all business segments,” he said.

Taldar said a London listing would provide access to a broader international investor base and support the telco’s ambition to unlock long-term value from one of Africa’s leading fintech platforms.

Data usage per customer rose from 7.8GB to 10.6GB per month, driving a 56.3% increase in network traffic, while smartphone penetration reached 51%, reflecting continued digital adoption.

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Accelerated network investment drove capital expenditure (capex) of US$389 million, up from $121 million in the corresponding period last year.

“Supported by an elevated pace of deployment, we added more than 920 sites during the quarter, our highest first-quarter site rollout, while further expanding our fibre network to 82,100km,” the company said.

Airtel’s cost-efficiency programme supported EBITDA margin resilience, with the margin remaining at 50.1% in Q1.

However, the company warned that higher energy costs linked to geopolitical developments could increase inflationary pressures and weigh on margins in the near term.

Despite this outlook, the operator said its investment programme remains on track, with spending brought forward to support demand and capture growth opportunities linked to Africa’s digital transformation.

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TikTok Removed 4.8 Million Violative Videos in Nigeria in Q1 2026 – Report

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TikTok says it removed more than 4.8 million videos in Nigeria for violating its Community Guidelines during the first quarter of 2026 as part of efforts to create a safer digital environment for users.

The platform disclosed this in its Q1 2026 Community Guidelines Enforcement Report, which highlighted increased investments in artificial intelligence (AI)-powered moderation systems, live-stream safety, content authenticity and AI literacy.

According to the report, the 4.8 million videos removed between January and March represented only 0.6 per cent of all content uploaded by Nigerian users during the period, indicating that the overwhelming majority of content complied with the platform’s rules.

TikTok said 99.8 per cent of the violating videos were removed proactively before being reported by users, while 92.8 per cent were taken down within 24 hours of being posted.

Globally, the platform removed more than 184 million videos during the same period, accounting for only 0.5 per cent of all videos uploaded worldwide.

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TikTok said the figures reflected continued investment in advanced moderation technologies capable of detecting harmful content before it spreads widely across the platform.

The company also reported stronger enforcement measures for TikTok LIVE, saying it suspended 120,000 LIVE sessions in Nigeria for violating its Community Guidelines.

The figure represents an increase of 40,000 suspended LIVE sessions compared with the previous reporting period.

Globally, TikTok recorded more than 58 million LIVE enforcement actions, including the suspension of 50,791,858 LIVE sessions and warnings or demonetisation issued to 21,966,667 LIVE creators for breaching platform policies.

According to TikTok, warning notices provide creators with opportunities to correct policy violations before stronger sanctions are applied.

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The platform attributed part of the success of its enforcement operations to close collaboration with government agencies, including Nigeria’s Office of the National Security Adviser (ONSA), as well as civil society organisations working to promote online safety.

TikTok said it was strengthening efforts to combat the misuse of artificial intelligence for producing misleading or spam content.

According to the report, the platform is testing enhanced detection systems capable of identifying accounts dedicated to publishing AI-generated spam.

Globally, TikTok removed more than 86 million fake accounts during the first quarter of 2026.

In Nigeria, the company disclosed that it removed more than 118,000 pieces of content under its policy governing edited media and AI-generated content (AIGC).

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TikTok said it had also reached a major milestone by labelling more than three billion AI-generated videos globally using a combination of Content Credentials, creator disclosure tools and invisible watermarking technology.

The company said the measures are designed to improve transparency by helping users identify content created or substantially modified using AI technologies.

It reiterated that harmful or misleading AI-generated content remains prohibited under its Community Guidelines.

TikTok also announced a number of initiatives unveiled during the AI for Good Global Summit in Geneva aimed at promoting responsible AI use.

The company said it had joined the Coalition for Content Provenance and Authenticity (C2PA) Steering Committee, where it will collaborate with industry partners to develop standards that improve transparency around AI-generated content.

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To promote responsible AI use, TikTok said it partnered with the National Association for Media Literacy Education (NAMLE) and AI expert Henry Ajder to develop educational resources for users.

As part of the initiative, the platform said it would launch a new in-app AI Literacy Hub for Nigerian users in the coming weeks.

According to TikTok, the hub will provide educational resources to help users identify AI-generated content and better understand how AI tools are being used on the platform.

The company also disclosed that it has committed more than 4 million U.S. dollars to its AI Literacy Fund since the initiative was launched in November 2025.

In Nigeria, TikTok said it continues to work with organisations including the Centre for Journalism Innovation and Development (CJID) and Paradigm Initiative to produce locally relevant AI literacy content.

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According to the company, the partnerships have generated more than 200 million views, reflecting growing public interest in trustworthy AI education.

TikTok said it remained committed to improving transparency through regular publication of its Community Guidelines Enforcement Reports.

The company added that it has redesigned the reports to make them easier for users to navigate while expanding the number of countries for which detailed enforcement data is available.

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