Telecom
The Risks of Compliance Amidst Citizen Agitation: The MTN Nigeria Example
By Dr. Ajibola Obafemi
Compliance is often touted as a virtue in business and governance, implying a willingness to adhere to rules and regulations. However, in times of citizen agitation and social unrest, compliance can become a double-edged sword. On one hand, it demonstrates a commitment to upholding the law and respecting authority.
Dr. Ajibola Obafemi
On the other hand, it can be perceived as complicity with a government that citizens are agitating against, hence the compliant company is perceived as an enemy of the people. The recent experience of MTN Nigeria, which suffered social media and physical attacks merely for complying with the regulator’s directive, serves as a stark illustration of this dilemma.
Citizen agitation in Nigeria has been simmering for years, with growing discontent over the government’s handling of various issues, including economic stagnation, insecurity, and corruption. The latest expression of this frustration is the planned August 1 protest, which has been gaining momentum on social media. The basis of the proposed protest is a demand for better governance, which includes bringing down the cost of living with inflation at 34.2%, ending corruption, hunger and highhandedness of the security agencies.
One challenge of the government regarding the call for protest is that it does not know whom the organisers are. Perhaps, this is a good strategy for the organisers, as the government cannot be trusted to not arrest them. The government’s response to the protesters has been characteristically un-empathetic, with officials dismissing their concerns and warning against any form of unrest. This approach has only served to fuel the anger and frustration of the protesters, who feel that their voices are not being heard.
Social media has played a significant role in driving the conversation around the planned protest, with various hashtags trending on Twitter and other platforms. The online campaign has helped to galvanize support for the protest, with many Nigerians expressing their discontent with the government’s handling of various issues. The government has not stayed silent, as its spokespersons and advocates have also been speaking on social media, but they do not seem to be connecting with the agitators online as their approach is largely to use fear-mongering, threats and misinformation. For example, a top functionary of the Tinubu government, Bayo Onanuga, accused Peter Obi, former presidential candidate of the Labour Party, of spearheading the protest in expression of anger over losing the 2023 election. Such blatant attempts to mislead the public have only fueled the protest.
Suffice it to say that the recent wave of protests across Africa, including the violent clashes in Kenya and other parts of the continent, has emboldened Nigerians to demand change through similar means. The successes and challenges faced by these movements have served as a catalyst, inspiring Nigerians to take to the streets and demand better governance. However, this trend has sent jitters down the spines of Nigerian authorities, who fear a repeat of the violence that followed the EndSARS protests in 2020.
Businesses in Nigeria are caught in the web of the civil agitation in the country. According to the World Bank, “In times of social unrest, businesses are often caught in the crossfire, facing risks to their operations, employees, and assets.” MTN witnessed this but in a different form. While Nigerians agitated for good governance, the telcos, including MTN Nigeria, were bothered about a deadline from the Nigerian Communications Commission (NCC) to disconnect all SIMs not linked to NIN by the 31st of July. On July 27 to July 28, the company disconnected millions of unlinked lines, in compliance with the regulator’s directive. This action nearly devastated the company, triggering a swarm of unimaginable issues.
The backlash was swift and brutal. Protesters took to Twitter to express their outrage, with some suggesting that MTN had collaborated with the government to disrupt the protest. Omoyele Sowore, a former Presidential Candidate of the African Action Congress (AAC) and lifelong activist, even suggested that the protest would commence at MTN offices, implying that the company was complicit in the government’s plans to sabotage the planned protest. The next day, MTN offices were besieged by angry protesters, with the Festac office being destroyed and looted.
While it seemed like it might have been cataclysmic for the company, the Association of Licenced Telecom Operators of Nigeria (ALTON) and the Nigerian Communications Commission (NCC) came to the rescue, clarifying that MTN was only complying with an industry-wide directive and that the action of the company had nothing to do with the planned protest. To ease off the tension, the NCC mandated telcos to unblock lines that were blocked during the period, allowing for a de-escalation of the tension.
Critical questions come to mind on what MTN could have done differently in the circumstance. Could it have decided not to comply with the regulator’s directive? Perhaps. But this would only strain the relationship with the regulator, with the risk of a fine. It should be added that the company was once fined $5.2 billion for failing to disconnect millions of unregistered lines in the past. In light of this, can anyone blame the company for striving to be compliant, as it has been in recent years, winning the award for Most Compliant Listed company in Nigeria year after year?
While it is not abnormal to have businesses suffer attacks during civil unrest in Nigeria, as witnessed during the EndSars protest where many businesses were either vandalized or burnt, the subject of compliance amid civil agitation is a new perspective which has not received sufficient attention by scholars and commentators. This is a gap which needs to be filled in the field of regulatory compliance. The ball is now in the court of the scholars to interrogate the issues for corporates to take learnings. The business community has too much at stake for such a gap to exist.
The recent attack on MTN Nigeria, a company which is vital to Nigeria’s social, digital and economic life, shows that the Nigerian society needs a lot of conscientization of the people with regards to corporate issues. It appears that the Nigerian is angry against big businesses, hence they are quick to respond violently, unmindful of the overarching consequences even on themselves and their country. If MTN Nigeria were not a firmly rooted company in Nigeria, the social media attacks launched against the company could have crippled it. Nigeria needs more ‘MTNs,’ to raise its revenue generation, support the economy and ultimately improve the lives of the average Nigerian.
In the midst of civil unrest, regulatory compliance can be a delicate balancing act. To minimize risk, regulators and companies must prioritize clear communication and empathy. In the case of the SIM-NIN linking deadline, the regulator could have considered postponing the deadline to diffuse tension and avoid exacerbating the situation. This would have allowed MTN and other telcos to comply with the directive without inadvertently fueling the flames of protest. Additionally, the regulator could have proactively clarified the reasons behind the directive, addressing concerns and misconceptions before they escalated into widespread outrage.
As a market leader, MTN Nigeria is becoming synonymous with the sector, and hence suffers attacks when there are sectoral issues. These isolated attacks on the company work in favor of competing telcos, raising the question of whether there are forces fueling the attacks against the company. Whenever there is a general network downtime in the country, such as on the commencement day of the hunger protest, MTN is singled out for heavy backlash, even when other telcos experience similar issues. While the social media attacks on August 1st were not a case of compliance by the telcos, it is pertinent for the public to realise that the digital industry is bound to occasionally encounter network challenges, even as the government may even be complicit in sabotaging networks to suppress the public. The telecom operators, such as MTN, Glo, and Airtel, are always at these crossroads as critical and strategic entities in the fabric of the country.
In conclusion, the recent SIM-NIN linking debacle serves as a cautionary tale for regulators and companies operating in tumultuous environments. By prioritizing empathy, clear communication, and strategic timing, they can minimize risk and avoid becoming entangled in the web of civil unrest. As Nigeria navigates its current challenges, regulators and companies must learn from this experience, recognizing that compliance and sensitivity are not mutually exclusive, but rather complementary aspects of responsible business practice.
Dr. Ajibola Obafemi is a Political Science Lecturer at the National Open University of Nigeria (NOUN) and the Head Researcher at QL Intelligence.
Competition and Consumer Protection Tribunal has upheld a $220 million fine imposed by the Federal Competition and Consumer Protection Commission (FCCPC) on Meta Platforms Inc. and WhatsApp LLC for data privacy violations in Nigeria.
The Tribunal also awarded $35,000 in investigative costs to the country’s Federal Competition and Consumer Protection Commission .
In a statement issued by the FCCPC, the Tribunal delivered its judgment in the appeal filed by Meta Platforms Incorporated (Facebook) and WhatsApp LLC against the Federal Competition and Consumer Protection Commission (FCCPC), affirming the Commission’s authority and ruling in favour of its actions on nearly all contested issues.
According to the statement by the FCCPC, “The Tribunal specifically determined that the Commission adhered to prevailing laws, fulfilled its mandate, and exercised its powers by the 1999 Constitution (as amended).
“It ruled that the multiple actions by WhatsApp and Meta, for which the Commission made findings of violations, were correctly identified, and that the Commission did not err in making those findings.”
The statement revealed that WhatsApp and Meta’s legal team was led by Professor Gbolahan Elias (SAN), while the FCCPC was represented by Babatunde Irukera.
It added that both legal teams presented their final arguments on behalf of their respective clients on January 28, 2025.
“The FCCPC had on July on July 19, 2024, issued a Final Order imposing a $220 million administrative penalty after concluding that the companies engaged in discriminatory and exploitative practices against Nigerian consumers, the investigation started in 2020.
“The case arose from a 38-month joint investigation initiated by the FCCPC and the Nigeria Data Protection Commission (NDPC) into the conduct, privacy practices, and consumer data policies of Meta Platforms and WhatsApp.
“Dissatisfied with the Order last year, Meta and WhatsApp appealed to the Tribunal, challenging both the legal basis and the findings of the Commission,” FCCPC said.
The Tribunal upheld the FCCPC’s authority and investigative procedures in Meta and WhatsApp’s appeal, resolving most of the contested issues in the Commission’s favour.
It confirmed that the FCCPC acted within its constitutional and statutory mandate, particularly regarding fair hearing, data protection, and consumer rights.
While it dismissed the majority of the appellants’ objections, it set aside one specific order (Order 7) for lacking sufficient legal basis.
While expressing satisfaction with the judgment, Tunji Bello, executive vice chairman/CEO, commended the Commission’s legal team for their exceptional diligence and forensic expertise in assembling evidence and presenting their case.
He reaffirmed the FCCPC’s unwavering commitment not only to protecting the rights of Nigerian consumers but also to promoting fair business practices in line with the FCCPA (2018) and the Renewed Hope Agenda of the Nigerian government.
Nigerian Exchange Limited (NGX), has made history with the listing of Legend Internet Service Plc as the first company in its Telecoms sector and the first company to be listed this year.
Legend’s N2 billion ordinary shares, with a par value of 50 kobo each, were listed at N5.64 per share.
Dr Umaru Kwairanga, chairman of NGX Group, who welcomed Legend’s board and management, commended the company for its successful listing on the Exchange
He highlighted that listing signifies an elevated commitment to corporate governance and provides opportunities to leverage the Exchange’s diverse asset classes for capital raising.
He stated, “As we celebrate this listing, with many more in the pipeline, I commend the management of Legend Internet Plc for this remarkable milestone.
“This bold step demonstrates confidence in your business model and growth vision.
It also marks the formal emergence of a broadband service as a distinct sub-sector on our Exchange.
Legend has evolved from a focused digital network provider to a diversified technology player, achieving significant advancements in broadband infrastructure development and data services.
We anticipate continued growth in the future.
“We are still bringing many companies on board the NGX, including Dangote, NNPC and others.
“As Africa’s leading exchange, NGX has consistently championed innovation, transparency and sustainable value creation through our investment in cutting-edge infrastructure and a comprehensive range of product offerings, spanning equities, bonds, ETFs and derivatives
Speaking at the Facts Behind the Listing Ceremony, Dr Ladi Bada, chairman, Legend emphasised that the company, as the first indigenous telecommunications company on NGX, has substantial value to offer the market.
Bada encouraged Nigerians to embrace the broadband industry, recognizing it as the fastest-growing sector globally.
He noted that the company had been instrumental in laying fiber optic cables connecting 250 homes in the Suleja and Abuja environs.
He expressed optimism that the Exchange would serve as a catalyst to replicate such commendable projects across other regions of Nigeria.
“We are here to create an enabling digital infrastructure to achieve the projected one-trillion dollar economy.
“On this special day, Legend Internet takes a bold step forward, not just for itself, but for the broader ecosystem of technology, infrastructure, and enterprise in Nigeria.
“As we begin this exciting new chapter as a publicly listed company, we do so with humility and boldness.
We remain committed to continuous innovation, expanding our reach, and delivering value to shareholders and society
“A listing on the Nigerian Exchange is more than a financial event. It is a signal and a declaration that a business is ready to be held to the highest standards of governance, performance, and public trust,” he said
Providing insights into the company’s development, Ms Aisha Abdulaziz, chief executive officer of Legend Internet Plc, stated that the company had evolved from an internet service provider to a comprehensive digital service provider.
Abdulaziz noted that with broadband penetration in Nigeria being less than one per cent, Legend Internet was strategically positioned to deepen access
She affirmed the company’s commitment to taking Nigeria’s digital economy to the next level
“When we started Legend, we weren’t just building an internet company; we were building a movement
A movement fueled by the belief that every Nigerian deserves access to premium, reliable, and high-speed internet, regardless of their location or occupation
“From late nights in our first office to laying fiber across Abuja, to launching products that made people’s lives easier and faster, our journey has always been about connections
“Connecting people to opportunities, connecting homes to entertainment, connecting Nigeria to the digital future it deserves. Our journey has always been about a better way to live.
“This listing is a symbol of our commitment to transparency, sustainable growth, and the kind of excellence that outlives hype.
“Legend’s primary focus now is on unlocking digital value at the household level,” she said.
Mr Jude Chiemeka, chief executive officer of NGX, congratulated the company for making the strategic decision to list.
Mr Chiemeka noted that Legend’s listing on NGX now brings the total number of listed securities to 322
Also, Mr Temi Popoola, chief executive officer of the Nigerian Exchange Group, encouraged the investing public to support the newly listed company.
Digital Realty, the leading global provider of cloud- and carrier-neutral data center, colocation, and interconnection solutions, announced today the expansion of its interconnection platform, ServiceFabric®, to Nigeria.
The platform will be natively deployed at Digital Realty’s LOS1 and LOS2 facilities in Lagos, ensuring low-latency, high-performance connectivity for enterprises in the region and beyond.
This strategic expansion reinforces Digital Realty’s commitment to enabling seamless global interconnectivity for businesses, providing enterprise customers in Nigeria with the ability to connect whenever, wherever, and to whoever they need to.
The presence of ServiceFabric® in Lagos will support the growing demand for hybrid IT and multi-cloud connectivity, empowering businesses with a secure, software-defined interconnection platform.
As part of Digital Realty’s broader vision to support digital transformation across Africa, this deployment is a significant step in an ongoing ServiceFabric® expansion across the continent. Future rollouts are planned to bring additional access points across Africa, enabling enterprises to interconnect with partners, clouds, and networks seamlessly.
The timing of this deployment aligns with a surge in digital activity across Africa. The continent’s digital transformation market is projected to grow from approximately USD 23 billion in 2024 to USD 46 billion by 2029, at a compound annual growth rate (CAGR) of 15% , underscoring the accelerating demand for advanced connectivity solutions.
In Nigeria specifically, national initiatives such as the 3 Million Technical Talent (3MTT) program and the Broadband Alliance reflect strong government support for enhancing digital skills and infrastructure – further highlighting the country’s critical role in Africa’s digital future.
“The launch of ServiceFabric® in Nigeria marks a significant milestone in our mission to build a truly globally connected digital economy,” said Chris Sharp, Chief Technology Officer, Digital Realty. “By deploying ServiceFabric® natively in our Lagos facilities, we are ensuring businesses in Nigeria have access to the same best-in-class interconnection capabilities as enterprises in major digital hubs around the world.”
Explaining further, Engineer Ikechukwu Nnamani, Managing Director, Digital Realty Nigeria, stated the launch of ServiceFabric® in Nigeria is a direct response to the call by the Federal Government towards availability of global infrastructure in the country thereby enhancing localization of content and bringing global platforms into the Nigerian ICT ecosystem.
By a direct connectivity into the Internet Exchange Point of Nigeria (IXPN), the IXPN will be able to peer with other global exchanges thereby enhancing the quality of service delivery to Nigerian companies and service providers.
ServiceFabric® is already available natively in more than 160 Digital Realty facilities and over 500 third-party facilities through strategic partnerships, including with Megaport and the recent collaboration with Console Connect. These partnerships help extend the reach of the platform, providing enterprises with a truly global, interconnected ecosystem.
ServiceFabric® is a next-generation interconnection solution designed to simplify and streamline connectivity between enterprises, cloud providers, and network partners. With integration points to Digital Realty’s Private AI Exchange (AIPx), it also paves the way for secure and efficient AI workload connectivity, further future-proofing enterprise infrastructure.
Key benefits include:
- Seamless multi-cloud connectivity – direct, secure access to major cloud providers with access to more than 280 cloud on-ramps globally, ensuring optimized performance and security.
- Global reach, local performance – enterprises in Nigeria can connect with business partners and digital services across PlatformDIGITAL®, Digital Realty’s global data center platform consisting of 300+ facilities across 50+ cities in 25+ countries.
- Scalability & flexibility – businesses can scale their interconnection needs on demand, adapting to changing IT and network requirements.
- Enhanced security & reliability – a private, software-defined platform that reduces exposure to public internet risks and improves network resiliency.
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