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The Structures, Roles of Operators in the Nigerian Telecoms Sector

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By Olajide Adisa

Since Independence in 1960, the telecoms sector has impacted on the Nigerian economy in several positive ways, creating jobs and contributing to the Gross Domestic Product (GDP) of the Nigerian economy.

Before Nigeria gained independence in 1960, communication was mainly through the telegraphic wire, initiated by the colonial masters, but after independence in 1960, the Nigeria Telecommunications Limited (NITEL), was established in 1985, following the separation of postal services from telecommunications services. At that time, telecommunication was the exclusive right of the affluent in the society as only few people had access to telephony. People had to queue for hours and days, just to make international calls and sometimes local calls with the 090 NITEL line.

During that period, the existing Telecom operators were NITEL and a few other Code Division Multiple Access (CDMA) operators. However, the advent of GSM in 2001 eventually demystified telecommunications, and gave every Nigerian the access and right to communicate. The introduction of GSM in 2001, increased the number of registered lines from less than 400,000 in 41 years of independence, to over one million lines in less than one year after the introduction of GSM.

After 2001, more and more Nigerians could sit at the comfort of their homes and offices to make instant calls within and outside Nigeria, through their personal hand-held devices called the mobile phones. Banking activities are now transacted on the mobile phones, without the bank customer visiting the banks. The most eventful period was between 2001 and 2015, when the telecoms sector was deregulated.

The Structures

In preparation for the proper regulation of the telecoms sector, the Nigerian Communications Commission (NCC), the telecoms industry regulator was established by an Act of law in 2000, and in 2003, the Nigeria Telecommunications Act was enacted, which defined the structures of the Nigerian telecoms sector.

In 2001, the first set of GSM operators were licensed by NCC. They included Econet Wireless (now Airtel), MTN and NITEL. In 2003, Globacom was licensed and in 2008, Etisalat, now 9mobile, was licensed, while NTEL, the mobile arm of NITEL was licensed in 2014, but rolled out services in 2016, after the successful privatisation process, through a guided liquidation exercise.

However, following the inability of NITEL to cope with competition from GSM operators, it folded up its operations and was eventually sold to NATCOM in 2014, and later re-sold to private investor after it was unbundled and it currently trades as Ntel, under a private ownership and with the Asset Management Corporation of Nigeria as a majority shareholder.

Core Telcos

The core telecom operators (Telcos), such as MTN, Airtel, Globacom and 9mobile were initially licensed by NCC to provide mobile voice services. The NCC however licensed Globacom as a Second National Operator (SNO) to offer fixed (landline), in addition to wired and wireless (mobile) services that other core operators were offering. NCC also licensed Internet Service Providers (ISPs) to offer internet data services, but in 2005, NCC deregulated the telecoms sector and granted a five year exclusivity period to GSM operators and also extended their license to cover data service offering.

The core telecoms operators had to roll out their own telecoms infrastructure to aid network expansion across the country.

Chairman, Association of Licensed Telecoms Operators of Nigeria (ALTON), Engineer Gbenga Adebayo, said the core telcos had to reinvest their profits into telecoms infrastructure rollout because the federal government could not deploy the $285 million licence fee paid by each core operators for telecoms infrastructure rollout as early promised.

“To achieve effective network coverage, the core telcos were in building Base Transceiver Station (BTS) and connecting radio links, while at the same time, laying fibre optic cables and connecting them to BTS for effective coverage, which come at a huge cost and burden to telecoms operators. Again, the cost of maintaining BTS was on the high side, because each BTS runs on two generating sets on a 24 hours basis and the cost of diesel has continued to increase, even more so with the recent removal of fuel subsidy by the federal government, Adebayo said. He however said at a point, the core telcos had to outsource the building of telecoms masts (BTS) and the maintenance and operations to core infrastructure companies like IHS, to enable the core telecoms operators to focus on their core area of telecoms service delivery to telecoms subscribers.

Infrastructure Companies (InfraCos)

Infrastructure Companies like IHS, MainOne, Pan African Towers, SWAP Technologies, Zinox Technologies, Broadbased Communications, Brinks Integrated Solutions, O’dua Infraco Resources among others, were initially licensed as InfraCos to provide telecoms infrastructure across the six geo-political zones in the country, but the arrangement failed years later because of the difficulties most of the licensed faced in deploying telecoms infrastructure across the various regions.

The InfraCos were supposed to provide BTS also known as Base Stations, as well as fibre optic cables and radio links for the transmission of voice and data services, but they were resisted by agencies of state governments and social miscreants who demanded and to a large extent continue to demand outrageous amounts of money from them as condition for rollout of telecoms infrastructure in the various regions. Some agencies of state governments either refused to grant Right of way (RoW) permit for infrastructure rollout, or arbitrarily hiked the charges for RoW in their states, thus making it difficult for InfraCos to roll out telecoms infrastructure in most states. The situation forced some InfraCos like IHS and MainOne to return their InfraCo licence to the NCC, after paying N2.5 million for a ten-year InfraCo licence.

Some operators were licensed to deploy telecoms masts across the country, maintain the operations of telecoms masts and allow telecoms operators to collocate by fixing their radio links and antennae on the installed telecoms masts. Operators involved in providing telecoms masts include: IHS, American Towers Company (ATC), Pan African Towers, Coloplus Limited, among others.

Telecom mast providers are faced with a myriad of challenges in deploying telecoms masts across the country, a development that affects the quality of telecoms service delivery across networks. Multiple taxation, foreign exchange rate volatility and availability, vandalism, insecurity, asset theft, intra-industry indebtedness, non-designation of telecommunications infrastructure as Critical National Infrastructure and power solutions are some of the problems facing the industry sub-sector.

All these issues culminate in having an adverse impact on communications because the quality of service is ultimately affected. With a gap of approximately 40,000 towers needed (without 5G) to cover the country as has repeatedly been said by NCC, these issues need to be addressed not only to improve the quality of current service delivery but also to provide network coverage for the rest of the country.

The building of towers in close proximity to already existing towers must also be addressed if national coverage is to be achieved within a reasonable time. The network must expand to currently unserved parts of the country.

CEO of Coloplus Limited, Mr. Mike Ofili, admitted to the huge challenges faced in deploying telecom masts across the country.

According to Ofili, the telecoms mast providers must have the buying and consent of telecoms operators, before investing in a single telecoms mast (Tower), which he said, cost between N35 million to N40 million, depending on the location.

Speaking on some of the challenges in deploying telecoms masts, Ofili said: “Nigeria imports virtually everything that has to do with telecoms’ tower equipment and installation. We import the towers, generating sets, batteries, rectifiers, including iron/rod used for reinforcement. The rising cost of dollar and the weak value of the naira against the dollar, coupled with the inability to access Forex, have affected importation of equipment, thus slowed down network expansion, leading to poor telecoms’ service delivery. The issue of multiple regulation and multiple taxes imposed on telecoms’ operators by agents of governments, are also affecting the deployment of telecoms masts, which telecoms operators rely on to provide quality service to subscribers,” Ofili said.

According to him, with multiple regulations from state agencies, telcos are forced to pay for Environmental Impact Assessment fee, Right of Way (RoW) charges, mast installation charges, radioactive emission charges, among other charges that amount to multiple taxes.

“Cost of maintaining BTS is also very expensive. Nigeria has about 30,000 BTS installed across the country, with some decommissioned while about 30,000 BTS are still active, with high cost of maintenance. The cost of diesel to power a BTS is on the increase and the financial demand from non-state actors who parade themselves as social miscreants, is becoming rampant and impacting negatively on the running cost of a BTS. Network operators had tried severally to increase cost of telecoms services delivery in line with the rising cost of providing telecoms services, but the regulator, the NCC, will not agree, and the situation is adversely affecting telecoms operations across networks,” Ofili said. Other sources online put the number of installed towers in Nigeria at over 40,000 as at 2021.

The development slowed down network expansion of telecoms operators and invariably, quality of telecoms service delivery has been adversely affected.

Following the collapse of the InfraCo arrangement, telecoms infrastructure providers started making personal negotiations to roll out telecoms infrastructure, but at a very slow pace that is negatively affecting telecoms service delivery, because the telecoms operators largely depend on the telecoms infrastructure companies to deliver telecoms services to the subscribers.

Speaking on some other challenges faced by telecoms operators, the Chairman of the Association of Licensed Telecoms Operators of Nigeria (ALTON), Engr. Gbenga Adebayo, said maintenance of BTS was becoming a major challenge as cost of diesel continued to rise since the removal of fuel subsidy by the federal government. According to Adebayo, the operators have called for an increase in telecoms tariff, but the move has always been resisted by the NCC and the telecoms subscribers. According to Adebayo, all other sectors of the Nigerian economy have had reasons to increase cost of service delivery to the people because of the prevailing circumstances in the country occasioned by fuel subsidy removal, but there had always been resistance each time the telcos talk about price increase.

Value Added Service (VAS) Operators

VAS operators are another set of operators that the telecoms operators rely on in providing quality telecoms services to telecoms subscribers.

VAS operators are licensed by the NCC to provide value added services that will enable telecom operators to serve telecom subscribers in a most effective way. Although they do not have telecoms infrastructure, they ride on existing telecoms infrastructure to offer telecom services that are regarded as value added services to telecom operators.

Their services are essential because they determine the quality of service that telcos offer to their subscribers. Some of the services include: Call waiting, Call forwarding, multi-party conferencing, Short Message Service (SMS), and special ringtones. The major challenge faced by VAS operators is in the area of pricing of the solutions developed and offered by VAS operators.

National Chairman of VAS operators, Mr. Chijioke Eze, who confirmed the issue of pricing, said the issue still persists, because the sharing ratio between VAS operators and telecoms operators are never favorable to VAS operators. According to him, the telecoms operators will want to take the lion share from the proceeds of any VAS solution offered by telecoms operators, just because the telecoms operators own the telecoms infrastructure on which the VAS solution rides on.

Mobile Virtual Network Operators (MVNO)

In addition to the services that Value Added Service (VAS) operators are offering in the telecoms sector, the Nigerian Communications Commission (NCC), recently licensed 25 Mobile Virtual Network Operators (MVNO) that will also ride on the existing telecoms infrastructure to provide telecoms services that will enhance telecoms subscribers’ experience.

Although many industry analysts have blamed the licensing of 25 MVNOs, insisting it would lead to duplication of solutions and harsh competition between VAS operators and MVNOs. National Chairman of VAS operators, Mr. Chijioke Eze, however said both VAS and MVNOs could collaborate and offer quality services without any form of friction.

Internet Service Providers (ISPs)

The Internet Service Providers (ISPs) are another set of operators licensed by NCC to provide internet connectivity for data services.

Their role is interwoven with telecom operators that also offer data services, alongside voice services.

The interwoven nature of the role of both operators is causing great concern to ISPs that are smaller in size and capacity. Because the telcos have the numbers, with a subscriber base of over 220 million across networks, they appear to run out the smaller ISPs that have less subscriber base.

Commenting on the situation, the CEO of Swift Networks, Mr. Charles Anudo, who is an ISP, said most ISPs are being suffocated by Telecom operators that provide the same data service with ISP.

According to him, ISPs were originally licensed to provide data services, while telcos were originally licensed to provide voice services. He however said the deregulation of the telecoms sector, provided opportunity for telcos to offer data services, a development, he said, was already affecting ISPs. He called on the regulator to ensure protection of ISPs, especially the smaller ISPs, in order to save them from going into extinction.

From the analysis above, it is evident that the challenges in the telecoms sector is not only embedded with telecoms operators, as it cuts across several sub-sectors like VAS, InfraCos, MVNOs, and ISPs, making it a web of challenges that has to be addressed by all the players in the industry, including the regulator, the NCC.

Olajide Adisa, is a Telecoms/ICT Analysts & Commentator writes from Abuja

 


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Ugo Onwuaso is an ICT enthusiast. He believes technology should be used for general good. He holds a Master of Public Administration (MPA) degree from the Lagos state University. Dear Reader, Your support matters. But we believe that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. That is why, we have devoted our energy to independent reportage of technology and finance and how they affect lives. Our incisive and analytical view of how technology news affects the daily life help individuals and organizations make up their minds. Quality journalism costs money. Today, we're asking that you support us to do more. Kindly support our effort to deliver technology and finance journalism to everyone in the world. Donate as little as N1,000. Bank transfers can be made to: UBA Plc 1017156876 Communication Week Media Ltd

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ACAMB Champions Bankers Wellness with Aerobics Fitness Session

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As part of its commitment to promoting a healthier and more resilient banking workforce, the Association of Corporate Affairs Managers of Banks (ACAMB) is organizing a special Aerobics Fitness Session on Saturday, May 31, 2025 at the Lagoon Front of the Eko Atlantic City.

The session is open to all bankers and marketing communication professionals within the industry and will feature a lineup of fun and energizing activities aimed at boosting physical and mental wellbeing.

With stress levels and burnout on the rise in high-pressure sectors like banking, ACAMB is taking, as it has done over the years, proactive steps to encourage lifestyle habits that support overall wellness and productivity.

Participants will begin the morning with a body warm-up and short walk to get their energy flowing, followed by an exciting dance aerobics session designed to elevate heart rates and lift spirits.

The day will continue with interactive fitness games that promote movement and team bonding, and will wrap up with a friendly but motivating fitness challenge to inspire healthy competition and personal bests.

“Bankers are vital to the financial ecosystem, and their wellness must be a priority,” said Rasheed Bolarinwa, President of ACAMB.

“This aerobics session is a powerful way to foster a culture of health, team bonding, and preventive care. It reflects our belief as ExCO that a strong mind and body, are essential for long-term professional excellence.”

The session is expected to kick off early in the morning to take advantage of the fresh morning air, allowing participants to start their weekend with energy, movement, and connection. It also presents an opportunity to unwind and build camaraderie amongst colleagues outside the traditional office setting.

This initiative is one of several wellness-focused programms ACAMB is rolling out to reinforce the importance of employee wellbeing in corporate and marketing communication and the broader banking ecosystem.

The Association of Corporate Affairs Managers of Banks (ACAMB) is the recognized professional association for marketing communications and public affairs executives in Nigeria’s banking industry.

ACAMB drives ethical communication standards, promotes internal and external stakeholder engagement, and supports member banks in advancing reputation, trust, employee growth and wellbeing.


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DStv Makes History: Inducted into Brand Africa Hall of Fame as Africa’s Most Admired Media Brand

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DStv, Africa’s leading entertainment platform, has been officially recognised as the #1 Most Admired African Media Brand in the Brand Africa 100 | Africa’s Best Brands 2025 rankings.

This recognition also sees DStv inducted into the prestigious Brand Africa Hall of Fame, a distinction reserved for iconic African brands that have significantly shaped the continent’s global image and competitiveness over the years.

The announcement was made at a high-profile ceremony hosted at the United Nations Economic Commission for Africa (UNECA) in Addis Ababa, where leaders from across the African media and branding landscape gathered to honour the continent’s most impactful brands.

Launched in 1995, DStv has evolved from a digital satellite television pioneer into a content powerhouse, transforming the African viewing experience through continuous innovation, investment in local content, and a deep commitment to telling African stories.

“This honour reflects the incredible journey we’ve taken with our audiences across Africa. Being named Africa’s most admired media brand and joining the Brand Africa Hall of Fame is not just a celebration of where we’ve come from—it’s a reaffirmation of where we’re going.

“Our commitment to local storytelling, cultural authenticity, and innovation remains stronger than ever.

“We are proud to be a brand that not only entertains but uplifts and connects Africans through stories that matter.” States Calvo Mawela, Group CEO of MultiChoice.

Each year, the Brand Africa 100 survey identifies the most admired brands across the continent, based on independent research conducted in over 30 African countries, representing over 85% of Africa’s population and GDP, with more than 150,000 brand mentions and 5,930 unique brands.

The rankings are compiled through a rigorous process led by research partners including GeoPoll, Kantar, Integrate, and Analysis, making it the only pan-African, research-led and non-commercial brand equity study of its kind.

DStv’s induction into the Hall of Fame further cements its position not just as a media brand, but as a cultural force that continues to shape narratives and inspire pride across Africa. Through its investments in local productions, partnerships with African creators, and focus on quality storytelling, DStv remains at the forefront of Africa’s growing creative economy.

DStv was also honoured with the same top recognition in 2024, reinforcing its consistent excellence and enduring connection with audiences across Africa. Since its launch 30 years ago with just 16 channels, DStv has evolved into a dynamic content powerhouse, offering a rich mix of local productions, global entertainment, and integrated streaming options.

Today, it serves millions of households across the continent, delivering hundreds of channels and platforms that reflect the diversity, creativity, and aspirations of African viewers.


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The Silent Killer of Great Companies: A Guide To Why Your Processes Will Break (and How to Fix Them) 

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By Tolulope Obianwu

Every high-growth company experiences a moment when its engine sputters—quietly at first. Emails slip through cracks, customers wait too long, and once-smooth systems start breaking under pressure. This rarely looks like failure; it feels like chaos.

Tolu Obianwu

The truth? Your team didn’t fail. Your process did.

More accurately, the process you never designed to scale.

I’ve led operations and strategy at some of Africa’s fastest-growing fintech companies, building teams and systems that power complex payment infrastructure. And I’ve seen it repeatedly: velocity hides inefficiency—until it doesn’t.

This isn’t just a fintech problem. It’s a scaling problem. And if you’re a founder, operator, or builder, this article is your early warning: poor process doesn’t announce itself. It accumulates, silently, until your best people are fighting fires they didn’t start.

So, before things break, let’s talk about what makes processes fail, and what it takes to build operational structures that scale with your ambition.

  1. DO NOT Confuse Speed with System: Startups are built on hustle. That’s part of the magic. But hustle without design leads to fragile outcomes. What works when you’re a 5-person team becomes a burden when you’re 50. Manually sorting payments, ad-hoc decisions, Slack approvals; these shortcuts become operational debt.

DO THIS INSTEAD:
Build systems early. They don’t have to be perfect, but they must be repeatable. Even lightweight process maps give your team breathing room and build investor confidence.

  1. DO NOT Build Around Individuals: We romanticise “indispensable” team members; the only person who knows how X works. But hero-driven execution is unsustainable. When your process depends on one person being online, awake, or available, you’re not building a company. You’re gambling on burnout.

DO THIS INSTEAD:
Document workflows, spread context, and make knowledge transfer part of your onboarding and offboarding. Structure should outlive talent.

  1. DO NOT Mistake Micromanagement for Control: I’ve seen it too often: leaders respond by inserting themselves into every decision when processes start breaking down. It’s understandable, but counterproductive. Micromanagement is not a fix. It’s a symptom.

DO THIS INSTEAD:
Create trust frameworks. Use process audits, not pressure. Empower teams with clear guardrails, not constant approvals. The goal of an exemplary process isn’t control – it’s clarity.

  1. DO NOT Design for the Happy Path Only: Most processes look beautiful on paper until real users, real edge cases, and real stress tests come in. If your refund process fails when the volume spikes or your reconciliation breaks on public holidays, that’s not a people problem. It’s a design flaw.

DO THIS INSTEAD:
Anticipate failure. Ask “What could go wrong?” Run simulations. Processes must bend without breaking. That’s true resilience.

  1. DO NOT ignore the Role of Culture: Even the best-designed processes die in hostile environments. If your culture rewards shortcuts, ignores documentation, or treats processes as bureaucracy, nothing will stick.

DO THIS INSTEAD:
Make ‘process’ a language, not a punishment. Celebrate people who fix broken steps. Tie operational excellence to career growth. Culture is what makes a process sustainable.

  1. DO NOT Launch Processes Without Data Loops: If you’re not tracking turnaround times, errors, or usage, you’re not managing a process; you’re just hoping it works.

DO THIS INSTEAD:
Instrument every stage. Set KPIs that matter. Let data flag inefficiencies before customers feel them. A great process isn’t just followed – it’s monitored.

Final Thoughts

The truth is: every fast-growing company outgrows its old ways of doing things. There comes a time when velocity alone can’t carry the vision anymore. That’s inevitable. What isn’t inevitable is being caught off guard when it happens.

If you’re building for scale, process isn’t a bottleneck; it’s your runway. The best systems don’t slow people down; they let good teams move faster, with clarity and confidence.

Don’t wait for failure to expose what structure could have prevented it. Build deliberately. Review often. Automate what you can. And above all, make sure your process is strong enough to carry the weight of your ambition.

Because in the long run, it’s not speed that wins.

It’s the ability to move fast, without breaking yourself.

Tolulope Obianwu is a highly experienced professional in operations and technology strategy and currently is Head, Core Operations at TeamApt Ltd


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