Telecom
The Telecoms Sector on the Rise: The Opportunities and the Uncertainties
By Dr. Falade Muritala Adesola
With more investments and higher expectations, the Nigerian telecoms sector has consistently contributed to the growth of the Nigerian economy.
Dr. Falade Muritala Adesola
While the market size and loquacious nature of the country’s population are significant factors in the sector’s viability, the crucial role of the regulatory body, the Nigerian Communications Commission (NCC), currently led by Dr Aminu Maida, cannot be overstated.
Effective regulation is a critical variable in the success of any industry, and the NCC’s leadership has been instrumental in shaping the sector’s progress. However, current realities in the country suggest that a lot remains to be done.
If we take a moment to reflect on the past and consider the incredible technological advancements that have transformed our society, we will undoubtedly find them astonishing. These advancements carry profound implications for our future and compel us to ponder how our world will continue to evolve.
In any human society, whether it’s a simple tribe or a highly developed civilization, communication is essential. Without the ability to share information and ideas, it would be difficult for people to come together, collaborate, and make important decisions that affect everyone. Communication enables cooperation, the creation and exchange of goods, the sharing of knowledge and ideas, and providing help and support to each other when it’s needed. This makes the telecoms sector a very strategic one.
The global spread of mobile phones has further transformed communication, offering new opportunities and challenges. This technology has revolutionized the telecommunications sector, requiring adaptable strategies for both developed and developing countries.
As the popular saying goes, “In a city that has no laws, there is no crime,” governments therefore continue to prioritise the establishment of strong, independent regulators to prevent chaos and ensure that national development goals are achieved.
Beyond concerns around quality of service and enhancing communication experience, the regulation of the telecommunications sector has been motivated by the need to ensure fair competition when market forces alone are insufficient. The goal of universal services, particularly in enabling customers to receive and make calls, has also influenced the regulation of basic telecommunications services. Nowadays, basic telecommunications services are widely regarded as essential, and regulations are in place to ensure it is affordable and widely available. Over the last two decades, many telecommunications markets have attained a certain level of regulatory maturity, establishing separate regulators, and competitive frameworks.
In Africa, the telecommunications industry is experiencing rapid changes, with the market valued at approximately $63.17 billion in 2024. It is projected to surpass $82.34 billion by 2029, growing at an annual rate of 5.44%. This growth is strongly linked to Africa’s youthful population.
Kenya, an East African technological hub, boasted a telecommunications market worth around $3.3 billion in 2023. The total telecom service revenue in Kenya was expected to grow at a compound annual growth rate (CAGR) of more than 2% throughout 2023. South Africa also holds significant influence in the African telecom market, where it is projected to generate approximately US$16.0 billion in revenue from communication services by 2024.
Nigeria is also widely recognised as one of the major telecommunications markets in the world. With a population of over 200 million and blessed with abundant natural resources, Nigeria ranks as the 14th largest oil producer in the world and the telecommunications sector contributes as much as 14% to the GDP. This makes it an attractive prospect for potential investors looking to tap into the largely untapped telecoms market.
The outcome of the telecom sector will have an immense impact on other sectors of the Nigerian economy. At a breakfast session organised by the Lagos Business School (LBS), Bismarck Rewane, the CEO of Financial Derivatives Ltd, said, “Big push theory posits that growth in one sector can stimulate growth in others through backward and forward linkages. The telecom sector has both forward and backward linkages to various sectors. This linkage to other sectors is vital for economic growth, innovation, and productivity across various industries making it a key enabler and driver of development in modern economies. If the telecom industry collapses, all other sectors will follow.”
Recognizing the pivotal role that telecommunications can play in national development, the Nigerian government is dedicated to rapidly expanding telecommunications facilities and services through adequate efforts of regulatory bodies. Private investment in the sector has surged from $50 million in 1999 to over $70 billion twenty-one years after, leading to a rapid growth in subscriber numbers.
The advancements and progress in these industries are largely driven by the visible efforts of the regulatory bodies overseeing them. Meanwhile, they are not without their challenges. South Africa’s telecoms sector is regulated by the Independent Communications Authority of South Africa (ICASA), Kenya, Communications Authority of Kenya, and Nigeria, the Nigeria Communications Commission; all responsible for ensuring fair play, continued infrastructural development and quality of service. The Nigerian Communications Act of 2003 further empowers the NCC to effectively carry out its responsibilities as the independent regulator of the industry in Nigeria. Additionally, the Act established the office of the head of the NCC, led by an Executive Vice Chairman (EVC), who is responsible for overseeing the regulation of the telecommunications sector in the country.
The body has continued to facilitate private sector participation in communication services delivery and regulate the activities of the operators to ensure consistency in the availability of service delivery and fair pricing. The incumbent Executive Vice-Chairman, Dr. Aminu Maida is making significant strides despite the numerous challenges that plague the industry. The NCC recently obtained right-of-way (RoW) fee waivers in six states. Typically, some States require telecom operators to pay these fees to install fiber optic cables along roadways. High right of way fees have been a significant barrier for telecom companies, hindering the expansion of broadband access and infrastructure. These waivers will allow telecom operators to deploy infrastructure more easily and cost-effectively, facilitating broader internet coverage.
The EVC’s stance is also evident in his advocacy that the telecom infrastructure should be regarded as a national infrastructure, reflecting its critical role in the nation’s development. It should be co-managed in partnership with the telecom industry, which operates and maintains it. This collaborative management approach would address issues like frequent fiber cuts caused by uncoordinated activities of engineers and builders who often do not consult the sector’s regulator before proceeding with their work. Such disruptions are a major cause of vandalism and service interruptions. His advocacy has resulted in government action to make cable damages and vandalization of telecom infrastructure a criminal offense. This proactive approach not only discourages future irresponsible behaviour but also helps in maintaining uninterrupted services for the public.
Consumers today have a growing reliance on staying connected and having fast internet speed. The increasing demand for high-speed applications like video streaming and gaming, along with the expansion of the mobile ecosystem, is driving the need for better broadband connectivity. This demand has put pressure on the industry to improve the availability and quality of broadband services, resulting in connectivity issues.
To address this, the regulatory body has continued to lay emphasis on the need for operators to move from quality of service to quality of experience, which is a holistic approach to improving customer experience in the industry.
Indeed, the telecoms sector is on the rise. However, additional safeguards are necessary to sustain its growth and ensure long-term viability.
Dr. Falade Muritala Adesola is a Senior Lecturer and former HOD, Computer and Information Sciences Department, Trinity University.
The recent escalation in the US-Israel conflict with Iran has delivered a sharp reminder of Nigeria’s economic vulnerability. As oil prices surged past $100 per barrel and fuel costs climbed by 35% at Nigerian pumps, a troubling paradox emerged: Nigeria, a major crude oil producer with Africa’s largest privately-owned refinery now operational, still found itself buffeted by global energy shocks originating thousands of miles away.
Zinox
The closure of the Strait of Hormuz and resulting disruptions to global energy markets exposed the deeper structural challenge facing Nigeria’s economy. Despite domestic crude production and the operational Dangote Refinery, Nigeria has struggled with rising inflation, which reached approximately 27% in 2025. The crisis illuminated an uncomfortable truth: decades of import dependency have left Nigeria’s economy precariously exposed to external shocks, even in sectors where the country possesses natural advantages.
This vulnerability extends beyond energy. Nigeria’s technology sector offers a particularly instructive case study in the costs of import reliance, and the transformative potential of local capacity as the pathway to economic stability and technological sovereignty.
Against this backdrop, Zinox Technologies stands as a compelling counternarrative. Founded in 2001 by technology entrepreneur Leo Stan Ekeh, Zinox operates West Africa’s only computerized digital assembly plant. As Nigeria’s first indigenous computer manufacturer, Zinox demonstrates what becomes possible when vision, investment, and commitment to local capacity converge.
The company’s reach extends beyond traditional computing. Zinox’s innovation spans renewable energy through iPower and home electronics with iTEC, addressing Nigeria’s chronic power challenges with locally-assembled solar solutions and backup systems designed for Nigerian conditions. This diversification reflects sophisticated understanding: true technological sovereignty requires integrated capabilities.
Zinox’s journey offers a clear case study in how indigenous companies can drive transformation. By focusing on local assembly and manufacturing of computer hardware and digital devices, the company has contributed to building a domestic technology ecosystem that supports government institutions, educational systems, and private enterprises. This approach not only reduces reliance on foreign imports but also creates jobs, transfers knowledge, and strengthens national capacity.
The implications are significant. Every locally assembled device represents a step away from foreign exchange exposure. It also signals a shift in mindset — from consumption to production. In a country where demand for technology continues to rise, especially with the acceleration of digital adoption, the importance of local manufacturing cannot be overstated.
Beyond economics, there is also a strategic dimension. Technology is no longer just a commercial tool; it is a defense tool and a national asset. Countries that control their technology supply chains are better positioned to innovate, secure their data, and compete globally. In this context, companies like Zinox are not merely businesses; they are enablers of national development.
Furthermore, local capacity development has a multiplier effect. It stimulates ancillary industries such as logistics, retail, maintenance, and technical services. It also fosters entrepreneurship, as more Nigerians gain access to affordable and reliable technology tools needed to participate in the digital economy.
Yet, while progress has been made, there is still work to be done. Scaling local manufacturing requires sustained policy support, infrastructure investment, and a deliberate focus on skills development. It also calls for stronger collaboration between the public and private sectors to create an environment where indigenous innovation can thrive.
Encouragingly, the momentum is building. There is a growing recognition that Nigeria must move beyond being a consumer market to becoming a production hub. This shift is not only necessary, it is urgent. Global uncertainties will continue to test economies, and only those with strong internal capabilities will remain resilient.
The current global crisis offers clarity. If the Strait of Hormuz is not reopened or supply chains to imports are fractured, only countries with strong domestic manufacturing capacity will weather the storm. Those dependent on imports suffer disproportionately.
The story of Zinox Technologies underscores what is possible. It shows that with the right mix of vision and execution, Nigeria can chart a new course, one defined by self-reliance, innovation, and sustainable growth. As the country navigates an increasingly complex global landscape, the message is clear: the future belongs to economies that build, not just buy.
Bharti Airtel has announced a major milestone in its global operations, crossing 650 million mobile subscribers worldwide, a scale that now positions the company as the second-largest telecommunications operator on the planet by customer base.
Crossing this threshold reflects a network of immense scale, the capacity to reach customers across diverse markets with consistent quality, and the ability to deliver experiences shaped by sustained innovation.
In Nigeria, Airtel has continued to scale infrastructure at a pace unmatched in its recent history. Over the past three years, the company has increased its national site count from just above 13,000 to nearly 17,200 sites, including more than 1,560 added in the last twelve months. This expansion deepens capacity in high-demand corridors and extends high-speed coverage to previously underserved regions.
The latest industry data from the Nigerian Communications Commission (NCC) underscores the significance of this growth. As of December 2025, Nigeria recorded 145,141 base stations across 2G, 3G, 4G and 5G layers. Of this national infrastructure, Airtel accounts for 46,918 base-station layers, reflecting its substantial contribution to the country’s radio access network and its push to absorb rising data consumption.
Nearly 99 percent of Airtel Nigeria’s sites are now 4G-enabled, positioning the operator as one of the few with a near-ubiquitous high-speed broadband footprint. Thousands of sites have been upgraded for capacity in the past year alone, enabling improved speeds and more stable performance during peak usage.
That expansion underpins Nigeria’s rising internet adoption. According to the latest regulator figures, Nigeria’s internet penetration recently climbed above 50%, with Airtel recording among the largest monthly increases in new internet subscribers, driven by network upgrades across states and rural corridors.
Strategic Connectivity and Redundancy
Airtel is also tackling a critical infrastructure challenge for the Nigerian digital economy: reliance on a single international internet gateway. The company is advancing plans for its second submarine cable internet breakout point at Kwa Ibo in Akwa Ibom State, early in the 2Africa cable system rollout, to provide faster and more resilient national connectivity across regions. This significant investment aligns with global best practices in network diversity and redundancy, ensuring a more stable digital experience for consumers and enterprises alike.
Digital Finance at Scale: SmartCash
Airtel’s digital finance arm, SmartCash, has gained traction in Nigeria’s competitive mobile money ecosystem, now serving over 3 million active users. The platform is supported by an expansive agent network and digital services that lower barriers for everyday financial transactions and savings.
Outstanding Human Touch: Retail Reach
Across Nigeria, Airtel’s retail distribution network stands as one of the sector’s most extensive, with approximately 4,000 exclusive outlets bringing services, support, and products closer to customers in small towns, communities, and high-traffic urban hubs. That footprint drives both access and engagement in a market where localized presence remains a competitive differentiator.
As Nigeria’s digital economy continues to evolve, Airtel is committed to sustained innovation — from expanded fibre backbones and advanced mobile broadband to future-ready services that include satellite-enabled solutions and enterprise-grade digital platforms. These efforts help ensure that connectivity, commerce, and creativity thrive across Nigeria and beyond.
Nigerian Communications Commission (NCC) has said that compensation of subscribers for poor service quality, such as persistent network outages or failed calls is automatic.
This initiative aims to ensure fairness by mandating that operators provide automatic compensation, such as airtime credits, for failing to meet regulatory Quality of Service Key Performance Indicators (KPIs).
According to the NCC, operators are required and mandated to identify affected subscribers and provide compensation directly.
In a framework for compensation of consumers published on its website, NCC said that it has directed Mobile Network Operators (MNOs) to compensate subscribers affected by prolonged or repeated poor quality of service experience within specific Local Government Areas where operators fail to meet regulatory Quality of Service Key Performance Indicators (KPIs).
The NCC also stated that the directive does not replace existing consumer protection mechanisms.
The NCC, said the directive adds a direct compensation mechanism for affected subscribers and aligns with measures set in existing legislations such as the Consumer Code of Practice Regulations 2024 and the Quality of Service Regulations 2024.
This directive applies to only Mobile Network Operators licensed and operating in Nigeria that have failed to meet their Key Performance Indicators on Quality of Service. For Internet Service Providers (ISPs) operating in Nigeria, a compensation framework is already in place.
To be eligible to receive compensation
. You experienced poor network service in an affected Local Government Area; and
- You made at least one outgoing revenue generating event (billed call, SMS, or data session) during the relevant period.
The compensation covers service failures affecting voice, data, or SMS services.
Operators are required and mandated by existing regulations to monitor their network performance across locations and service disruptions against Quality of Service KPIs.
This enables them to identify affected subscribers without the need for individual complaints.
Only service failures that fall below the defined thresholds set by the Quality of Service Regulations issued by the NCC will qualify for compensation.
Short, isolated interruptions and immediately remedied interruptions may not qualify
Compensation will be provided in the form of airtime credits.
This airtime credit will not have utilisation restrictions, and subscribers will be able to use it for voice calls, USSD sessions, data subscriptions, etc on the operators’ network.
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