Telecom
Why Nigeria’s Telecoms Sector Needs Government, New Regulatory Interventions
The Nigerian Telecommunications industry is currently considered a key sector that contributes to economic growth and one that can help lift Nigeria out of recession.
Obviously, the impact started at the point of liberalisation of sector almost two decades ago, catalysed and opened up the sector to local and foreign direct investment (FDI) estimated at over $68 billion as at November 2016.
It has created approximately over 2.5 million jobs over the past 10 years, its impact reaches across all industries and holds the potential to modernize multinationals, SMEs and their supply chains.
The sector continues to provide mobile banking services to help bank the unbanked, provides access to e-learning platforms to help facilitate training and development, and brings healthcare services to rural regions, via telemedicine and text message counselling, amongst many other services.
Until June 2016, the telecoms sector was growing rapidly and comprised 9.8% of Nigeria’s GDP but this growth has now stalled, with the sector at a strategic crossroads. Several factors have converged simultaneously, which could materially impact the industry and undermine its potential to drive economic growth and stimulate the Nigerian economy as a whole.
For starters, from a systemic standpoint, the current weakness in the local economy has resulted in relatively low consumer purchasing power and continues to place pressure on the industry and its operators.
The weak Naira has made the importation of much needed telecom equipment into the country difficult, and the upgrading of towers and service capacity expansion too expensive to conduct on a large scale.
Operators are now either deferring or delaying upgrades or expansion of their networks and customers are starting to feel the impact. Signal quality has been affected, incidences of dropped calls have increased, and overall customer service quality has declined. Nigerian consumers have every right to demand more and should never have to settle for poor network quality or services.
To further compound matters, consumers continue to move away from legacy voice services and are switching to data bundle packs, which allows them use over the top (OTT) service providers such as WhatsApp, Skype and Facebook to make phone calls inexpensively over broadband connectivity not minding the often poor quality of these services.
While it’s clear that the simple solution to addressing this trend is massive investment into telecom tower network densification, as new 3G and 4G technologies are rolled out, these network upgrades can only be done if there is adequate financing and a suitable business case.
Moreover, there is an ongoing data bundle “price war” between incumbent telecom operators and internet service providers; with a frantic race to deliver cheap gigabytes of data, for rock bottom prices.
On the surface, these prices appear good for the consumer in the short term, but in the long run, this price war will put many operators out of business, as these current bundled offerings are priced well below their actual costs to network operators.
According to Research ICT Africa, the price of data has decreased by over 65% over the past two years, squeezing margins and pushing smaller mobile network operators to the brink of collapse.
Short Term versus Long Term Gains
Artificially low data prices are designed to drive out competition. This type of practice is called “predatory pricing” in respect of which there are restrictions in many parts of the world. These pricing wars never work out well for consumers, as they typically result in initial temporary low service prices, just long enough to force out the competition.
Then, all of a sudden, the few remaining players monopolize the market and suddenly double, or even quadruple prices, as they are the surviving and dominant game in town. It’s easy to identify anti competitive pricing, as we know what it costs the telecom industry to secure internet bandwidth.
A good example of healthy competition which has led to improved quality and product service offerings is mobile phones. The competition between Apple and Samsung and others has forced all parties to constantly launch new and improved products.
Competition leads to fair market pricing which has enabled mobile phones to be purchased by the masses. The current problem in the telecoms sector is that we don’t have fair market pricing -the price of data bundles in Nigeria is presently amongst the lowest in Sub Saharan Africa.
While market forces drive the industry, governments and regulators must shape the mobile economy by setting the policies and regulations that will deliver a healthy, competitive and sustainable mobile sector alongside consumer protection for all citizens.
Feasible Solution
Given the tremendous potential that telecommunications has to jump start and stimulate the Nigerian economy at all levels, we need the help of government and regulators to play the role of referee and establish a level playing field.
Fatai Folarin, Tax & Regulatory Services Lead Partner at Deloitte noted that, “The telecommunications industry in Nigeria is one that can currently be described as self-aware and steadily adapting to the stark realities of business – changing trends, intense rivalry, regulatory uncertainties etc. There is a general understanding that to remain sustainable, there is a need to recreate existing products, diversify into new areas for which the capabilities and resources are near, improve on general business processes and navigate through the regulatory landscape.”
We recognize the free market principles of business and competition, but we also note the artificially low prices that are having a negative effect on investment and growth within the sector.
Both large and small mobile network operators are currently working to try and mitigate the current challenges related to squeezed margins, and in other cases generating losses, and lack of direct access to foreign currencies, with the smaller firms struggling the most to compete. Reduced competition will be a lose-lose situation for all operators, and the public as a whole.
The recent default status of Etisalat Nigeria, is a prime example of how it can all go wrong. Etisalat is the fourth largest telecom operator in the country, but as a direct result of the company’s razor thin margins on its current service offerings, and against the backdrop of the devaluation of the Naira, the company has failed to meet its obligations to its lenders.
Concerted regulatory efforts need to be made to ensure that all sides survive and the quality of service levels continue to be enhanced, by having the regulatory bodies insist the mobile network operators focus on additional customer metrics such as, measuring their signal reach, network uptime and improved quality of a data services.
A regulated price minimum price level will help stop the downward spiral of the telecoms industry and allow all telecom players, big and small, to compete on network service and customer service quality. Policy makers must therefore ensure that all current players survive.
The Nigerian Communications Commission (NCC) can issue more spectrum licenses and make up revenues when additional spectrum is auctioned and mobile network operators roll out into new rural areas.
We also need to consider the telecoms sectors as critical to our nation’s economic development and, as such, place the sector on the critical national infrastructure list
This important designation will give operators priority access to much needed foreign exchange and the procurement and purchase of telecom upgrade equipment for the networks.
In conclusion, mobile network operators serve millions of SMEs and multinationals that are dependent on internet access and other enterprise solutions – a half day service disruption results in large revenue losses for various businesses throughout the country.
It is therefore very important that the government, regulators and international institutions continue to define and refine strategies to increase growth and ensure the long-term sustainability of the Nigerian telecommunications sector, thereby also boosting investors’ confidence and signalling to the international community that we truly remain open for business.
Airtel Nigeria has strengthened its nationwide retail and distribution network as part of its continued investment in enhancing service delivery and making telecommunications and digital services more accessible to millions of Nigerians.
The company’s retail ecosystem comprises more than 4,000 exclusive Airtel shops and over 200,000 retail touch-points nationwide, including partner stores, channel partners and neighborhood agents. This network ensures that subscribers can conveniently easily access SIM registration, device purchases, airtime and data recharge, customer support and other digital solutions.
Commenting on the company’s retail distribution strategy, Dinesh Balsingh, CEO, Airtel Nigeria, said,
“Telecommunications goes beyond the physical infrastructure, it is important that we are able to reach people where they live and work. That is why we continue to invest in a strong retail and distribution ecosystem that enables us to bring Airtel closer to our customers while delivering a consistent, high-quality experience wherever they are.”
According to Joypratip Sengupta, Director, Sales and Distribution, Airtel Nigeria, the company’s distribution network plays a vital role in ensuring seamless service delivery.
“Our retail network is designed to ensure that our services reach customers efficiently. It is a combination of efficient logistic systems, strong partnerships and local engagement that enables us to consistently meet the needs of our customers across the country,” he said.
The strengthened distribution strategy complements the company’s ongoing investments in network infrastructure and digital innovation, recognising that customer proximity remains a critical driver of service excellence and digital inclusion.
In addition to improving customer access, Airtel’s extensive retail ecosystem continues to create economic opportunities for thousands of entrepreneurs, distributors, retailers and small business owners who form an integral part of the company’s value chain.
As demand for accessible, interconnected digital services continues to grow across Nigeria, Airtel remains committed to investing in improving its service delivery and ensuring that every subscriber enjoys quality service.
Kaspersky’s latest global survey shows a change in how people go online: 60% of survey participants from the Middle East, Turkiye, and Africa (META) region now claim their smartphone is the main device they use to access the Internet, pushing the PC into a secondary role.
But as the amount and sensitivity of data stored on these phones keep growing, cybersecurity experts warn that users’ security habits aren’t keeping up.
According to the survey* 60% of respondents from the META region consider a smartphone their primary device for accessing the Internet. The most active smartphone users are representatives of Gen Z, with 67% of all global respondents aged 18-28 choosing a mobile phone as their main device.
With mobiles as the full-fledged rivals of computers in accessing the Internet, the amount of important data stored on them has also increased significantly. Personal photos and videos are leading the pack. 60% of users in the META region store visual memories on their devices. Close behind are contact details (51%), text messages and chats history (45%) and important personal documents such as IDs and passports (43%).
At the same time, a substantial portion of users in the META region keep work‑related data on their smartphones (37% emails, 22% calendars and 17% even store access to corporate systems), blurring the line between personal and professional realms.
Financial credentials and login details appear on 40% of devices, while emerging categories like AI chat histories (30%) and gaming accounts (26%) signal new types of personal data stored on personal devices.
“Now our smartphones serve as full‑featured assistants that touch every aspect of our lives. The data we entrust to them goes far beyond photos, phone numbers or text messages. Consequently, the main question is no longer “what we store,” but “how we protect it,” requiring security to become as integral to the device as the data it carries,” comments Anton Kivva, cybersecurity expert at Kaspersky.
Three keys to mobile data security
To help users navigate this new digital reality safely, Kaspersky experts have issued a three-step security plan:
- No data should live on your phone only
A smartphone should never be the sole repository for any type of information. While having everything at your fingertips is convenient, accidental deletions, loss or hardware failure can make recovery impossible without reliable backups or cloud sync.
The most sensitive data like passwords, ID or financial details requires special attention and preferably be kept in a protected format. Use a dedicated security solution like Kaspersky Password Manager, which apart from securely keeping credentials and bank cards, has a special secret vault functionality aimed at storing important documents, for example, scanned Passports/IDs and PDF files, addresses and notes. Thanks to the cross-device synchronisation it allows access to the data from any gadget.
- Create a guard against digital threats
In Q1 2026 only, more than 2.67 million attacks utilising malware, adware or unwanted mobile software were prevented and more than 306,000 malicious installation packages were discovered.
Mobile devices require the same cyber protection as PCs. Kaspersky experts recommend cybersecurity solutions such as Kaspersky Premium that provide comprehensive protection – starting with scanning apps for potential threats upon installation, and using AI‑driven features to block malicious and phishing links in real time and prevent data or money losses, among many other security layers.
- The “what if” scenario planning
Phone loss always occurs unexpectedly, but a few proactive steps can dramatically reduce its impact:
Turn on location services. Both Android and iOS include built-in tools that can locate a lost phone and, if needed, wipe its data remotely. Kaspersky for Android app activates this capability through the Where Is My Device feature.
- Enable automatic backups.Regular backups ensure that photos, videos, documents, contacts and other vital data can be restored even if the device is lost or stolen.
- Configure instant auto‑lock.Setting the phone to lock immediately after the screen turns off keeps it inaccessible to thieves or cyber‑criminals when you’re not using it.
- Keep the device physically safe.In public spaces, never leave your phone unattended or within easy reach, avoid placing it on tables, in back pockets or any other vulnerable spot.
“We often underestimate how much valuable information we keep on our mobile devices and how vulnerable that data truly is. Ask yourself: When was the last time I backed up my photos or notes? What’s my plan if my phone goes missing? Do I verify links before I click them? While most users automatically think of security software for their computers, phones lag behind. It’s time to give your everyday digital companion the same robust cyber‑protection it deserves,” adds Anton Kivva, cybersecurity expert at Kaspersky.
Nigeria will host telecommunications, Information and Communication Technology (ICT) and digital economy ministers from across Africa for the 7th Ordinary Session of the African Telecommunications Union (ATU) Conference of Plenipotentiaries (CPL-26), scheduled for July 23 to July 24 in Abuja.
The conference, the highest decision-making body of the ATU, is expected to bring together ministers, regulators, industry leaders, development partners and other stakeholders from the Union’s 52 member states to deliberate on Africa’s digital and telecommunications agenda for the next four years.
A statement by the organisers said delegates would adopt the Union’s strategic direction, approve its 2027–2031 budget and work programme, elect a new Secretary-General and determine the composition of the Administrative Council.
The conference will also harmonise Africa’s common positions ahead of the International Telecommunication Union (ITU) Plenipotentiary Conference scheduled to hold later this year in Doha, Qatar.
The Minister of Communications, Innovation and Digital Economy, Dr Bosun Tijani, described the conference as a significant milestone for Africa’s digital future.
“Nigeria is honoured to host the 7th Ordinary Session of the ATU Conference of Plenipotentiaries at a defining moment for Africa’s digital future.
“As countries across the continent accelerate digital transformation, it is increasingly important to strengthen regional cooperation, develop common positions on emerging technologies, and create enabling environments that attract investment, build digital talent and expand meaningful connectivity.
“Our role as host reflects the commitment of President Bola Ahmed Tinubu to building an innovation-driven economy while strengthening African cooperation on digital infrastructure, technology governance, skills development and investment,” he said.
One of the major highlights of the conference will be a ministerial dialogue on “Achieving Africa’s Meaningful Connectivity,” jointly organised by the ATU and the GSMA.
The dialogue will explore practical strategies for expanding affordable, reliable and quality connectivity across the continent, with emphasis on infrastructure investment, service quality, affordability and ensuring that digital access delivers tangible economic and social benefits.
Also speaking ahead of the conference, the Secretary-General of the ATU, Mr John Omo, said the meeting would provide member states with an opportunity to strengthen the Union’s capacity to drive Africa’s digital ambitions.
He said the decisions to be taken in Abuja would shape the ATU’s ability to support national priorities, sustain Africa’s participation in global telecommunications forums and respond effectively to emerging technological developments over the next four years.
The conference is expected to conclude with the adoption of the Abuja Declaration, which will provide governments, regulators, industry stakeholders and development partners with a common framework for advancing Africa’s digital transformation agenda.
According to the organisers, hosting the conference underscores Nigeria’s commitment to regional collaboration and reinforces the country’s growing leadership in digital policy, technology governance and investment promotion across Africa.
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