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.
Ayotunde Coker, chief executive officer of OpenAccess Data Centre has described Open Access fabric, the company’s Africa-led interconnection platform as key driver of a digital economy, offering a range of virtual connectivity services from Open Access Data Centres (OADC) facilities.
Empowered by West Indian Ocean Cable Company (WIOCC), extensive digital backbone, OAfabric offers enterprises and service providers access to diverse digital ecosystems, supporting user-to-service, user-to-user and site-to-site connectivity.
Coker stated this during a tour of Open Access Data Centre facility in Lagos by some journalists recently.
According to him, “designed as a future-ready foundation, OAfabric unites cloud and local connectivity with OADC’s market-leading colocation solutions, establishing an innovative, scalable African infrastructure platform that addresses both local and global digital transformation demands.
“OA fabric offers a reliable, adaptable interconnection platform to support Africa’s growing digital needs and hybrid infrastructures for local and global providers
“Enabling secure, direct cloud connections, OA fabric supports data sovereignty and fosters local provider growth, OA fabric provides IX peering, virtual interconnection, and tailored IP services for Africa’s digital landscape.
“It’s not about a particular service provider, it’s about everybody. Once you have a network and you are able to route traffic, even if you are not live yet, and you are hoping to come in the future, we are waiting for you to come on board. So, that platform converges everybody.
“With Open Access fabric, everyone is expected to interconnect. You are collaborating with the government. You are collaborating with the banks. We are collaborating with all these guys to interconnect everyone, Microsoft, Google, all the cloud companies connect into it, because we already have the connectivity business”.
He noted that, “Through OA fabric, all the other connectivity providers have access to any content on OA fabric, so SMB, SMEs, MSMEs, who probably doesn’t have a registered business, but on social media, selling clothes and things like that, can have cost effective access to resources on the internet.
Speaking on Metro fiber project which OADC is partnering with WBT, Coker explained that they have covered over 5 million homes in Lagos. “The job of the Internet Service Provider or MNO in the project is to maintain relationship with the residents of that area, make sure that the infrastructure is secured”.
Telecom
MTN Nigeria and Pan-Atlantic University Invite Media Practitioners for 4th Media Innovation Programme
MTN Nigeria Communications Plc and the School of Media and Communication, Pan-Atlantic University, have announced a call for applications from qualified media practitioners (including content creators) to participate in the 4th edition of the MTN Media Innovation Programme (MTN MIP-4).
The programme commences on May 19, 2025, on the Main Campus of the Pan-Atlantic University, Ibeju-Lekki, Lagos.
In collaboration with the School of Media and Communication, Pan-Atlantic University, MTN Nigeria launched MIP in 2022 to enable media practitioners gain deeper insight into the ever-evolving media landscape.
The six-month fully funded certificate fellowship, which includes a study visit to the University of Johannesburg, South Africa is open to media practitioners across all strata of the media industry including print, electronic and online platforms. The programme is also open to social media content creators.
“When we launched MIP in 2022, our goal was to enhance media professionals’ reporting capabilities and deepen their understanding of the technology sector, empowering them to become true media innovators. Seeing the impact of the programme over the past three years has been both inspiring and humbling.
“We are proud to continue this initiative and invite all eligible media professionals and content creators to seize this opportunity by applying for the fourth cohort,” said Tobe Okigbo, Chief Corporate Services & Sustainability Officer, MTN Nigeria.
Speaking on the impact of the programme, the Dean, School of Media and Communication (SMC), Pan-Atlantic University, Dr Ikechukwu Obiaya, said that the programme continues to improve and evolve.
“Given the challenges of today’s fast-changing media space, there is an ever-greater urgency to cultivate a new generation of media professionals who will drive innovation and excellence to meet today’s media needs.
“SMC will leverage its extensive experience in training media professionals to equip this next cohort. And we will do this with our usual emphasis on creativity and ethics.”
At the end of the training, the 20 successful applicants, who will qualify as Fellows, will have been trained on Nigeria’s technology sector, the relationship between media and technology and improved content creation opportunities. They will also be equipped with the skills to adapt to the changing realities that guarantee career and financial success in their professional practice. Fellows will also have access to professional resources and mentorship from PAU’s erudite faculty.
Interested journalists, bloggers and content creators can apply at https://bit.ly/MTN_MIP2025
Applications open on Monday, March 24 and close on Monday, April 7, 2025.
A new study commissioned by Visa reveals a rise in consumer awareness and proactive security measures for digital payments across Central and Eastern Europe, the Middle East, and Africa (CEMEA).
The ninth annual Stay Secure study, which surveyed 5,800 adults across 17 diverse CEMEA markets, found that 98% of consumers now actively take precautions to secure their online transactions, showcasing increased savviness as digital payments gain momentum.
While 64% of respondents in Nigeria acknowledge their vulnerability to scams like phishing, the increased adoption of security measures and preference for stronger authentication indicate a positive shift in consumer behavior since the last edition of the Stay Secure study in 2023. Consumers are now actively spotting red flags and verifying the legitimacy of online interactions, showing a marked increase in awareness.
Other key insights emerging from the research bode well for the continued acceleration of digital payments across the region, with over three-quarters of all respondents stating that they mostly or completely trust digital payments, regardless of the threat of fraud. 86% of consumers across Nigeria anticipate that they will increase their use of digital payments over the next year.
“The digital payments landscape is evolving rapidly, and consumers across Nigeria are embracing its convenience while becoming more vigilant about security,” said Andrew Uaboi, Vice President & Head, Visa West Africa.
“Consumer education is our best defense against fraud, and industry collaboration makes this possible. As scams grow more sophisticated, the battle for security never stops. Consumers increasingly trust partners who take tangible steps to protect them.”
The ‘Stay Secure’ study highlights evolving consumer preferences, which could offer Visa’s stakeholders actionable intelligence for trust-building strategies and inform the creation of educational materials to empower consumers against fraud.”
Key Findings of the Visa Stay Secure Study:
– 94% surveyed in Nigeria utilize e-commerce payment methods.
– 82% surveyed in Nigeria are more likely to trust payment programs run by the government (e.g., instant payments, local cards, etc.) if they partnered with a well-known brand like Visa.
-51% surveyed in Nigeria feel more secure using digital payments.
-56% surveyed in Nigeria leverage online credit or debit card payments.
– 54% surveyed in Nigeria note that news about cyber fraud (e.g., data breaches, email scams, phishing, etc.) has impacted their use of digital payments.
– 43% rank Boomers (60-78) as most likely to fall victim to online scams.
Visa’s Commitment to a Secure Digital Future
Visa has been at the centre of AI in payments, investing $3.3 billion in our AI and data infrastructure over the last decade. In 2024, it introduced three new AI-powered risk and fraud prevention solutions, as part of the Visa Protect suite, that are designed to help reduce fraud across immediate A2A and card-not-present (CNP) payments, as well as transactions on and off Visa’s network.
As the world’s largest SaaS platform, Visa combats cybercrime by deploying cutting-edge tools, expertise, and processes to help identify and mitigate fraud. The impact is undeniable: In the past year, Visa blocked $40 billion in fraudulent payment value, prevented 80 million fraudulent transactions, and averted over $122 million in estimated e-commerce fraud through malware detection.
Authorities Seize 1842 Devices in African-Wide Cybercrime Crackdown
Police Arrest 4 Bank Staff over Alleged ₦270m Fraud, Money Laundering
Enza Raises $6.75m Seed Funding to Boost Embedded Payment Solutions Across Africa
NIMC to Prosecute Nigerians Printing ‘NIN Cards’, Says Only Slip is Legal
FG, UK FCDO, and Ghana Partner to Launch Sankore
Broadcasting2 days agoNGO Blasts MultiChoice for Tariff Hike in Nigeria, Slash in South Africa
E-Business2 days agoOtti, Abia State Gov Promises Internet Access for all Abia Communities in 9 Months
News2 days agoNIPOST Explains Clamping Down on Illegal Logistics Services in Enugu
Telecom2 days agoTelcos Mull Introduction of Different Tariff Plans for Different States
News2 days agoNESREA Urges Nigerians to Dispose Batteries Properly to Avoid Hazards
E-Financial2 days agoCITN Seeks AI to Curb Revenue Leakage in Nigeria’s Tax System
News2 days agoTony Elumelu Foundation Grants $15m to 3,000 African Entrepreneurs
E-Financial2 days agoSEC Declares War on Capital Market Fraudsters