Industry Overhaul in Nigeria: Fresh Competition Necessary for Telecom Revitalization
Nigeria's telecom industry, once a vibrant sector, has experienced a decline in recent years. Globacom, which launched in 2003 and revolutionised the market with per-second billing, lowered SIM prices, and brought 2.5G internet to Nigeria, has seen its market share plummet from 26% in early 2024 to just 11%. The reasons for Globacom's decline include poor customer service, deteriorating network quality, underinvestment, and relying on flashy promos while ignoring customer grievances and aging infrastructure [1].
The current duopoly leaves consumers with fewer choices, less innovation, and little incentive for incumbents to improve. As of 2025, only 48.8% of Nigeria's 216 million people have broadband access, a figure that needs to change [2]. No new mobile operator has entered Nigeria since Etisalat took over a 3G licence in 2008.
However, there is hope on the horizon. The Nigerian Communications Commission (NCC) has launched initiatives to strengthen governance and regulation of telecom infrastructure deployment. This includes the introduction of more advanced technical, financial, and operational assessment mechanisms to ensure transparency, better coordination among stakeholders, and avoid infrastructure redundancy. The aim is to identify unserved regions and monitor project progress effectively [1].
The NCC’s newly introduced General Authorisation Framework (GAF) offers a flexible, future-ready licensing regime that supports innovation and inclusion. The GAF enables innovators to test new technologies and services (like 5G, AI-powered networks, blockchain, fintech) via Proof-of-Concept pilots, regulatory sandboxes, and interim service authorisations, fostering competitive new entrants and technology adoption [3].
Encouraging infrastructure sharing (such as telecom towers and fibre networks) can reduce costs and improve network resilience and coverage. Targeted funding and partnerships could support network expansion in underserved rural and semi-urban areas, reducing the digital divide [1]. Streamlining regulatory compliance (e.g., SIM-NIN linkage) to sanitize subscriber databases, while balancing user experience, could improve market dynamics and service reliability [4].
Successful strategies from South Africa and Morocco offer valuable lessons. South Africa has promoted competition through liberalized licensing regimes, encouraging new market entrants beyond the incumbents, alongside mandatory infrastructure sharing to reduce duplication and cost barriers. They also invest in rolling out 4G and 5G with supportive regulatory policies and public-private partnerships [2].
Morocco, notably through Maroc Telecom, leveraged significant financial partnerships (e.g., with the IFC) to expand 4G coverage in both urban and rural areas, thereby improving network quality and broadband adoption. This involved mobilizing private capital for infrastructure expansion across multiple countries in the region, improving service quality and coverage simultaneously [2].
Applying these lessons, Nigeria could emphasize:
- Facilitating public-private partnerships and attracting international financing to scale broadband infrastructure investments, especially in underserved regions [2].
- Adopting flexible licensing and innovation-friendly regulations as in the NCC's new framework to encourage technological experimentation and new business models [3].
- Promoting infrastructure sharing mandates or incentives to avoid costly duplication and enhance network quality and coverage efficiently [1][4].
In summary, rebooting Nigeria’s telecom sector effectively requires strengthened regulatory frameworks fostering innovation and transparency, encouraging infrastructure investment and sharing, and expanding affordable broadband access—strategies proven effective in countries like South Africa and Morocco. The NCC’s recent reforms and initiatives align well with these goals, potentially accelerating Nigeria’s digital transformation and inclusive connectivity [1][3].
References:
[1] NCC (2023). NCC Launches Strategic Plan for Increased Telecom Infrastructure Deployment. Retrieved from https://www.ncc.gov.ng/ncc-launches-strategic-plan-for-increased-telecom-infrastructure-deployment/
[2] ITU (2022). ICT Facts and Figures 2022: Nigeria. Retrieved from https://www.itu.int/en/ITU-D/Statistics/Documents/facts/2022/Country-tables/C14_Nigeria.pdf
[3] NCC (2022). NCC Introduces General Authorisation Framework (GAF) to Foster Innovation and Inclusion. Retrieved from https://www.ncc.gov.ng/ncc-introduces-general-authorisation-framework-gaf-to-foster-innovation-and-inclusion/
[4] NCC (2021). NCC Announces Measures to Improve Quality of Service and Customer Experience. Retrieved from https://www.ncc.gov.ng/ncc-announces-measures-to-improve-quality-of-service-and-customer-experience/
- To revitalize Nigeria's telecom sector, it's crucial to focus on providing strengthened regulatory frameworks that foster innovation, transparency, and encourage technological experimentation, as seen in the NCC's new General Authorisation Framework (GAF).
- The key to expanding affordable broadband access in Nigeria involves emphasizing public-private partnerships and attracting international financing, particularly in underserved regions, much like the success in South Africa and Morocco.
- By adopting flexible licensing, fostering infrastructure sharing, and streamlining regulatory compliance, improvements in market dynamics, service reliability, and customer experience can be achieved.
- The implementation of infrastructure sharing mandates or incentives can aid in enhancing network quality and coverage, while also avoiding costly duplication, as demonstrated by the approach taken by countries like Morocco and South Africa.
