Business
Telecoms sector hard hit by harsh govt policies — REPORT
The Information and Communications Technology, ICT, the sector has shown great stability in recent years, holding off bad economic conditions, to contribute handsomely to the nation’s Gross Domestic Product, GDP.
However, the sector, buoyed by the huge contribution of the telecommunications sub-sector is beginning to show weak signals which industry operators are not comfortable with.
The weak signals, ranging from surprising dips in the revenue of sector players, declining average revenue per user, ARPU, declining contribution to GDP and drastic whittling of the purchasing powers of the average consumer of the sector’s services, among others, have been attributed to some harsh government policies like removal of fuel subsidy, devaluation and floating of the naira.
Notable experts including renowned economist and Managing Director of Financial Derivatives, Bismarck Rewane, Chairman of the Association of Licensed Telecom Operators in Nigeria, ALTON, Engr Gbenga Adebayo, Chairman of the National Association of Telecom subscribers of Nigeria, NATCOMS, Chief Deolu Ogubanjo, and even top officials of the General System for Mobile Communications Association, GSMA have expressed great concern.
These professionals say that if nothing is done to stem the tide, the aggregate economy will be hit in a more devastating manner than already being witnessed.
Sector’s growth trajectory
In the past ten years, ICT has maintained a steady growth and become a major boost to the country’s GDP. Except in 2013, when there was a slight drop, ICT contribution to GDP maintained a steady climb between 2012 and 2022. According to statistics obtained from NCC’s website, telecoms’ contribution to GDP in 2012 was 7.7 per cent, but the figure doubled to 14.3 percent as at the second quarter of 2020. This represented a N2.3 trillion growth, whereas the total contribution of Information and Communications Technology (ICT) to GDP was 17.5 percent.
In 2012, telecoms’ contribution to GDP was 7.7 percent and in 2013, the contribution dropped slightly to 7.4 per cent, but it picked up again in 2014, contributing 7.6 per cent to GDP.
In 2015, it increased its contribution to 8.5 per cent and hit 9.13 percent in 2016. In 2017, it contributed 8.7 per cent and 9.9 per cent in 2018.
In 2019, ICT contribution to GDP grew again to 10.6 per cent and as of the second quarter of 2020 it has skyrocketed to 14.3 per cent, representing N2.3 trillion.
It continued in that trajectory, to hit 17.5 per cent at the end of 2020. It helped in not only taking the economy out of recession but also ensuring the economy does not relapse.
In 2021, an NBC report said ICT sector contributed 17.92 per cent to the GDP. The figure was 20.54 per cent higher than its contribution in 2020. The figure was also unprecedented at the time and, in fact, the highest contribution of ICT to the GDP before that year.
Continuing that trajectory, ICT added 16.20 percent to GDP growth in Q1,2022 and 18.44 in Q2,2022 and 16.22 percent in Q4 of same year.
In quarter four of 2023 it added 16.66 percent to the GDP.
Decline and losses
However, beyond these varied but appreciable contributions, there is a steady decline in growth rate which experts fear could lead the sector to implosion.
For instance, in Q1 2024, the sector’s contribution in real terms to the GDP dropped by 12.60 per cent quarter-on-quarter to N2.67 trillion.
According to the National Bureau of Statistics, NBS, the sector also saw a 9.89 per cent decline in quarter-on-quarter real terms contribution.
Even as the sector achieved a year-on-year growth rate of 5.43 per cent, ironically, it still represents a 4.89 percentage points decline from the same period in 2023.
The decline, however, is attributable to the sector’s weakening financial performances, sustained losses by telecom operators; occasioned by the dwindling buying power of those who use the services of the sector.
MTN Nigeria in April reported a pre-tax loss of N575.69 billion, a sharp reversal from the N162.9 billion profit reported a year earlier. This is after paying well over N4.2 trillion in taxes since inception.
Also, Airtel Africa reported a loss after tax of US$89 million for the fiscal year ending March 31 2024.
The losses are said to be primarily driven by exchange rate depreciation, which not only affected the operators but also the subscribers.
The economic crunch and high inflation have pushed many Nigerians towards lower recharge denominations and dropped Average revenue per user abysmally.
Chairman of NATCOMs, Deolu Ogubanjo said the ICT industry particularly as it concerns the telecom sector requires the government’s deliberate investment of goodwill.
“The subscribers are worse hit in the situation the telecom sector found itself. It is easy to be deceived that two telcos, MTN and Airtel who are open to publicly showing their financial reports, recently announced that Nigerians spent over N500 billion on data consumption in just a quarter.
“But it’s not surprising. With the economic condition the only option available for business people is to showcase their businesses online. So, many people go hungry and some borrow to feed data.
“But the voice subscription which mainly powers communication and drives Average revenue per user is suffering and that’s mainly why operators are declaring huge losses.
“The Federal Government should look at its forex and petroleum pricing policies. I think most especially there’s a need to revisit the Petroleum Industry Act, in a way to make it support refining crude in Naira. My members are suffering. It will affect the telcos and eventually rub off adversely on the aggregate economy,” he added.
Corroborating their president, a few subscribers who spoke to Vanguard did not recount a comfortable experience.
Mrs Patricia Okoro, a chef in one of the prominent hotels in Lagos said: “Frankly speaking, I have abandoned my phone. Before, I used to recharge N1,000, and I will use it for my online prayers every morning.
“Currently, I have stopped because it was consuming so much data and things aren’t getting better. So what I do now is to recharge N100 or sometimes N200. I just use it to send and receive WhatsApp messages only.
“Making calls is out of the picture because you can’t say what you want within the minutes the small airtime you have can allow you.”
Also, a Lagos-based musician, Samuel Nsika, said ‘’before things got to a head as we are witnessing now, I used to recharge up to N3,000, use N1,000 to subscribe and make calls with the rest.
“But now, one has to think of feeding first, before feeding the phone. But, it’s not funny for my business, because I need to constantly stay in touch with my producer and my fans.”
Dwindling purchasing power
The declining purchasing power of users is also affecting the Nigerian and indeed African smartphone markets.
In Q1 2023, Africa’s smartphone market led by Nigeria’s mobile market, declined 3.4% quarter on quarter (QoQ) to a total of 17 million units, the lowest level of shipments since the start of the COVID-19 pandemic in Q1 2020.
IDC’s data showed that rising inflation and local currency depreciations against the US dollar negatively impacted demand across the continent. Shipments of feature phones across Africa also declined in Q1 2023.
George Mbuthia, a senior research analyst at IDC, said: “Africa’s smartphone declined throughout 2022 amid weak consumer demand, and this has been exacerbated by rising inflation and higher device prices.
“The average selling price (ASP) for smartphones grew QoQ due to high import costs and the fact that many vendors’ flagship devices are now equipped with 5G and have therefore moved up in price to the premium segment,” he added.
Why the Golden Sector Needs Salvation
Bismarck Rewane agrees that the fortunes of the telecom sector are dwindling but warned that allowing the golden sector to lose its sheen will spell doom to the aggregate economy.
He highlighted the signs of an ailing ICT sector, at a recent breakfast meeting at the Lagos Business School, LBS, in Lagos.
“When the EBITDA is sharply lowering by 12% to N1,202bn, then things are not completely in place. “Telecom CAGR was 32% per annum between 2000 and 2010 but now, the sector’s growth is stagnating at 6 per cent, although, that is still above population growth rate of 2.2%.
“Yet, the telecom industry is becoming relatively unattractive and while expenditure has increased over the years, returns and revenues have squeezed to negative margins.”
He, however, highlighted some of the causes of this ugly scenario to include Limited access to foreign exchange, rising inflation, high operating costs, regulatory burden, multiple taxation, Right of Way issues, vandalism – insecurity, declining investment and lack of new investment, poor quality of service, and state and local government extortions.
For him, the short and long-term solutions to the problem are to increase tariffs and deregulate prices respectively.
Rewane said that “Market distortions arise from fixed prices, which hinders competition and affordability for consumers.”
He also described price controls as a deterrent to investment, impacting service quality
His reasons for proffering the solutions were that the decline in telecom sector investments limits infrastructure development and technological advancements while over-regulation stifles telecom innovation and quality, distorting markets and diminishing investment incentives.
He noted that the economic repercussions of such practices include job losses, reduced GDP contribution, and digital inclusion setbacks, which Nigeria does not need to experience on a large scale.
He said if these measures are not taken, the ICT industry may sink into oblivion but warned: “If the sector collapses, the economy fails.
“Without immediate intervention, the revenue potential from telcos may start falling drastically. Telcos are linked to many sectors, hence, any disruption in its operations will have a chain effect on other sectors of the economy.”
The GSMA agreed with him on that when a top executive of the association said: “The telecoms sector is a major contributor to the economy of Nigeria and provides the foundations for the digital transformation process.
“A sustained reduction in industry revenue has implications that go beyond just the service providers. “The direct contribution of the industry to the total GDP of the country is also reduced.
“A slowdown in the mobile industry will have a further negative impact on the GDP of the country. If the industry suffers, this will feed through into lower rates of digital adoption, and the country will miss out on the potential boost to GDP that it would have delivered, “ he added
Beyond its numerous economic benefits, ICT, has also been instrumental to the development of nearly every sector. Even in social activism, ICT has revolutionised participation. From ‘Occupy Nigeria’ to the ‘Bring Back Our Girls’ campaign and beyond, the kind of energy needed to ensure a more accountable government has been given a spring.
Furthermore, the average Nigerian is more informed, hence, better empowered to participate in shaping the nation’s agenda. The singular truth that ICT has been advantageous to Nigeria cannot be over-emphasized. What is however becoming a source of concern is the nation’s own approach to the ICT industry.
Perhaps, that’s why the Chairman of ALTON, Engr Gbenga Adebayo said: “The entire ecosystem is battling with a range of challenges that must be addressed. These challenges centre around the rising costs of operations. Failing to cushion the effect of these challenges will impact negatively, not only on operators but everybody.
“How we approach and resolve the challenges will define the future of Nigeria’s digital economy,” he added.
Source: Vanguard
Aliko Dangote, known as Africa’s wealthiest businessman, recently experienced a significant decline in his fortune following a drop in shares of his cement company on the Nigerian Exchange, as reported by Business Elites Africa.
The billionaire, who leads the Dangote Group, faced a staggering loss of approximately $163 million in a mere four days.
Cement slump drags down fortune
Dangote’s fortune had been on an upswing earlier this month, boosted by gains in Dangote Cement and a stronger naira. But the recent decline in the company’s stock has wiped out part of those profits.
Shares of Dangote Cement, where he owns over 87 percent, slipped more than three percent, falling from ₦528 on September 11 to ₦511.2 by Monday morning.
The drop pushed the company’s market value down to roughly $5.6 billion, directly affecting Dangote’s personal wealth.
This setback has reduced his year-to-date gains to $687 million, down from the $850 million growth recorded earlier in September.
Despite the dip, Dangote still remains one of the most influential figures on the African continent, with his cement business dominating markets across the region.
A refinery making global moves
Beyond cement, Dangote is also making bold moves in the energy sector. His $20 billion refinery near Lagos, which started operations last year, is gradually reshaping Nigeria’s role in global energy trade. Nigeria fuel prices
At the end of August, the plant made headlines by sending its first-ever shipment of gasoline to the United States.
Roughly 300,000 barrels of petrol left the refinery aboard the vessel Gemini Pearl, marking the first time Nigeria exported refined gasoline directly to America. For decades, the country had relied on exporting crude oil while importing refined fuel for local use.
The new facility, with a daily capacity of 650,000 barrels, has already exported cargoes to Asia and the Middle East.
Refinery outages in Saudi Arabia and Kuwait have also opened opportunities for Dangote’s products to fill supply gaps in those markets, a sign of Nigeria’s growing competitiveness in refined petroleum exports.Nigeria fuel prices
Balancing losses and gains
While the slip in Dangote Cement has trimmed Dangote’s paper wealth, his diversification into energy and food industries continues to strengthen his long-term influence in Africa’s economy.
The billionaire may have lost $163 million on paper, but with his refinery steadily gaining ground in global markets, the picture of his financial empire remains one of resilience and expansion.
This sharp decrease has brought his total estimated wealth down to around $28.8 billion, according to the Bloomberg Billionaires Index. The fluctuations in his company’s stock serve as a critical reminder of the volatility inherent in the financial markets.
As the 2027 election approaches, the political landscape is intensifying, with the spotlight firmly on President Bola Tinubu and the policies his administration has implemented.
One notable development is the recent appreciation of the Naira, which has gained traction in the foreign exchange market. Click link to continue reading.
On Monday, the Naira made headlines by appreciating to below N1,500 per dollar at the official foreign exchange market for the first time since February 2025.
According to data released by the Central Bank of Nigeria, the Naira improved to N1,497.5 per dollar, a notable increase from last week’s closing figure of N1,501.5. This remarkable shift indicates a substantial gain of N4.03 against the dollar, showcasing the currency’s strengthening position compared to its previous status.
In contrast, the Naira held steady at the black market, maintaining a rate of N1,537 per dollar, consistent with the figures from the previous weekend.
The last recorded instance of the Naira trading below N1,500 at the official market was back in February 2025, underscoring the significance of this recent performance.
This rising trend in the Naira is notable against the backdrop of Nigeria’s bolstered external reserves, which have surged to an impressive $41.70 billion as of September 12, 2025. The combination of these economic indicators casts a spotlight on the government’s financial strategies and their implications as the nation gears up for a pivotal electoral season.
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The Delta State Government says its recent investment mission to Brazil has unlocked fresh prospects for industrial expansion, agricultural development, renewable energy, and job creation in the state.
Briefing journalists in Asaba, the Commissioner for Works (Rural Roads) and Public Information, Mr. Charles Aniagwu, said Governor Sheriff Oborevwori’s administration has already recorded significant gains by opening up all 25 local government areas with vital infrastructure, thereby creating access to mineral resources, industrial corridors, and potential free trade zones.
Aniagwu explained that the Brazil engagement was aimed at showcasing Delta’s investment opportunities while also drawing lessons from Brazil’s agricultural model, especially in ranching.
He stressed that the establishment of ranches in the state would not only boost food production and jobs but also strengthen security by curbing the use of forests as criminal hideouts.
“We are pursuing both security and job creation by targeting ranching and other agro-industrial investments,” Aniagwu said. “Our discussions in Brazil are progressing very well, and we are optimistic about the outcomes.”
He disclosed that the state also held talks with renewable energy firms and other players in the power sector, building on earlier engagements with the Rural Electrification Agency in Abuja.
According to him, the goal is to light up the state, expand industries, and create employment opportunities that will improve living standards.
Aniagwu noted that the government’s focus on agriculture and industry was deliberate, given the rising number of graduates from tertiary institutions across the state.
“Our goal is to create a productive economy where our graduates and young women can secure meaningful jobs beyond the limited space in the civil service,” he added.
“This is how we can guarantee both social and fiscal security for our state while raising living standards.”
He reaffirmed that the Oborevwori administration remains committed to the MORE Agenda, with particular emphasis on infrastructure expansion, energy generation, agriculture, and industrial growth.
African Export-Import Bank (Afreximbank) and the Midstream and Downstream Gas Infrastructure Fund (MDGIF) have signed a Memorandum of Understanding (MoU) to establish a collaborative framework aimed at promoting, developing, and improving gas infrastructure in Nigeria, according to ChannelsTV.
It was signed on the sidelines of the just-ended fourth Intra-African Trade Fair (IATF2025) by Helen Brume, Director and Global Head – Project and Asset-Based Finance on behalf of Afreximbank, and Oluwole Adama, Executive Director on behalf of MDGIF.
The MoU emphasises private sector-led delivery models and aligns with both institutions’ mandates and strategic priorities.
Under the terms of the MoU, Afreximbank and MDGIF will work together with the overarching intention of mobilising up to $500 million over a four-year period to support midstream and downstream gas infrastructure projects. The investment is structured as a blend of senior debt and equity contributions, considered under both entities’ independent mandates, with a focus on accelerating the modernisation and expansion of Nigeria’s gas sector.
Project Highlights:
Targeted Gas Infrastructure Investment: Joint identification and prioritisation of eligible projects, with annual pipeline targets to ensure investment goals are met.
Senior Debt Financing: Afreximbank will consider providing direct financing and credit risk guarantees to support project finance transactions, working alongside local financial institutions.
Project Preparatory Support: Establishment of a dedicated support, either through funding or a support framework, for feasibility studies, legal structuring, environmental assessments, and other preparatory activities for bankable gas projects.
Equity Financing: MDGIF will consider equity contributions to complement Afreximbank’s senior debt, enabling full capital structuring for eligible projects.
Promotion and Advocacy: MDGIF will leverage Afreximbank’s platforms, including the Intra-African Trade Fair, to promote its initiatives and engage stakeholders.
Capacity Building: Development of a structured programme to enhance MDGIF’s institutional capabilities in project structuring, risk management, and innovative financing.
With respect to the collaboration between both parties, Mrs Kanayo Awani, Executive Vice President – Intra-African Trade and Export Development at Afreximbank, noted that:
“This MoU marks a significant milestone in our shared commitment to accelerating Africa’s economic transformation. By combining Afreximbank’s deep expertise in trade and project finance with MDGIF’s national investment reach, we are poised to unlock new opportunities for inclusive growth and sustainable development across Nigeria and, potentially, across the West Africa sub-region.”
She added: “We stand ready to work with the MDGIF in advancing the development of gas infrastructure projects in Nigeria, which will add value to the country’s natural resources. This intervention is also important as it aligns with Afreximbank’s Industrialisation and Export Development Agenda.”
Senator Oluremi Tinubu, the First Lady of the Federal Republic of Nigeria, has called for unwavering support for the Niger Delta Power Holding Company (NDPHC) to accelerate growth in the nation’s power sector.
The appeal came during a courtesy visit by the managing director and chief executive officer of NDPHC, Engr. Jennifer Adighije, to the First Lady over the weekend in Abuja.
Speaking passionately about the critical role of NDPHC, Senator Tinubu said, “It is essential that all stakeholders rally behind NDPHC’s leadership to ensure the company fulfills its mandate of advancing Nigeria’s power infrastructure. I urge the entire Management and staff of NDPHC to continue supporting Engr. Adighije’s vision with dedication and teamwork.”
The First Lady also commended Adighije’s commitment and leadership qualities. “Your diligence, passion, and deep sense of responsibility stand as a shining example of leadership in Nigeria’s power sector,” she stated. “Young women like you, who demonstrate rare leadership virtues, inspire a new generation of leaders and bring hope to our nation’s development.”
Senator Tinubu expressed joy and pride in seeing young Nigerians excel in positions of high responsibility. “I sincerely commend your efforts towards leading NDPHC with every sense of diligence and commitment,” she emphasised. “Your leadership is not only about managing the company but also about inspiring others to step up and contribute meaningfully.”
She further urged continuous teamwork within NDPHC to ensure the attainment of critical milestones in power generation and distribution. “For Nigeria to achieve steady power growth, the success of companies like NDPHC is vital. Let us all work together to support this leadership and push forward the sustainable energy agenda for our people,” she concluded.
Engr. Jennifer Adighije expressed gratitude for the warm reception and the commendations. She assured that NDPHC would remain resolute in transforming Nigeria’s power landscape through innovative projects and effective management.
The visit underscores a renewed focus on the power sector’s growth, with strong endorsements from key national figures encouraging collaboration and dedication toward a brighter energy future for Nigeria.
When Oluwatosin Ajibade, popularly known as Mr Eazi, tied the knot with Temi Otedola, daughter of billionaire businessman Femi Otedola, many in Nigeria’s elite circles questioned why one of the nation’s most prominent families would give their daughter’s hand to a musician.
But at the couple’s white wedding in Iceland, Africa’s richest man, Aliko Dangote, provided an answer that silenced critics by confirming Mr Eazi as an entrepreneur with businesses across 18 countries on the continent.
Below is a list of Mr Eazi’s businesses, not known to many Nigerians.
1- emPawa Africa – Founded in 2018, emPawa is a talent incubation and music distribution platform that has helped launch stars like Joeboy. It provides mentorship, funding, and resources for up-and-coming artists across Africa.
2- Zagadat Capital – Mr Eazi’s venture capital firm invests in startups in tech, media, and entertainment. Notable investments include:
3- pawaPay – A pan-African mobile payments company.
4- Thrive Agric – an agri-tech startup connecting farmers to investors.
5- BetPawa – A popular online betting platform.
6- Street Banker – A financial inclusion project for underserved communities.
7- Choplife Gaming & Choplife SoundSystem – Expanding beyond music, Eazi launched Choplife Gaming in 2022, a pan-African lottery and gaming company. His Choplife SoundSystem blends music, events, and lifestyle branding into a cultural business model.
Although less publicised, the singer has confirmed investments in real estate projects across Nigeria and Ghana, as well as hospitality ventures linked to his Choplife brand.
Through Zagadat Capital, Eazi also holds stakes in several fintech firms driving financial inclusion across Africa.
Now married into one of Nigeria’s most influential families, Mr Eazi embodies a hybrid lifestyle — blending music, global entrepreneurship, and elite family life.
For him, business has never been secondary.
As Dangote hinted, music may be just the tip of the iceberg. With ventures spread across at least 18 African countries, Eazi is positioning himself not just as a musician, but as one of the continent’s most ambitious entrepreneurs.
And with his marriage to Temi Otedola, many say the couple may just become Africa’s new symbol of power, wealth, and influence.
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