The meeting, held in Wednesday, brought together senior executives from both organisations to discuss the future of Nigeria’s telecommunications industry, infrastructure development, service quality, and emerging opportunities within the country’s rapidly evolving digital economy.

The Executive Management and Staff of ntel include Afolabi Oladunjoye, Ikechi Jim Nnah, George Ifeonyemetalu, Chinedu Anochirionye, Ariyike Akinbobola LL.B, Nasirudeen Babalola, who were received by the hairman of the NCC, in a meeting centered on innovation, industry growth, and the future of connectivity in Nigeria.

Also present were the Executive Commissioner, Technical Services, Engr. Abraham Oshadami; the Board Secretary, GT Mohammed; alongside members of the Commission’s management and staff.

Discussions during the engagement focused on strengthening industry collaboration, expanding broadband access, improving connectivity infrastructure, and driving innovation capable of supporting Nigeria’s digital transformation ambitions.

Speaking during the meeting, Olorunnimbe emphasised the importance of sustained investment, service quality, and innovation in delivering value to Nigerian consumers.

He encouraged ntel to continue positioning itself as a strong Nigerian player within the highly competitive telecommunications sector.

“The opportunity ahead is significant for operators committed to quality, innovation, and long-term value creation,” he said, reiterating the Commission’s commitment to supporting operators while strengthening the broader telecommunications ecosystem.

The NCC chairman also acknowledged ntel’s ongoing investments and new initiatives aimed at expanding broadband connectivity and enhancing digital access across the country.

For ntel, the visit provided an opportunity to deepen engagement with the regulator while reaffirming its commitment to delivering transformative digital infrastructure and innovative connectivity solutions for businesses, institutions, Internet Service Providers (ISPs), and communities across Nigeria.

The company said discussions also highlighted the growing demand for reliable broadband services and the importance of introducing innovative products capable of expanding digital inclusion and supporting economic growth.

The engagement comes shortly after ntel announced the deployment of NOVA (Tarana), its next-generation Fixed Wireless Access (FWA) initiative designed to improve access to high-speed wireless connectivity nationwide.

According to the company, the project is expected to strengthen ntel’s role as a digital infrastructure provider by enabling partner ISPs, enterprises, and organisations to deliver broadband services using its network infrastructure.

Both parties expressed optimism about continued collaboration toward building a more connected and digitally empowered Nigeria.

That contrast was revealed in a new report, which shows the continent is building fast, but still lagging.

The study, Data Centres in Africa 2026, says Africa’s total installed capacity is expected to triple to about 1.2 gigawatts (GW) of IT load by 2030.

But then, this growth will track global expansion rather than close the gap. The United States alone hosts about 45% of the world’s data centres.

Globally, the data centre market was valued at $243 billion in 2025 and is projected to double by 2032.

Artificial intelligence is a primary driver. McKinsey estimates AI training and inference could triple global demand for data centre capacity by 2030, with 70% of new demand linked to AI workloads.

In comparison, Africa’s footprint is small. The continent has between 220 and 230 facilities spread across 38 countries.

Capacity is concentrated in South Africa, Nigeria, Kenya and Egypt. Most African data is still stored abroad, mainly in Europe and North America.

That reliance brings the risks. Data hosted overseas falls under foreign laws. The report points to the U.S. CLOUD Act, which allows American authorities to compel companies under U.S. jurisdiction to hand over data, regardless of where it is physically stored.

This leaves governments and businesses in Africa asking who really controls their data and whether they truly have authority over it.

More than 40 African countries have enacted data protection laws, and 19 have ratified the Malabo Convention on cybersecurity and data protection.

However, enforcement capacity usually lags behind legislation. Investors now see regulatory clarity as an important factor in deciding where to build.

Dr Ayotunde Coker, CEO of Open Access Data Centres, said: “Africa’s path to data sovereignty depends on building local processing power, sustainable energy use, and AI capacity that reflects the continent’s own priorities and realities.”

AI is changing the direction. In April 2025, African states adopted the Africa Declaration on Artificial Intelligence in Kigali.

The declaration commits $60 billion towards continental AI ambitions and led to the creation of an Africa AI Council made up of seven ICT ministers and eight independent members.

So far, 15 African countries have adopted a national AI strategy or policy. Still, infrastructure is not satisfactory.

According to the report, outside South Africa, only about one-third of built data centre capacity is fully utilised. Even in South Africa, 74% of capacity is fitted out and in use.

Operators say they are building ahead of demand, planning on 10- to 20-year horizons.

The demand side is still uneven. While 47% of Africans are mobile subscribers, only 28% use mobile internet.

In some low-income countries, internet access can take up to 26.4% of average monthly income. The physical coverage gap has narrowed to 9%, but the usage gap stands at 64%.

At the same time, data consumption per smartphone in sub-Saharan Africa averages about 6.7GB per month, far below the global average of 21.6GB.

The International Finance Corporation estimates that doubling undersea cable capacity could cut bandwidth prices by 30 to 50%. Even moderate price drops could push usage steeply higher.

Connectivity is expanding. Africa’s terrestrial fibre network reached about 1.3 million kilometres in 2025, up from 1 million kilometres in 2019.

The World Bank approved $500 million in late 2025 to deploy a further 90,000 kilometres of fibre. Egypt now connects to more than 19 subsea cable systems, Djibouti to 12, and South Africa to 11.

However, access to computing power is limited. Latency from African users to major cloud regions abroad usually exceeds 70 to 100 milliseconds, compared with less than 20 milliseconds in mature markets.

Where local cloud regions exist, such as in South Africa, median latency falls to between 35 and 45 milliseconds.

The report describes this as a “compute divide”. It argues that competitiveness will depend more on where computing capacity sits and how close it is to users, not just connectivity,

Investment is flowing in response. Hyperscalers and technology investors are estimated to have committed between $2.5 billion and $4 billion to African data centres in recent years.

Development finance institutions have put in an estimated $1.5 billion to $2 billion since 2016. Commercial banks, private equity firms and sovereign investors have also stepped up.

Private equity-backed platforms such as Raxio and Actis-backed Digital Realty have pursued regional expansion. Telecom-linked operators including Africa Data Centres, Nxtra by Airtel and STELLARIX are carving out carrier-neutral facilities while leveraging existing fibre networks.

Governments are building national facilities as well. Nigeria’s Galaxy Backbone, Ghana’s National Data Centre, Rwanda’s National Data Centre and state-backed projects in Ethiopia and Togo aim to anchor government cloud services and sensitive public data locally.

The economics are demanding, with building a standard Tier III facility globally now costing about $11.3 million per megawatt.

For AI-ready sites, tenant fit-out costs alone can reach $15 million to $25 million per megawatt. In Africa, operators face additional expenses linked to power back-up systems and imported equipment, with generators sometimes taking up to 18 months to deliver.

Occupancy can also take time. The report says it may take up to eight years for a new African data centre to reach 85% occupancy.

Yashnath Issur, CEO of Nxtra by Airtel Africa, said: “Developing large-scale infrastructure, such as a 40-MW data centre, fundamentally transforms the economic model of the industry.

“Beyond unlocking significant economies of scale in both construction and operations, this level of capacity also strengthens our position when negotiating long-term power purchase agreements. The result is greater cost predictability, improved energy security, and a more resilient foundation for sustainable growth.”

Talent is another pressure point, with Uptime Institute projecting the global industry will require 2.5 million full-time staff by the end of 2025.

In Africa, 39% of operators quote retention of skilled staff as their main human resources challenge. In Nigeria, that figure reaches 67%.

To respond, experts launched the Data Centre Talent Project for Africa in 2025. The three-month programme aims to enrol more than 100 engineering graduates in its pilot phase across Nigeria, Kenya and South Africa, with at least 30 job placements in the first cycle.

Despite the challenges, the report concludes that Africa’s digital economy could reach $1.5 trillion by 2030.

For that to happen, Africa data centre capacity will need to move from scarce infrastructure to becoming a reliable, local backbone for cloud services, AI and public systems.

The report, released under the Speedtest Awards banner, highlights MTN’s superior performance in download and upload speeds, cementing its leadership in mobile broadband innovation and 5G deployment.

Key Performance Highlights (Q2 2024)

5G Rollout Driving Speed Revolution

MTN Nigeria launched its 5G network commercially in September 2022, covering major cities such as Lagos, Abuja, Port Harcourt, Ibadan, Kano, Owerri, and Maiduguri.

The company reportedly invested over $120 million in infrastructure upgrades, spectrum acquisition, and rollout, enabling it to deliver next-generation connectivity to millions of users.

According to Ookla, both Nigeria and Ghana have tripled their median download speeds in just two years, a clear reflection of network modernization and fiber expansion across the sub-region.

Industry Significance

The recognition underscores the role of private sector innovation in driving Africa’s digital transformation.

For consumers, the performance leap means smoother streaming, online gaming, and video calls.
For businesses, it enhances cloud adoption, fintech transactions, and remote operations, critical enablers for a digital economy.

The Road Ahead

As Nigeria’s telecom sector continues to evolve, all eyes are on how competition; Airtel and Mafab will respond to MTN’s dominance in the 5G race. Is there possibility of Glo and 9mobile joining the race too?

The industry regulator – Nigerian Communications Commission (NCC) and industry stakeholders are also expected to prioritize spectrum availability and rural broadband coverage to sustain this momentum.

Summary of the Report:

At the maiden Rural Connectivity Summit organised by Business Metrics in Lagos, the President of the Association of Telecommunications Companies of Nigeria (ATCON), Tony Izuagbe Emoekpere, said: “We need to move away from talk shops into actions.”

Speaking under the theme “Rethinking Digital Connectivity to Unlock Rural Economic Potential,” Emoekpere said the industry must stop recycling discussions and start building practical, context-specific solutions that meet the real needs of rural Nigerians. 

“We are all part of the talk shop industry, so to speak, as advocates, we go around speaking. But what impact are we having? What impact are we making?” he asked.

ATCON president noted that despite the official claim of about 200 million active telecom subscribers, many of those figures are duplicates. “They are not real people,” he stressed, noting the example of modern iPhones that can host up to eight eSIMs without a physical SIM slot. 

“If you are counting that as eight subscribers, can you see the irony in that, in this, our data? Let us connect real people.”

Away from telecom subscribers, the ATCON president also challenged engineers and service providers to rethink their design approach, saying too many solutions are borrowed from other regions without adaptation. “We just borrow technology. We are very lazy. We borrow technology,” he said. 

“You are supposed to go to an OEM and say, ‘This is a problem I want to solve.’ Design the system to suit that problem.”

According to him, many of Nigeria’s rural challenges, from banking exclusion to market access for farmers, could be solved with basic, fit-for-purpose digital tools. “The lowest of the lowest hanging fruit in the rural communities is that they are unbanked,” he said. 

“If you try and adopt the POS system, for example, and make it a rural solution that allows POS to operate in rural communities, you have already brought people into the banking sector.”

He gave another example: farmers in remote villages selling produce at unfairly low prices because they lack access to real-time market data. “If I tell the village that, I can give you real-time prices of what you produce, what has been sold. Pay me 10 Naira for that information, for example, so that when the middle man comes to me and says, ‘I’m paying,’ the guy says, ‘No, I’ve received information that pineapple today in Lagos is 3,000 Naira.’ Even if you are transporting it, I cannot collect less than 500 Naira,” he said.

Emoekpere emphasised that the problem is not the absence of markets in rural Nigeria, but the industry’s failure to understand and serve that market correctly. “That there is no market in the rural community is wrong. The issue is our approach to that market,” he said.

He urged organisers and participants at the summit to ensure concrete outcomes beyond conversations. “At the end of the day, we are looking at action, actionable points and even identifying potential drivers, say, ‘Mr A is going to do this, Mr B is going to do that.’”

Connecting rural Nigeria requires empathy, innovation, and accountability, far beyond technology deployment. “We must connect real people,” he concluded. 

In this space, companies like MainOne (now Equinix), Rack Centre, and WIOCC through its Open Access Data Centres (OADC), are investing heavily to strengthen Nigeria’s digital backbone. 

But which of them is best positioned to ensure growth across the Nigerian startups sector?

MainOne (Equinix): The Global Reach & Certification Anchor

MainOne has leveraged its submarine cable system, fibre optic network, and its acquisition by Equinix to offer reach and certified reliability. Its data centre arm, MDXi, holds the Uptime Institute Tier III Constructed Facility certification (TCCF), among several other certifications (PCI-DSS, SAP Infrastructure Services, ISO 27001 & 9001). 

Its Network Connect and Cloud Connect services link local branches or clouds with global infrastructure. For example, by routing traffic via its submarine cable and leveraging Equinix Fabric, it offers predictable performance and connectivity from Lagos to key global hubs.

Power reliability, a common pain point in Nigeria, is one of MainOne’s standout strengths. Its Lagos data centre integrates multiple power redundancies, utility partnerships, and high-capacity generators to maintain near-continuous uptime. That’s essential for startups whose businesses can’t afford downtime.

Still, MainOne’s premium-grade services usually come at higher prices. For small or growing startups, that might make it more suitable at later stages of expansion rather than at the beginning.

So, MainOne offers scale, high certifications, international interconnect, and relatively lower risk from interruptions.

Rack Centre: The Nimble, Neutral & Efficiency-Driven Option

Rack Centre carved its reputation as Nigeria’s first carrier-neutral Tier III certified data centre. Unlike most competitors, it is not owned by any telecom or internet provider, which gives clients the flexibility to interconnect with over 70 different carriers and ISPs. That neutrality is one of its biggest competitive edges.

Its location in Oregun, Lagos, provides direct access to all the major undersea cables serving Nigeria, including WACS, MainOne, Glo-1, SAT-3 and ACE. The result is low latency, strong redundancy, and smooth interconnection between local networks.

Rack Centre’s new LGS2 facility represents a huge step forward. The 12MW hyperscale and AI-ready centre is designed for exceptional energy efficiency and sustainability, with advanced cooling systems and a lower Power Usage Effectiveness (PUE) ratio. This reduces operational costs and aligns with global sustainability standards, an important factor for modern tech companies.

Its approach appeals particularly to startups seeking flexibility, local performance, and freedom from vendor lock-ins. However, Rack Centre’s challenge is scale: it has a solid local presence but lacks the global integration that Equinix offers through MainOne.

One of its strongest propositions is neutrality: Rack Centre is not owned by a telco, ISP or cloud provider; it does not compete with its tenants; therefore, there is less risk of vendor lock-in or conflict. 

For startups, especially those scaling fast, Rack Centre tends to offer strong locality benefits: low latency within Nigeria, strong peering via IXPN, predictable interconnects, and usually more flexible arrangements for rack space or interconnection.

WIOCC / OADC: The Pan-African Connector, Big Capacity Incoming

WIOCC, via its Open Access Data Centres (OADC) arm, is scaling aggressively. Its strategy is open access, hyperscale capacity, and linking regional networks. 

OADC’s expansion plan is one of the biggest in the sector. The company has committed over $240 million to expand its Lagos data centre to 24 megawatts by 2027, starting with a 12MW first phase. The facility is designed to support cloud providers, hyperscale clients, and growing tech firms that need capacity and cross-border connectivity.

WIOCC also launched OAfabric, its cloud interconnection platform, which allows businesses to connect directly to international cloud services through a simplified interface. Combined with its wide fibre and submarine network, it aims to provide both affordability and regional reach.

That said, OADC’s infrastructure in Nigeria is still relatively new, with much of its full capacity under development. The scale and potential are enormous, but the market will need to see consistent delivery over time.

Its strength is scale (once the full capacity is live), strong peering potential across borders, and an open access model that benefits ISPs, cloud providers and telcos who need wholesale connectivity.

Comparing Strengths and Trade-offs

Each company brings something unique to Nigeria’s digital economy. MainOne is on top when it comes to global integration and enterprise-grade reliability, backed by Equinix’s global standards. For Rack Centre, it’s in neutrality, local performance, and energy efficiency, making it ideal for startups prioritising flexibility and cost control. WIOCC, meanwhile, is building a network that could redefine cross-border connectivity and scale for Africa’s data economy once fully realised.

In terms of reliability, both MainOne and Rack Centre already provide strong uptime backed by Tier III certifications. MainOne’s international connectivity gives it an advantage for startups with global vision. Rack Centre provides a more accessible, locally optimised alternative for startups that value independence and direct peering with multiple providers. WIOCC is the long-term investment, its pan-African fibre network and future 24MW capacity could make it the infrastructure giant to watch.

What I Think Startups Should Care About Most

If I were advising a startup today, I would tell them:

• Get your foundation right: data sovereignty, uptime, and latency are not optional. Pick a provider with strong certifications and multiple power/fibre redundancy.
• Think about the cost-to-scale: what looks affordable at 10 racks may be expensive at 100. Check how interconnect charges, cross-connects, and peering fees scale.
• Be wary of lock-in. Providers that are carrier-neutral and open access give more flexibility to mix and match cloud, network, and hosting providers.
• Monitor sustainability and total cost of ownership. Facilities that waste energy or have unreliable back-up power may cost more when things go wrong.

Who’s Best Positioned?

Each of these providers has a part. If I had to pick:

• For startups already serving international customers or aiming to scale globally, MainOne/Equinix remains ahead because of its global interconnection, submarine cable reach, and certifications.
• For startups focused on Nigeria or nearby countries and needing lower latency, predictable interconnect and flexible arrangements, Rack Centre looks like a strong option.
• For companies needing wholesale capacity, cross-border reach, or anticipating rapid growth in cloud usage, WIOCC/OADC will likely pull ahead once their full capacity is available and stable.

In short: there is no single perfect choice. But the competition among these three is powerful for our ecosystem. Startups will benefit as they force better reliability, lower prices, and greater innovation. And I’m positive the fate of Nigerian startups looks brighter if we build this backbone well.

ADC is part of Cassava Technologies a pan-African technology leader providing a vertically integrated ecosystem of digital services and infrastructure enabling digital transformation across Africa.

As a key stakeholder with over three decades in the Data Centre, Cloud, Connectivity, and Managed IT Services industries, Dr. Krish is renowned for his significant contributions in building the most number of data centres in the region.

Dr Krish is vastly experience in incubating startups and positioning them as challengers in high growth markets where they operate.

His impressive experience in running businesses includes complete life cycle management of the business includes: business planning, end-to-end P&L ownership, product development, sales/business development, go-to-market strategies formulation and execution, establishing multi megawatt Data Centre projects, service delivery, procurement, HR, finance and other business support functions, establishing systems and processes including integrated BSS and OSS automation, as well as applying the latest AI trends across the business-functions

He is a recipient of several awards by various institutions recognizing his impeccable contribution toward the development of the Data Centre Industry and the overall ICT sector in Africa over the years.

In this interview, Dr. Krishnan Ranganath, the regional executive – West Africa & Morocco- at Africa Data Centres (ADC), speaks on sundry issues impacting the tech industry. Excerpt:

Would you say the 2024 global economic challenges still affect the tech industry, particularly from your perspective in Africa?

Dr. Krish: 2024, a year of significant uncertainty across the globe, also had its share of challenges for Africa. However, we chose to take these challenges as learning opportunities—making the necessary adjustments and finding ways to adapt and move forward.

In the tech industry, change is constant; each day brings something new. We saw the rise of Nvidia and AI, and now, overnight, we’re discussing Deepseek. As a tech professional, it’s crucial to stay adaptable and embrace global changes while exploring how to apply them locally and regionally.

Technology continues to evolve daily, infiltrating our personal lives and promising more advancement throughout the year. These developments are likely to create significant employment opportunities across various sectors.

What strategic priorities should the tech industry focus on in 2025 to stay competitive?

Dr. Krish: In the midst of a rapidly changing technological landscape, companies are navigating the transformative power of emerging technologies such as artificial intelligence (AI), blockchain, and the Internet of Things (IoT). A striking 85% of businesses report that adopting AI has already improved productivity. McKinsey notes that companies using AI extensively can increase their cash flow by 122% over a five-year period.

These innovations are reshaping industry frameworks and altering competitive dynamics—startups leveraging blockchain technology are disrupting financial services and attracting substantial funding. This shift compels established players to rethink strategies, invest in digital transformation, and adapt to new consumer expectations driven by rapid technological advancements.

Looking at 2025, AI is at the centre of global conversations, supported by big data, cloud computing, and cybersecurity, which play a critical role in the tech ecosystem.

What trends are shaping data centre adoption in Africa amid the rise of cloud and AI?

Dr. Krish: As the drive to develop artificial intelligence and related technologies grows, so does the demand for data processing capacity—fuelling a data centre boom across Africa, despite infrastructure challenges.

In recent years, investment in African data centres has increased, though not at the same scale as more established economies.

Since 2022, new carrier-neutral data centres have been commissioned, with more in the pipeline. Key construction activity is underway in Egypt, Kenya, Morocco, Nigeria, and South Africa. These developments are supported by efforts to improve regulatory frameworks, energy infrastructure, and connectivity—while also promoting digital transformation, cloud adoption, and addressing the skills gap.

However, the continent still lags behind global benchmarks, accounting for less than 2% of the world’s co-location data centre supply. Notably, more than half of this capacity is concentrated in South Africa, according to the Africa Data Centres Association.

Currently, cloud services for Africa are largely served from South Africa and Europe. As demand rises, we’re seeing the emergence of local cloud regions in Nigeria and Kenya, with further expansion expected in Morocco, Egypt, and other countries.

What are the best ways for industry stakeholders to collaborate and accelerate data centre adoption in Africa?

Dr. Krish: Among African data centre operators, we have five to six key players. Collaboration should focus on capacity sharing across locations and real-time communication regarding available resources.

Initiatives like the Africa Data Centres Association (ADCA) are gaining traction, and we expect greater clarity on collaborative strategies moving forward.

We also need to prioritise human capacity building and enhanced network connectivity between data centres. This will simplify client operations across multiple providers and drive a more integrated infrastructure ecosystem.

What role should governments play in accelerating Africa’s data centre expansion?

Dr. Krish: Take Nigeria as an example—regulatory bodies like the NDPC and NITDA play pivotal roles in driving data centre growth. When governments advocate for digitalisation and data localisation, the local cloud and data centre industries benefit significantly.

A major opportunity lies in repatriating African government data—over 75% is currently hosted outside the continent. Bringing this data back home would be a substantial driver for local industry, demonstrating leadership from the front.

Additionally, governments should consider reducing customs tariffs on data centre-related imports. While free zones exist, most are located outside city limits—areas where clients typically prefer data centres to be.

Do you see a substantial market opportunity for data centres in Nigeria?

Dr. Krish: The Nigerian data centre market presents significant growth opportunities, driven by increasing cloud adoption, digitalisation, and the need for secure and scalable data storage.

The market size is estimated at 136.7 MW in 2025 and is expected to reach 279.4 MW by 2030, growing at a CAGR of 15.37%.

Additionally, colocation revenue is projected to increase from USD 251.1 million in 2025 to USD 578.1 million by 2030, reflecting a CAGR of 18.15%.

Data localisation initiatives and digital transformation efforts are driving profound changes in the Nigerian data centre market, with government emphasis on local data hosting leading to increased domestic investments.

In a world marked by extreme disruptions and growing fragmentation, the need for intelligent connectivity has never been more critical.

So says Jaap Scholten, COO at eNetworks, an internet service provider (ISP), network specialist and a Datacentrix company, and head of Group Hybrid ICT Strategy at Datacentrix, who notes that connectivity is no longer a standalone, isolated item.

“Today, connectivity has become a conduit to experiences and services, and at the same time, also a gateway to security breaches. The blending of networking and security has therefore become of paramount importance. Networking is now the facilitator, the detector and the first responder to security attacks.”

The role of data centres in facilitating connectivity

Scholten outlines the importance of network peering to significantly improve the user experience, namely the interconnecting of two or more networks at a mutual point to exchange internet traffic directly; content delivery networks (CDNs), which are geographically distributed networks of proxy servers located in multiple centres, with the goal of providing high content availability and speed; and the role of data centres in concentrating ultra-low-latency interconnectivity.

“We can’t put enough fibre in the ground quickly enough to keep up with our customers’ demands for speed and bandwidth,” he explains. “And so, in response, when we design networks today, we advise our clients to place their previous on-premises infrastructure within a data centre. Here, we find very short fibres that are super-fast, with multi-Gigabyte speeds and ultra-low latency, and which are highly reliable – everything inside a data centre is highly controlled.

“The ecosystem inside a data centre provides access to cloud services, CDNs, financial services, ERP, and AI-as-a-service – to name but few options available. We are then able to configure all our clients’ branches, including the head office, to act like a remote site – as long as they have connectivity to a data centre which is constantly available. This means that if the head office, which previously would have hosted all the organisation’s IT services on its premises, goes down, the branches are not affected by the head office outage and are still able to carry on with business as usual.”

The importance of peering

Scholten notes that during the previous dial-up era of connectivity, internet traffic in South Africa between Cape Town and Johannesburg went via London and was expensive and latent.

With the building of the first internet exchange in Johannesburg in 1996, named JINX (Johannesburg Internet Exchange), access to content via this multi-provider peering point meant that the local user experience was vastly improved.

“The peering traffic inside the data centre is important,” he says. “Today, we estimate that between 70 and 75 percent of local traffic is handled between local peering networks, and access to peering is multi-Gigabyte, which means that the user experience is vastly improved. CDNs hand off content, that is web traffic, at the closest point to where it’s being consumed. For example, most popular YouTube content is served out of Johannesburg, and if your ISP is significant, it will carry a local copy of this content.

“When we look at the statistics of some of the e-commerce sites that eNetworks hosts and facilitates, 90 percent of their traffic is transferred on CDNs hosted in KwaZulu-Natal, the Western Cape and Gauteng. Apart from enhancing the user experience, this also means that the root server is generating only 10 percent of this content, which presents a significantly smaller attack surface from a security perspective. Thus, CDNs, data centres and peering traffic play a significant role in improved local connectivity.”

With regards to sovereignty, Scholten believes that the South African market is now mature enough for organisations to host data and consume cloud and security services within the borders of this country.

“Today, we can move data around, back it up and send to customers without needing to leave the borders of South Africa,” he clarifies. “In addition, into the SADC region and beyond, we have partners to provide us with access routes up the east and west coasts of Africa.”

Concludes Scholten:

“Your connectivity determines your user experience, yet every link in the chain has to be optimised and just right, otherwise the user experience suffers. Maximising new components of connectivity will boost competitive vitality and organisational adaptability.”

eNetworks is ranked as one of the top 10 most peered ISPs in South Africa, well known for its network expertise and the provision of Internet access, security and email systems.

A common factor in their success is the presence of a solid telecom infrastructure, providing the essential backbone for communication, data transfer, and technological innovation.

Silicon Valley’s explosive growth in the late 20th century wasn’t just about having innovative, smart and goal-driven entrepreneurs but also by access to early internet technologies and reliable broadband connectivity.

Similarly, Bangalore’s transformation into India’s Silicon Valley was closely tied to investments in IT and telecom infrastructure that enabled seamless global communication. 

Tel Aviv, now a global leader in cybersecurity and digital technologies, owes much of its success to government initiatives that prioritised telecommunications infrastructure, creating a fertile ground for tech-driven growth.

Hence, we can say cutting-edge telecom infrastructure is a non-negotiable foundation for any region aiming to become a global tech hub. It is the conduit through which innovation flows, enabling startups to scale, research to advance, and industries to thrive. Without this foundational infrastructure, even the most talented tech sectors are limited in their potential for global competitiveness.

The Connectivity Foundation for Nigeria: What Has Been Achieved?

The journey of Nigeria’s telecom industry began with the deregulation of the sector in 2001, which brought about private investments and competition. This led to the introduction of the Global System for Mobile Communications (GSM), bolstering mobile telephony in the country. 

Companies like MTN, Glo, and Airtel capitalised on this deregulation, quickly expanding their networks and making mobile telephony accessible to millions of Nigerians.

The launch of the first submarine cables, such as MainOne and Glo-1, further enhanced Nigeria’s connectivity by providing a strong backbone for internet services, enabling high-speed data transmission across continents. This development was a game-changer, allowing businesses, startups, and individuals to participate in the global digital economy.

The proliferation of Internet Service Providers (ISPs) and the subsequent increase in internet penetration was another achievement. By 2019, Nigeria had moved from 270,000 cellular subscriptions in 2001 to 185 million. 

The deployment of 5G technology is the latest leap forward, ushering in a new phase of ultra-fast internet and advanced digital services. This technology is expected to enable great innovations such as smart cities, IoT, and edge computing, supporting Nigeria’s mission to gain global competition when it comes to Africa’s digital growth.

Current Achievements

Today, Nigeria has a mobile penetration rate of over 90.7%, with more than 200 million active mobile connections. Internet access has also grown, with approximately 50% of the population now online, a great improvement in digital inclusivity. 

Federal government Initiatives to improve rural connectivity, such as the National Broadband Plan and Universal Service Provision Fund (USPF), have yielded positive results, bridging the digital divide and ensuring that even remote areas benefit from modern telecom infrastructure.

However, while connectivity is an important component of a thriving tech industry, it is not the sole determinant of global competitiveness. 

There remain issues related to the quality of service—high data costs, relatively low average internet speeds, and frequent disruptions—that need to be addressed for Nigeria to compete effectively with global tech hubs. 

Beyond the infrastructure, other factors such as a supportive regulatory environment, access to capital, and the availability of a skilled workforce are equally of importance.

Beyond Connectivity: The Competitiveness Prospects

The Digital Economy Shift

Transitioning from basic connectivity to a globally competitive digital economy demands more than inclusive internet access. It involves leveraging digital technologies to facilitate economic growth, innovation, and global partnerships. 

Nigeria, with its steadily growing tech industry, stands on the brink of this digital boom, bringing huge opportunities in sectors like financial technology (Fintech), e-commerce, and digital payments.

The Fintech sector, in particular, has been one of Nigeria’s most dynamic success stories. Startups like Flutterwave and Paystack are leading a financial advancement, offering seamless digital payment solutions for both local and international markets. 

Flutterwave has facilitated over 140 million transactions worth more than $9 billion, revealing its enormous potential for digital financial services. Likewise, Paystack’s $200 million acquisition by Stripe reiterates the global recognition of Nigeria’s Fintech sector and its ability to attract major international players.

In addition to Fintech, the e-commerce sector is ripe for growth. Digital marketplaces like Jumia have bolstered access to goods and services, allowing businesses to reach customers beyond geographical limitations. 

This growth doesn’t just boost economic activity but also ensures innovation and entrepreneurship, as more Nigerians leverage online shopping and digital payments. The proliferation of e-commerce platforms, combined with the ease of digital transactions, is changing Nigeria’s retail sector and building a more connected, digital environment.

However, the true competitive edge for Nigeria lies in its ability to move beyond digital access and become a hub for digital innovation, data-driven industries, and scalable tech solutions. This involves a coordinated effort to integrate artificial intelligence, cloud computing, and blockchain into the entire economy, driving productivity and helping the nation gain global recognition in the tech industry.

Talent Development & Retention

To fully attain a successful digital economy and the prosperity it brings, Nigeria must prioritise talent development and retention. While there’s potential in the tech sector, there’s also a m growing risk of losing skilled professionals to international opportunities if local prospects are not sufficiently attractive.

Building a competitive digital workforce starts with strengthening educational frameworks that emphasise STEM (Science, Technology, Engineering, and Mathematics) disciplines. Programs like Andela have already taken good steps in training software developers and building them with the skills needed to thrive in global tech markets. 

However, retaining this talent requires more than just technical education. Nigeria needs to build a supportive ecosystem that includes access to capital, mentorship, and a regulatory environment conducive to innovation.

Preventing brain drain is essential to sustaining long-term growth. The telecom and tech sectors must create pathways for local businesses and startups to thrive, ensuring that skilled professionals see opportunities to grow and innovate within Nigeria. 

Initiatives that connect young talent with investors and seasoned entrepreneurs could be essential in building a thriving local ecosystem. Building innovation hubs, startup incubators, and public-private partnerships will help Nigeria create an environment that incentivises its brightest minds to remain and contribute to the country’s digital acceleration.

Key Pillars for Competitiveness: What’s Missing?

Reliable Infrastructure

Despite progress in expanding connectivity, the country’s prospects as a global tech hub is constrained by the lack of reliable infrastructure. 

One of the most pressing issues is the inconsistent power supply. Frequent power outages, which are a routine occurrence across the country, severely disrupt both business operations and daily activities. 

For telecommunications and internet services to function optimally, reliable electricity is indispensable. Without it, the effectiveness of digital infrastructure is diminished, leading to inefficiencies that affect everything from data centres to mobile towers.

Again, rural areas remain under-served, with limited broadband access increasing the urban-rural digital divide. This lack of inclusion causes a huge barrier to growth in regions outside of major cities. 

Comparatively, Nigeria’s average internet speeds lag behind those of other emerging tech hubs. According to the Speedtest Global Index, as of 2024, Nigeria ranks 99th in mobile internet speed globally, with an average download speed of around 20 Mbps. In comparison, other emerging markets like India are averaging over 35 Mbps. This gap in speed and reliability limits productivity and innovation, making it harder for businesses to compete on a global scale. To fully leverage the possibilities of its connectivity, Nigeria must address these infrastructure shortcomings, particularly in power and broadband accessibility.

Innovation Ecosystem

While Nigeria is known for its entrepreneurial spirit, the country’s innovation ecosystem is still developing and lacks the necessary comprehensive support to facilitate large-scale technological advancements. 

Telecommunications companies must go beyond just providing internet access. They should play a key role in building the foundational infrastructure necessary for innovation—such as investing in data centers, cloud infrastructure, and establishing more innovation hubs.

Data centres, in particular, are essential for supporting the growth of emerging technologies like artificial intelligence (AI), blockchain, and the Internet of Things (IoT). Currently, Nigeria has a few key data centres, such as Rack Centre and MainOne, among others, but the country needs far more to meet growing demand. Without these facilities, Nigeria risks falling behind as other African countries, like Kenya and South Africa, aggressively expand their digital infrastructures.

Moving further, ensuring an innovation ecosystem requires collaboration between the private sector, government, and academic institutions. The success of tech hubs like Silicon Valley and Israel’s Startup Nation has shown the value of building an environment that encourages experimentation, provides funding opportunities, and connects startups with industry mentors. Nigeria can replicate such success, but it must scale up its innovation initiatives, particularly in areas such as AI, health tech, and fintech, to remain competitive.

Policy Frameworks & Regulation

Nigeria’s regulatory sector determines the direction and growth of its telecom sector. The Nigerian Communications Commission (NCC) has taken steps to create an enabling environment, but more needs to be done to keep up with the pace of technological advancement. 

A well-defined, forward-thinking regulatory framework is essential for ensuring innovation, encouraging investment, and protecting consumer rights.

The success of other nations are useful models. For example, India’s Digital India initiative—aimed at making the country a digitally empowered society—has resulted in an explosion of internet access, digital payments, and e-governance. 

Estonia’s e-Residency program is another prime example of how visionary regulatory frameworks can attract global investors and entrepreneurs by providing seamless digital services.

For Nigeria to thrive, the NCC must continue promoting fair competition, especially in the face of emerging technologies. Regulations need to be adaptive to developments in 5G, AI, and fintech, ensuring that the country stays at the fore of digital innovation. 

Policies that encourage private sector participation in building tech infrastructure, while also ensuring consumer data protection and cyber security, will be essential. 

Can Nigeria’s Telecom Sector Set the Pace for Economic Prosperity?

As we reflect on the subject matter at hand, we are inspired by the nostalgia, enthusiasm, challenges, and opportunities that Nigeria has encountered through its telecom industry in recent years.

This inspiration is reiterated in the words of Dayo Oketola, the former Editor of The Punch Newspaper, in his newly launched book, “The Catalyst: Nigerian ICT Evolution Through a Journalist’s Lens.” Oketola emphasizes that Nigeria’s telecommunications sector has attracted over $70 billion in investments and generated over 500,000 jobs in the country.

President Olusegun Obasanjo, who played a key role in the sector’s inception, chronicled the leapfrog development brought forth by this industry. His insights align with the huge opportunities that lie ahead.

Again, the Bill & Melinda Gates Foundation’s report, “Innovating to Zero!” highlights the essential role of digital technologies, including telecom, in tackling global challenges such as poverty and climate change. 

The publication underlines how leveraging innovation can drive sustainable development and economic growth, while improved connectivity enhances access to education, healthcare, and financial services, empowering underserved communities. Continued investment in technology is essential for facilitating solutions that combat inequality and promote progress.

With this context, we must examine the ripple effects of Nigeria’s telecom industry on the economy, particularly in the following areas:

1. Connectivity and Economic Growth

Improving telecom infrastructure can significantly boost economic development in Nigeria. With a growing mobile phone penetration rate—over 195 million active connections—enhanced connectivity enables businesses, particularly small and medium enterprises (SMEs), to access markets, streamline operations, and optimize supply chain management. This connectivity drives productivity and innovation across various sectors, from agriculture to manufacturing.

2. Education and Health

Telecommunications are important in enhancing education and healthcare delivery, especially in rural areas. A significant portion of the population still lacks access to quality education and healthcare services. Mobile technology can bridge this gap; e-learning platforms and telemedicine services provide vital resources, allowing students to learn remotely and patients to receive medical consultations without extensive travel.

3. Financial Inclusion

Nigeria is home to one of the largest unbanked populations globally. Telecom can improve financial inclusion through mobile banking and digital payment systems. Initiatives like mobile money services empower individuals to conduct transactions, save, and access credit, lifting many out of poverty and stimulating local economies, particularly where traditional banking infrastructure is inadequate.

4. Innovation and Entrepreneurship

The telecommunications sector has ignited a wave of innovation and entrepreneurship in Nigeria. Access to the internet and mobile services empowers startups to develop solutions tailored to local needs, such as e-commerce platforms, fintech applications, and agricultural tech solutions. This entrepreneurial ecosystem creates jobs and drives economic growth, positioning Nigeria as a burgeoning hub for innovation in Africa.

5. Global Collaboration

Telecommunications facilitate Nigeria’s integration into the global economy. Improved connectivity allows Nigerian businesses to collaborate with international partners, share knowledge, and access global markets. This interconnectedness is key for attracting foreign investment and addressing challenges such as health crises and environmental issues, where collaboration is vital.

However, considerable concern remains — how can Nigerian universities drive change within the telecommunications industry’s framework when there is a lack of sophistication in curricula and insufficient practical steps toward embracing the 21st century?

Countries like South Korea and Singapore ensure widespread high-speed internet access, enhancing innovation in education and healthcare. Estonia’s e-government model offers nearly 99% of services online, improving efficiency and transparency. 

In Kenya, M-Pesa has revolutionized financial inclusion for millions, while Singapore’s smart city initiatives integrate IoT for improved urban living. India’s Digital India initiative promotes digital literacy, and public-private partnerships in the UAE enhance service delivery.

What about Nigeria? Where do we stand in this global context?

This challenge extends to 5G innovation, where Nigeria has yet to fully capitalize on available opportunities. This issue mirrors the current lack of foreign direct investment, highlighting a pressing need for leadership to act decisively and harness the potential of the telecommunications sector as the “new oil industry.”

Addressing these gaps and leveraging the power of telecommunications will help Nigeria set the pace for economic prosperity.

This year, MWC Kigali will bring together powerful innovators and political leaders to explore new opportunities that drive digital growth and accelerate socio-economic development across the continent. 

This edition will feature a range of keynotes and panel sessions, centred around four main themes: Connected Continent, The AI Future, FinTech, and Africa’s Digital DNA.

Recently confirmed speakers include Airtel Africa’s CEO, Sunil Taldar; Amini’s Founder & CEO, Kate Kallot;  the GSMA’s Director General, Mats Granryd; the ITU’s Secretary-General, Doreen Bogdan-Martin; Lelapa AI’s CEO and Co-founder, Pelonomi Moiloa; MTN Group’s FinTech CEO, Serigne Dioum; Republic of Rwanda’s Minister of ICT and Innovation, Hon. Paula Ingabire; Take Back the Mic’s CEO & Founder, Derrick Ashong and, Wi-Flix’s CEO, Louis Manu.

For the first time in Africa, the GSMA Ministerial Programme will be hosted at MWC Kigali, marking a new chapter in the commitment to advancing the digital agenda in Africa. 

The programme will convene the most influential telecommunications leaders from across the African continent to discuss policy and regulatory topics key to the region.

The Mobile for Development (M4D) team will once again play a central role at the event, driving innovation in digital technology to reduce global inequalities. M4D will host the ‘Mobile for Development Theatre’, a dedicated space for keynote sessions, panels, and discussions.

Themes will range from AI for impact and humanitarian innovation, agriculture and climate, to digital inclusion and gender. Also returning this year is the Mobile Money Leadership Forum, which will explore key trends and innovations in mobile financial services.

The MWC Kigali 2024 keynotes will cover some of Africa’s most pressing digital connectivity issues. Keynote 1 will discuss how digital technologies are driving socio-economic development in Africa to address the continent’s unique challenges. 

Keynote 2 will focus on the transformative potential of AI, including how it can drive sustainable and inclusive growth across Africa. Keynote 3 will see speakers explore the rapid evolution of Africa’s Fintech landscape and the technologies impacting investment opportunities. 

Keynote 4 will explore how the evolving content landscape is allowing African content creators to be heard and celebrated globally. 

An agenda of GSMA Summits will be hosted during the event, inviting industry leaders and policymakers to discover the issues affecting enterprises in areas from network security to diversity in tech: 

• The Security Summit will tackle the most pressing security challenges mobile network operators face today, in the context of a rapidly evolving cyber risk landscape. 
• The Digital Summit will explore the digital economy’s potential in Africa, exploring how digital technologies and policy reform can drive significant socio-economic growth in Africa. 
• The AI Summit will cover both the vast potential and the associated risks of AI technologies in Africa, as the technology’s prevalence grows in the global economy. 
• The 5G Summit will address the barriers preventing the technology’s widespread adoption and ways to unlock its potential for both enterprises and consumers. 
• The Diversity for Tech Summit will focus on the urgent need for greater disability inclusion in Africa’s tech sector, ensuring that people with disabilities have access to the tools and opportunities they need to succeed. 

MWC Kigali is held alongside the Africa Health Tech Summit and FEWA (Future of Education and Work in Africa), offering an in-depth exploration of connectivity challenges and opportunities in the health and education sectors. 

The programme has gained support from a lineup of sponsors, exhibitors and event partners, including Africa CDC, Africa Union, Huawei, inABLE, MTN, the Republic of Rwanda, Smart Africa and ZTE.

How to Register

To attend the MWC Kigali 2024, visit the website.

The pace of growth and the rate of adoption of telecoms solutions in Nigeria has been revolutionary. It is a globally acknowledged case study that we should be proud of and a clear demonstration of what can be achieved.

Almost all of us today are reliant on the network connectivity that it has enabled in different shapes and forms.

From the simple need to communicate with loved ones, to the digital platforms that enable our access to and consumption of entertainment, financial products and other critical services.

Our reliance on these systems is becoming more and more acute, whether it is citizens, governments, or corporations.

System downtime is increasingly disruptive and offline manual redundancies are often in the advanced stages of being phased out.

The pace of this transition is not slowing down. With the core infrastructure in place, innovation is driving the exponential growth of services that ride on it.

From the fully adopted social media that has changed the way we interact, to the emerging Artificial Intelligence (AI) revolution.

While this innovation is enabling exciting new possibilities, there is a tendency to focus on those opportunities, to the detriment of the core infrastructure on which it rides.

It is imperative that we retain a focus on the optimisation of that infrastructure and enable continued investment in its development.

We have seen how the transition from 2G, through to 3G, 4G and 5G have each enabled the development of more and more sophisticated solutions.

The continued development of core infrastructure has to be sustainable, and over the last few months we have begun to see the challenges that the operators that provide it are facing.

Both MTN and Airtel have declared significant foreign exchange (FX) losses in Nigeria, and the stress is not linked to them alone.

The entire ecosystem is battling with a range of challenges that must be addressed. If we fail to do so, the downstream impact on innovation will be severe.

Telecoms infrastructure requires a base level of investment to maintain its current capabilities, and significant additional investment to expand and grow. It is capital intensive, and that capital has to be generated through sustainable business models.

At the heart of the challenge the industry faces are the issue of rising costs. Recent financial losses are directly linked to the cost of operating towers that rely on inputs like diesel, which have increased significantly as the Naira has depreciated.

The provisions large telecom companies have had to make, and the consequent losses and impact on their reserves is a red flag. It tells us that business as usual is not sustainable.

If we continue as we are, then those companies will struggle to continue to invest in and maintain existing services.

But those costs are not the only challenge. General cost inflation, multiple taxation, regular and damaging vandalisation of infrastructure and the costs associated with regulatory compliance all help contribute to the high cost of operations.

We cannot continue to follow a path that asks those companies to simply accept those rising costs. It is no longer sustainable, and we have reached an inflection point.

This is a critical moment for the industry. How we approach and resolve it will define the future of Nigeria’s digital economy.

If you want to be able to enjoy the benefits that digitisation brings. If we want the infrastructure that enables AI and helps us drive growth, then we must act now.

Cost-reflective tariffs, like it or not, are simply non-negotiable. We have seen the impact of price controls in other segments of the economy, like power. If providers cannot operate sustainable business models, then they stop investing.

When that happens, the existing infrastructure starts to crumble. For power, a consumer can choose to take ownership of the solution by buying a generator, or a solar panel.

For fuel, the government can step in as the provider of last resort and manage a subsidy regime that mitigates the impact on the population. Those options are not available in the telecoms sector. There is no self-help solution.

We fully understand and appreciate the financial stress that Nigerians are experiencing today. The cost of living is the single most significant factor in most people’s daily lives.

But those people are still able to enjoy the benefits that connectivity brings, at the price they paid before these challenges became so acute. Imagine a future in which the gains of the last twenty years are reversed.

Nigeria, and Nigerians simply cannot afford it. The pain that we would feel under those circumstances would be exponentially worse.

We need to find a long-term, sustainable and manageable solution to this problem. Prices will need to rise, but action needs to be taken in a measured way, through sustainable conversations and partnership with the government. It is time to address this head on.

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*Engr. Gbenga Adebayo is the Chairman of ALTON (Association of Licensed Telecom Operators of Nigeria).