Lagos – Former President Olusegun Obasanjo unveiled significant financial details from Nigeria’s telecom sector at a book launch and inaugural lecture for former PUNCH editor Dayo Oketola in Lagos on Tuesday. According to Obasanjo, the Federal Government earned approximately $1.2 billion in telecom license fees from key operators, including MTN, Globacom, Econet (now Airtel), and Etisalat (now 9mobile) during the pivotal early 2000s.
Obasanjo detailed how his administration rejected proposals to sell telecom licenses for as low as $3 million. Instead, his government ensured that licenses were sold at their true market value of $280 million each. Notably, Etisalat, the last major player to enter the market, acquired its license for a substantial $450 million. These decisions generated a total of $1.2 billion for the Federal Government through the Nigerian Communications Commission (NCC), marking a crucial investment in Nigeria’s burgeoning telecom sector.
“When the first mobile telecom companies were offered licenses, their cost was set at $280 million. However, there were attempts to lower this to $3 million, aiming to benefit certain individuals,” Obasanjo disclosed. He emphasized the importance of creating favorable conditions to continue attracting investments and sustaining sector growth.
Obasanjo praised the competition among MTN, Globacom, and Econet, which he said was instrumental in developing the sector. MTN, which began operations in Nigeria in August 2001, quickly became a dominant player. Globacom entered in 2003, introducing a groundbreaking per-second billing model that prompted other operators to follow suit. Econet Wireless Nigeria, which started GSM services in August 2001, was later joined by Emerging Markets Telecommunications Service (Etisalat) in 2007.
Reflecting on the pre-mobile era, Obasanjo noted the challenges of landline communication, which was often a luxury due to limited availability and high costs. “Before mobile telephony, despite significant investments, Nigeria managed fewer than 500,000 landlines, resulting in long queues for telephone services,” he recalled.
Obasanjo concluded by underscoring the ongoing opportunities for Nigeria to attract further investments, provided the right conditions are established. The former president’s revelations shed light on the transformative impact of telecom investments on Nigeria’s economy and the strategic decisions that shaped its current telecom landscape.
