LAGOS, Nigeria — Former Nigerian President Olusegun Obasanjo has revealed how Nigeria narrowly avoided a telecommunications deal that could have significantly undersold the country’s mobile phone potential.
Speaking at the launch of “The Catalyst: Nigerian ICT Evolution through a Journalist’s Lens,” a book authored by former PUNCH editor Dayo Oketola, Obasanjo shared how, during his tenure, a $280 million deal was secured after a previous proposal to award it for just $3 million.
The telecommunications deal, which occurred during Nigeria’s transition from landline to mobile phones, was nearly given away by Obasanjo’s predecessor, General Abdulsalami Abubakar (Rtd).
Obasanjo, however, intervened, advocating for a competitive auction process that ultimately raised $280 million for the country.
Mobile Telecom Revolution in Nigeria
“The story of telecommunications, particularly mobile telecommunication, is a very interesting one,” Obasanjo said.
The former president explained how Nigeria had previously struggled to establish sufficient telephone lines, despite efforts from international telecom companies.
“People had to queue at the telephone kiosk to call their loved ones abroad. And then, of course, the mobile telephone age came in,” he added.
Obasanjo disclosed that Abdulsalami had initially planned to give the telecom deal to friends for a meager $3 million.
Obasanjo’s decision to auction the telecom licenses led to significant revenue for the country and introduced competition to the Nigerian telecom market.
Success of the Auction
The auction resulted in three major telecom operators—MTN, Glo, and Econet (now Airtel)—competing to enter the market.
Later, Etisalat (now 9mobile) joined after paying $450 million for its license.
The funds generated through these auctions provided Nigeria with the resources to further its telecom development.
“That was how we got money to do what we did at the time,” Obasanjo noted, emphasizing the importance of creating favourable conditions for investment.
Continued Relevance for Nigeria
Obasanjo also stressed the continued potential for Nigeria to attract investment if the right leadership and policies are in place.
“The money to develop Nigeria is out there, but that money will not come in unless we create a conducive atmosphere for that money to come in,” he said.
The event, which took place in Lagos, was attended by several notable figures, including Rotimi Amaechi, former Rivers State Governor, and Gbenga Omotoso, Lagos State Commissioner for Information and Strategy.
Oketola, the book’s author, was praised for his dedication to journalism and for capturing the transformative journey of Nigeria’s ICT sector.
