Former President Olusegun Obasanjo has shed light on how Nigeria nearly lost a groundbreaking $280 million telecommunications deal during the country’s transition from landline to mobile phones.
Speaking at the launch of the book “The Catalyst: Nigerian ICT Evolution through a Journalist’s Lens,” authored by Dayo Oketola, former Editor of The PUNCH, Obasanjo recounted the pivotal moment when Nigeria was on the brink of securing a multi-million-dollar deal that would transform its telecommunication landscape.
According to Obasanjo, then-military Head of State General Abdulsalami Abubakar (retd.) had been prepared to award the mobile phone contract to close associates for a mere $3 million. However, Obasanjo proposed a more competitive approach—auctioning the contract to the highest bidder, which ultimately led to the historic $280 million sale.
“The story of telecommunications, particularly mobile telecommunications, is a very interesting one,” Obasanjo said.
He explained that before mobile technology, Nigeria had spent significant resources trying to improve its landline infrastructure, bringing in companies from the U.S., France, and the UK, yet achieving only 500,000 lines. The mobile phone era presented a critical opportunity, and rather than giving it away cheaply, auctioning the contract introduced healthy competition that ultimately benefited the nation.
Three companies—MTN, Glo, and Econet (now Airtel)—were the first to bid, with MTN securing the upper hand in terms of coverage, followed by Glo and Econet. Later, Etisalat (now 9mobile) entered the market and paid $450 million for its license.
Obasanjo emphasized that the money generated from the auction enabled Nigeria to fund development projects, demonstrating the potential of transparent and competitive governance. He also pointed out that such opportunities still exist today, but can only be realized if Nigeria creates a conducive business environment.
Notable figures attending the book launch included Minister of Information and National Orientation, Alhaji Mohammed Idris, former Governor of Rivers State, Rotimi Amaechi, and veteran journalist Sam Omatseye. The event underscored the importance of leadership, competition, and innovation in shaping Nigeria’s telecommunications sector and broader economic landscape.