How Nigeria Earned $1.2 Billion from Telecom Licenses: Obasanjo's Revelations

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Former President Olusegun Obasanjo recently revealed that the Nigerian government earned around $1.2 billion from telecom licenses granted to major operators such as MTN, Globacom, Econet (now Airtel), and Etisalat (now 9mobile) during the early 2000s. This revenue was crucial in establishing the nation's telecom industry, a key pillar of the economy today.

At a book launch in Lagos, Obasanjo disclosed how his administration rejected attempts to sell these licenses at a meager $3 million each. 

Instead, the licenses were sold at their actual value of $280 million each, with Etisalat paying a higher $450 million when it entered the market. 

These transactions were managed by the Nigerian Communications Commission (NCC), generating $1.2 billion for the government.

The former president emphasized the importance of fostering competition, with MTN, Glo, and Econet playing major roles in shaping the sector. 

MTN quickly became the market leader, followed by Glo, which introduced the per-second billing model that revolutionized the industry.

Obasanjo also highlighted the struggles Nigeria faced with communication before mobile telephony, when landlines were limited and mostly accessible to the wealthy. 

The transition to mobile technology marked a significant turning point for Nigeria’s telecommunications industry.