Nigerian regulators are taking actions to boost competition in the telecommunications industry. Despite its impact on the telecom industry in general, the move could affect international operators including market leader MTN Group Ltd. While a formal inquiry isn’t underway, authorities are focusing on ownership of data services and infrastructure in Nigeria. Nigeria is incidentally the most populous state in Africa. And the telecom majors are making money from the value added services.
MTN was awarded additional broadband spectrum earlier this year after a lengthy regulatory battle in which some rivals accused the company undermining competition. The company has fought a number of battles with local authorities in its biggest market, and paid a fine of about US$1 billion in 2016 for missing a deadline to disconnect certain subscribers, which is famously called chip scam. London-listed Airtel Africa Plc and local operator 9Mobile claimed in a 2018 public inquiry that the transfer of 800 MHz from Visafone Communications Ltd. to MTN could lead to a monopoly. Telecom represents represents more than 10% of the economy. MTN, however, has denied it is reducing competition for spectrum.
