Nigeria’s Mobile Telecom Revolution: Lessons For Transforming Transport And Power Sectors -By Stephen Akanbi

For decades now, Nigeria has suffered from a critical deficit in core infrastructure: Electricity, Telecommunications, and Transportation. In 1999, however, the Obasanjo administration engineered a masterstroke in one sector.

It opened up telecommunications, dismantling the government-owned NITEL monopoly. A landmark GSM spectrum auction ushered in private operators, each mandated by universal service obligations to achieve nationwide coverage. The $250 million licence fees transformed the regulator, the NCC, into a self-funding, technically competent body. The fierce competition that followed triggered an aggressive network rollout, created millions of jobs, and developed a generation of world-class tech professionals.

The economic impact was transformative. From retail to banking, businesses leveraged new connectivity. Today, we still reap the dividends: a booming entertainment industry, a globally recognised fintech ecosystem providing financial inclusion for millions, and a digital economy that kept the nation running during global lockdowns. The lesson was clear: strategic liberalisation, coupled with independent, capable regulation and private sector capital and drive, can catalyse national development at breathtaking speed.

Now, as we stand at the dawn of the global AI and fourth industrial revolution, Nigeria’s progress is hamstrung by the two remaining pillars of that original deficit: Transportation and Electricity. Policymakers and citizens alike know their paramount importance. Records show billions of USD have been allocated to these sectors with painfully little tangible result. Many blame corruption. But if corruption did not stifle telecoms liberalisation, a process that also moved vast sums, why does it consistently thwart power and transport?

The difference lies in the model. Telecoms was a clean break: a transparent auction, private ownership from day one, and a regulator insulated from political patronage. In contrast, power and transport have remained mired in a state-led, contract-awarding model that is vulnerable to rent-seeking, lacks clear market incentives, and often prioritizes political capital over economic efficiency. The problem isn’t just corruption in abstraction; it’s a system designed for inefficiency.

A new wind, however, may be blowing. Recently, several Chinese investors have signed infrastructure agreements for massive rail and road projects nationwide, some aiming to connect neighbouring countries, under the global Belt and Road Initiative. This presents both an opportunity and a critical juncture. Chinese investment can provide vital capital and execution capability, but the lessons of the telecoms revolution must guide us. Infrastructure is not an end in itself; it is a platform for productivity.

To avoid repeating past mistakes, these projects must be embedded within a broader, sustainable framework. Rail lines must be part of integrated logistics chains managed by private operators competing on service. Roads must be part of a maintenance and tolling regime that ensures their longevity. Most importantly, the electricity sector—the most critical of all—requires our own “1999 moment.” The Electricity Act 2023 is a step in the right direction, but it must accelerate towards full privatization of distribution (DisCos) and generation (GenCos), with the Transmission Company of Nigeria (TCN) turned into a truly independent, private-sector-managed system operator.

The Chinese-built railways can move goods, but only reliable, affordable power will allow us to manufacture those goods in the first place. Robust transport reduces the cost of distribution, but abundant power enables the factories that fill the trucks and trains. Together, they form a virtuous cycle: power industries, industries create demand for transport, and efficient transport makes industries more competitive.

Conclusion: Nigeria’s history proves we can achieve transformative infrastructure success. The telecoms blueprint provides the formula: clear, transparent rules; independent, technically sound regulation; and the unleashing of private sector investment and innovation. As we welcome new partnerships for roads and rails, we must apply this same formula with even greater vigour to the power sector. By doing so, we will not just build infrastructure; we will build the foundation for a diversified, AI-ready economy, massive job creation, and a definitive improvement in the quality of life for every Nigerian. The tools are in our hands; we have done it before. We must now find the will to do it again, at scale.

Akanbi, an engineer based in the UK, submitted this piece as part of his ongoing efforts to rally support for Nigeria’s conscious reawakening and industrial revolution.