Evolution of an African GIANT

Olufemi Adeagbo surveys the Nigerian telecoms sector and assesses the achievements of market leader MTN in building a network which meets the needs of the nation.

failed to deliver the extent and quality of services expected.

CORRUPTION AND INCOMPETENCE
In the 18 years since its inception Nitel has only managed to install capacity for some 700,000 fixed lines, with between 450,000 and 500,000 functioning at any one time. When viewed within the context of investments, often cited to be in the region of US$ 8 billion, Nitel has become an institutional embodiment of the mindless corruption that had proliferated the Nigerian body politic.

At least, ending this corruption and improving the sector is seriously on the agenda for the present government. The Abacha regime displayed little urgency in helping the Nigerian people communicate effectively. The industry witnessed cronyism in the award of licenses, stagnation of deployment activity because of the prevalent political uncertainty, and a "wait and see" attitude from international investors that are critical to any attempt at jump-starting the ailing sector.

A NEW BEGINING
It was against this gloomy backdrop that President Olusegun Obasanjo assumed office on the 28th May 1999, promising sectoral reforms

andcondemned it to the ranks of the poorest countries in the world.

Given the size of Nigeria, its deteriorating road conditions and poor public transportation system, efficient telecoms are an urgent necessity. Nigerians are a contact-oriented people who need to communicate for both business and social purposes. Sadly, the incumbent telecom, Nitel, which was created in 1985 by an amalgamation of the Nigerian External Telecommunications (NET), and the telecoms department of the Post and Telecommunications organization, has

through deregulation, privatization, efficient management and reforms - within an anti-corruption framework. The administration rightly identified increased availability of telecoms access and services as an essential element in its efforts at socio-economic rejuvenation. In one fell swoop, the Obasanjo administration cancelled nearly 30 existing licenses - considerably more than was ever technically or commercially feasible - and announced plans for awarding four new Digital Mobile Licenses (DML), thus heralding a new beginning for Nigeria's floundering telecoms sector.