Former President Olusegun Obasanjo has disclosed how Nigeria almost lost a $280 million telecommunications deal during the transition from landline telephones to mobile networks under the administration of former military Head of State, General Abdulsalami Abubakar (retd).
Obasanjo revealed that while the country was on the verge of adopting mobile phones, several major telecommunications companies had shown interest in providing mobile lines, but Abubakar had been set on awarding the contract to his friends for a mere $3 million.
Speaking at the launch of ‘The Catalyst: Nigerian ICT Evolution through a Journalist’s Lens’, a book authored by former Editor of ‘The PUNCH Newspapers’, Mr. Dayo Oketola, in Lagos, Obasanjo recounted how he proposed an auction for the contract instead.
This move, according to him, led to the sale of the license for $280 million, a far cry from the initial $3 million offer.
Reflecting on the early days of telecommunications in Nigeria, Obasanjo said, “The story of telecommunications, particularly mobile telecommunication, is a very interesting one. Before mobile telecommunication, we had spent a lot of money, we had all sorts of companies invited from America, France, and even from Britain, but we did not get more than 500,000 lines. People had to queue at the telephone kiosk to call their loved ones abroad. And then, of course, the mobile telephone age came in.”
The former president further shared how competition among telecom operators spurred progress in the industry.
“When it came in, my predecessor in office was trying to give it away, I think, to their friend for $3 million. Then we said, what we would do was to auction it. The three that came in first, I think, paid $280 million for the line. $280 million for something about to be given away for $3 million. That was the first thing we did. Not only that, we achieved competition.”*
He explained how companies like MTN, Glo, and Econet, now Airtel, competed fiercely, with MTN taking the lead in terms of network coverage. Obasanjo also detailed how the subsequent introduction of Etisalat, now 9mobile, saw the company paying $450 million for its license, significantly boosting the country’s revenue.
Obasanjo emphasized that the auction approach not only generated funds but also fostered healthy competition.
He remarked, “When Etisalat came, I told them the last one we did was $280 million. We told Etisalat to pay $450 million. They did. When they paid $450 million, the ball went in the post, and then we were playing. That was how we got money to do what we did at the time we did it.”
He concluded by stressing the need for Nigeria to create a conducive environment to attract investments, noting, “The money to develop Nigeria is out there, but that money will not come in unless we create a conducive atmosphere for that money to come in.”
The event, which celebrated Oketola’s contributions to the Nigerian journalism landscape, was attended by several dignitaries, including the President of the Nigerian Guild of Editors, Mr. Eze Anaba.
In his remarks, Anaba praised Oketola’s dedication to his craft, despite the rigorous demands of journalism.
He said, “It is great to see that an editor, despite the huge task of meeting deadlines, writing stories that would sell his paper, can sit down and write a book. I am here to say I appreciate Oketola’s effort and also honour him.”
Other notable figures present included the Minister of Information and National Orientation, Alhaji Mohammed Idris, represented by Lagos State Commissioner for Information and Strategy, Mr. Gbenga Omotoso; former Governor of Rivers State, Mr. Rotimi Amaechi; Provost of the Nigerian Institute of Journalism, Mr. Gbenga Adefaye; and Chairperson of the Editorial Board of The Nation Newspapers, Mr. Sam Omatseye.
