Mike Adenuga warns MTN-Airtel deal could harm fair competition in Nigeria

Key Points

• Mike Adenuga opposes MTN and Airtel’s spectrum deals, warning they could distort Nigeria’s telecom market and raise costs for consumers.
• MTN and Airtel’s network-sharing agreement aims to reduce costs, expand coverage in underserved areas, but raises fears of market imbalance.
• Globacom expands with new retail outlets and digital innovation hubs, aiming to enhance customer service and foster tech entrepreneurship in Nigeria.

Nearly a week after MTN Group and Airtel Africa signed a network infrastructure-sharing agreement in Nigeria and Uganda, concerns have emerged over the potential for anticompetitive behavior. Mike Adenuga, Nigerian billionaire and chairman of Globacom Limited, has voiced strong objections to spectrum deals between MTN Group and Airtel Africa.

In a letter to Nigeria’s telecom regulator, the Nigerian Communications Commission (NCC), Adenuga raised alarms that such deals could create an unfair advantage for MTN Nigeria, the local arm of the South African telecoms giant, which is the leading telecom service provider in the country.

Fairness at stake in MTN-Airtel Africa partnership

Adenuga, who is Nigeria’s second-richest individual with a net worth of $6.8 billion, pointed out that MTN has already accumulated substantial spectrum resources, including through its acquisition of Visafone, a mobile company once owned by Nigerian banker Jim Ovia, and its spectrum leasing agreements with 9Mobile.

He warned that granting MTN additional spectrum could distort the market, reduce competition, and ultimately raise costs for consumers. He has urged the NCC to block the deal to preserve fairness in Nigeria’s telecom sector.

The agreement between MTN and Airtel Africa, which aims to reduce operational costs and expand mobile coverage in underserved areas, has raised both hope and concern. By sharing network infrastructure, the two telecom giants hope to lower costs and improve service delivery, particularly in rural regions where digital access is limited. This collaboration includes potential fibre infrastructure partnerships and Radio Access Network (RAN) sharing, allowing for new fibre networks where necessary.

MTN, Airtel partnership raises market imbalance fears

While this agreement could help both companies cut costs, particularly after being affected by foreign exchange losses due to the naira’s depreciation, it has sparked concerns about market distortion.

MTN and Airtel together dominate over 70 percent of Nigeria’s telecom market, and their partnership could exacerbate existing market imbalances. Both companies have already reduced investments in network infrastructure, adjusting to mitigate foreign exchange risks and manage rising costs, such as surging energy prices.

Following the agreements in Nigeria and Uganda, MTN and Airtel are exploring similar infrastructure-sharing deals in other African markets, including Congo-Brazzaville, Rwanda, and Zambia. Meanwhile, Globacom is positioning itself as a key player in Nigeria’s digital landscape, with a focus on customer engagement and infrastructure development.

Globacom expands retail, innovation hubs

Earlier this year, Globacom launched a new Gloworld retail outlet in Maiduguri, the largest city in northeastern Nigeria’s Borno State. The store, part of Globacom’s signature retail network, offers advanced technology to enhance customer service. This underscores Globacom’s commitment to expanding its presence in Nigeria and supporting the country’s growing digital economy.

Globacom’s strategy also includes investments in digital innovation hubs. After opening a hub in Lagos, the company plans to establish additional hubs in Port Harcourt, Ibadan, and Abuja by mid-2025. These hubs aim to foster entrepreneurship and create new opportunities within Nigeria’s expanding tech-driven industries.