Former President Olusegun Obasanjo revealed how Nigeria almost lost a $280 million telecom deal, nearly awarded for just $3 million. His intervention ensured an auction process, leading to the development of the country's telecommunications industry, fostering competition with companies like MTN, Glo, and Airtel entering the market.
Former Nigerian President Olusegun Obasanjo recently revealed how the country almost missed out on a crucial $280 million telecommunications deal during the transition from landline to mobile phones. Speaking at a book launch event in Lagos, Obasanjo explained that his predecessor had intended to award the telecom contract to close associates for just $3 million. However, upon taking office, Obasanjo intervened, insisting that the contract be auctioned instead.
Through the auction process, Nigeria secured a $280 million deal, transforming its telecommunications landscape. Obasanjo emphasized how this decision enabled competition in the market, leading to the introduction of key players like MTN, Glo, and Econet (now Airtel). He noted that these companies' contributions were pivotal in advancing the country’s telecom infrastructure, with MTN eventually taking the lead in market share.
Obasanjo further mentioned that when Etisalat (now 9mobile) entered the market, they were required to pay $450 million for their license, showcasing the continuous growth and value of the sector. The former president also highlighted the potential for more significant investments in Nigeria if the country can create a favorable environment for business.
Obasanjo's reflection on this critical moment demonstrates the importance of transparency and competition in government deals, ensuring the nation reaps maximum benefits from international partnerships.
