Obasanjo: Nigeria nearly lost $280m telecom deal to Abubakar’s $3m plan

Former President Olusegun Obasanjo recently uncovered a startling revelation about Nigeria’s telecommunications industry at the launch of “The Catalyst: Nigerian ICT Evolution through a Journalist’s Lens” in Lagos.

According to Obasanjo, Nigeria was on the brink of losing a substantial $280 million telecommunications deal due to an attempt by General Abdulsalami Abubakar, the former military Head of State, to award the contract for a mere $3 million to his associates.

Obasanjo explained that prior to the mobile telecommunications era, Nigeria had invested heavily in trying to establish an efficient telephone network but had only managed to secure around 500,000 lines.

The advent of mobile telephony promised to revolutionize this landscape, but an initial plan to give the deal away for a fraction of its worth almost derailed this transformation.

“Before mobile telecommunication, we had spent a lot of money, and despite inviting various companies from America, France, and Britain, we were still struggling with outdated technology,” Obasanjo said.

“When mobile telephony came into play, my predecessor attempted to hand over the contract to friends for just $3 million. Instead, we decided to auction it.”

The auction, under Obasanjo’s leadership, resulted in a sale of $280 million, a staggering 93 times the initial offer.

This pivotal decision fostered a competitive telecommunications market in Nigeria, with major players like MTN, Glo, Airtel (formerly Econet), and Etisalat (now 9mobile) emerging. The competition and higher financial stakes significantly boosted the sector’s growth and development.

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Obasanjo further shared that when Etisalat entered the market, the fee was set at $450 million, reflecting the value and competition that had been cultivated.

He emphasized that such achievements demonstrate the potential for Nigeria to attract significant investments if it creates a favorable environment for business.

“The money to develop Nigeria is out there,” Obasanjo concluded, “but it will not come unless we create a conducive atmosphere for it. The successes of the past can still be replicated today if we approach challenges with honesty and commitment.”

Obasanjo further emphasized that Nigeria can still attract significant investments, but only if the country creates a conducive environment. “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,” Obasanjo stressed.