How Nigeria Nearly Missed Out on a $280 Million Telecom Contract, Says Former President Obasanjo

Former President Olusegun Obasanjo has revealed how Nigeria almost missed out on a $280 million telecommunications contract during its transition from landlines to mobile phones.

Speaking at a book launch in Lagos, Obasanjo described a pivotal moment in Nigeria’s telecom history. He explained that his predecessor had planned to award a $3 million telecom contract to close associates, but he intervened, suggesting that the contract should be auctioned instead.

This decision ultimately resulted in a $280 million agreement, which, according to Obasanjo, played a crucial role in shaping Nigeria's mobile telecommunications sector.

He shared, “The story of telecommunications, particularly mobile telecommunication, is a very interesting one. Before mobile phones, despite spending significant money and inviting companies from the U.S., France, and the U.K., we had fewer than 500,000 landlines. People had to queue at kiosks just to call their loved ones abroad. Then the mobile phone era came.

“My predecessor was going to hand over the telecom contract for $3 million to friends, but we decided to auction it. The three companies that participated in the auction paid $280 million. That was a far cry from the $3 million initially proposed."

Obasanjo highlighted how competition between telecom companies like MTN, Glo, Econet (now Airtel), and later Etisalat (now 9mobile) transformed the industry, creating a market-driven approach.

He further added, “When Etisalat came in, we asked them to pay $450 million for their license, and they did. The funds raised through these auctions helped Nigeria at that time. The opportunity for such investment is still available today if we create a conducive atmosphere."

Obasanjo emphasized the need for honesty and character in leadership to attract foreign investment. He concluded by stating that Nigeria’s past successes could still be replicated with the right approach.