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Three operators won the licenses and each license cost $285 million.

The dawn of the 21st century marked a dramatic turning point in Nigeria’s telecommunications industry.

Prior to 2001, mobile communication in Nigeria was a luxury. It was barely accessible, unreliable, and limited to a few thousand lines operated by the state-owned NITEL. But in 2001, with the introduction of the Global System for Mobile Communications (GSM), everything changed.

The Birth of GSM in Nigeria

In 2001, under President Olusegun Obasanjo, the Nigerian government deregulated the telecom sector, inviting private players to transform a stagnant industry. This move led to a landmark auction of digital mobile licenses by the Nigerian Communications Commission (NCC).

Three operators won the licenses: MTN Nigeria, Econet Wireless (now Airtel), and NITEL's mobile arm, M-Tel. Each license cost $285 million and they had a 90-day deadline to launch services. This deregulation opened the doors to private investment and healthy competition in a sector that had been stagnant for decades.

Who Made The First GSM Call?

Two firsts were recorded, both symbolic of the mobile revolution. On May 6, 2001, Econet Wireless made Nigeria’s very first GSM call. This pioneering moment marked the technical birth of mobile communication in Nigeria. The-then Chairman Strive Masiyiwa, made the very first GSM call on May 6, 2001, to the NCC regulator, announcing, “We’re live!” In his own words,

"I had the privilege of making Nigeria’s first GSM phone call back in 2001 when I called the regulator to say, ‘We’re live!’."

Reflecting on the historic moment, Masiyiwa described it as a symbol of enterprise in Africa. Ten days later on May 16, 2001, MTN Nigeria made its own historic first GSM call at Maritime House in Apapa, Lagos. By August 7, 2001, Econet began commercial operations, followed shortly by MTN.

Early GSM Experience

In the early days, owning a mobile phone was a status symbol because the cost of getting connected was extremely high and varied between providers.

Econet Wireless charged:

• ₦15,000 connection fee

• ₦400 monthly access fee

• ₦15,000 for handsets

MTN Nigeria charged:

• ₦20,000 connection fee

• ₦4,000 access fee

• ₦20,000 for handsets

Despite the high costs, the demand was overwhelming. Nigerians were eager to ditch unreliable landlines for instant, mobile communication.

Following Econet and MTN, other players entered the scene. Globacom (Glo) launched in 2003 as Nigeria’s first indigenous operator. It revolutionized the market by offering free SIM cards and per-second billing. Etisalat (now 9mobile) joined in 2008, bringing a focus on data services and youth-friendly plans. These competitors intensified the race for market share, pushing down prices and improving service quality across the country.

Challenges Faced by Telecom Operators

Despite the success, telecom providers had to battle various challenges like:

• Unstable power supply, requiring heavy reliance on diesel generators

• Multiple taxation from federal, state, and local governments

• Security concerns, including vandalism of telecom infrastructure

• Foreign exchange volatility, which increased equipment costs

• Poor road access in rural areas, limiting infrastructure rollout

As of recent reports, the Nigerian Communications Commission (NCC) reports over 187 million active GSM subscribers compared to just 400,000 landlines before 2001. The evolution of GSM also paved the way for mobile banking, social media, online commerce, and digital learning. It has made life more connected and convenient.

Today, SIM cards cost under ₦100. Entry-level smartphones are widely available. Calls, SMS, and mobile data have become affordable, connecting people from all over... all of these was an unimaginable reality in 2001.

Source: https://www.pulse.ng/articles/lifestyle/first-gsm-call-in-nigeria-2025050512243100721

Olusegun Matthew Okikiola Obasanjo alone, because of the restart of Telecoms sector in 2001,and improvement it brought into our daily lives and business efficiency, reduction in travel time, GDP grew by 15.3%.

The Nigerian Economy took a 360 degree positive turnaround

Obasanjo achieved that and more. But these useless people who have absolutey nothing to offer except to improvish the Nigerian People and play nothing but ethnic politics.

Till tommorow,They cannot lace Obasanjo's shoes

Really? See how yrs fly ??

Obasanjo just happened to be the President at a time when that specific technology came

All this praise singing is ridiculous

He did not invent the mobile phone technology

We do not praise any president for being there when Land telephones, electricity came to Nigeria , When Television came, When Flushing toilets came , when water started flowing from taps, when the motor car came,

These are ubiquitous technological advancements. whose time has come

It was really expensive heh. Mom got it early as she used it for phone business.

One minute call and the receiver did not get your message, you will be angry oo. 1.03 na 2 mins

Omo for this life just take it easy, life na turn by turn. If they have told me that mobile will be accessible today I will ever deny it. But today, it is everywhere with almost every family in Nigeria have one.

Below is the Sagem My X-2 that got many of us frenzied but today no one dare to use as it becomes obsolete.

Twas Abija 😂😂😂😂😂



He called his ancestors before making any smart move

Obasanjo did well by ensuring that the Nigerian factor of ineptitude and bureaucracy did not derail this revolution. Imagine if he had used this same zeal in the electricity sector? Our economic woos would have been half solved.

aworatak:
Obasanjo did well by ensuring that the Nigerian factor of ineptitude and bureaucracy did not derail this revolution.

Talking nonsense, what abacha had completed before his sudden demise.

MICHEALADEX:
Talking nonsense, what abacha had completed before his sudden demise.

Which Abacha? The same Abacha’s era where you had to pay up to N100,000 to purchase Nitel land line or over 20,000 for Mtel monthly subscription.
It’s obvious you are the one talking nonsense and crap combined.

omonnakoda:
Obasanjo just happened to be the President at a time when that specific technology came
All this praise singing is ridiculous
He did not invent the mobile phone technology
We do not praise any president for being there when Land telephones, electricity came to Nigeria , When Television came, When Flushing toilets came , when water started flowing from taps, when the motor car came,

These are ubiquitous technological advancements. whose time has come

Na so. Soon we will praise the person who brought internet to Nigeria and Buhari for bringing electric cars to Nigeria

Like this one below

https://www.nairaland.com/572965/want-thank-gej-bringing-facebook

omonnakoda:
Obasanjo just happened to be the President at a time when that specific technology came

All this praise singing is ridiculous

He did not invent the mobile phone technology

We do not praise any president for being there when Land telephones, electricity came to Nigeria , When Television came, When Flushing toilets came , when water started flowing from taps, when the motor car came,

These are ubiquitous technological advancements. whose time has come

He be like say they want to tell us another story again o. The US first used mobile phones in 1973. Wè got ours 28years later. So why didnt wè get it earlier or two years later? Or you were in Kosovo when Abacha's minister of comminication once said "Telephone isnt for the poor"
Shuke

"The first public mobile phone call was made in the US on April 3, 1973, by Martin Cooper of Motorola."

aworatak:
Which Abacha? The same Abacha’s era where you had to pay up to N100,000 to purchase Nitel land line or over 20,000 for Mtel monthly subscription.
It’s obvious you are the one talking nonsense and crap combined.

Person wey don smoke igbo. They talk as if some of us were born yesternight.

happney65:
He be like say they want to tell us another story again o. The US first used mobile phones in 1973. Wè got ours 28years later. So why didnt wè get it earlier or two years later? Or you were in Kosovo when Abacha's minister of comminication once said "Telephone isnt for the poor"
Shuke

"The first public mobile phone call was made in the US on April 3, 1973, by Martin Cooper of Motorola."

What is your point

What you have written is long and rambling

Is there a point?

happney65:
He be like say they want to tell us another story again o. The US first used mobile phones in 1973. Wè got ours 28years later. So why didnt wè get it earlier or two years later? Or you were in Kosovo when Abacha's minister of comminication once said "Telephone isnt for the poor"
Shuke

"The first public mobile phone call was made in the US on April 3, 1973, by Martin Cooper of Motorola."

What is your point

What you have written is long and rambling

Is there a point?

When did the US get electricity, TV, Trains , Airplanes and so on

Again

What is your point?

happney65:
He be like say they want to tell us another story again o. The US first used mobile phones in 1973. Wè got ours 28years later. So why didnt wè get it earlier or two years later? Or you were in Kosovo when Abacha's minister of comminication once said "Telephone isnt for the poor"
Shuke

"The first public mobile phone call was made in the US on April 3, 1973, by Martin Cooper of Motorola."

It was IBB's minister of communications (later Senate President) David Mark that said that telephones are not for the poor...in 1986

happney65:
He be like say they want to tell us another story again o. The US first used mobile phones in 1973. Wè got ours 28years later. So why didnt wè get it earlier or two years later? Or you were in Kosovo when Abacha's minister of comminication once said "Telephone isnt for the poor"
Shuke

"The first public mobile phone call was made in the US on April 3, 1973, by Martin Cooper of Motorola."

People were making mobile phone calls in Nigeria since the 80s and 90s especially the very rich but like in the US the usage of mobile phones in the early years of the 70s was limited to the rich only

The change in 2001 was bringing GSM technology to Nigeria. According to wikipedia, the first GSM call globally was made in 1991

Econet Wireless charged:

• ₦15,000 connection fee

• ₦400 monthly access fee

• ₦15,000 for handsets

MTN Nigeria charged:

• ₦20,000 connection fee

• ₦4,000 access fee

• ₦20,000 for handsets

As one cartoon by the Guardian editorial cartoonist Obe Ess....Econet was inspired to shortchage your wallet....and MTN was the bitter connection.

(A play on the advertising slogans back then...Econet now Airtel ....was 'inspired to change your world.' MTN was 'the better connection'.)


GLO did not come till 2005. Mtel came somewhere between 2002-4. My first line was Mtel.

raumdeuter:
People were making mobile phone calls in Nigeria since the 80s and 90s especially the rich but like in the US the usage of mobile phones in the early years of the 70s was limited to the rich only

They were, but it was for the rich and upper middle class. The rest of us relied on dialphones (mainly middle class, not all of them though)...or went to the nearest phone exchange to make a call.

nairalanda1:
They were, but it was for the rich and upper middle class. The rest of us relied on dialphones (mainly middle class, not all of them though)...or went to the nearest phone exchange to make a call.

Just like anywhere in the world and even in the US in the 70s, 80s and early 90s it was a status symbol for the upper class and the wealthy

I remember early rappers used to brag about owing a cellular phone

aworatak:
Obasanjo did well by ensuring that the Nigerian factor of ineptitude and bureaucracy did not derail this revolution. Imagine if he had used this same zeal in the electricity sector? Our economic woos would have been half solved.

Obasanjo did nothing. All he did was essentially allow the GSM companies charge their prices, and set their prices. THat enabled them make huge profits that attracted more investment. And back then people complained a lot about it. Add the fact that service was poor initially....at one point you could not even call between networks self. (that is why many Nigerians started having two lines).

Electricity back then was run by government, who essentially sold power at very cheap rates. Also, a recurring theme was that the grid was overloaded....back in the 1980's and 90's...many state governors connected a lot of villages to the grid in the name of giving everyone electricity...and of course most of them could not pay for the electricity they used at all...

Also, unlike the phone, where you have to pay something before you use it....electricity can be gotten in nigeria by the illegal connection. Usually secured by a bribe.

All in all, that brought about chronically low revenues...which is why the power sector then and now does not work.

nairalanda1:
As one cartoon by the Guardian editorial cartoonist Obe Ess....Econet was inspired to shortchage your wallet....and MTN was the bitter connection.

(A play on the advertising slogans back then...Econet now Airtel ....was 'inspired to change your world.' MTN was 'the better connection'.)


GLO did not come till 2005. Mtel came somewhere between 2002-4. My first line was Mtel.

Glo came in 2003 if not early as my first line was a glo line in 2003. Mtel could not have been later than 2002 as my old man used it for a while in that year.

raumdeuter:
Just like anywhere in the world and even in the US in the 70s, 80s and early 90s it was a status symbol for the upper class and the wealthy

I remember early rappers used to brag about owing a cellular phone

There was one popular American film from the mid 90's that showed its teenage girl protagonist as being from a rich home by her having a cell phone.

If you show that film nowadays, people go wonder...so she is rich because she has a cell phone? Really?

We received a postpaid account with MTN at a reduced call rate for corporate accounts. The rate was N22 per minute instead of the usual N50 per minute.

nairalanda1:
There was one popular American film from the mid 90's that showed its teenage girl protagonist as being from a rich home by her having a cell phone.

If you show that film nowadays, people go wonder...so she is rich because she has a cell phone? Really?

I remember in the 90s when my friends family set up a personal desktop computer, It was like a mini project that took several days. We used to marvel how privileged they were to have a personal computer.

When his parents were not home, We used to play mainly games on it, like solitaire

raumdeuter:
People were making mobile phone calls in Nigeria since the 80s and 90s especially the very rich but like in the US the usage of mobile phones in the early years of the 70s was limited to the rich only

The change in 2001 was bringing GSM technology to Nigeria. According to wikipedia, the first GSM call globally was made in 1991

Mobile phone calls in the 80's and 90's in Nigeria? Where? How? Abi landlines?

The GSM network was introduced to Nigeria in 2001 and not before. Before wè had only Landlines being controlled by Nitel

happney65:
Mobile phone calls in the 80's and 90's in Nigeria? Where? How? Abi landlines?

The GSM network was introduced to Nigeria in 2001 and not before. Before wè had only Landlines being controlled by Nitel

There were mobile phones. One of my father's colleagues had one as early as 1997, and my dad also met someone who owned one as early as 1996. They were not GSM phones by the way.

Mtel was the company that ran those mobile phones and it had been around since the 80's. It was a subsidary of Nitel. It eventually became a player in the GSM revolution before it collapsed and eventually resurrected as an internet service provider, which it remains today.

nairalanda1:
There were mobile phones. One of my father's colleagues had one as early as 1997, and my dad also met someone who owned one as early as 1996. They were not GSM phones by the way.

Mtel was the company that ran those mobile phones and it had been around since the 80's. It was a subsidary of Nitel. It eventually became a player in the GSM revolution before it collapsed and eventually resurrected as an internet service provider, which it remains today.

Then it was something else and not mobile phones. Because the fact of the matter is that it was May 6,2001 that mobile telephony came into Nigeria

happney65:
Then it was something else and not mobile phones. Because the fact of the matter is that it was May 6,2001 that mobile telephony came into Nigeria

GSM Mobile telephony, not just mobile telephony.

Wow so years Don run like that

I remember 2008 way I go thief our pastor Nokia antennal phone (and the phone no good again hoo)

I lie to my mama say I see the phone for ground, to cut the matter short my mama later hear say Na me thief pastor Nokia antennal phone

I think say Na That night heaven go accept me I chop beating for good 2hrs untop phone way no good

My mama say I don bring shame to the family so we change church

Anyway thanks to technology Na me con day use iPhone Xr now

happney65:
Then it was something else and not mobile phones. Because the fact of the matter is that it was May 6,2001 that mobile telephony came into Nigeria

What came into Nigeria in 2001 was GSM technology which made the mobile phones accessible to common people, Mobile phones have been in Nigeria since the 80s especially with the very rich folks

Remember that MKO Abiola was arrested and he made a phone call to the BBC from his car. He probably used a mobile phone?

This call especially around 1.01. This was in 1994


https://www.youtube.com/watch?v=iB0YL339lg0