Digital transformation in Nigeria’s telecom VAS sector


The telecommunications Value-Added Services (VAS) sector in Nigeria is undergoing significant transformation, evolving from traditional offerings like SMS and USSD to more advanced digital services. This shift is driven by the industry’s increasing focus on meeting the dynamic needs of end users, alongside the emergence of talented individuals seeking to digitalize innovative ideas, ranging from mobile gaming and video content to Mobile Financial Services (MFS).
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One key factor contributing to the sector’s growth is the changing regulatory landscape, which has prompted content creators to develop more engaging and diverse services that cater to users’ evolving preferences. The Nigerian Communications Commission (NCC), the regulatory body overseeing telecommunications in the country, has played a critical role in ensuring that all launched services adhere to its robust framework for VAS, thus protecting the interests of both consumers and industry stakeholders.

Adeola Tobi the Director of GHMor, a top service provider licensed by NCC opined that the VAS aggregator initiative has significantly accelerated the integration process between service providers and telecom operators. This streamlined approach has not only expedited the onboarding of new services but also created a unified platform, serving as a one-stop solution for most telecom operators in Nigeria. As a result, the process of launching new services and innovative ideas to end-users has become more efficient and seamless.

According to her, GHMor’s plan to venture into lottery services and how the aggregator has helped impacted on their process of implementation, integration, and support in license application, pricing and short code application and much more.
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In a recent interview, Ms. Adeshola Adewoye, Chief Operating Officer of i-Cell Multimedia Limited highlighted how creative talents have transformed ordinary ideas into compelling, monetizable services that resonate with consumers. These services span various sectors, including banking, gaming, and even government services, illustrating the broad potential of VAS in the digital era.

Ms. Adewoye also elaborated on the rigorous processes involved in the successful launch of VAS services, including idea generation, regulatory approvals, integration, and implementation. She praised the NCC for establishing a comprehensive framework that governs the fair operation of all stakeholders in the value chain, ensuring a transparent and efficient system for launching services.

For any VAS service to be launched, telecom operators collaborate with licensed service providers and aggregators, as mandated by the NCC. This licensing requirement is crucial for the proper monitoring of services and the protection of end users. In some cases, depending on the nature of the service, additional approvals from other regulatory bodies such as the National Lottery Regulatory Commission (NLRC) or the Consumer Protection Council (CPC) may be necessary.
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Ms. Adewoye further emphasized that there are virtually no limits to what can be achieved through digital transformation in the telecom sector, as long as all regulatory requirements are met. She shared that i-Cell Multimedia has been at the forefront of innovation within the VAS value chain, establishing itself as a leading aggregator and engaging with various agencies to drive digital transformation.

Recently, i-Cell Multimedia made headlines with the soft launch of its new Super App, Nijachat. This app integrates multiple services, including chat forums, e-commerce, news, health, and more, demonstrating the company’s commitment to advancing telecom VAS and contributing to the industry’s transformation.

The future looks interesting for the VAS industry. Ms. Adewoye for instance, expressed optimism, calling on both emerging and established talents to bring fresh ideas to the table. International collaborations and partnerships, according to her, is critical success factor to further expand the industry’s potential and accelerate growth in this rapidly evolving digital landscape.

With a solid regulatory framework and an abundance of creativity, Nigeria’s telecom VAS sector without doubts is well-positioned for continued growth and innovation.
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