How Abdulsalami nearly gave away $280m telecom deal for $3m

Former President Olusegun Obasanjo has revealed how former military Head of State, General Abdulsalami Abubakar (retd.), nearly awarded a $280 million telecommunications deal for just $3 million.

Obasanjo shared this during the launch of “The Catalyst: Nigerian ICT Evolution through a Journalist’s Lens,” authored by formemr editor of the PUNCH newspaper, Dayo Oketola, in Lagos.

According to Obasanjo, Nigeria was transitioning from landline to mobile phones when major telecom companies approached the country.

Abdulsalami reportedly intended to give the deal to his friends for $3 million, but Obasanjo intervened, advocating for an auction, which ultimately raised $280 million.

Obasanjo said: “The story of telecommunications, particularly mobile telecommunication, is a very interesting one. Before mobile telecommunication, we had spent a lot of money, we had all sorts of companies invited from America, France and even from Britain, but we did not get more than 500,000 lines. People had to queue at the telephone kiosk to call their loved ones abroad. And then, of course, the mobile telephone age came in.

“When it came in, my predecessor in office was trying to give it away, I think, to their friend for $3 million. Then we said, what we would do was to auction it. The three that came in first, I think, paid $280 million for the line. $280 million for something about to be given away for $3 million. That was the first thing we did. Not only that, we achieved competition.

“The three of them were competing. And, of course, the one that had the upper hand in terms of spread, I think, was MTN, followed by Glo. And then, there was Econet. They are now Airtel. And then, of course, later on, we had the fourth one, Etisalat. When Etisalat came, I told them the last one we did was $280 million. We told Etisalat to pay $450 million. They did.

“When they paid $450 million, the ball went in the post and then we were playing. That was how we got money to do what we did at the time we did it. That opportunity can still be made available. 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.

“What we did or what Nigeria has done in the good days when things were going well, are still there and can still be done today only if we put ourselves and we are honest to ourselves. We have to show character and attitude.”

Obasanjo further highlighted the importance of creating a conducive environment for investment, stressing that Nigeria can still attract funds for development if honest leadership is maintained.

The event was attended by notable dignitaries including Rotimi Amaechi, former Rivers State Governor, and Gbenga Omotoso, Lagos State Commissioner for Information and Strategy, who represented Minister of Information, Alhaji Mohammed Idris.

The President of the Nigerian Guild of Editors, Eze Anaba, praised Oketola’s dedication to journalism, commending his ability to write a book despite the demands of his role as an editor.