Economy
How 5G Will Impact Nigeria’s Business Sector in 2021?
5G technology has divided public opinion across the globe. Stories of international data farming, societal controls and even claims of involvement in creating the current COVID-19 pandemic have tarnished its reputation in recent months.
As the conspiracy theories subside, the world pushes forward with plans to implement this game-changing tech and the list of “5G ready” countries looks set to boom in 2021 with Nigeria poised proudly at the front of the queue.
What is 5G?
The fifth-generation network is a wireless connection that makes use of a combination of large radio towers and smaller transmitters to bring an ultra-high frequency signal within reach of populated areas.
Using this signal, entire nations can effectively be transformed into a giant wireless network to connect everyone and everything in its path.
5G technology has been in the pipeline since 2011 when studies of millimetre waves led to research into what is now known as 5G. It’s taken several years of research and testing to get us to this point, but it’s now billed to become the telecom industry standard during the next 20 years.
The production of 5G-ready devices is still very much in its infancy and is certainly playing catch up. Current mobile phones with 4G capabilities aren’t physically able to use the network and neither are the vast majority of tech products in people’s homes.
The race is now on to connect everyone and everything to one super network that will transform businesses not only in terms of day-to-day efficiency but also in the way that user activity data can be relayed and used to enhance marketing methods.
How will 5G benefit business in Nigeria?
As with all countries, Nigerian businesses will use the new tech to transform their everyday activity into a more streamlined version of itself.
In the wake of the current pandemic, remote working is set to remain on the up and 5G’s ability to provide incredibly low latency rates means that online meetings will become as fast and crisp as their face-to-face counterparts.
Not only will low latency improve everyday activities around the office, but it will also mean big advances in the reliability of robotics. Self-drive cars, for example, rely on real-time reactions to adjust to sudden changes in the immediate environment and 5G will help to eliminate safety concerns in this area.
Lighting quick internet connection will also help enhance the online gaming community and pave the way for Nigeria to build on its recent success in La Cup D’Africana tournament where they took the top spot in the biggest PlayerUnknown’s Battleground (PUBG) competition on the continent.
Online casinos are another key area of growth that stands to make big gains from an optimised user experience thanks to 5G technology.
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The housing sector is on course to become an unlikely beneficiary from 5G networks in the coming years as advances in VR, AR and 3D technology will be used to present realistic walkthroughs and detailed presentations of property that will bring real estate marketing into a new era of high-tech marketing.
Demand for property in Nigeria has doubled over the last couple of years and this could be eased dramatically as the production of housing materials becomes more efficient and streamlined in the wake of new network capabilities.
When will 5G be available in Nigeria?
The long-awaited final announcement from the Nigerian Communications Commission (NCC) looks set to be upon us shortly as discussions with key stakeholders are entering their final stages.
After trials were rolled out during 2019, the NCC has made use of a consultation period to assess the health implications and environmental impact of the new 5G infrastructure. No huge concerns have been raised and the final piece of the puzzle is largely a question of finances as the commission clarifies who the major players will be in this market.
Although no fixed date has been set, it does look to be increasingly likely that early 2021 will see the country join the super-fast internet elite.
By Adedapo Adesanya
The Nigerian Insurers Association (NIA) has disclosed that seven additional insurance companies have secured full recapitalisation approval from the National Insurance Commission (NAICOM), bringing the industry-wide recapitalisation exercise to a successful conclusion.
In a statement on Friday, NIA Chairman, Mrs Ebelechukwu Nwachukwu, said the milestone represented significant progress towards building a stronger, more competitive and trusted insurance market in Nigeria.
She said the seven companies, alongside the 41 insurance companies and two reinsurance companies earlier approved, had demonstrated resilience, financial discipline and corporate strength by successfully completing the final verification process.
“Having successfully navigated the rigorous final verification process, these companies, alongside the earlier approved 41 insurance companies and two reinsurance companies, have demonstrated exceptional resilience, corporate fortitude, and financial discipline,” Mrs Nwachukwu said.
She added that the successful recapitalisation had positioned the companies to deliver greater value to policyholders and contribute to deeper insurance penetration nationwide.
Mrs Nwachukwu commended NAICOM for its regulatory oversight during the exercise, describing the commission’s approach as fair, structured and focused on strengthening market integrity.
“NAICOM’s strategic foresight and structured execution have elevated the Nigerian insurance industry, reinforcing its position within the broader financial sector as a substantially stronger, highly resilient, and globally competitive market,” she said.
The NIA chairman reaffirmed the association’s commitment to supporting insurance companies as they adapt to new regulatory requirements under the Nigerian Insurance Industry Reform Act (NIIRA) 2025.
She said the association would continue to work with NAICOM to promote a sustainable and future-ready insurance sector.
Mrs Nwachukwu also assured policyholders, investors and other economic stakeholders that the recapitalised industry was better positioned to support economic growth.
“With this recapitalization complete, the Nigerian insurance sector enters a transformative era. The industry is fully equipped to settle genuine claims promptly, absorb higher local and international risks, and serve as a cornerstone of financial stability, directly supporting President Bola Ahmed Tinubu’s vision of achieving a $1 trillion economy by 2030,” she said.
By Aduragbemi Omiyale
Capital market operators have been directed to immediately freeze the assets, funds, and other economic resources belonging to six individuals and three entities designated as terrorist financiers by the Nigeria Sanctions Committee (NSC).
This directive was given by the Securities and Exchange Commission (SEC) via a circular to all Capital Market Regulated Entities (CMREs), warning that failure to comply would constitute a violation of the Investments and Securities Act, 2025, and the SEC Anti-Money Laundering/Combating the Financing of Terrorism (AML/CFT) Rules and Regulations.
It said violations could attract regulatory sanctions, including fines, suspension of operations or revocation of registration, reminding capital market operators that all unusual or suspicious transactions must be promptly reported to the NFIU.
The regulator, which stated that the designations were made in line with the Terrorism Prevention and Prohibition Act (TPPA) 2022, listed the six individuals as Babangida Muhammed Adamu Hammajam, Abdullahi Umar Usman, Ibrahim Abubakar, Adamu Chiroma, Muktar Muhammad Adamu and Yakubu Ogirima Ibrahim. The three designated entities are Nine to Nine BDC Ltd, Generation Currency BDC Ltd and Abbal Bako & Sons Bureau de Change.
According to the SEC, Hammajama was listed on June 18, 2026, for involvement in terrorism financing and support for the Islamic State West Africa Province (ISWAP), while Usman was designated for providing material support to a designated terrorist organisation through repeated financial transactions.
The commission said Abubakar was listed for involvement in terrorism financing and membership of ISWAP, while Chiroma was designated for allegedly using Bureau De Change (BDC) operations and related corporate entities to facilitate the movement of funds linked to terrorist activities.
Muktar Muhammad Adamu was listed on June 15, 2026, for providing financial support and facilitating transactions linked to the financing network of the ISWAP Okene cell, while Ibrahim was designated for providing material and financial support to the ISWAP Kogi cell.
The SEC said the three entities were listed for their alleged involvement in facilitating and channelling funds connected to the ISWAP Okene financing network.
The commission directed CMREs to immediately identify and freeze, without prior notice, all funds, assets and other economic resources in their possession belonging to the designated persons and entities.
They are also required to report frozen assets and other compliance actions, including attempted transactions, to the Secretariat of the Nigeria Sanctions Committee.
In addition, the SEC directed regulated entities to immediately file suspicious transaction reports with the Nigerian Financial Intelligence Unit (NFIU) for further analysis of the financial activities.
It further instructed operators to report as suspicious transactions all cases of name matches in financial transactions, whether occurring before or after receipt of the sanctions list.
The regulated entities are also required to prohibit dealings with the designated persons and entities and continue monitoring for transactions involving them.
The SEC said any findings should be reported to the Nigeria Sanctions Committee through its designated reporting channel.
By Adedapo Adesanya
Dangote Sugar Refinery Plc, Nigeria’s biggest sugar producer, has raised N486 billion ($356 million) through an oversubscribed rights issue as the company moves to reduce its debt burden and strengthen its capital base after three consecutive years of losses.
The company, founded by Mr Aliko Dangote, raised the funds through the issuance of 8.1 billion ordinary shares at N60 per share, according to a filing with the Nigerian Exchange (NGX) Limited on Friday.
The development follows shareholders’ approval of the capital-raising plan at the company’s 20th Annual General Meeting held in April.
In a statement signed by the Company Secretary, Mr Temitope Hassan, the sugar firm said the rights issue is part of efforts to improve its financial position and provide funding to support its long-term growth plans.
The company’s directors are authorised to raise up to N500 billion through a rights issue, on terms and at a time to be determined by the Board.
Dangote Sugar increased its share capital to accommodate the new shares issued under the rights issue. The sugar producer’s board also authorised to allot the shares and the management of any fractional holdings in accordance with regulatory requirements.
The organisation said any shares remaining unallotted after the offer would be cancelled as permitted by law, describing the capital raise as one of the largest rights issues in Nigeria’s corporate history.
The capital raise comes against the backdrop of improved revenue performance but continued losses at the company.
In its 2025 audited results, Dangote Sugar recorded a 24.56 per cent increase in revenue to N829.2 billion, compared with the previous year. The growth was driven largely by strong demand for 50kg sugar, which generated N807 billion in revenue.
Retail sugar sales contributed N17.7 billion, while molasses and freight income generated N4.02 billion and N66.4 million, respectively.
Cost of sales increased by 11.35 per cent to N706.5 billion, largely due to raw material costs of N573.3 billion. This resulted in a gross profit of N122.6 billion.
Despite the improvement in revenue and gross profit, the company recorded a pre-tax loss of N72.2 billion in 2025, although this represented a significant improvement from the N270.8 billion loss reported in 2024.
Lagos remained the company’s largest market, accounting for 55.82 per cent of regional sales, followed by the North with 35.35 per cent, the West with 6.45 per cent and the East with 2.38 per cent.
The fresh capital is expected to provide Dangote Sugar with additional financial capacity as it works to reduce its debt obligations, strengthen its balance sheet and advance its long-term expansion plans.
