Privet,
Victoria from Techpoint here,
Here’s what I’ve got for you today:
- Africa’s largest telco has a 420,000km plan
- IMF wants Nigeria to tax telecom services again
- Canada’s Nuvei to acquire Payoneer in a $2.75B deal
Africa’s largest telco has a 420,000km plan
MTN has unveiled plans to build 420,000 kilometres of fibre across Africa within the next four years, one of its most ambitious infrastructure plans yet. The project will be led by its digital infrastructure business, Bayobab, and represents an expansion from its current footprint of roughly 127,000km of fibre. If MTN hits its target, it will more than triple the size of its network and create one of the largest terrestrial fibre footprints on the continent.
The significance of the announcement goes far beyond faster Internet. Fibre networks are the invisible infrastructure powering everything from mobile towers and cloud computing to AI services, digital payments, streaming, and enterprise connectivity. As Africa’s Internet usage grows and businesses increasingly move online, demand for high-capacity fibre infrastructure is surging. MTN is effectively betting that the next decade of Africa’s digital economy will be built on fibre, not just mobile networks.
For consumers and businesses, the long-term payoff could be better network performance, improved broadband access, lower latency, and greater reliability. Fibre also helps operators reduce dependence on expensive satellite and microwave links while supporting growing demand for data-intensive services. Across Africa, governments and telecom operators have repeatedly identified inadequate fibre infrastructure as one of the biggest barriers to digital transformation. MTN itself has previously estimated that Africa still needs hundreds of thousands of kilometres of additional fibre to meet future demand.
The latest announcement is also the culmination of a strategy MTN has been building for years. Back in 2021, the company said it wanted to grow its fibre footprint from around 85,000km to 135,000km. In 2023, it partnered with Africa50 on the $320 million East2West project designed to connect 10 African countries through new terrestrial fibre routes. Around the same time, MTN rebranded its wholesale infrastructure business from MTN GlobalConnect to Bayobab and began positioning it as a standalone digital infrastructure platform. Since then, Bayobab has steadily expanded across multiple markets, secured new licences, and launched new FibreCos across the continent.
The broader context is that Africa’s telecom industry is increasingly shifting from being a mobile-first business to an infrastructure-first one. Operators are investing heavily in fibre, data centres, subsea cables, and cloud infrastructure as they search for new growth opportunities beyond traditional voice and SMS revenue. MTN’s 420,000 km target is perhaps the clearest signal yet that the battle for Africa’s digital future will be won not just through mobile towers but through ownership of the networks that carry the continent’s growing flood of data. If Bayobab succeeds, MTN won’t just be one of Africa’s biggest telecom companies; it could become one of its most important digital infrastructure providers.
IMF wants Nigeria to tax telecom services again
18 months after telecom operators secured tariff increases to stay afloat, the International Monetary Fund (IMF) is now suggesting that Nigeria consider introducing excise duties on telecommunications services. In practical terms, that could mean an additional tax on voice calls, SMS, and data services somewhere down the line. The recommendation appeared in the IMF’s 2026 Article IV Consultation Report on Nigeria, released on June 9, where the Fund argued that the country would likely need more revenue-generating measures over the medium term despite recent tax reforms. The proposal has already triggered concern among subscribers and industry stakeholders, many of whom argue that telecom users are already paying enough.
Victoria Fakiya – Senior Writer
Techpoint Digest
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For consumers, the biggest concern is simple: higher costs. Nigerians are still adjusting to recent telecom tariff increases approved in 2025, while inflation and the broader cost-of-living crisis continue to squeeze household budgets. An excise duty on telecom services could ultimately be passed on to consumers, making calls and mobile data more expensive. Telecom operators may also face additional compliance costs in a sector that industry groups say is already burdened by dozens of taxes and levies. The President of the National Association of Telecom Subscribers has argued that the sector is already subject to more than 40 different taxes, raising questions about whether another levy could slow investment and digital adoption.
The telecom proposal is only one part of a broader IMF revenue plan. The Fund also recommended extending VAT to petroleum products, increasing VAT collections, reducing tax exemptions, and broadening Nigeria’s tax base. The IMF argues that Nigeria’s tax-to-GDP ratio remains among the lowest in the world, limiting the government’s ability to fund infrastructure projects, social programmes, healthcare, and education. In the Fund’s view, stronger domestic revenue mobilisation is becoming increasingly important as Nigeria seeks to reduce its dependence on oil earnings and borrowing.
The timing, however, is sensitive. Since President Tinubu’s administration removed petrol subsidies in May 2023 and liberalised the foreign exchange market, Nigerians have faced a prolonged cost-of-living crisis. Fuel prices have surged, transportation costs have risen sharply, and inflation has remained stubbornly high. Against that backdrop, any discussion of new taxes on fuel or telecommunications is likely to face resistance from consumers, labour groups, and businesses. Even the IMF acknowledged that the timing of additional tax measures must take into account rising poverty levels and food insecurity.
The bigger picture is that Nigeria’s search for revenue is far from over. Earlier this year, government budget documents showed expectations that the telecom sector alone could contribute about ₦874 billion in tax revenue in 2026, highlighting just how important the industry has become to public finances. Whether the government ultimately adopts the IMF’s recommendations remains unclear, but the proposal has reopened a familiar debate: should Nigeria solve its revenue challenges by taxing consumption more aggressively, or should it focus on improving tax collection, widening the tax net, and reducing leakages in public finances? For now, the IMF has made its position clear, but the political battle over whether those recommendations become reality is only just beginning.
Canada’s Nuvei to acquire Payoneer in a $2.75B deal
One of the biggest fintech deals of 2026 landed yesterday morning. Nuvei announced it will acquire Payoneer in an all-cash transaction worth approximately $2.75 billion, paying shareholders $7.40 per share. Although the announcement was made on June 15, the merger agreement was actually signed on June 12, meaning the deal had already been agreed behind the scenes before markets opened this week. The acquisition has the backing of both companies’ boards and is expected to close in mid-2027, assuming regulators and shareholders give it the green light.
At first glance, it looks like a straightforward acquisition. In reality, Nuvei is buying much more than Payoneer’s technology. The deal combines two complementary businesses: Nuvei specialises in helping merchants accept payments, while Payoneer has built a global network for moving money across borders, paying freelancers, managing multi-currency accounts, and supporting international businesses. Together, they expect to process more than $500 billion in annual payment volume and generate roughly $3 billion in annual revenue. The long-term vision is to create a single platform where businesses can accept payments, hold funds, move money internationally, manage foreign exchange, issue cards, and even handle stablecoin transactions.
What makes this deal particularly interesting is that Nuvei isn’t just buying Payoneer’s technology; it’s buying access to one of the most important networks in global digital commerce. Millions of freelancers, sellers, creators, and businesses on platforms like Amazon, Airbnb, Fiverr, Upwork, Etsy, and Shopify rely on Payoneer to get paid. Just as valuable is Payoneer’s regulatory footprint in difficult-to-enter markets such as China and India, where obtaining payment licences can take years. In many ways, Nuvei is acquiring two decades’ worth of relationships, infrastructure, and regulatory approvals that would be incredibly difficult to build from scratch.
For Africa, the implications could be significant. Payoneer is already a go-to platform for many freelancers, remote workers, software developers, exporters, and online businesses receiving payments from abroad. If the integration goes smoothly, users could gain access to a broader range of payment, payout, foreign exchange, and financial services through a single provider. More broadly, the acquisition reflects a growing trend in global payments, where companies are consolidating to become one-stop shops for businesses operating across borders. The bet is simple: businesses want fewer financial partners, not more.
In case you missed it
What I’m watching
Opportunities
- Qore is hiring for several positions. Apply here.
- Oui Capital has an exclusive AI mixer coming up on June 26. Interested founders, researchers, and engineers should apply here. Apply here.
- inDrive is hiring to fill several vacancies in different countries. Apply here.
- Are you a female-led tech or tech-enabled business preparing for sustainable growth and opportunity to access capital? Apply for the Female Founders Growth Programme and grab up to $2 million. Apply here.
- Bamboo is hiring in Ghana and Nigeria. Apply here.
- Cowrywise is recruiting some engineers. Apply here.
- PiggyVest is looking for a Product Technical Manager. Apply here.
- Paystack is hiring for a few roles. Apply here.
- Moniepoint is recruiting for several roles. Apply here.
- Flutterwave is hiring for several roles in Nigeria, the UK, and the US. Apply here.
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Have a lovely Tuesday!
Victoria Fakiya for Techpoint Africa
