Business
Underwater Cables Bring Faster Internet To W’ Africa – Opeke
Stretching some 7,000 kilometers along the West African coastline, a submarine fiber-optic cable emerges off the coast of Nigeria to help bridge the digital divide in the continent.
Dubbed Main One Cable, the system links West Africa with Europe, bringing ultra-fast broadband in the region. It runs from Seixal in Portugal through Accra in Ghana to Lagos in Nigeria and branches out in Morocco, Canary Islands, Senegal, and Ivory Coast.
The cable, which has a capacity of 1.92 terabits a second, first went live in July 2010, becoming the first subsea cable to bring open-access, broadband capacity in West Africa, according to Funke Opeke, chief executive of Nigeria’s Main One Cable Company who spoke to CNN, recently.
She says high-speed, low-priced, reliable broadband is key in transforming African economies and creating job opportunities.
“When you think of Africa coming into the information age, you think of educational institutions, you think of business opportunities, you think of social awareness, better communication, transparency in government,” says Opeke, a former executive at U.S. telecoms giant Verizon.
“In order to make Africa (and) Nigeria competitive again and in order to make our schools competitive, to make businesses here competitive and … to give young people access to opportunities, access to markets, access to ideas … we need a society, as a population to be better connected to the internet,” she adds.
After the launch of Main Cable One, more undersea fiber-optic projects have been rolled out in the region, including Glo 1 by Nigerian telecoms group Globacom. Similarly, several other efforts have been deployed in eastern and southern Africa in recent years.
Yet, slow connectivity and high internet costs are still major problems — according to figures by the International Telecommunication Union, Internet-user penetration in sub-Saharan Africa was 10.6% in 2010, far behind the world average of about 30%.
“Even in the countries in which we’re already in-land, broadband penetration is still under 10% rate, so there’s a lot of road for growth and improvement,” says Opeke.
Born in Nigeria, Opeke moved to the United States in 1984 to study at Columbia University. After a 20-year-old career in the U.S. telecommunications industry she returned to Nigeria in 2005, where she saw “first-hand” the country’s absence of internet infrastructure and the need for better web connectivity.
“I just felt personally the need was so glaring and that was what motivated me to start trying to solve the problem,” says Opeke. “The more I looked at it on my kitchen table the more visible it became to put a business together and that’s what I did.”
Starting all by herself, Opeke managed to raise $240 million after securing the support of various investors from the continent.
“It’s all African financing,” she explains, “I look at those people who wrote checks … the angel investors when I had no license, it was a business sheet on a piece of paper and it really wasn’t about making money, it was really about a deep understanding and desire to transform a society and to say that we could address some of these problems Africa had.
“That we understood the challenges, there was a lot of work to be done and that we wanted to pull people on board, pull ourselves together to address those problems,” she adds.
Today, Opeke says, the system has helped improve the availability of internet services, especially in Lagos and Accra, as well as lowering wholesale prices significantly, by up to 80 per cent.
But despite the big decrease in wholesale cost, Opeke notes that consumers have still not seen a difference in the price they pay — she says that Nigeria’s entire infrastructure is self-provisioned by different retail operators, which keep charging the same prices for the domestic part of the services.
“The people who own the distribution networks are not passing on the saving, there’s no open-access distribution or common carriers like you would have in a developed market,” says Opeke.
The lack of a national backbone infrastructure on an open-access basis is also making expensive to move capacity within Nigeria, according to Opeke. As a result, she says, connecting people from the company’s landing point in Nigeria to London costs less than connecting people across Lagos.
“You have to buy that infrastructure from people who own it for their own proprietary use, so it’s a cartel-like situation,” she says.
Therefore, Main One Cable, which does not sell its capacity directly to homes or small and medium-size businesses, has also started investing in distribution infrastructure, building its own networks when it can’t find “commercially reasonable rates,” as Opeke explains.
“The biggest challenge that we see is getting the capacity we have in this big pipe that we brought into Nigeria and Ghana across the region to reach the people and businesses where they need the service,” she says.
The Central Bank of Nigeria (CBN) yesterday said 33 banks have met new minimum capital requirements under its recapitalisation programme, raising a combined N4.65 trillion to strengthen the financial system.
The apex bank disclosed this in a statement marking the end of the exercise, which commenced in March 2024 and drew participation from domestic and foreign investors.
The statement was jointly signed by the Director of Banking Supervision, Olubukola Akinwunmi, and the Acting Director of Corporate Communications, Hakama Sidi-Ali.
The statement said “Over the 24-month period, Nigerian banks raised a total of N4.65tn in new capital, strengthening the resilience of the financial system and enhancing its capacity to support the economy.”
The regulator said local investors accounted for 72.55 per cent of the funds, while international investors contributed 27.45 per cent, reflecting continued confidence in the sector.
Commenting on the outcome, the CBN Governor, Olayemi Cardoso, said in the statement, “The recapitalisation programme has strengthened the capital base of Nigerian banks, reinforcing the resilience of the financial system and ensuring it is well-positioned to support economic growth and withstand domestic and external shocks.”
It added that while 33 banks have complied with the new thresholds, a few others are still undergoing regulatory and legal processes.
The statement noted, “The CBN confirms that 33 banks have met the revised minimum capital requirements established under the programme.
“A limited number of institutions remain subject to ongoing regulatory and judicial processes, which are being addressed through established supervisory and legal frameworks.
“All banks remain fully operational, ensuring continued access to banking services for customers.”
The apex bank stressed that the exercise was executed without disrupting banking operations, ensuring uninterrupted access to services nationwide.
It further stated that key prudential indicators have improved, particularly capital adequacy ratios, which remain above global Basel benchmarks.
The minimum ratios were set at 10 per cent for regional and national banks and 15 per cent for banks with international licences.
The bank also said the recapitalisation coincided with a gradual exit from regulatory forbearance, a move it said improved asset quality, strengthened balance sheet transparency, and enhanced overall stability.
To preserve these gains, the CBN said it has reinforced its risk-based supervision framework, mandating periodic stress tests and adequate capital buffers for banks.
It added that supervisory and prudential guidelines would be reviewed regularly to strengthen governance, risk management, and resilience across the sector.
“The successful completion of the programme establishes a stronger and more resilient banking system, better positioned to support lending, mobilise savings, and withstand domestic and global shocks,” the statement said.
The Tide learnt that foreign capital inflows into Nigeria’s banking sector rose by 93.25 per cent year-on-year to $13.53bn in 2025, up from $7.00bn recorded in 2024, amid the ongoing recapitalisation drive by the Central Bank of Nigeria.
Data from the National Bureau of Statistics capital importation report showed that the banking sector remained the dominant destination for foreign capital, accounting for $13.53bn of the total $23.22bn recorded in 2025, representing 58.26 per cent of total inflows, up from 56.81 per cent in 2024.
The surge reflects heightened investor interest in Nigerian banks as they raised fresh capital to meet new regulatory thresholds introduced by the apex bank, with industry-wide recapitalisation activities driving large-scale inflows across all quarters of the year.
However, the Centre for the Promotion of Private Enterprise (CPPE) recently raised concerns over weak credit flows to small businesses despite recent banking sector reforms.
The CPPE, led by a renowned economist, Dr Muda Yusuf, acknowledged that the ongoing bank recapitalisation exercise by the CBN has strengthened the financial system, but warned that the benefits have yet to translate into meaningful support for the real economy.
The facility will be disbursed through participating Microfinance Institutions (MFIs), which will in turn extend the loans to their customers, particularly SMEs, as they directly interface with businesses at the grassroots level.
The Executive Director of COMCIN, Mr. Micheal Ogbaa who represented the Chairman, Dr. Iredele Oyedele (FCA, FCCA), said the initiative is designed to strengthen micro-lending institutions and expand access to finance for grassroots entrepreneurs, particularly women and youths in the informal sector.
Ogbaa explained that COMCIN does not lend directly to individuals but works through its network of microfinance and cooperative institutions, which in turn provide loans to end users.
“We came together to advocate for the microfinance ecosystem. Commercial banks often exclude people at the grassroots, but our members are positioned to reach them. This facility will empower them to do more,” he said.
He noted that the loan scheme offers low interest rates and flexible repayment plans, making it more accessible to small business owners.
According to him, about 90 percent of beneficiaries are expected to be women, who play a key role in sustaining families and driving economic activities at the local level.
“Our focus is on traders, service providers, and players in the informal sector. These are the real movers of the economy. By supporting them, we are strengthening families and contributing to national development,” he added.
Ogbaa disclosed that eligible SMEs with proven integrity and business track records could access up to N5 million each through participating micro-lending institutions. The rollout has commenced in Lagos and will extend to Abuja, Enugu, and other regions, including the South-West, South-East, and North-East.
He said 12 micro-lending institutions have already benefited from the scheme, while 85 applications are currently being processed under the pilot phase.
“Our target is to reach at least 100,000 SMEs nationwide. We are building a platform that connects funding partners with credible micro-lending institutions, creating a reliable channel for financial inclusion,” Ogbaa said.
He added that COMCIN is also working to attract larger funding pools from development finance institutions and private investors, noting that successful implementation of the pilot phase would boost confidence and unlock more capital for SMEs.
“We have seen encouraging testimonies from early beneficiaries. As we demonstrate transparency and efficiency, more institutions will be willing to channel funds through us,” he said.
