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ESDIAC: Can eSIM Gain Ground in Nigeria’s Telecoms Market?

The rollout of the fifth generation of cellular network technology (5G) in Nigeria has revolutionised telecommunications services in the country, opening up opportunities for faster connectivity, improved digital services and new innovations in mobile communication.

One of the developments gaining attention in the telecommunications industry is the embedded SIM card (eSIM), a digital SIM technology built directly into compatible phones, tablets and smartwatches. It allows users to connect to a mobile network without the need to insert a physical plastic SIM card into their devices.

Unlike conventional SIM cards, which users must physically insert or remove when changing networks, eSIM technology allows compatible devices to store and activate mobile network profiles electronically. This offers greater flexibility, particularly for people who use multiple telephone lines, travel frequently or need to switch between network operators.

Although eSIM technology is often associated with the emergence of 5G, it is important to note that the two are separate developments. An eSIM can function on 4G networks as well as 5G, provided the device and mobile network support the technology. However, the expansion of advanced telecommunications infrastructure has helped create greater interest in digital connectivity solutions.

At present, Nigeria’s major telecommunications operators, including MTN, Airtel, Globacom and 9mobile, have introduced eSIM services, allowing eligible subscribers to activate digital SIM profiles and, in some cases, convert their existing physical SIM cards to eSIMs through designated customer service channels.

On Friday, October 30, the country witnessed the entry of another player into the telecommunications market, with ESDIAC Global Systems launching a mobile application offering local and international calls, electronic SIM (eSIM) services, airtime and data top-ups, as well as business communication solutions.

According to the company, the platform was designed to make telecommunications services more affordable and accessible, particularly for Nigerians who make international calls and travellers seeking mobile connectivity abroad.

Speaking at the product unveiling, the founder and Chief Executive Officer of ESDIAC Global Systems, Austin Ugbebor, said the platform offered international calls at N13 per minute, a rate he described as significantly lower than those charged by some major telecommunications providers.

He said the application was developed to provide an alternative for individuals and businesses seeking affordable ways to communicate across borders, adding that new users in Nigeria would receive one unit of calling credit to test the service.

According to Ugbebor, the platform’s pricing model eliminates certain charges associated with other international calling services, including connection fees and monthly deductions on unused account balances.

He said the company would investigate complaints involving missing credits or incorrect deductions and reimburse affected customers where claims were justified. However, he noted that future tariff adjustments could be influenced by regulatory directives, adding that the company would comply with applicable telecommunications regulations.

Explaining the technology, the company said ESDIAC operated as an app-to-phone platform, allowing users to call people who did not have the application or an internet-connected smartphone. This, it said, distinguishes the service from internet-based messaging applications that generally require both parties to use the same platform.

Speaking at the event, the Special Adviser to the President on Economic Affairs, Dr Tope Fasua, described ESDIAC as a potentially useful development in Nigeria’s telecommunications market.

Fasua recounted his experience purchasing an eSIM at Abuja airport for a trip to Bangkok. He said the service worked in London but failed to provide the expected connectivity in Bangkok. He described ESDIAC’s pricing and communication offerings as promising but said he intended to test the service himself.

The eSIM service is designed to help travellers access mobile connectivity without purchasing a physical SIM card in every destination. The application also offers airtime and data top-ups and communication tools for businesses.

Despite the optimism and opportunities associated with eSIM, its penetration, adoption and acceptance in Nigeria remain relatively slow. The technology is yet to gain widespread acceptance among ordinary mobile telephone users, largely because of affordability, device compatibility, limited awareness and the procedures involved in activating the service.

Apart from tech-savvy professionals, business travellers and users of newer flagship smartphones, particularly recent iPhones, Samsung Galaxy devices and selected Google Pixel models, it could take considerable time before a significant number of Nigerians migrate from conventional SIM cards to eSIM.

One of the major obstacles is the availability of compatible devices. Most affordable and mid-range smartphones popular in Nigeria do not support eSIM technology. This means that subscribers interested in enjoying the benefits of digital SIM cards may have to purchase more expensive devices, an investment that many households may not consider necessary.

For a country where a significant proportion of mobile telephone users prioritise affordability when purchasing smartphones, the cost of upgrading devices could become a major barrier to eSIM adoption.

The situation is further complicated by prevailing economic conditions. Rising living costs, inflation and declining purchasing power have made it difficult for many Nigerians to replace their existing smartphones, particularly when their current devices still perform basic communication functions.

Consequently, the advantages of eSIM, including the ability to operate multiple network profiles, switch between operators and avoid handling physical SIM cards, may not be sufficient motivation for subscribers who are more concerned about the cost of data, airtime and maintaining their telephone lines.

Another challenge is public awareness. Although telecommunications operators have introduced eSIM services, many subscribers are still unfamiliar with how the technology works, the devices that support it and the procedures for activation.

Some users also have concerns about what happens when they lose their phones, change devices or need to recover their telephone numbers. Such concerns are understandable in a market where mobile telephone numbers are linked to banking transactions, financial applications, business contacts and other essential services.

The process of converting or replacing an eSIM can also discourage potential users. Although activation procedures vary among operators and devices, some Nigerian subscribers are required to visit designated service centres, provide identification and undergo the necessary SIM registration and verification processes.

For instance, MTN Nigeria’s published guidelines require customers seeking eSIM activation to visit its stores for device eligibility assessment and assistance. Its customer information also indicates that converting an existing physical SIM to eSIM involves a SIM swap process and the provision of the necessary identification documents. Airtel similarly provides activation assistance through its service centres.

This arrangement contrasts with the convenience often associated with eSIM technology, particularly in countries where subscribers can activate or transfer digital SIM profiles through self-service applications.

For Nigerian users, the additional time and inconvenience involved in visiting service centres could reduce the attraction of switching from physical SIM cards, especially when the existing system remains functional.

The country’s telecommunications market also presents a difficult environment for introducing new consumer technology. Although Nigeria has one of Africa’s largest mobile telecommunications markets, the availability of advanced network infrastructure does not automatically translate into widespread adoption of new services.

Data from the Nigerian Communications Commission (NCC) on network generation usage illustrates the gap between technological deployment and consumer adoption. Its industry statistics showed that 5G accounted for just 3.49 per cent of subscribers by October 2025, while 4G represented 51.77 per cent. The figures underline the continued dominance of older and more widely accessible technologies despite the expansion of next-generation networks.

The experience with 5G provides an important indication of the challenges ESDIAC and other players in the digital telecommunications space may encounter. While consumers are attracted to faster internet speeds and improved connectivity, the cost of compatible devices, network availability and purchasing power remain significant considerations.

Similarly, eSIM adoption will depend not only on the availability of the technology but also on whether ordinary subscribers can afford compatible devices and understand the practical benefits of making the switch.

The opportunity, however, remains considerable, particularly within Nigeria’s business community, international travel market and growing digital economy.

For frequent travellers, eSIM eliminates the inconvenience of searching for local SIM cards after arriving in another country. Users can purchase compatible international data plans before travelling and activate them electronically, subject to network coverage and device compatibility.

Businesses could also benefit from digital communication solutions that support international calls, customer engagement and communication with employees across different locations. For exporters, technology companies, international organisations and small businesses dealing with overseas clients, cheaper cross-border communication could help reduce operating costs.

This is where ESDIAC could find an initial market, particularly if it can demonstrate that its international calling rates are competitive, its service is reliable and its application offers genuine savings compared with existing alternatives.

However, the company’s N13-per-minute international calling offer will need to be assessed against call quality, destination coverage, network reliability and the possibility of additional charges. Attractive pricing alone may not guarantee customer loyalty in a market where subscribers are increasingly sensitive to service quality and value for money.

There is also the question of regulatory compliance. Operating in Nigeria’s telecommunications market requires adherence to applicable NCC regulations, particularly where services involve the provision of electronic communications, subscriber identification and connectivity arrangements with licensed network operators.

ESDIAC’s ability to build partnerships, maintain transparent billing procedures and respond promptly to customer complaints will therefore be important to its long-term prospects.

Another issue is competition. Established telecommunications operators already have large subscriber bases, extensive distribution networks and existing relationships with customers. ESDIAC will have to convince consumers that its services offer sufficient advantages to justify adopting another communications platform.

Ultimately, the future of eSIM in Nigeria will depend on more than technological innovation or the entry of new service providers. It will require cheaper compatible smartphones, simpler activation procedures, sustained public education and greater confidence in digital telecommunications services.

For ESDIAC, the launch represents an opportunity to establish itself in a market where international communication costs and the demand for flexible connectivity remain important concerns.

But whether the platform can translate its promises into widespread acceptance will depend on its ability to deliver reliable services, maintain competitive pricing and address the everyday concerns of Nigerian consumers.

The challenge, therefore, is not simply introducing another digital telecommunications application. It is convincing millions of Nigerians that the technology is affordable, accessible, dependable and worth embracing.

Until these conditions are addressed, eSIM may remain more attractive to a relatively small segment of Nigerian consumers, rather than becoming a mainstream alternative to the conventional plastic SIM card.

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