The Nigerian Communications Commission (NCC) has confirmed that recent policy reforms in the telecom industry have unlocked over $1 billion in fresh investments in 2025, boosting network expansion and improving service quality nationwide.
Restoring Investor Confidence Through Pricing Reform
Executive Vice Chairman of NCC, Dr. Aminu Maida, explained that the new pricing regime has restored confidence in the sector after years of under-investment.
Previously, tower companies could adjust rates annually for inflation and foreign exchange, while mobile network operators (MNOs) were stuck with outdated tariffs. This imbalance discouraged investment and slowed infrastructure growth.
“This act alone has allowed investments to flow in. We are talking about over a billion dollars’ worth of investment in 2025 alone,” Maida said.
He added that the move aligns with Nigeria’s 2000 Telecom Policy and the 2003 Communications Act, which emphasise market-driven pricing, competition, and consumer protection.
New Equipment and Network Expansion Already Underway
According to Maida, the impact of the reforms is already visible. Telecom equipment shipments have been arriving since June 2025, with operators rolling out upgrades and building new sites nationwide.
The NCC holds weekly monitoring calls with operators to ensure smooth implementation and to resolve challenges with regulatory authorities.
“We are closely tracking the rollout… site builds, upgrades, and expansions are ongoing nationwide,” Maida confirmed.
These investments are expected to significantly boost capacity, reduce congestion, and improve service quality, keeping Nigeria competitive in the global telecom landscape.
Rising Operational Costs Remain a Challenge
Despite the positive investment outlook, operators continue to face steep operational cost pressures:
- The sector consumes over 40 million litres of diesel monthly, most of which is imported, to power thousands of base stations.
- Heavy reliance on foreign exchange (FX) for hardware and software imports drives up costs, as Nigeria lacks local manufacturing for critical telecom equipment.
“There is nothing you need to build or upgrade a network today in Nigeria that you can buy locally,” Maida lamented.
NCC Prioritises Security of Telecom Infrastructure
To safeguard these massive investments, the NCC is working with the Office of the National Security Adviser (ONSA) to design region-specific rapid response frameworks for telecom infrastructure protection.
The strategy addresses both security enforcement and root causes of site vulnerabilities, such as generator theft, poor security, and community disputes.
- Coastal regions will require more community engagement.
- High-risk areas will see stronger civil defence and military presence.
Maida emphasised that protecting telecom assets is crucial to ensuring uninterrupted connectivity and investor confidence.
Outlook for Nigeria’s Telecom Sector
With over $1 billion in new investments, ongoing network expansion, and enhanced security measures, Nigeria’s telecom sector is positioning itself for faster growth, better service quality, and global competitiveness.
However, resolving cost challenges tied to diesel dependency and FX reliance remains vital to sustaining progress in the industry.
