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HomeNewsTelecom Sector Attracts $1bn Investment Boost After Tariff Review – NCC

Telecom Sector Attracts $1bn Investment Boost After Tariff Review – NCC

Nigeria’s telecommunications sector has secured over $1 billion in new infrastructure investments in 2025, following a policy shift that returned pricing to market-driven principles, the Nigerian Communications Commission (NCC) has revealed.

Speaking during an interactive session with journalists in Lagos on Friday, NCC Executive Vice-Chairman, Aminu Maida, said the decision, implemented in January and February 2025, allowed mobile network operators to adjust tariffs by up to 50% after nearly a decade of stagnant pricing.

“This single reform has unlocked significant investment flows. We will release detailed figures in the coming weeks after verification, but we are already talking about over a billion dollars in 2025 alone,” Maida disclosed.

He said the new approach had revived investor confidence, reversing years of underinvestment that had slowed network expansion and hindered improvements in service quality.

Ending the Investment Imbalance

Maida noted that previous regulations created an imbalance in the telecom value chain — with tower companies allowed to adjust fees annually for inflation and exchange rates, while mobile operators could not. This, he said, discouraged critical investments.

“The telecom industry demands continuous investment. The world is advancing rapidly, and if we fail to create the right environment, Nigeria risks being left behind,” he warned.

The NCC chief explained that the commission’s policy return to the principles of the 2000 Telecom Policy and the 2003 Communications Act was designed to allow market forces to set fair prices, while preserving healthy competition to protect consumers.

Rollout Already Underway

Maida confirmed that some of the newly ordered equipment began arriving in Nigeria in June, with network expansion and upgrade projects already in progress.

“We are closely monitoring the rollout through weekly calls with operators to track site builds, upgrades, and address challenges with relevant authorities,” he said.

The investments, he added, will help resolve capacity constraints, improve service quality, and keep Nigeria competitive in the global telecom landscape.

Challenges Facing Operators

Maida highlighted persistent operational cost pressures, including the consumption of over 40 million litres of diesel monthly to power base stations — most of it imported. He also pointed to the industry’s reliance on foreign exchange for all network hardware and software, as no major telecom equipment is manufactured locally.

“Nothing you need to build or upgrade a network today in Nigeria can be sourced locally. Everything — hardware to software — must be imported, requiring FX,” he noted.

Protecting Infrastructure

On safeguarding telecom infrastructure, Maida said the NCC was collaborating with the Office of the National Security Adviser to design rapid-response frameworks tailored to regional security challenges.

He stressed that protection strategies go beyond force, addressing underlying issues such as inadequate site security, generator theft, and community disputes that make infrastructure vulnerable.

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