By 
Nigeria’s telecommunications sector is witnessing a major resurgence as the Nigerian Communications Commission (NCC) confirmed that its return to a market-led pricing regime has already attracted more than $1 billion in new infrastructure investments in the first half of 2025.
The disclosure was made by Dr. Aminu Maida, Executive Vice Chairman of the NCC, during an interactive session with journalists in Lagos on Friday. Maida described the development as a turning point for an industry that had long been constrained by outdated pricing models and chronic underinvestment.
Pricing Reform Unlocks Capital
According to Maida, the new framework — implemented between January and February 2025 — allows mobile network operators (MNOs) to adjust tariffs by up to 50%, ending nearly a decade of price stagnation.
“This act alone has unlocked fresh investments. While figures are still being verified, we are already tracking over a billion dollars of capital inflows this year,” Maida said, adding that more detailed disclosures will follow.
He noted that the previous pricing structure had created distortions across the telecom value chain. While tower companies could adjust rates annually to reflect inflation and forex fluctuations, MNOs were locked into fixed tariffs, squeezing revenues and discouraging long-term capital expenditure.
“This is an industry that thrives on continuous investment. Without the right conditions, we risk falling behind global benchmarks,” he warned.
Policy Aligned with National Framework
Maida explained that the pricing reform aligns with the 2000 National Telecom Policy and the 2003 Nigerian Communications Act, which emphasize market-driven pricing mechanisms while safeguarding competition and consumer interests.
He revealed that since June, telecom operators have begun taking delivery of new equipment tied to expansion projects. Network buildouts and service upgrades are already underway nationwide.
“We hold weekly calls with operators to monitor site rollouts, equipment installation, and to address bottlenecks — particularly those involving local authorities,” he added.
The NCC expects the ongoing infrastructure upgrades to significantly expand network capacity, improve service quality, and strengthen Nigeria’s position in the global telecom ecosystem.
Challenges in the Operating Environment
Despite the investment boost, Maida acknowledged persistent cost pressures for operators, particularly around energy and foreign exchange.
“The sector consumes over 40 million litres of diesel monthly — largely imported — just to power base stations,” he noted. “On top of that, virtually all network components and software are imported, as Nigeria currently lacks a local manufacturing base.”
He stressed the need for a more self-reliant telecom ecosystem, warning that the absence of local production continues to heighten vulnerabilities in the sector.
Infrastructure Protection Strategy
Addressing security concerns, Maida disclosed that the NCC is collaborating with the Office of the National Security Adviser (ONSA) to develop tailored protection strategies for telecom installations.
The measures, he said, go beyond enforcement and consider root causes such as poor physical security, rampant generator theft, and unresolved community disputes. Solutions include a mix of community engagement, civil defence partnerships, and rapid response mechanisms tailored to specific regions.
Outlook
As Nigeria transitions into a market-driven telecom era, the NCC’s reforms are unlocking the long-awaited investments necessary to modernize the sector. However, stakeholders agree that addressing infrastructure security, high operating costs, and forex dependency will be critical to sustaining investor confidence and ensuring the long-term resilience of the industry.
Comments