Telecom Operators Return to Heavy Spending with $1B Investment in Network Upgrades

Telecom Operators in Nigeria Pledge $1B to Improve Internet Infrastructure

Nigeria’s telecom industry is gearing up for a major transformation as operators commit over $1 billion in infrastructure investments. According to the Nigerian Communications Commission (NCC), the funds will be used to acquire new equipment from Chinese manufacturers in a bid to significantly upgrade service quality and reach over 165 million subscribers nationwide.

Speaking at a stakeholders' meeting in Lagos, NCC Executive Vice Chairman Aminu Maida confirmed that the capital injection more than doubles last year’s investment figures. “This shows a renewed commitment from operators to address long-standing challenges in the sector,” Maida said.

The investment comes in response to rising data demands, network quality concerns, and pressure to support Nigeria’s expanding digital economy, now valued at over $75 billion.

Tariff Hike Sparks Infrastructure Pledge

This renewed commitment follows the NCC’s recent approval of a 50% telecom tariff increase, aimed at cushioning the impact of escalating operating costs, foreign exchange pressures, inflation, and multiple taxes that have strained the industry over the last decade.

Operators had warned that without a tariff review, service quality would continue to deteriorate—possibly forcing some to reduce coverage in less profitable areas. They promised immediate infrastructure investment once the new pricing structure was approved.

FCCPC Demands Accountability and Better Services

However, with increased tariffs now in place, the Federal Competition and Consumer Protection Commission (FCCPC) has demanded clear improvements in service delivery. It urged providers like MTN, Glo, Airtel, and 9mobile to tackle issues such as network congestion, dropped calls, unstable internet speeds, and unexplained data depletion.

FCCPC also stressed the need for transparency in how increased revenues are spent, calling for infrastructure development to be prioritized so that consumers see direct benefits.

Network Disruptions Continue to Raise Concerns

Earlier this week, MTN Nigeria experienced a major service outage due to simultaneous fibre cuts, prompting a wave of complaints from users. The company has since restored service and issued a public apology via social media.

Government Pushes for Broader Connectivity

Meanwhile, Minister of Communications and Digital Economy, Dr. Bosun Tijani, highlighted the importance of both physical and digital infrastructure—such as towers, fibre optic cables, and data centres—in improving national connectivity. He revealed plans for the government to intervene where private sector investments fall short, particularly in rural and underserved communities.

As part of broader efforts to enhance digital access, Nigeria recently secured a $2 million grant from the U.S. government to help deploy 90,000 km of new fibre optic infrastructure over the next five to six years. Tijani also expressed the government’s ambition to grow annual foreign direct investment in the tech space from $1 billion to $5 billion by 2027.