Joy Agwunobi
Nigeria’s telecommunications industry is doubling down on user experience and digital infrastructure as key drivers of economic growth, with operators and regulators committing over $1 billion in new capital expenditure in 2025.
The move is designed to tackle persistent service quality issues, enhance digital connectivity, and position the country for a tech-powered economic leap.
The fresh investment—exceeding the sector’s total outlay for both 2023 and 2024 combined — is targeted at modernising network infrastructure through the acquisition and deployment of next-generation telecom equipment.
Industry stakeholders say this push will expand coverage, improve service reliability, increase data speeds, and accommodate the rising demand for digital services in both urban and underserved rural areas.
Aminu Maida, executive vice chairman of the Nigerian Communications Commission (NCC), disclosed the development at a recent colloquium themed “The Nigeria Communications Act 2003, 22 Years After: Challenges, Opportunities and Future Directions for a Digital Nigeria.” He described the $1 billion commitment as a decisive step towards building a resilient and future-ready telecoms ecosystem.
“This year’s investment surpasses previous years, and orders for critical equipment have already been placed,” Maida stated, noting that a significant portion of the infrastructure will be manufactured by Original Equipment Manufacturers (OEMs). “This will improve the quality of service, increase capacity, and create new jobs across the telecom value chain.”
Beyond enhancing the user experience, the investment is expected to power the rollout of transformative technologies such as 5G, Artificial Intelligence (AI), and the Internet of Things (IoT), which are seen as central to Nigeria’s transition into a digital economy. These technologies, Maida explained, will require scalable networks with higher capacity to support more users, reduce call drops, and drive innovation across various sectors.
The executive vice chairman also underlined the wider economic impact, stressing that improved telecom services can raise productivity, expand digital inclusion, and grow telecom revenues—an outcome that could boost the sector’s already significant contribution to the country’s GDP, which stood at approximately 14 percent as of Q3 2024.
However, Maida cautioned that the journey to digital transformation is fraught with systemic hurdles. These include high costs of Right of Way (RoW) approvals, erratic power supply, mounting operational expenses, cybersecurity risks, and capital constraints—all of which continue to undermine infrastructure rollout and service reliability, especially in rural communities.
“Progress is not a destination, but a journey.The industry is undergoing a seismic shift driven by AI, quantum computing, 5G, IoT, and blockchain. For Nigeria to remain competitive, our regulatory framework must evolve just as quickly,” Maida said.
In this regard, Maida made a strong case for a comprehensive review of the Nigerian Communications Act (NCA) of 2003, which he described as increasingly outdated and misaligned with current technological realities. While acknowledging the Act’s legacy—such as growing mobile subscriptions from less than 300,000 in 2001 to over 150 million today he noted that Nigeria’s future digital ambitions require a more agile and forward-looking legislative framework.
He commended the National Assembly for opening the dialogue around policy reform, stressing the NCC’s readiness to collaborate with lawmakers, industry players, and international partners to craft a progressive and responsive legal blueprint.
Similarly, Peter Akpatason, chairman of the House of Representatives Committee on Communications, emphasised the need for a regulatory overhaul aimed at fostering innovation, enhancing competition, and boosting investor confidence.
Akpatason advocated for a far-reaching review of existing regulations to address pressing and emerging technological trends. These include the deployment of 5G networks, the regulation of artificial intelligence, and the strengthening of cybersecurity measures. He also stressed the importance of policies aimed at closing the digital divide and ensuring inclusive access to digital services across Nigeria.
“We must consider revising the Act to accommodate emerging issues such as 5G, artificial intelligence, and blockchain, ensuring that our regulatory framework remains flexible and responsive to evolving market dynamics,” he stated.
In addition to regulatory reforms, Akpatason underscored the importance of supporting digital innovation and entrepreneurship. He recommended a mix of strategic initiatives including tax incentives, access to funding, and robust skill development programmes to empower startups and tech-driven enterprises.
According to him, the revised Act should incorporate robust measures to support innovation, including investment in research and development, the establishment of innovation hubs, and partnerships with international organisations.
As Nigeria intensifies efforts to close its digital divide, the $1 billion telecoms investment is expected to not only stimulate growth but also drive down operating costs, improve consumer pricing, and position the industry to capture new revenue streams.
