Joy Agwunobi
Nigeria’s telecommunications sector is poised for a transformative leap as telecom operators have collectively committed over $1 billion to upgrade their network infrastructure—a move that signals the industry’s most significant capital injection in years.
The major investment is expected to commence in July with the delivery of critical equipment from leading global Original Equipment Manufacturers (OEMs).
Bosun Tijani, the minister of communications, innovation and digital economy, made the disclosure during a recent televised interview, highlighting the unprecedented scale of the procurement initiative.
“This is the first time in a long while that our telecom companies are placing network equipment orders of this magnitude. We have verifiable data—over $1 billion in confirmed orders—and we are tracking them directly through the OEMs,” he stated.
The large-scale infrastructure investment comes in the wake of a government-approved 50 percent tariff hike implemented in February—the first telecom tariff adjustment in over a decade. While the decision sparked mixed reactions among consumers, it was intended to strike a balance between affordability and long-term industry sustainability amid rising operational costs.
According to Tijani, the tariff revision has allowed telecom firms to create financial headroom to reinvest in critical infrastructure long overdue for upgrades. Operating expenses in the sector have ballooned by more than 300 percent over the last ten years, driven by inflation, forex volatility, and logistics challenges.
“This investment is not merely a commercial endeavour,” Tijani emphasised. “It’s about delivering quality, reliable, and fast internet and mobile services to Nigerians. We expect users to begin noticing measurable improvements in network performance as early as the third quarter of this year.”
The new infrastructure rollout is designed to bolster both 4G and 5G networks, addressing persistent issues such as dropped calls, sluggish internet speeds, and poor rural connectivity. Industry stakeholders believe the upgrades could mark a turning point in Nigeria’s digital journey, ushering in broader economic opportunities and deeper digital inclusion.
Tijani stressed the significance of rural broadband as not just a connectivity goal, but as an economic and national security imperative. “Rural coverage is more than a service gap—it’s a priority for inclusive growth and national stability,” he said, adding that the current administration has made it unequivocally clear that no Nigerian should be left behind in the digital age, irrespective of geography.
While telecom operators are leading the drive in commercially viable urban and peri-urban markets, Tijani acknowledged the critical role of government in reaching underserved and economically unattractive areas. “Private capital has limits. That’s where the government must intervene,” he stated. “Rural broadband expansion is not charity—it’s a strategic investment in national cohesion and inclusive development.”
The Minister’s remarks reinforce an earlier revelation by Aminu Maida,the executive vice chairman of the Nigerian Communications Commission (NCC), who had disclosed during a colloquium in Lagos that Nigerian telecom operators had placed over $1 billion in network upgrade orders with Chinese suppliers.
Maida noted that the sector was responding to a shift in consumer behavior, with a growing number of users opting for data-driven communication platforms like WhatsApp over traditional voice calls.
“This behavioural change is exerting pressure on existing broadband infrastructure,” Maida explained. “As more Nigerians communicate via internet-based platforms, the strain on data networks intensifies, compelling operators to expand and modernise their systems.”
With internet usage now surpassing traditional voice services, the new infrastructure is expected to significantly reduce network congestion, enhance user experience, and deepen broadband penetration, particularly in high-demand urban zones and underserved rural regions.
As Nigeria’s digital landscape continues to evolve, the combined efforts of the private sector and government may finally lay the foundation for a more inclusive, robust, and future-ready telecommunications ecosystem.
