Telecoms Operators to Invest $1.38bn in Network Upgrade, Despite Operational Challenges

Emma Okonji

The Telecom Sector has recorded tremendous growth from an initial investment of $500 million in 2001 when the sector was fully liberalised to over $75.6 billion as at 2025, with a planned investment of over $1.38 billion in network capacity upgrades in 2026 that will enhance resilience, boost coverage and improve quality of service for subscribers.

This was revealed by a NEC member, and Coordinator, Telephone Operators from the Association of Telecoms Companies of Nigeria (ATCON), Mr. Chidi Ibisi, during a stakeholders’ forum organised by NCC in Lagos.

According to him, the planned investment for network upgrades is in line with the recent 50 per cent tariff hike in telecoms, which he explained, helped the operators to raise revenue for further investments across networks.

He however said operators decided to make such huge investments in order to protect the gains recorded in the telecoms sector in the past, despite the current operational challenges faced by the telecoms operators.

He listed some of the challenges to include: High Interest Rates of over 33 per cent; High Foreign Exchange Rates; High Rate of Inflation; High Cost of imported network equipment; High cost of diesel, transportation and Local inputs and services; High Cost of repair of damaged fiber optic cables due to road construction and vandalism; Cost of replacement of stolen generators, batteries and other vital Base Station equipment at tower sites; High cost of Right of Way (RoW) and multiple taxation imposed on telecoms operators by agencies of government across several states.

“The listed challenges significantly impact the capital and operating expenses of our members and their ability to maintain the high levels of investment required in the telecoms sector to drive the new digital economy,” Ibisi said.

He advised governments across all levels to support the growth of telecoms operators in their states, in order to attract more investments from the operators in the states where they have strong presence. 

He also listed some measures, which government and the telecoms industry regulator must take in order to support telecoms growth and investments in the country.

According to him, “To ensure the sustainability of the telecom sector, which underpins every sector of the economy and propel the economy to a $1trillion by 2030, we need cost reflective Mobile Termination Rates (MTR). To ensure the participation and sustainability of new entrants and smaller telecom operators with less than 10 per cent market share, we respectfully recommend the retention of the current structure of Asymmetric Mobile Termination Rates.”

Listing some of the achievements in the telecoms sector, Ibisi said as of March 2026 Nigeria had over 185.7 million mobile subscribers, 153.15 million internet subscribers, with internet data usage of over 1,422,764.54 Terabytes of data, a Teledensity of 85.67 per cent with 8.12 per cent contribution to GDP in Q4, 2025.  

Also speaking at the forum, the Chairman, Association of Licensed Telecoms Operators of Nigeria (ALTON), Gbenga Adebayo, said the planned investments would be directed towards network expansion, new technology, cybersecurity enhancements, energy infrastructure, rural communities, and other initiatives in regard to supporting the sector growth.

He commended NCC for its approval of the 50 per cent hike in telecoms tariff, adding that such hike has created room for investments in the telecoms sector.