NCC Policy Shift Restores Investor Confidence
The Nigerian Communications Commission (NCC) has announced that its adoption of market-driven pricing in the telecom sector has attracted over $1 billion in new investments in 2025.
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Speaking during a media interactive forum in Lagos, the Executive Vice-Chairman of the NCC, Dr. Aminu Maida, said the policy shift, introduced in January and February 2025, allowed mobile network operators to adjust tariffs by up to 50% after nearly a decade of stagnant pricing.
He explained that the move sent a clear signal to investors that Nigeria’s telecom sector is open for business with a more conducive regulatory environment.
Investment to Boost Network Expansion and Service Quality
According to Dr. Maida, the $1 billion inflow is already translating into equipment imports, network expansion, and upgrades nationwide. The investment is expected to:
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Expand network coverage, especially in rural communities.
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Improve quality of service (QoS) and reduce dropped calls.
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Help operators meet rising data demand.
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Strengthen Nigeria’s competitiveness in the global digital economy.
He clarified that while operators had promised to improve service quality within three months of the tariff review, the full impact would take at least nine months to materialize due to the scale of network upgrades.
Industry Challenges: Diesel, FX, and Infrastructure Security
Despite the gains, Dr. Maida highlighted persistent challenges in the sector:
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High operational costs: Telecom operators consume over 40 million litres of diesel monthly, creating a huge energy burden. The NCC is advocating for alternative energy sources like solar to reduce costs.
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Dependence on foreign exchange: The industry relies heavily on imported network hardware and software, making it vulnerable to forex volatility. Building local manufacturing capacity remains a long-term priority.
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Security threats: The NCC is working with the Office of the National Security Adviser (ONSA) to establish rapid response frameworks tailored to regional security realities. This will curb vandalism, theft, and sabotage of telecom infrastructure.
A New Era for Nigeria’s Telecom Sector
Dr. Maida reaffirmed that the NCC will continue to engage with industry stakeholders to ensure the telecom sector remains resilient, sustainable, and investor-friendly.
“The adoption of market-driven pricing has restored confidence, attracted new investments, and positioned Nigeria’s telecom sector for growth,” he said.