By 
By Osasome, C.O
Telcos Ramp Up Infrastructure Spending Amid Rising Data Demand
Nigeria’s telecommunications operators significantly ramped up capital expenditure in 2025, investing an estimated ₦2.5 trillion in network infrastructure and upgrades, even as subscribers continued to raise concerns about service quality.
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The investments underscore the sector’s long-term commitment to meeting surging data demand and strengthening Nigeria’s digital economy despite mounting operational challenges.
A breakdown of the spending shows that Mobile Network Operators (MNOs) accounted for over ₦2.13 trillion, while tower companies invested an additional ₦373.8 billion across the sector.
Over 2,800 Sites Deployed to Boost Capacity and Coverage
According to the Nigerian Communications Commission (NCC), the 2025 investments supported the deployment and upgrade of between 2,800 and 2,850 telecommunications sites nationwide, helping to close coverage gaps and expand 4G capacity in high-demand locations.
The regulator noted that these upgrades are critical as data traffic has grown by more than 140% since early 2023, with monthly data consumption exceeding 1.23 million terabytes by November 2025.
NCC Acknowledges Consumer Frustration Over Service Quality
While welcoming the scale of investment, the NCC acknowledged persistent public dissatisfaction with telecom services. Subscribers across the country continue to experience dropped calls, slow internet speeds, congestion, and intermittent data disruptions.
“The Commission recognises the frustration experienced by consumers when calls drop, internet speeds slow down, data services become unstable, or service disruptions affect daily activities,” the NCC said in a statement signed by its Head of Public Affairs, Nnenna Ukoha.
The regulator reiterated that telecommunications services are now central to how Nigerians work, learn, do business, access essential services, and stay connected—making reliable service and value for money non-negotiable.
Why Telcos Keep Investing Despite High Costs
Industry analysts say sustained investment reflects Nigeria’s strategic importance as Africa’s largest telecom market. Several factors continue to drive spending:
- Explosive Data Growth: Revenue growth is increasingly data-led, pushing operators to expand 4G capacity and accelerate 5G rollout.
- Infrastructure Modernisation: Aging equipment and congestion are forcing telcos to upgrade legacy infrastructure and build new sites.
- Market Potential: With over 220 million active phone lines and millions still unconnected, Nigeria offers strong long-term growth prospects, particularly in underserved rural areas.
- Regulatory Vision: NCC-led broadband targets and recent tariff adjustments have improved revenue outlooks for infrastructure investment.
- Digital and Fintech Expansion: Telcos are leveraging network assets to expand into fintech and digital services, strengthening their contribution to GDP.
2026 Outlook: 12,000 Additional Site Upgrades Planned
The NCC disclosed that the network expansion drive has continued into 2026, with operators committing to more than 12,000 site additions and upgrades within the year. These include faster 4G and 5G layers, expanded fibre backhaul, deployments in high-traffic urban centres, rollouts into underserved communities, and replacement of aging network equipment.
However, the Commission stressed that investment must translate into visible and measurable improvements in consumer experience, especially in areas still plagued by congestion and slow data speeds.
Infrastructure Vandalism Remains a Major Setback
The regulator attributed ongoing service challenges largely to external infrastructure risks. In 2025 alone, over 27,000 avoidable fibre cuts—mostly linked to road construction and vandalism—were recorded nationwide, directly impacting service availability and network performance.
To address this, the NCC said it is working closely with the Office of the National Security Adviser and other stakeholders to implement the Presidential Order on Critical National Information Infrastructure.
The collaboration has already disrupted organised syndicates involved in telecom equipment theft, while engagement with federal and state ministries aims to reduce fibre damage during road construction.
Balancing Investment with Consumer Expectations
Despite the scale of capital injection, the NCC admitted that the pace and consistency of service quality improvement must accelerate. Enforcement of updated Quality of Service regulations remains ongoing, with the regulator insisting that renewed investment and regulatory reforms should now deliver tangible benefits to consumers.
