Nigeria’s telecom giants are investing $1 billion to modernize outdated network infrastructure, aiming to enhance connectivity and stimulate economic growth in a market serving 160 million subscribers.
This includes MTN Nigeria’s N202.4 billion first-quarter 2025 capital expenditure, part of a significant push to close coverage gaps and meet surging data needs.
The Nigerian Communications Commission reports that operators have ordered $1 billion in equipment from Chinese suppliers, doubling last year’s investment, though delivery and deployment are pending.
This was after a 50% tariff increase, the first in 11 years, to counter rising costs, with effects expected in Q2 2025. Despite inflation exceeding 20% and naira fluctuations, the investment signals optimism in Nigeria’s digital growth, though delays could hinder progress. Industry leaders predict a more connected economy for success.
Obinna Adumike of Africa Open Access Data Centres called the overhaul a pivotal shift, emphasizing 4G and 5G upgrades, particularly in rural 2G-reliant areas, to foster inclusive growth.
The telecom sector, contributing 14.4% to GDP in Q4 2024, is targeted to reach 25% through infrastructure, reforms, and digital inclusion. Adumike highlighted that robust networks boost productivity and local economies.
MTN’s Q1 2025 spending surged 159% year-on-year, aligning with its “Ambition 2025” plan for digital and financial inclusion. Airtel Nigeria’s parent, Airtel Africa, reported $456 million in capital expenditure for the nine months ending December 2024.
Ejikeme Onyeaso of Adaba Consult praised the investment as a strategic follow-through on tariff hike commitments, promising better call quality and value for subscribers.
He urged regulators to ensure accountability and support sustained investment, noting telecom’s role in GDP growth, job creation, and quality of life.
However, challenges persist. Mohammed Ahmed from the National Information Technology Development Agency pointed to vulnerabilities in fibre-optic networks, especially in conflict zones, advocating for satellite technology to provide reliable coverage in hard-to-reach areas.
The NCC stressed that upgraded infrastructure is vital for meeting data demands and expanding Nigeria’s digital economy.
WHAT YOU SHOULD KNOW
Nigeria’s telecom operators’ $1 billion investment marks a pivotal moment for the country’s digital transformation.
By addressing infrastructure gaps, upgrading to 4G/5G, and prioritizing digital inclusion, the initiative can boost GDP, create jobs, and enhance quality of life for millions.
Integration of alternative technologies like satellite services and a supportive regulatory environment will be critical to maximizing the investment’s impact. If successful, this push could position Nigeria as a leader in Africa’s digital economy, delivering tangible benefits to subscribers and businesses.
ALSO READ TOP STORIES FROM VERILY NEWS
