Telecoms operators invest over $1bn in Nigeria after NCC approved a 50% tariff hike in 2025, restoring market balance and infrastructure growth

Nigeria’s telecommunications industry has recorded over $1 billion in new infrastructure investment following the Nigerian Communications Commission (NCC)’s approval of a 50% tariff increase in January 2025.

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The development has triggered a surge in network upgrades, equipment imports, and tower construction by leading operators including MTN, Airtel, and Globacom, according to NCC Executive Vice Chairman, Aminu Maida.

“The simple act of endorsing the increase has facilitated investment,” Maida told journalists.

“This year, we are seeing investment of over one billion dollars in essential infrastructure. This did not occur in 2022, 2023, or 2024.”

Maida emphasized that cost-reflective pricing was critical to reviving investment and meeting Nigeria’s skyrocketing demand for data and mobile services.

For over a decade, operators were bound by fixed tariffs, even as infrastructure partners—such as tower and fibre providers—adjusted fees annually to reflect inflation and currency volatility.

“Operators found themselves constrained by fixed tariffs, whereas other stakeholders in the value chain adapted their contracts on an annual basis,” he said.

“The increase in tariffs has restored balance and released the capital the industry requires.”

How Major Operators Are Responding

MTN Nigeria

N565.7 billion ($377.1 million) invested in H1 2025
288.4% YoY increase in capital expenditure
Focus: 4G expansion, fibre rollout, new Tier 3 data centre

Airtel Nigeria

$39 million invested in Q2 2025 for network upgrades
Announced $120 million hyperscale data centre in Lagos (38MW), set for 2026 launch

Maida also revealed that previously dormant local operators have resumed network upgrades for the first time in three years, signalling broader recovery across the sector.

While the investment outlook is promising, Maida cautioned that network improvements won’t happen overnight.

Operators still face delays due to complex logistics around importing foreign equipment, installation, and diesel-powered energy costs.

“Unlocking capital is only the first step. Turning that investment into better service requires time, careful planning, and execution,” Maida said.

The tariff adjustment is seen as a shift back to market-oriented regulation, essential for attracting foreign capital and building long-term capacity in Nigeria’s ICT infrastructure.

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“For service to improve, investment must take place. For investment to occur, operators must have a fair opportunity to recover their costs,” Maida concluded.

Source: Read more at freelanews.com