Photo caption: Telcos
Telecom operators have ordered over $1bn in network infrastructure from original equipment manufacturers in China to overhaul and upgrade the quality of service, the Nigerian Communications Commission said on Tuesday.
While the telecom equipment has yet to arrive, be cleared, or be deployed in-country, the move signals a return to capital investment in the sector after a prolonged period of financial strain.
The telcos, who serve more than 160 million subscribers nationwide, are increasing their investment to meet the demands of consumers, the Executive Vice Chairman of the NCC, Aminu Maida, told industry leaders in Lagos, who converged to update the Nigerian Communications Act 2023 to align with current technological trends.
“Our operators have committed to investing over a billion dollars in telecom infrastructure this year. This is more than double the investment from last year. But this equipment needs to be manufactured. We went to China, and the original manufacturers have confirmed the orders,” the EVC said.
As the sector, valued at over $75bn, prepares for its next phase of growth, the regulator emphasised that robust infrastructure will be crucial to meeting rising data demand and supporting emerging digital services across the economy.
This development comes months after the NCC approved a 50 per cent tariff increase, the first in 11 years, aimed at alleviating the sector from soaring operating costs, which operators say have risen by more than 300 per cent over the last decade.
Until the approval earlier this year, telecom companies had repeatedly warned that stagnant tariffs, multiple taxation, and forex pressures were crippling their ability to invest, leading to declining service quality and stunted network expansion. The capital expenditure drought had become a major concern for Nigeria’s fast-growing digital economy.
Following the tariff adjustment, operators assured that they would invest in network infrastructure within three months of its implementation to satisfy the disgruntled customers who complain of drop calls and poor services.
The Chief Corporate Services Officer at MTN Nigeria, Tobe Okigbo, underscored the industry’s renewed focus on improving customer experience.
He noted that telecom operators lose money with every dropped call and emphasised their commitment to enhancing service quality.
“We’re committed to improving the quality of service. Every time a call drops, we lose money. This is a critical issue, and we are focused on addressing it,” Okigbo said during a panel session.
