Mobile operators budget $1.38bn for infrastructure upgrades

Nigerian telecommunications operators are set to invest around N1.86 trillion (approximately $1.38 billion) in 2026 to expand infrastructure, enhance network capacity, and improve service quality across the country. This planned capital expenditure follows a substantial investment of N2.13 trillion ($2.13 billion) in 2025, demonstrating the sector's continued commitment to development.

The Association of Licensed Telecommunications Operators of Nigeria (ALTON) stated that the funds will be directed towards network expansion and technology upgrades, crucial for meeting the rising demand for data services driven by increased digital adoption in banking, commerce, education, and entertainment. The sustained capital deployment is seen as an effort to stabilize network performance and enhance service delivery for millions of mobile and data subscribers.

However, these investment plans occur against a backdrop of persistent consumer complaints regarding service quality. Subscribers have reported issues such as slow internet speeds, network outages, and dropped calls, even after a recent 50% tariff increase intended to support network upgrades. The Nigerian Communications Commission has ordered operators to compensate affected users with airtime credits for service disruptions.

Operators attribute service issues to factors like fibre cuts, vandalism, and power challenges. ALTON also noted a shift in funding patterns, with domestic sources, including reinvested earnings, increasingly driving the investment cycle, rather than foreign capital. Data shows a significant drop in foreign capital inflows into the sector, suggesting that traditional metrics may not fully reflect the scale of current infrastructure investment.