NCC demands fresh capital from telcos for network upgrade

The Nigerian Communications Commission (NCC) is intensifying its regulatory pressure on mobile network operators, demanding fresh capital injections to bolster their infrastructure. This move comes as the industry grapples with unprecedented data demand and persistent gaps in service quality, despite ongoing multi-billion-dollar investment cycles. The NCC's directive reflects a growing concern that current infrastructure spending, while yielding some improvements, is insufficient to meet the needs of Africa's largest mobile market.

“

Operators need to continue to bring fresh capital into the network. The improvements we are seeing are real, but they are not yet sufficient to match the scale of demand growth.

Aminu Maida, the NCC's Executive Vice Chairman, explicitly stated that operators must go beyond their existing capital expenditure plans and commit new funds to expand network capacity, particularly in densely populated urban areas. "Operators need to continue to bring fresh capital into the network," Maida urged, emphasizing that the observed improvements are not yet commensurate with the scale of demand growth. This signals a shift in the NCC's approach, moving from passive monitoring of quality-of-service metrics to actively influencing capital allocation within the sector.

“

For 2025 as a whole, the country’s biggest operator, MTN Nigeria, disclosed roughly N1tn in network-related capital expenditure, more than double the prior year.

Nigeria's dominant telecom players, MTN Nigeria, Airtel Nigeria, and Globacom, are currently engaged in significant infrastructure build-outs. MTN Nigeria, for instance, has disclosed plans for approximately N1 trillion in network-related capital expenditure for 2025, more than doubling its previous year's investment. This spending is geared towards enhancing 4G capacity, densifying urban networks, strengthening fiber backhaul, and upgrading core infrastructure to support escalating data consumption. Airtel Nigeria, after a period of reduced capital expenditure, is also ramping up investment, with plans to more than double its spending in Nigeria to over N500 billion in 2025, focusing on 5G rollout, 4G expansion, and rural site deployment.

“

The operator has separately outlined plans to more than double investment in Nigeria to over N500bn in 2025, targeting 5G rollout, 4G expansion, fibre backhaul, and rural site deployment.

Globacom, while not providing detailed financial breakdowns, is also understood to be investing significantly through network expansion and backbone infrastructure upgrades. Its investments, including the Glo-1 submarine cable and a substantial tower portfolio, indicate a continued commitment to enhancing network capabilities. The NCC's push for additional capital underscores the critical need for continuous investment to ensure the telecommunications sector can effectively support Nigeria's digital economy and growing user demands.

“

The operator is also believed to maintain one of the largest tower portfolios in the market, with ongoing incremental expansion and upgrades indicating continued network investment.