Nigerian Telecoms Operators to Invest $1.38 Billion in Network Upgrades Despite Challenges

Nigerian telecoms operators are set to invest over $1.38 billion in network capacity upgrades in 2026, a move designed to bolster resilience, expand coverage, and elevate service quality for subscribers. This planned investment follows a recent 50% tariff increase, which operators say has helped generate revenue for network enhancements.

Mr. Chidi Ibisi, a NEC member and Coordinator for Telephone Operators at the Association of Telecoms Companies of Nigeria (ATCON), revealed these plans at a forum organized by the Nigerian Communications Commission (NCC). He emphasized that the substantial investment is crucial for safeguarding the sector's past gains amidst significant operational hurdles.

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The listed challenges significantly impact the capital and operating expenses of our members and their ability to maintain the high levels of investment required in the telecoms sector to drive the new digital economy.

Operators are grappling with a multitude of challenges. These include steep interest rates exceeding 33%, volatile foreign exchange rates, high inflation, and the escalating cost of imported network equipment. Additionally, the price of diesel, transportation, and local services, coupled with the expense of repairing damaged fiber optic cables and replacing stolen base station equipment, significantly inflate operating costs.

"The listed challenges significantly impact the capital and operating expenses of our members and their ability to maintain the high levels of investment required in the telecoms sector to drive the new digital economy," Ibisi stated. He urged governments at all levels to support telecoms operators to attract further investment. Ibisi also called for cost-reflective Mobile Termination Rates (MTR) and the retention of asymmetric MTRs to ensure the sustainability of new entrants and smaller operators.

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To ensure the sustainability of the telecom sector, which underpins every sector of the economy and propel the economy to a $1trillion by 2030, we need cost reflective Mobile Termination Rates (MTR).