Telecommunication operators are set to invest N1.59 trillion ($1 billion) in network expansion in 2025 as they look to strengthen their capabilities to halt network glitches.
The planned investment is expected to bring much-needed relief to millions of Nigerians who have endured worsening network connectivity in recent times.
Speaking at a colloquium themed, ‘Legislative Agenda: The Nigerian Communications Act 2003’ in Lagos, Aminu Maida, executive vice chairman of the Nigerian Communications Commission (NCC), said the 2025 investment exceeds that of 2024 and is more than double the amount invested in 2023.
In 2024, operators such as MTN and Airtel cut back on network investments amid economic headwinds and efforts to reduce foreign debt. MTN spent N443.48 billion on core network investment for the year, a 1.30 percent year-on-year decline. Airtel Africa, which serves 57.67 million Nigerian subscribers, spent $456 million on capital expenditure (capex) in the nine months ending December 2024, a 7.8 percent y-o-y decline.
The two telcos collectively repaid $1.2 billion in foreign loans, diverting funds away from infrastructure development. This pullback, coupled with declining real revenues, limited network expansion and contributed to the deteriorating service quality across the country.
However, Maida indicated that the tide may be turning, with telcos ramping up network investments to keep pace with rising data demand. Nigeria’s monthly internet usage soared by 93.35 percent to an all-time high of 1,000,930.6 terabytes (TB) in January 2025 from 517,670.15 TB in January 2023.
Average data consumption per MTN subscriber rose to 12.8GB in Q1 2025, while Airtel’s stood at 8.4GB per user per month in December 2024.
To support this growth, telecom companies are increasing their capex spending. The renewed push also follows the NCC’s approval of a 50 percent increase in calls, data, and SMS tariffs after a decade-long push by telecom operators for price adjustments because of harsh economic conditions.
According to Maida, orders have already been placed for equipment. He emphasised that this would have a positive effect on telecom services in the country when it fully rolls out.
The NCC had earlier emphasised that tariff increases were tied to a strict mandate for improved service delivery and set deadlines for compliance.
Already, MTN, Nigeria’s largest operator with 84.1 million subscribers, ramped up core capex spend by 159 percent to N202.4 billion y-o-y in the first quarter (Q1) following its return to profitability.
“During the quarter, we received regulatory approval for price adjustments, a critical enabler to sustain ongoing investment in the industry and maintain the quality of service for our customers. This has empowered us to accelerate network investments with N202.4 billion in capex (up 159 percent), focused on boosting capacity and improving user experience,” said Karl Toriola, MTN Nigeria’s chief executive officer.
Tony Emoekpere, president of the Association of Telecommunications Companies of Nigeria (ATCON), confirmed that the sector is recording renewed investments. “Investments are beginning to pick up. However, upgrading infrastructure takes time, especially when the equipment needed is being imported.”
A senior telecom executive confirmed that her firm has ordered the latest equipment to enhance its network.
“Some of the pieces of equipment have already arrived in the country. While quality will improve in some areas soon, achieving nationwide improvement will take time,” she said.
Beyond increasing investments, operators are also exploring alternatives like infrastructure-sharing agreements to reduce network costs and expand coverage. In March, MTN Group and Airtel Africa signed an infrastructure-sharing arrangement in Nigeria and Uganda.
However, many subscribers believe that operators are not doing enough. They believe that the current service quality does not justify recent tariff increases.
“Nigerians are complaining because the poor services have persisted despite the tariff hike,” said Adeolu Ogunbanjo, president of the National Association of Telecommunications Subscribers (NATCOMS).
Ogunbanjo noted that NATCOMS has issued an ultimatum to service providers to improve network performance or face potential legal and regulatory consequences (BusinessDay)
