According to data published by the National Bureau of Statistics (NBS) and corroborated by the Nigerian Communications Commission (NCC) Industry Statistics, the sector posted 8.12% of real GDP in Q4 2025, representing a year-on-year (YoY) increase from the comparable figure of 7.29% recorded under the rebased GDP framework in Q4 2024.

This amounts to a YoY percentage-point increase of approximately 0.83 percentage points, translating to a percentage increase of roughly 11.4%.

On a full-year basis, the telecom sector contributed 8.3% to Nigeria’s real GDP in 2025 compared to 8.1% in 2024, while in absolute nominal terms, the sector’s GDP contribution surged from N17.2 trillion in 2024 to N18.5 trillion in 2025, a nominal increase of N1.3 trillion.

The sector’s real growth rate in Q4 2025 stood at an impressive 26.34% year-on-year, an acceleration of 8.37 percentage points over the 17.97% recorded in Q4 2024.

These figures underscore the centrality of telecommunications to Nigeria’s economic architecture, positioning the sector as the fourth-largest contributor to real GDP, trailing only crop production, trade, and real estate.

This report analyses the data in full, examines the drivers behind the performance, and explores the broader economic implications for Nigeria’s digital economy.

Key Statistics at a Glance

NOTICE: Nigeria’s NBS rebased its GDP in 2025, adopting a new base year and incorporating additional sectors and activities. Under the pre-rebasing framework (used up to 2024 reporting), telecoms contributed 14.40% to GDP in Q4 2024. Under the new rebased framework, the same Q4 2024 figure is expressed as approximately 7.29% (Telecoms & Information Services sub-sector). For consistency, this report uses post-rebasing figures (8.12% vs 7.29%) for the primary YoY comparison. Where pre-rebasing figures are cited, they are clearly labelled. Both datasets confirm the same directional truth: the sector grew.

The Data: Quarterly GDP Performance

Q4 2025 – Telecom GDP Contribution

In Q4 2025, Nigeria’s telecommunications and information services sub-sector contributed 8.12% to the nation’s real GDP, according to the NBS Q4 2025 GDP Report released on 27 February 2026. This places telecommunications as the fourth-largest contributor to Nigeria’s real GDP during the quarter, behind crop production (20.44%), trade (16.84%), and real estate (14.57%).

The sector’s Q4 2025 real GDP growth rate stood at 26.34% year-on-year, which was 8.37 percentage points above the 17.97% recorded in Q4 2024.

Quarter-on-quarter, it was 5.46 percentage points above the preceding quarter (Q3 2025), reflecting a strong acceleration into the year-end. Nigeria’s nominal GDP for Q4 2025 rose to N122.81 trillion, up 17.55% year-on-year from N104.48 trillion in Q4 2024.

Q4 2024 – Baseline Period

In Q4 2024, the telecom sub-sector contributed 14.40% to real GDP under the pre-rebasing framework (the figure widely cited by NCC and NBS at the time), or 7.29% under the post-rebased comparable measure.

The sector’s growth rate was 17.97% in Q4 2024, already signalling strong momentum, while the broader ICT sector contributed 17.00% (pre-rebasing) to real GDP.

Nigeria’s real GDP grew 3.84% in Q4 2024, driven primarily by the services sector. Telecommunications ranked as the third-largest contributor to real GDP in that quarter, behind crop production (23.42%) and trade (15.11%).

Year-on-Year Comparison Table

Drivers of Q4 2025 Growth

| Infrastructure Investment Boom

A defining feature of 2025 was the unprecedented scale of infrastructure spending by Nigeria’s telecom operators.

The NCC disclosed that operators collectively added approximately 2,800 new towers during the year and committed more than $1 billion to fibre-optic rollout and network upgrades across the country.

MTN Nigeria more than doubled its capital expenditure to N1 trillion in 2025, compared to N443.5 billion in 2024, accelerating modernisation of its radio and core networks, and launching its Tier III Dabengwa Data Centre in Lagos.

Airtel Nigeria secured a Direct-to-Cell partnership with Starlink and more than doubled the number of active 5G sites.

It reported a 52.2% year-on-year revenue surge to $1.13 billion for the nine months ending December 2025.

Globacom deployed new base stations, expanded its backbone, and rolled out hybrid battery power systems at numerous sites.

| Data and Subscriber Growth

Nigeria’s active telecom subscriptions rose from approximately 164.9 million in December 2024 to 179.6 million by December 2025, an addition of roughly 14.7 million subscribers in a single year. Broadband penetration crossed the 50% mark, ending 2025 at 51.97%, compared to approximately 45% at end-2024.

Data consumption surged dramatically: 148 million Nigerian internet users consumed approximately 1.4 million terabytes of data in December 2025 alone, illustrating the deepening reliance on digital services for commerce, entertainment, and financial transactions.

In the first quarter of 2026, Nigerians spent N3.33 trillion on data, an indication of the continuing trajectory.

| Tariff Adjustment Impact

The NCC approved a 50% average tariff adjustment in early 2025, the first such increase in over a decade, following sustained pressure from operators citing rising costs from currency depreciation and energy price inflation.

While consumer groups raised concerns, the adjustment contributed directly to higher nominal revenue for operators, boosting the sector’s GDP contribution in naira terms.

| 5G Expansion

The year saw notable acceleration in 5G network rollout. MTN and Airtel both significantly expanded their 5G footprints, while the NCC provided regulatory support through spectrum management and right-of-way facilitation.

The percentage of subscribers on 5G networks rose from 2.46% in December 2024 to 3.77% by December 2025, with Q1 2026 showing further acceleration to 4.20%.

Quarterly Trend: Full 2025 Picture

To contextualise Q4 2025, it is instructive to review the entire 2025 performance trajectory across all four quarters:

Q4 2025 recorded the highest nominal quarterly contribution (N5.2 trillion) and the highest real growth rate (26.34% YoY) of the year.

The dip in Q3 reflected seasonal patterns and temporary infrastructure pressures, but the year-end surge demonstrates the resilience of the sector and the compounding effects of investments made earlier in the year.

Economic Implications

Digital Economy as Growth Engine

Telecommunications no longer functions merely as a utility sector, it has become a structural engine of Nigeria’s economic growth. Its role as the backbone of fintech, e-commerce, and digital government services means that each percentage point of telecom growth generates multiplier effects across the broader economy.

The financial and insurance sector, which grew 27.78% in Q4 2024 and remains one of the fastest-growing sectors, is deeply dependent on telecom infrastructure for mobile money, digital banking, and payment processing.

Employment and SME Ecosystem

The expansion of broadband infrastructure and digital services has created direct and indirect employment across Nigeria’s 36 states. Mobile internet access enables micro-enterprises, market traders, artisans, and freelancers to access digital payment platforms, online marketplaces, and e-government services. The NCC’s rural broadband initiative through the Universal Service Provision Fund (USPF) has extended connectivity to underserved areas, progressively drawing more Nigerians into the formal digital economy.

Foreign Direct Investment Signal

The strong Q4 2025 telecom performance coincides with growing investor interest in Nigeria’s digital sector. Analysts project an 8% compound annual growth rate (CAGR) for Nigeria’s telecom sector through 2028.

The NCC under Executive Vice Chairman, Dr. Aminu Maida has championed a regulatory environment designed to be merit-based, investor-friendly, and focused on transparency.

This has attracted renewed scrutiny from sovereign wealth funds and private equity investors eyeing Nigeria’s digital infrastructure as a long-term asset class.

The Path to 25% GDP Contribution

The NCC and the Federal Ministry of Communications, Innovation and Digital Economy have set an ambitious target: raising the telecom sector’s contribution to 25% of GDP.

While the current 8.12% (rebased) figure may appear distant from that goal, it is critical to note that under the pre-rebasing framework, the sector was already contributing approximately 14.4% to GDP in Q4 2024.

The 25% target, once contextualised within the pre-rebasing GDP framework and accounting for sector expansion, is achievable within a decade if current investment and subscriber growth trends are sustained.

Key milestones required to achieve the 25% target include:

• Full national fibre-optic backbone completion (Project Bridge: 90,000 km target)
• Right-of-way harmonisation across all 36 states to reduce fibre deployment costs
• 5G commercial rollout in all major urban centres by 2027
• Digital literacy programmes to convert the remaining ~50% non-internet-using population
• Regulatory frameworks for emerging technologies: AI, IoT, cloud computing, and satellite internet

Currency and Macroeconomic Headwinds

Despite the impressive growth figures, Nigeria’s telecom sector continues to face macroeconomic headwinds.

The persistent depreciation of the naira, which increased the cost of imported network equipment and dollar-denominated debt servicing, contributed to significant losses for key operators in 2024, including MTN Nigeria’s reported N400 billion loss.

The tariff increase approved by the NCC in early 2025 partially addressed this imbalance, but operators warn that further naira depreciation could erode profitability gains and slow future investment cycles.

Additionally, energy costs remain a significant burden, with many operators running diesel generators due to the unreliable national grid. The transition to renewable energy-powered base stations is ongoing but capital-intensive.

NCC Regulatory Framework & Data Methodology

The statistics underpinning this report are drawn from the NCC Industry Statistics portal, published pursuant to Section 89(3)(d) of the Nigerian Communications Act 2003 (NCA 2003), which mandates the Commission to monitor, report on, and provide statistical analyses of the Nigerian telecommunications industry.

The GDP contribution figures are sourced from the National Bureau of Statistics (NBS) quarterly GDP reports.

Under the NBS methodology, the ICT sector comprises four sub-activities: (1) Telecommunications and Information Services; (2) Publishing; (3) Motion Picture, Sound Recording and Music Production; and (4) Broadcasting. Telecommunications and Information Services consistently accounts for the dominant share, approximately 7.29% of GDP in Q4 2024 and 8.12% in Q4 2025 under the rebased framework.

Industry Perspective

“Telecommunication is the biggest beneficiary of the accelerating use of digital technology in financial services, media, entertainment, and renewable energy. The numbers we are seeing in Q4 2025 reflect years of investment now bearing fruit.”— Olu Akanmu, former CEO of OPay and former CMO of Airtel Nigeria

Regulatory Perspective

“The sector has done well with its contribution to GDP, but it can do better. We are working on the right policies to push the contribution of the telecom sector to 25%.”— Dr. Aminu Maida, executive vice chairman, Nigerian Communications Commission (NCC).

In essence…

The Q4 2025 data confirms that Nigeria’s telecommunications sector is on a strong and accelerating growth trajectory.

The sector’s contribution to real GDP rose from 7.29% in Q4 2024 to 8.12% in Q4 2025, representing a year-on-year increase of 0.83 percentage points or approximately 11.4% proportional growth. The sector’s real growth rate surged to 26.34% in Q4 2025, its highest quarterly rate in recent years.

Behind these numbers lies a story of deliberate policy, significant capital investment, and growing consumer demand for digital connectivity.

As Nigeria pushes toward the ambitious 25% GDP contribution target, the telecom sector will need sustained regulatory support, continued infrastructure investment, and targeted policies that address the structural barriers of energy costs, currency risk, and right-of-way access.

What the Q4 2025 figures make unmistakably clear is this: in an economy navigating inflation, currency pressures, and structural reform, telecommunications has emerged as one of the most reliable and strategically significant pillars of Nigeria’s national development agenda.

Driven by a directive from the Nigerian Communications Commission (NCC) following a clean billing audit, the goal is to show users exactly how background app activities, automatic updates, and video streaming drain their balances as data consumption across the country skyrockets.

Operators have already started sending customers daily reports showing how much data they used the previous day.

An official at one of the telecom companies in Nigeria said the data depletion issue has become a major concern across the industry.

“An average subscriber believes their service provider steals their data once their data is exhausted before time or depletes faster than they expected, which is not true.

“Over the years, we have tried to enlighten the subscribers on factors that could lead to their data being depleted fast, which include smartphone functionality, among others.

“And now, we are looking at tools that could show the subscribers not just what they have used, but also how they have used it to further promote transparency,” the source said.

He added that operators are also stepping up public awareness campaigns to help subscribers understand why data may finish faster than expected.

The renewed drive for transparency comes as data usage across Nigeria gets more expensive.

Nigerians consumed more than four billion gigabytes of data in the first quarter of 2026, driven by heavy use of video streaming platforms, social media, fintech services and remote work tools.

That growth has also increased pressure on telecom infrastructure, with networks in many parts of the country now struggling during peak hours, leaving subscribers with slower internet speeds and unstable connections.

Many users often interpret those issues as abnormal data depletion.

Telecom operators are also dealing with worsening infrastructure problems. Industry data showed there were 19,384 fibre cuts in 2025, while another 5,934 incidents were recorded in the first quarter of 2026 alone.

At the same time, only about 25% of planned 4G expansion projects for 2026 have been completed, leaving networks overstretched as internet demand grows.

In December 2024, the NCC said it carried out a billing audit across major mobile networks after repeated complaints from subscribers. According to the regulator, the audit did not uncover any major issue linked to unfair data deductions.

The Executive Vice Chairman of the NCC, Dr Aminu Maida, said the exercise was completed in the third quarter of 2024 using independent auditors.

“We had a hypothesis that it isn’t true that there is a data depletion issue in the industry. It could be perception.

“So the first thing we did was that we immediately conducted a billing audit on the systems of the major MNOs, using reputable auditors. That exercise was completed in Q3 of this year (2024) and surprisingly, we didn’t find any major issues,” he said.

The NCC has repeatedly warned that several smartphone features and apps consume data without users actively using them. According to the commission, background app activity, cloud syncing, automatic updates and location services are some of the biggest causes of unexpected data usage.

The regulator advised subscribers to monitor their usage regularly, turn off background data access for selected apps and disable automatic updates where necessary.

It also recommended using Wi-Fi whenever possible and installing ad blockers to reduce unwanted data consumption from online advertisements.

Meanwhile, Nigeria is reviewing its 26-year-old telecom policy as the government looks to address growing pressure on the sector.

Proposed reforms include stronger consumer protection rules, new tariff structures, wider 5G deployment and tougher measures to protect telecom infrastructure from vandalism and fibre cuts.

Authorities say the reforms are aimed at improving digital access, strengthening cybersecurity and encouraging long-term investment in the country’s telecom industry, ultimately reducing data depletion across Nigeria.

“The Stone Age did not end because the world ran out of stones, and the Oil Age will not end because we run out of oil.”

The quote, widely attributed to former Saudi Arabian Oil Minister Ahmed Zaki Yamani, captures a truth Nigeria has grappled with for decades.

Successive governments have long recognised the need to diversify the economy away from oil dependence. Increasingly, experts have pointed to the digital economy as Nigeria’s most promising path to sustainable growth.

The sector has already demonstrated enormous potential, and current developments suggest that its biggest gains may still lie ahead.

Indeed, if projections by communications experts are anything to go by, Nigeria could be on the verge of a major economic transformation through the ongoing review of the 26-year-old National Telecommunications Policy (NTP) 2000.

Officials believe the revised framework could unlock up to two per cent additional GDP growth, create more than two million jobs, and generate nearly ₦2 trillion in additional tax revenues by 2030. The implications are profound.

Now, it is worth recalling that the NTP 2000 laid the foundation for the telecommunications revolution that transformed Nigeria’s communications landscape.

The policy empowered the Nigerian Communications Commission (NCC) to liberalise the sector and attract private investment at a time when access to telephone services was extremely limited.

Speaking at the recent high-level NTP 2000 Review Workshop in Lagos, Aminu Maida, Executive Vice Chairman and CEO of the NCC, reflected on the remarkable transformation that followed.

“When the NTP 2000 was introduced, Nigeria had fewer than 500,000 telephone lines serving over 120 million people under the monopoly of the Nigerian Telecommunications Limited (NITEL),” he said. “The policy liberalised the market, attracted massive private investment, and, supported by the Nigerian Communications Act 2003, turned scarcity into abundance.”

Dr Maida noted that within a decade, Nigeria moved from endless waiting lists for telephone lines to tens of millions of connected citizens. Reports indicate that today there are over 180 million connected lines.

Today, telecommunications has evolved far beyond voice communication. It now powers banking, fintech, e-commerce, education, healthcare, governance, agriculture, manufacturing, transportation, and public services.

Dr Maida aptly described telecommunications as the “productivity infrastructure” of the Nigerian economy.

This explains why the review of the NTP 2000 is being positioned not as a routine sector update, but as a national development imperative. The goal is to reposition telecommunications as the foundational infrastructure supporting every aspect of economic activity.

The Presidency echoed this broader vision. Hadiza Bala Usman, Special Adviser to President Bola Ahmed Tinubu on Policy and Coordination, while acknowledging the success of the 2000 policy in liberalising the market and driving competition, stressed that today’s realities demand a more forward-looking framework. She argued that any modern telecommunications policy must address broadband expansion, affordability, digital inclusion, infrastructure resilience, cybersecurity, digital skills, data governance, and emerging technologies.

The review of the NTP 2000 is a massive opportunity for a fresh start.

The reality is that despite the impressive progress recorded over the past quarter of a century, several challenges continue to hinder the sector’s growth.

Stakeholders constantly highlight issues such as fibre cuts, vandalism, theft, multiple taxation, high energy costs, right-of-way bottlenecks, delayed approvals, and weak coordination between federal and subnational governments.

These problems continue to slow broadband expansion and weaken service quality, especially in rural and underserved communities.

This is precisely why many experts believe Nigeria must now embrace a new regulatory philosophy, one that moves beyond basic market supervision to full ecosystem stewardship.

The emerging digital economy requires policies capable of addressing artificial intelligence (AI), satellite broadband, the Internet of Things (IoT), cloud infrastructure, digital sovereignty, and data governance.

The revised policy is expected to preserve the core principles of competition, universal access, and consumer protection while also promoting innovation, investment, resilience, and inclusive growth.

Stakeholders are already developing practical recommendations around regulatory coordination, infrastructure protection, digital skills development, and strategies for accelerating digital transformation.

The ambitions are ambitious but necessary: expand the tax base, improve public service delivery, bridge the digital divide, create jobs, and establish Nigeria as a leading digital economy in Africa by 2030.

Undoubtedly, as Nigeria’s population and economy continue to grow, reliable, affordable, and high-quality digital connectivity is becoming increasingly essential for empowering citizens, businesses, and communities.

Ultimately, the success of the policy review will not be judged by the quality of speeches delivered at conferences and workshops, but by the strength of implementation, the consistency of political will, and the measurable outcomes achieved.

With Africa’s largest population and one of the continent’s most vibrant telecom markets, Nigeria stands at a defining moment.

The ongoing review of the NTP 2000 presents a strategic opportunity to transform digital infrastructure into a powerful engine for sustainable and inclusive national development.

The conversations at the Lagos workshop could shape how Nigerians live, work, learn, communicate, and do business for decades to come. If implementation matches ambition, the projected digital economy windfall could become one of the most significant economic dividends of the Renewed Hope era.

*Elvis Eromosele, a corporate communications professional and sustainability advocate, wrote via elviseroms@gmail.com.

Africa Beacon of ICT Lectures and Awards, is widely regarded as the most prestigious annual event available in the ICT industry in Nigeria.

The event according Ken Nwogbo, editor-in-chief of Nigeria Communications Week,“is digital transformation edition” will hold on  Saturday, May 30, 2026 at the Four Points by Sheraton, Lagos.

Africa’s BoICT Lecture is designed to explore efforts to put Nigeria on the global Information and Communications Technologies map.

It will also to recognise and celebrate organisations and individuals in the ICT and banking industries that have impacted in digital transformation of the economy.

Nwogbo said that Dr. Maida, oversees the regulation, development, and strategic direction of the Nigerian telecommunications industry.

His administration at the NCC, actively drives initiatives to improve telecom consumer experience, enhance infrastructure, and foster collaborations (such as with the Central Bank of Nigeria) to protect citizens from financial fraud

He holds a PhD in Electrical & Electronic Engineering from the University of Bath, UK.

Prior to joining the NCC, he served as the Executive Director, Technology and Operations at the Nigeria Inter-Bank Settlement System Plc (NIBSS).

At NIBSS, Dr. Maida was responsible for spearheading the technical and operational standardization of all devices deployed in the financial system in Nigeria for interoperability.

He led a dynamic team that ensured that all terminals used in the e-payment industry and all devices deployed in Nigeria would accept all cards issued by banks and other licensed card schemes without discrimination.

Prior to his appointment at NIBSS, Maida was the Chief Technical Officer (CTO) at the Nigerian-based FinTech Arca Payments Network and Senior Manager at Cisco Systems, United Kingdom.

As a seasoned technical professional with over 15 years of multi-functional and international experience in FinTech & Telecoms & Enterprise Technology, Dr. Maida between 2010 and 2014, worked as a Network Design Consultant at EE, part of BT Group, and one of the largest mobile communications companies in the UK.

He was also at some point (2006-2010) a System Engineer at Ubiquisys, a leading company in intelligent 3G and LTE small cells, which is now part of Cisco.

Dr. Maida will be joining will join top dignitaries who have graced the  event in the past including: Dr. Ernest Ndukwe, former executive vice-chairman, Nigeria Communications Commission (NCC); Engr. Yomi Bolarinwa, former Director-General of National Broadcasting Commission (NBC); Dr. Jean Luc Fort, CEO at OR System France and a specialist in Counterparty Risk; and Professor Chris Nwagboso, Chairman, Knowledge Factory International, United Kingdom.

Others are: Chris Uwaje, chairman, Mobile Software Solutions Ltd; Uche Orji, former managing director/chief executive officer, Nigeria Sovereign Investment Authority (NSIA); Biodun Omoniyi, Managing Director/CEO, VDT Communications;  and John Obaro, CEO and founder of Systemspecs; Dr. Isa Pantanmi, former DG, NITDA; Dr. Obadare Peter Adewale, co-founder and COO, Digital Encode Limited; among others.

The highpoint of the BoICT Lecture will be the conferment of awards to companies and individuals for their significant contributions to the growth of technology in Nigeria and indeed Africa.

The event is a five-star event; easily Nigeria’s ICT Oscars.

The team led by Philemon Zoo Zame, director General of ART was received by Dr. Aminu Maida, the executive vice chairman of NCC, reflecting a growing trend of regional collaboration among African telecom regulators seeking to strengthen digital governance and improve industry performance.

The benchmarking engagement highlights Nigeria’s increasing influence in Africa’s telecommunications ecosystem, particularly in areas such as consumer protection, spectrum management, broadband expansion, and regulatory innovation.

Over the years, the NCC has emerged as one of the continent’s most referenced regulatory institutions, driven by reforms that have helped deepen mobile penetration and digital connectivity in Nigeria.

For Cameroon’s ART, the visit presents an opportunity to understudy regulatory frameworks and operational models that could support the growth of its own telecommunications sector amid Africa’s rapidly evolving digital economy.

Beyond institutional learning, the meeting also underscores the importance of cross-border cooperation in addressing common industry challenges, including cybersecurity, infrastructure deficits, quality of service, and emerging technologies such as 5G and artificial intelligence.

As African countries intensify efforts to build inclusive digital economies, stronger collaboration between regulators like the NCC and ART could play a critical role in shaping harmonised policies and accelerating regional digital transformation.

Under the leadership of Executive Vice Chairman, Dr. Aminu Maida, the Commission’s roadmap seeks to transform the everyday experience of millions of Nigerian telecom users.

A New Standard for Voice and Data

The primary goal for 2026 is to ensure that Nigerians enjoy “measurable improvement“ in their quality of experience.

The Commission has explicitly promised that consumers should expect improved voice quality and more consistent data performance in their daily digital interactions.

To achieve this, the NCC plans to:

Deepen Quality of Service (QoS) Monitoring: Implementing more rigorous oversight to identify and address network bottlenecks.

Target High-Traffic “Black Spots“: Driving practical measures to improve network availability in busy urban centers and persistent areas of poor coverage.

Minimize Disruptions: Working with operators to reduce avoidable service outages and ensure faster restoration when incidents occur.

Ending the “Hidden Fee” Era: Tariff and Billing Transparency

One of the most significant pillars of the 2026 agenda is a crackdown on complex and confusing billing systems.

The NCC has mandated that operators simplify their offerings to ensure Nigerians receive full value for their money.

Key Consumer Expectations for 2026:

Simpler Tariffs: Introduction of more transparent bundles that are easy for the average user to understand.

Billing Accuracy: Reinforced protections against misleading practices and errors in airtime or data deductions.

Prompt Value Reversal: A specific commitment to ensuring successful recharges and the immediate return of funds for unsuccessful attempts.

Strengthening Accountability and Corporate Governance

The NCC is not only looking at technical metrics but also at the leadership of the companies providing these services.

In 2026, the Commission will operationalize a revised Corporate Governance Code for the sector.

This move is designed to make board and management accountability a key driver of an operator’s actual performance on the ground.

Operators are expected to treat customer complaints not as a nuisance, but as “critical feedback” that must be handled with upgraded care and faster resolution times.

A Shared Vision for a $1 Trillion Economy

This strategic shift aligns with the Federal Government’s Renewed Hope Agenda, which aims to build a $1 trillion digital economy by 2030.

By ensuring a fair, competitive, and high-quality communications sector, the NCC believes it can unlock greater productivity and innovation for all Nigerians.

“Our shared ambition is simple: better services that people can feel,” stated Dr. Maida. “When this balance is right, between consumer protection and operator sustainability, trust is built, and more Nigerians can participate meaningfully in the digital economy.

NCC’s 2026 Priorities at a Glance

According to the Nigerian Communications Commission (NCC), this escalation was driven by inflation, exchange rate volatility, growing costs of energy, and above all, inconsistent Right of Way (RoW) fees that continually chokes network expansion across states.

“Most Licensees complained of high Right of Way (RoW) fees, harsh microeconomic operating employment and rising inflation. However, the NCC has been able to secure zero Right of Way (RoW) fees in some States in Year 2024,” the Commission stated in its 2024 industry report.

Uneven Fees, Unequal Access

Despite the Governors Forum’s 2020 resolution setting RoW charges at ₦145 per linear metre, some states have ignored the guideline. Operators disclosed that Ogun State now demands ₦9,477 per metre, the highest nationwide, followed by Lagos (₦6,264) and Oyo (₦5,303).

Others, including Cross River (₦4,737), Rivers (₦4,047), Edo (₦3,491), and Ondo (₦3,075), have also imposed heavy levies. The disparity has slowed broadband rollout, forcing firms to revise deployment plans or suspend network projects entirely.

However, there’s progress. Eleven states have now eliminated RoW fees, according to Dr Aminu Maida, the NCC’s executive vice chairman. “One of the most significant barriers to broadband deployment in Nigeria has been the high RoW fees charged by state governments, despite a resolution by the Nigerian Governors Forum fixing the rate at N145 per linear metre,” he said.

The Commission confirmed that Adamawa, Bauchi, Enugu, Benue, Zamfara, Anambra, Katsina, Kebbi, Nasarawa, Osun, and Plateau have all adopted zero-cost policies to support broadband rollout.

Broadband Goals Falter

The government’s vision to achieve 70% broadband penetration by 2025 is now clearly out of reach. Data from the NCC shows that as of September 2025, penetration stood at 49.3%, well below target.

Experts say the shortfall is financial, not just technical. Each kilometre of fibre delayed by high state fees represents a lost opportunity to extend digital inclusion.

Gbenga Adebayo, chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), said unresolved structural issues are a drag on progress. He pointed to multiple taxation, hidden levies, and high RoW costs as contributing challenges.

He also noted that while some states have waived fees, they continue to impose “education taxes” and “highway levies” under different names, eroding the benefits of those waivers.

High Investment, Shrinking Margins

The NCC report revealed that capital expenditure by telecom operators surged 159% to ₦2.9 trillion in 2024, up from ₦1.12 trillion the previous year. The increase, the Commission said, reveals both aggressive investment in network upgrades and the inflationary impact of the naira’s sharp depreciation following the Central Bank’s exchange rate unification policy.

Telecom companies have spent heavily on 5G rollout, fibre expansion, and network modernisation. Yet, much of that spending has been absorbed by currency losses and rising import costs for equipment.

While revenues climbed 44.7% to ₦7.67 trillion, the profits have barely offset the inflationary and fiscal pressures facing operators, as Nigeria’s telecom costs continually surge.

Tariff Hike Brings Temporary Relief

To ease the burden, the NCC in January 2025 approved a 50% tariff increase for telecom services, a controversial but necessary step, according to industry analysts. The revision allowed major operators, including MTN and Airtel, to return to profitability after reporting significant losses in 2024.

However, the higher tariffs have also limited consumers, particularly low-income users, prompting warnings from advocacy groups about potential digital exclusion in rural and underserved communities.

Policy Flashpoint and the Road Ahead

With telecoms contributing 16.1% to Nigeria’s GDP in Q2 2025, the sector has become the second-largest non-oil contributor to the economy. But then, the persistence of uneven RoW charges has turned the issue into a national policy flashpoint.

Stakeholders are now urging federal intervention to harmonise fees nationwide, arguing that broadband rollout, essential for education, finance, and digital commerce, should not depend on a state’s internal revenue strategy.

For Nigeria’s competitive edge to remain, policymakers must choose between short-term state revenue and long-term national connectivity, ensuring telecom costs are reduced. The choice, as the numbers show, can no longer be delayed.

This was revealed during the inaugural Rural Connectivity Summit organised by Business Metrics, in Lagos, where Dr Aminu Maida, executive vice chairman of the Nigerian Communications Commission (NCC), stressed that connectivity is far more than speed, it’s about economic inclusion.

“The accurate measure of connectivity is not in megabits per second, but in the economic value it creates or loses,” said Dr Aminu Maida, whose keynote address was delivered by Tunji Jimoh, Zonal Controller of the NCC Lagos Office.

At the event, themed “Rethinking Digital Connectivity to Unlock Rural Economic Potential,” he described connectivity as “an indispensable part of life,” noting that when it fails, “opportunities stop, and lives can be at risk.”

Dr Maida noted that despite progress, rural Nigeria is digitally invisible, with internet access still at 23% compared to 57% in urban areas. This gap, he explained, cuts off millions from modern education, markets, healthcare, and financial services, a situation he called “unacceptable and unsustainable.”

Research shows that a 10% increase in broadband penetration can drive 1.38% GDP growth in developing economies. However, Nigeria’s broadband penetration as of August 2025 stood at 48.81%, below its potential. 

While coverage has expanded, with 3G and 4G networks reaching 86.34%, usage and household access remain at 39.2% and 40.1% respectively.

Nigeria’s ICT Development Index (IDI) score also exposes this imbalance. At 52.9, the country ranks 137th out of 164 economies, following far behind the global average of 77.6 and Africa’s 56.1.

To tackle these challenges, Dr Maida outlined NCC’s ongoing initiatives through the Universal Service Provision Fund (USPF). The Fund has financed over 2,500 educational projects and delivered 100,000 computers to schools nationwide.

One unique project is the Emerging Technology Centre at Ogun State Institute of Technology, where more than 9,000 students now have access to digital tools for innovation.

Beyond education, the USPF’s e-Health Project connects rural clinics to larger hospitals for remote consultations, while the e-Accessibility Project provides persons with disabilities with assistive technology. 

To ensure sustainability, the NCC has also launched the Impact Alliance, a partnership network involving private sector players, civil society, and international bodies, to co-invest in inclusive connectivity.

In response to the sabotage of telecom infrastructure, Dr Maida highlighted the Critical National Information Infrastructure (CNII) Order, signed by the President in June 2024, empowering law enforcement to protect telecom assets. 

“Our advocacy has led to 11 states offering zero charges for right-of-way permits,” he said, adding that 70 others have aligned with the national benchmark of ₦145 per linear metre.

The Commission has also been working with mobile network operators, global partners like GSMA and the World Bank, and the Office of the National Security Adviser to safeguard telecom assets and promote affordable broadband deployment.

“We stand at a strategic crossroads. The global digital race is accelerating, and we must act decisively to ensure our youth are creators, not consumers, of digital value,” Dr Maida said.

He urged governors to support right-of-way reforms, operators to speed up rural rollouts, and communities to protect telecom infrastructure. “These assets are their bridge between backwardness and global relevance,” he stated.

With over 45% of Nigeria’s population still living in rural areas, the NCC wants digital inclusion to go beyond policies, it is a national strategy for growth.

The Executive Vice Chairman of the Nigerian Communications Commission (NCC), Aminu Maida, disclosed the figure during an interactive session with journalists in Lagos. 

He credited the capital inflow to a January policy that allowed mobile network operators (MNOs) to raise tariffs by up to 50%, a move that ended almost a decade of price stagnation.

“This act alone, has allowed investments to flow in. We will be revealing more specific figures in the coming weeks after verification, but we are talking about over a billion dollars’ worth of investment in 2025 alone,” Maida said.

Before the change, MNOs were locked into fixed pricing while other players in the telecom value chain, such as tower operators, could adjust their rates annually to account for inflation and currency depreciation. Maida said the imbalance eroded investor confidence and slowed network expansion, leaving service quality to deteriorate.

“This is an industry that requires continuous investment. The world is moving ahead, and if we do not create the right conditions, we will be left behind,” he warned.

The reform, which aligns with the 2000 Telecom Policy and the 2003 Communications Act, is already translating into tangible results. According to Maida, equipment that had not been purchased in years is now being ordered, with shipments arriving since June. Operators are actively rolling out upgrades and building new sites nationwide.

While the investment trend is positive, the sector faces operational challenges. Telecom operators consume more than 40 million litres of diesel each month, costing over $350 million annually, to keep base stations running.

“There is nothing you need to build or upgrade a network today in Nigeria that you can buy locally,” Maida noted, highlighting the industry’s total reliance on foreign exchange for network equipment, software, and hardware.

The NCC is also collaborating with the Rural Electrification Agency (REA) to deploy renewable energy solutions at telecom sites, reducing dependence on imported diesel and improving rural connectivity.

Infrastructure security is a priority. The NCC, working with the Office of the National Security Adviser (ONSA), is developing region-specific rapid response plans to address threats such as vandalism, fibre cuts, and generator theft.

Maida explained that strategies vary by location, coastal regions may need stronger community engagement, while high-risk zones require greater civil defence presence. The aim is to tackle both immediate security threats and structural issues that leave infrastructure exposed.

In addition, the regulator is tightening corporate governance standards for telecom operators. New requirements, set to take effect in the fourth quarter of 2025, include enhanced board oversight, stronger risk management frameworks, and regular compliance audits.

With Nigeria’s telecom sector currently valued at $9.52 billion and projected to more than double to $22.82 billion by 2029, the NCC believes these reforms will boost investments and keep the country competitive in the global digital economy.

At the heart of it was the Nigerian Communications Commission (NCC), rallying partners and stakeholders to safeguard the very infrastructure that keeps the nation connected.

The crisis began when the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) announced plans for an industrial strike, one that would halt diesel supplies to telecom sites across the country.

For a sector heavily reliant on diesel-powered generators, the impact would have been immediate and severe: millions without mobile service, disrupted internet access, stalled business operations, and a ripple effect on the economy and national security.

Sensing the urgency, the Office of the National Security Adviser (ONSA), led by Mallam Nuhu Ribadu, moved quickly to engage NOGASA’s leadership. Strategic meetings followed, with the NCC providing critical technical insights to illustrate just how deeply such a disruption would cut, from hospital communications to online education, from banking transactions to daily conversations with loved ones.

After days of dialogue, an agreement was reached. The strike was suspended. The country’s telecom lifeline remained intact.

“Telecommunications infrastructure is the backbone of our connectivity and digital economy,” the NSA stressed, warning that any damage, whether from vandalism, theft, restricted access, or fuel shortages, could shake the foundations of the nation’s stability.

For Dr. Aminu Maida, the NCC’s executive vice chairman, the episode was a powerful reminder of what collaboration can achieve.

“We will continue to enforce strict technical standards and strengthen awareness about protecting telecom assets,” he said. “But beyond enforcement, mediation is an effective tool. This resolution proves that dialogue can prevent disruptions before they happen. Telecom infrastructure is a shared national asset, it supports every call, every online transaction, every emergency response, and every digital opportunity.”

With the crisis averted, the NCC is doubling down on partnerships with security agencies, industry operators, and the public to ensure that Nigeria’s communications infrastructure remains secure, resilient, and ready to serve the nation, no matter the challenge.