The Nigerian Communications Commission disclosed that Mobile Network Operators invested more than N2.13 trillion in CAPEX (capital expenditure) on network infrastructure and upgrades in 2025 alone, while Tower Companies committed an additional N373.8 billion to strengthen telecom infrastructure nationwide.

According to the Commission, the investments are part of ongoing efforts to improve Quality of Service, expand network capacity, reduce congestion, and support Nigeria’s rapidly growing digital economy.

The NCC, in a statement signed by Nnenna Ukoha, its head of Public Affairs, said that consumer complaints over dropped calls, slow internet speeds, unstable data services, and network disruptions have remained a major concern, prompting both regulatory intervention and increased infrastructure spending by operators.

The telecom regulator explained that the investments supported the deployment and upgrade of over 2,800 telecom sites nationwide, helping to address coverage and capacity gaps in several urban and underserved communities.

The network expansion projects include the rollout of additional 4G and 5G layers on existing sites, fibre backhaul expansion, deployment of new infrastructure in high-demand areas, and modernization of aging telecom equipment.

According to the Commission, the infrastructure push is continuing in 2026, with operators already committing to the addition and upgrade of more than 12,000 telecom sites within the year.

The NCC disclosed that nearly 3,000 of the planned sites have already been delivered, while over 730 additional 5G sites have been deployed across 27 states so far in 2026.

The Commission said the accelerated deployment is necessary due to the exponential growth in data consumption, increasing digital adoption, and rising dependence on broadband services for business, education, entertainment, and financial transactions.

To further support service improvement, the regulator revealed that it has facilitated the reallocation and optimization of underutilized radio spectrum among the country’s three major Mobile Network Operators.

According to the NCC, the spectrum interventions are designed to improve spectral efficiency, network performance, and service delivery across the sector.

The regulator noted that early indicators are beginning to show gradual improvements in network quality.

Its Quality of Service and Quality of Experience assessments indicate improvements in network capacity, broadband coverage, and average data speeds in several parts of the country.

The Commission stated that national median download speeds increased from 16.5Mbps in January 2024 to 20Mbps currently, while 4G penetration rose from 45 percent to 54 percent within the same period.

Power availability at telecom tower sites also improved from a national average of 99.3 percent in January 2025 to 99.7 percent currently.

Despite the progress, the NCC acknowledged that several locations across the country still experience poor call quality, slow internet connectivity, congestion, and unstable services.

The Commission stressed that while the investments are welcome, operators must ensure they translate into visible and measurable improvements for consumers.

To strengthen compliance, the NCC said it has intensified monitoring of Mobile Network Operators, Internet Service Providers, and Tower Companies under the updated Quality of Service Regulations 2024.

The regulator disclosed that enforcement actions commenced in November 2025 after operators were granted a transition period to procure and install required equipment nationwide.

According to the Commission, enforcement measures include consumer compensation for poor service quality and additional investment obligations where infrastructure performance failures are identified.

The NCC also identified external challenges affecting network performance, including fibre cuts, vandalism, theft of telecom equipment, power disruptions, and access denial during maintenance operations.

The Commission revealed that over 27,000 avoidable fibre-cut incidents were recorded nationwide in 2025 alone, mostly linked to road construction activities and vandalism.

It added that collaboration with the Office of the National Security Adviser and other stakeholders is ongoing to enforce the Presidential Order on Critical National Information Infrastructure and reduce attacks on telecom assets.

The regulator further directed operators to improve transparency by notifying subscribers whenever major service outages occur and restoring services within defined timelines.

According to the NCC, the telecom industry must now deliver measurable improvements in service quality as investments across the sector continue to rise.

According to IDC, semiconductor and memory constraints are expected to persist as production capacity remains prioritised for AI systems and hyperscale infrastructure. In this environment, assuming price stability is financially dangerous.

For CFOs, the real exposure is not availability alone. It is the impact of absorbing hardware inflation upfront.

Traditional capex heavy procurement models force organisations to commit significant working capital at the exact moment pricing is least predictable. That decision affects liquidity, debt ratios, and return on capital employed.

“However, this is not to discourage investment in new equipment,” says David Buck, general manager for InnoVent South Africa. “Modern infrastructure remains essential for competitiveness and productivity. The financial question is how that investment is structured.”

“Semiconductor volatility is hitting financial models harder than operational ones. When organisations rely on capex structures, they take the full impact of price shocks immediately. That creates avoidable strain on cash flow and capital reserves,” he explains.

Leasing introduces predictability where the market offers none. Instead of funding hardware refreshes from working capital or absorbing sudden supplier increases in a single quarter, leasing allows organisations to lock in structured, forecastable costs over time. Payments become operationally aligned with usage. Cash remains available for strategic initiatives.

Buck says when prices are rising and forecasts keep changing, certainty becomes a financial advantage.

“Leasing does not remove market volatility, but it prevents that volatility from distorting your financial planning cycle.”

Alongside structured leasing for new equipment, partnering with a leasing provider that has an in-house refurbishment capability adds tactical financial flexibility.

Organisations can access refurbished equipment immediately through flexible rentals when supply delays threaten delivery timelines or when short term capacity is required. Renting avoids emergency purchases at inflated prices and prevents unplanned capital outlays.

He says renting gives finance teams breathing room.

“It allows organisations to respond to operational pressure without compromising financial discipline,” he explained

Together, leasing and renting form a capital protection strategy. Leasing stabilises long term funding of new assets. Renting mitigates short term volatility and supply disruption. Both reduce the risk of tying up capital in depreciating technology during periods of price instability.

The chips shortage is exposing a structural weakness in outdated capital allocation models. CFOs who continue to treat hardware procurement as a straightforward capex decision may find themselves absorbing unnecessary financial shocks.

“In a volatile pricing environment, protecting liquidity and predictability must take priority. Structured leasing and strategic renting are not just procurement tools. They are financial safeguards,” he concludes.

As component supply tightens and device prices rise, organisations that rely on large upfront capital purchases are facing higher costs, longer lead times and unpredictable availability.

In this climate, traditional Capex models risk locking businesses into inflated pricing and reduced flexibility at exactly the moment agility and financial control matter most.

Supply becomes erratic as lead times increase, stock becomes unavailable and solutions have to be adapted to meet organisational needs. T

his shift has resulted in increased laptop and desktop unit prices, forcing organisations to make difficult decisions about how to stretch the same budget across growing IT demands. Tightened purse strings should not mean compromised performance, security or user experience.

Instead of relying solely on traditional Capex, organisations can benefit from alternative financial models that hedge against price inflation and supply constraints.

Flexible funding mechanisms allow businesses to access the technology they need without absorbing the full impact of upfront cost spikes.

One such mechanism is HP Integrated Financial Solutions, which provides practical financial alternatives for accessing HP technology.

Whether organisations require the latest AI enabled HP devices or advanced security capabilities such as HP Wolf Security, the objective is to expand procurement choice rather than restrict it.

Through subsidised finance, flexible lease terms and integrated asset lifecycle services, HP Integrated Financial Solutions converts unpredictable capital expenditure into predictable operating costs.

This helps organisations preserve liquidity, align refresh cycles with operational requirements and reduce exposure to component driven price volatility.

More importantly, this approach is not limited by financial profile. Whether an organisation is cash rich or committed to a conservative Capex structure, the goal is to work alongside existing HP channels to present customers with options, not ultimatums.

In a volatile component market where price and availability can change rapidly, the question is no longer ownership versus leasing as an ideological debate. The real question is which combination of funding models delivers continuity, control and long term value.

Locking in device costs over a fixed term can offset price fluctuations and restore predictability to IT planning at a time when uncertainty has become the norm. 

The company’s audited results revealed a historic 108.9% increase in EBITDA to N2.7 trillion and a 215.5% rise in free cash flow to N1.2 trillion, providing the exact financial muscle necessary for this aggressive network expansion.

According to the firm’s strategic blueprint, without the ability to generate strong returns, the N1.0 trillion CAPEX required to maintain the network and deploy advanced technologies would simply not exist.

This accelerated network investment is already yielding significant dividends in consumer usage and reliability.

The 2025 results showed a massive 74.5% surge in data revenue alongside a 42.1% increase in voice revenue.

Furthermore, active data subscribers grew by 11.6% to hit 53.2 million, underscoring the robust commercial momentum and the continuous public demand for high-quality internet services powered by fresh CAPEX.

Speaking on the company’s trajectory, Dr. Karl Olutokun Toriola, CEO MTN Nigeria, confirmed that the restoration of positive retained earnings and a highly resilient balance sheet directly supported this accelerated network investment.

He said:

“2025 marked a significant turning point in our business performance, with a return to profitability, stronger free cash flow, and the restoration of positive retained earnings and shareholders’ funds, enabling the resumption of dividend payments. Our balance sheet resilience – underpinned by robust operating performance, disciplined capital allocation, and reduced foreign currency exposure – supported accelerated network investment to enhance quality of service and user experience, positioning us to sustain growth and deliver attractive long term shareholder returns.”

The company continues to position this N1.0 trillion infrastructure spending as a cornerstone of its economic patriotism.

As the largest corporate taxpayer, MTN noted that its heavy investments directly support government digital infrastructure ambitions and social welfare whilst stimulating the local tech ecosystem.

It was a statement of intent, one that assumed policy alignment, capital flow, and infrastructure rollout would move in tandem.

Five years later, the numbers tell a more sobering story. As of November 2025, broadband penetration stood at 50.58%, leaving a nearly 20-percentage-point gap between policy ambition and on-ground reality.

To understand why Nigeria stalled halfway, and what must change next, Techeconomy engaged industry experts whose perspectives reveal a complex mix of legacy bottlenecks, economic realities, and structural miscalculations.

Was FX Volatility the Real Culprit? Not Entirely

Nigeria’s volatile exchange rate and rising inflation have undoubtedly increased the cost of imported telecom equipment. But Dr. Olusola Teniola, director of Strategy at ipNX, cautions against reducing the broadband shortfall to macroeconomics alone.

According to him, many of the challenges were already embedded in the system long before FX pressures worsened.

“RoW issues, multiple taxation and infrastructural gaps such as InfraCo deployments were legacy headwinds dating back to 2013,” Teniola explained. “It was assumed these would be resolved early in the plan’s lifecycle, but that didn’t happen.”

While recent Federal Government efforts, particularly in partnership with the World Bank Group, have begun addressing the business environment, the delayed interventions meant the original 2025 deadline became unrealistic.

By contrast, Engineer Aderemi Adeyeye, President/CEO of Enext Inc., was more direct:

“No. The necessary investment was not being made even before the naira devaluation.”

Here, both experts converge on a critical point: FX volatility worsened the problem, but it did not create it.

CAPEX, ROI and the Rural Broadband Reality

One of the most persistent challenges remains capital expenditure. Telecom CAPEX has slowed, and the question is whether Nigeria’s current ROI profile can still attract large-scale investment, especially for rural connectivity.

Dr. Teniola sees CAPEX as cyclical and constrained by the absence of patient capital, noting that African markets rarely attract long-horizon investors without structured support.

“The proposed SPV under Project Bridge reflects the kind of patient capital required for capital-intensive infrastructure,” he said, pointing to undersea cable projects like 2Africa as proof that the right framework can still unlock FDI.

Engineer Adeyeye, however, takes this stance:

“Tier-1 investors will never fund rural broadband without necessary government investment.”

This divergence highlights a policy fault line: should government act as a facilitator or a direct co-investor? Without clarity, rural broadband remains commercially unattractive.

Right of Way: The Bottleneck Everyone Agrees On

On Right of Way (RoW), there was rare unanimity.

Engineer Adeyeye described it plainly:

“It is surely a bottleneck.”

Dr. Teniola added nuance, noting that even in states where RoW has been harmonised or waived, deployment has not always followed.

“States are not legally obligated to align. While about 26 states have keyed into the World Bank’s SABER programme, inconsistent charges and bureaucratic processes still discourage CAPEX.”

The result is a patchwork broadband map, where fiber deployment depends more on state-level politics than national policy.

Mobile-First Nigeria: A Strategic Choice or a Constraint?

Nigeria’s broadband growth has leaned heavily on mobile technologies, 4G, and potentially 5G. Dr. Teniola describes Africa as a “mobile broadband-first continent,” driven by faster deployment cycles and quicker returns on investment.

But he also warns of a ceiling.

“There is a limit to what wireless technology can provide. Only fixed-line infrastructure can consistently deliver the high speeds that define true broadband.”

Engineer Adeyeye agrees the challenge was underestimated.

“Yes,” he said bluntly when asked whether Nigeria misjudged the difficulty of fixed-line deployment.

Both experts acknowledge that while mobile broadband expanded access quickly, deep penetration requires fiber to homes, offices and institutions—a reality Nigeria has yet to fully confront.

Spectrum: Availability without Accountability

The Nigerian Communications Commission (NCC) has been praised for its proactive spectrum auctions, yet utilization remains uneven.

Dr. Teniola argues that spectrum pricing and economics are misaligned with rural realities.

“Without affordable spectrum and incentives like grants or waivers, operators cannot justify serving underserved areas.”

Engineer Adeyeye suggests weak enforcement:

“Operators have national spectrum licences without any intention of covering more than a few cities.”

Here, the consensus is uncomfortable but clear: access to spectrum has not translated into universal service.

E-Government, Purchasing Power and Digital Adoption

While the NCC has recently been ranked among Nigeria’s top-performing MDAs, both experts believe digital adoption cannot outpace affordability.

Dr. Teniola emphasized that e-government under the Digital Public Infrastructure (DPI) framework must be matched with nationwide digital skills and change management.

Engineer Adeyeye’s response was simpler, and starker:

“Yes,” the masterplan needs a pivot.

Broadband, they suggest, is not just an infrastructure challenge but a human and economic one.

Satellite Broadband, MVNOs and the Post-2025 Question

Is satellite broadband, like Starlink, Nigeria’s silver bullet? Dr. Teniola sees it as complementary, not substitutive.

“Where terrestrial networks exist, satellite should serve as backup. Ubiquitous connectivity depends on affordability.”

On MVNOs, he is optimistic, noting their historical role in serving unmet demand since 1998.

“Anyone with a Tier-5 MVNO licence can go beyond and address the unserved.”

What Must Change After 50%?

Looking ahead, Dr. Teniola proposes three urgent policy shifts for 2026:

1. Public State Broadband Readiness Rankings
2. Local content development across the ICT value chain
3. Grants via a dedicated Telecom Bank to support indigenous hardware, software and services

The message from both experts is unmistakable: 50% is not failure, but it is not success either.

Without unified RoW enforcement, smarter spectrum incentives, government-backed rural investment, and a recalibrated broadband strategy, Nigeria risks remaining permanently stuck at the halfway mark.

In broadband, ambition is easy. Alignment is hard. Delivery is everything.

Similarly, MTN posted a profit after tax (PAT) of N750.2 billion for the nine months ended September 30, 2025, marking a dramatic turnaround from a N514.9 billion loss in the same period last year.

The aggressive investment drive, according to Dr. Karl Toriola, the CEO, MTN Nigeria, is aimed at improving network capacity and customer experience across the country.

Despite the heavy spend, free cash flow rose 38.5% to N742.6 billion, reflecting strong underlying cash generation.

Service revenue rose 57.5% to N3.7 trillion, while EBITDA more than doubled to N1.9 trillion. Profit after tax stood at N750.2 billion, reversing a loss from the prior year.

Toriola noted that the company’s improved financial health and positive retained earnings have enabled the board to declare an interim dividend of N5.00 per share.

According to the company’s financials released on Thursday, total subscribers grew by 11.0% to 85.4 million, while active data users rose 12.8% to 51.1 million, reflecting sustained demand for digital connectivity.

Service revenue jumped 57.5% to N3.7 trillion, driven by strong growth in voice, data, and  fintech operations.

Earnings before interest, tax, depreciation and amortisation (EBITDA) soared 123.0% to N1.9 trillion, with margin improving 15.1 percentage points to 51.4%.

MTN’s board approved an interim dividend of N5.00 per share, citing restored positive retained earnings of N142.7 billion and shareholders’ equity of N293.1 billion.

Dr. Toriola said the results reflect “strong operational momentum and disciplined execution,” supported by improved macroeconomic conditions and prudent financial management.

In his words:

“We are pleased to report that MTN Nigeria has restored its positive retained earnings and shareholders’ equity positions. This is a significant milestone that demonstrates strong operational momentum and disciplined execution. Supported by a more favourable macroeconomic environment and price adjustments, the outcome was driven by the delivery of our strategic and commercial initiatives, commitment to efficiency and prudent financial management.

These underpinned the continued strong topline development of our business and our ability to accelerate the investment in our network of N757.4 billion (2024: N217.6 billion), to improve quality of service in line with our commitment to our customers and the government.

“With this progress, the Board has approved an interim dividend payment, reinforcing our commitment to delivering sustainable value to our shareholders”.

• Etisalat Nigeria (2008–2017): Entered the market with strong youth-focused branding and rapid growth, peaking at over 23 million subscribers.
• 9mobile (2017–2025): Rebranded after Etisalat Group exited due to $1.2 billion debt. Struggled with declining subscriber base, infrastructure decay, and ownership instability.
• T2 (2025): A bold rebrand under Lighthouse Telecoms, signaling a digital-first transformation with ambitions to become leaner, smarter, and more customer-centric.
• In July 2025 the NCC approved a three-year national roaming agreement between MTN Nigeria and 9mobile (now T2), enabling T2 subscribers to use MTN’s network while T2 rebuilds/optimises coverage.

Will the rebrand cause market disruption?

My quick response to that is that major disruptions are unlikely, but industry observers should expect transitional friction.

Why?

The MTN-9mobile (now T2) national-roaming pact, NCC-approved, significantly reduces the risk of mass service outages for customers, because subscribers can fall back onto MTN’s nationwide footprint while T2 stabilises.

That arrangement is explicitly meant to prevent service gaps.

Also, market disruption to competitors (Airtel, MTN, Glo) will be minimal in the near term because they already operate at much larger scale; any short-term customer movements will be incremental.

However, localized service quality issues, billing glitches, or porting/branding confusion could produce customer complaints and temporary churn. T2 must address these with immediate effect.

The bottom line is that the roaming deal blunts immediate disruption, but execution risk such as network fires, customer service breakdowns can still create noise and short-term churn.

Can T2 woo back 9mobile’s lost subscribers?

This is very possible. T2 is already perceived as vibrant, and the name appears forward-thinking. However, the porting of subscribers back to Ts won’t be automatic. They need reassurance of consistency of network availability. In fact, the handlers understand they need to do a lot of ‘give-away’ (incentives).

Key considerations:

Branding alone won’t bring customers back. Subscribers left for reasons like poor coverage, dropped calls, poor data speeds, perceived instability, and billing/customer care issues.

A new name helps perception, but must be paired with tangible improvements.

Coverage and quality are the primary determinants of return. With roaming on MTN, T2 can promise better immediate coverage, that’s necessary but not sufficient.

Offers and trust-building (transparent tariffs, no-bait billing, simple retention bundles, easy SIM/number porting) will be required to persuade users to return.

Therefore, T2 can win back some subscribers, especially price-sensitive or loyalty-ready segments, but regaining meaningful scale requires sustained investment and service reliability over 6–18 months.

Key areas T2 should major on to regain investor & subscriber confidence

Actionable priorities (short → medium → long term):

• Short term (0–3 months)

Service continuity & communication: Use the MTN roaming window to guarantee coverage and proactively communicate to customers what has changed and why – FAQs, SMS alerts, customer care hours.

Transparent migration plan: Clear timelines for network restoration, SIM provisioning, and any service interruptions. Transparency reduces panic and regulatory scrutiny.

Retention offers: Immediate, generous data/voice bundles for existing customers and port-back incentives for former subscribers.

• Medium term (3–12 months)

Network investment & O&M: Recommission towers, prioritise high-traffic corridors and cities, and publish KPIs including latency, speed, dropped-call rates. Investors watch CAPEX and operational metrics.

Customer experience overhaul: Improve billing systems, complaint resolution SLAs, and digital self-service options like apps, USSD.

Partnerships: Strengthen wholesale/roaming, content, and fintech partnerships to create sticky services, bundled VAS, payments, education, OTT partnerships.

• Long term (12–36 months)

Corporate governance & transparency: Publish audited accounts, board composition, and recovery milestones. The NCC and investors favour demonstrable governance improvement.

Product differentiation: Focus on niche segments – SMEs, youth, rural connectivity, rather than trying to replicate MTN’s full stack immediately. Bring back the ‘youth vibes’ of the Etisalat days – campus storms, etc.

Sustainable business model: Prove average revenue per user (ARPU) improvement and churn reduction while controlling opex. Investors need a credible turn-around plan with milestones; subscribers need reliable service and fair pricing.

Is this a sign of recovery for the telecoms sector?

Well, partly. The rebrand and roaming pact are signals of pragmatic consolidation and collaboration, not necessarily a broad-sector boom.

The roaming deal and the rebrand indicate industry actors and the regulator are working to avoid failures and preserve consumer service, a healthy sign for systemic stability.

Why cautious?

The sector still faces structural issues such as high spectrum costs, legacy debt, CAPEX demands, and rising operating costs.

A single operator stabilising or rebranding is encouraging, but broader recovery requires improved ARPUs, investment flows, and policy stability. Let the gains of the tariff adjustments go round.

Subscribers demand or deserve improved quality of service; the government is expecting higher taxes, and the shareholders hope to smile to the banks hence the operator, often treated as the sacrificial lamb, must be protected at all costs; without them, the whole system collapses and everyone goes hungry.

The NCC’s recent corporate governance push suggests regulators are tightening standards, both a necessary improvement and a challenge for weaker players.

What role will the NCC play in T2’s survival?

NCC’s role is central. My expected actions from the NCC are in three fronts:

Facilitator of operational continuity: Approving roaming to prevent service outages (already done).

Regulatory oversight & compliance enforcement: The NCC’s corporate governance guidelines and spectrum oversight require T2 to comply on reporting, operational integrity, and consumer protection; non-compliance could lead to sanctions or loss of privileges.

Market stability measures: The regulator can encourage industry collaboration (number pooling, shared infrastructure), mediate disputes (interconnect, roaming fees), and influence the environment for investor confidence (clear rules, predictable enforcement).

NCC’s posture will likely be supportive but watchful, approving short-term measures like roaming while insisting on governance and recovery milestones.

Is the roaming arrangement with MTN working out successfully?

I think early evidence is promising but incomplete. Reports suggest operational roaming is active in many areas; other commentary suggests 9mobile (now T2) base stations were not fully active at the time the deal took effect, which would make roaming essential.

Those reports are mixed and partly anecdotal.  What matters for “success” are seamless handoffs, consistent QoS, correct billing settlement, and clear customer communication.

If MTN and T2 resolve these without frequent dropped sessions or billing errors, the arrangement will be judged successful. If customers face degraded experience or confusing charges, the reputational damage could be high.

So, the framework is the right one and reduces immediate risk, but the real test will be operational KPIs and customers’ actual experience over the next 3–6 months.

Quick risk checklist: What to watch this quarter

• Clarity (or lack) on T2’s funding plan for CAPEX and debt servicing.
• MTN’s commercial terms. If roaming is priced poorly for T2, sustainability will be strained.

Recommended immediate communications/PR points for T2

With the rebranding comes more pressure on the communications team. Publish a one-page recovery timeline with measurable milestones.

Also run an SMS/call campaign explaining roaming, what customers should expect, and a helpline for issues.

Launch a “welcome back” package for former 9mobile, sorry T2, customers. Make it simple, no-surprises bundles.

Commit to monthly public KPI updates for three quarters – coverage %, average speeds, complaints resolved – to rebuild investor trust. Make sure your (accurate) data are updated on NCC’s Industry Statistics Page.

At the end, T2’s success hinges on execution, transparency, and innovation. If it can deliver a superior digital experience, rebuild trust, and stay lean, it could become Nigeria’s most agile telecom player. But the road is steep, and the market is unforgiving.

The African telecommunications sector is dynamic and full of growth opportunities and potential new revenue streams for operators who can respond to market demands quickly.

However, their existing business support systems (BSS), which served them well when telecommunications was primarily voice and text based, is holding them back from keeping up with the digital transformation sweeping through the industry.

Rather than being an enabler, legacy systems are proving to be an anchor.

On the other hand, a modern digital BSS enables telcos of all sizes to move with more agility and to deploy new products and services quicker for increasingly discerning customers.

The problem with legacy BSS

The total cost of ownership of traditional monolithic systems is high, while maintenance complexity means operators need specialised skills which are scarce in many markets.

Beyond this, any telco will understand the inflexibility that vendor lock-in causes. In this environment, implementations or customisations can take inordinately long which is the exact opposite of being able to take advantage of opportunities quickly to attract, or retain, customers.

As we all know, the world is evolving, and so telcos need to be able to integrate with new technologies and digital services, but legacy platforms make this incredibly difficult, never mind often astronomical costs for even minor changes.

A door to the future

Shifting to a modern, digital BSS lifts the anchor holding telcos back. Modern systems come with microservices architecture, cloud-based deployment options, modular implementation capabilities – which is the antithesis of the big, inflexible monolithic legacy systems – and significantly reduced implementation costs.

All this adds up to telcos being able to adapt much quicker to market demand and evolving technology.

A cloud-native architecture enables pay-as-you-grow models. Unlike traditional platforms, smaller telcos don’t need to purchase exorbitantly expensive systems but can rather grow into them as they evolve.

This is an incredibly attractive capability for telcos operating on tight margins and battling for customers who often have more than one sim card from different operators.

Supporting this, a microservices approach allows the type of modular implementation and upgrades that are attractive to telcos wishing to drive their own competitiveness at a more palatable cost, and at a pace that suits them.

Telcos across the continent are constantly seeking to reduce costs, and one way they can do this is by shifting to a digital BSS subscription model which slashes CAPEX.

Another consideration for operators in Africa is time to value. Implementations of monolithic systems can take an inordinately long time, in many cases spanning up to two years, whereas modern digital BSS implementations can be completed within three to six months. It’s an entirely different paradigm.

Value-added services in telecommunications

One of the main reasons, besides cost and agility, that telcos are seeking more modern systems is because of the evolving telecommunications landscape. Value-added services are becoming absolutely essential to attract and retain customers.

Digital platforms with their API-first design enable ecosystem integration with fintechs, content providers and other partners.

Telcos are in a unique position where they already have a subscriber base which is purchasing products and services, and so the ability to leverage this to generate additional revenue streams is non-negotiable for telcos of the present and future.

We already understand that the ability to take new products to the market quicker is a competitive advantage. But it is more than that.

The built-in analytics and artificial intelligence (AI) capabilities of digital business support systems enables businesses to make data-driven decisions quickly. This ability to respond quickly to emerging trends is what sets apart a digitally savvy business from those still grappling with their digital transformation strategies.

It’s all about the data

There’s little point in talking about the potential of a modern BSS if the business’s data is not up to scratch because any migration of incomplete, or messy, data won’t result in the desired outcome. Data migration is, in many ways, the make-or-break factor in a successful transition to a modern BSS. Put another way, data integrity underpins the success of any technology.

Telcos seeking to take advantage of the power and agility of modern platforms must work with partners that prioritise data and have a methodical approach to ensuring its integrity.

This is because a failure in a data migration can be catastrophic and have implications across various parts of a telco’s business.

A good partner will lead a comprehensive data retrieval, go through rigorous data cleaning and precise field mapping, and then verify data transformation capabilities before carefully and methodically importing the data.

The future is bright

We are likely to see a continued acceleration of BSS modernisation across Africa, as telcos seek systems that will support IoT, 5G and other advanced services.

Much like we see in mobile money and fintechs, telcos in Africa have a real opportunity to catch up to, and even leapfrog, their counterparts in developed markets by skipping traditional, intermediate steps, precisely because of the agility and capabilities that API-led connectivity and cloud-based microservices enable.

It will pull up the anchors for good and allow telcos to sail into brave new waters.

But, it is not yet uhuru for the MTN as the capital expenditures (CAPEX), excluding leases, increased by 159.0% to N202.4 billion within the period under review.

Key highlights points:

• Total subscribers increased by 8.2% to 84.1 million
  • Added 3.2 million subscribers in Q1 2025
• Active data users rose by 13.0% to 50.3 million
  • Added 2.6 million active users in Q1 2025
• Service revenue grew by 40.5% to N1.0 trillion
• EBITDA¹ increased by 65.9% to N492.7 billion
• EBITDA¹ margin expanded by 7.2 percentage points (pp) to 46.6%
• Profit after tax of N133.7 billion (Q1 2024: negative N392.7 billion)
• Earnings per share of N6.38 kobo
• Capital expenditure (CAPEX), excluding leases, increased by 159.0% to N202.4 billion
• Positive free cash flow (FCF) of N209.9 billion

Commenting on the Q1 2025 results, Karl Toriola, the CEO of MTN Nigeria, said:  

“We are pleased with our performance in the first quarter of 2025, which reflects the continued execution of our strategic priorities and the resilience of demand for our services. Building on the momentum from Q4 2024, our Q1 results place us firmly on the path to restoring profitability and achieving a positive net asset position within the current financial year, while increasing our investments to improve network and service quality.

Challenging but improving operating conditions

Continuing, he said, “

Although macroeconomic uncertainties persist, we are encouraged by the relative stability of the naira during the period and the moderation in inflation following the rebasing of the Consumer Price Index (CPI) in January 2025. The exchange rate remained relatively stable at N1,537/US$ at the end of March 2025, while reported inflation was 24.2%.

“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%), focused on boosting capacity and improving user experience.

“We also continued to explore efficiency-enhancing opportunities through infrastructure-sharing partnerships. A key milestone was the agreement between MTN Group and Airtel Africa to collaborate on passive infrastructure in Nigeria, enabling accelerated coverage and driving network cost efficiencies”.

Solid commercial and financial momentum

While the CAPEX is still major concern, a further review of the MTN Nigeria’s Q1 results shows the commercial performance remained strong, supported by sustained investment in network capacity, solid demand, and proactive customer value management (CVM) initiatives.

In Q1, MTN added 3.2 million new subscribers, bringing its total base to 84.1 million.

He noted this while delivering a keynote presentation on ‘Bridging Skills Gap to Accelerate the Indigenous Telecoms Development’ at the just concluded second edition of the Nigerian Telecommunications Indigenous Content Expo (NTICE 2023) organised in Lagos by the Nigerian Communications Commission (NCC).

He said for the sector to continue to thrive, telecoms companies require professionals with skills in various areas such as cybersecurity, data analytics, wireless network engineering, software development, fibre optics engineering, IP networking skills, cloud computing, and VSAT engineering among others, but which are not sufficiently available at the moment.

“The current existence of the skills gaps puts a strain on telecom firms, limiting their ability to expand, innovate, improve customer services or develop new products,” Azeez said.

According to the Convener of Policy Implementation Assisted Forum (PIAFo), while the sector is growing in geometric progression, the workforce that shoulders its day-to-day operations and support is rather depleting, a development he described as a ticking time bomb.

He said: “Available data show a high global demand for tech skilled-workers particularly in the telecoms sector. This is why the situation is even scarier for a low-middle income country such as Nigeria because high-income economies that desire similar skilled labour will always have their way enticing away capable hands and talents from here.

“This is happening already,” he said, adding that in 2022 alone, operators in the sector lamented losing over 2,000 trained telecoms personnel in Nigeria to other countries.

According to Azeez, operators are finding the gaps difficult to fill as prospective applicants often lack the required knowledge and skill set to deliver, while trained workers are leaving.

“This has hampered the rate at which operators recruit. For instance, operators across the GSM, Internet Service Providers (ISPs), Value-Added Services (VAS), Fixed Services and other subsegments of the sector have only employed additional 679 workers in the last three years, which cannot serve licensees in the sector even at a one-to-one ratio.

“Whereas, the talks around 5G, edge infrastructure, internet of things (IoT) and smart city initiatives all demand more capable hands to innovate and undertake professional tasks to achieve the future aspiration of the sector.

In his address, Azeez, who doubles as Team Lead, Business Metrics Limited, highlighted causes of the current skills gap in the sector.

According to him, they include defective educational systems, inadequate training programmes, poor remunerations, japa syndrome, global high demand for tech-skilled workers, government policies, and rapid technological advancements.

He encouraged industry stakeholders to leverage the National Policy for the Promotion of Indigenous Content in the Nigerian Telecommunications Sector (NPPIC), among other local content policies to develop homegrown talents with skill capacities that are globally competitive.

“While effective collaboration is required between government, operators, and educational, research and training institutions to bridge the gaps, the process should begin with operators by putting in place training and internship programmes within their organisations to meet their immediate needs.

“Operators should also review employees’ remuneration and welfare packages to retain already groomed talents before they are enticed with better offers in foreign markets because labour follows the money. Expatriate quota requirements and succession plan should also be adhered to,” he added.

He further underscored investments in employees’ training and capacity building to maximise available talents, adding that investments in the workforce should be prioritised the same way as Capital Expenditure (CAPEX).

“It would be a gross injustice not to acknowledge young Nigerians for their ingenuity, skills and entrepreneurial spirit, but the current skills gap identified in the ICT and the telecoms sector must not be ignored and should be jointly tackled before it escalates from an operating threat to an existential one.

“Therefore, we should commit to grooming and retaining talents to attract more investments and secure the digital future of the country,” Azeez concluded.