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 contrast, according to Engr. Gbenga Adebayo, National Chairman of the Association of Licensed Telecom Operators of Nigeria (ALTON), reveals how far the nation has grown in connectivity, and how far it still has to go.

Speaking at Nigeria’s first Rural Connectivity Summit, organised by Business Metrics in Lagos, themed “Rethinking Digital Connectivity to Unlock Rural Economic Potential,” the Chairman of ALTON noted that while Nigeria’s telecom sector has made progress in 24 years, true digital inclusion is still out of reach for many living in rural areas.

“People are concluding transactions, doing e-services, and even talking to their doctors as we speak. This is how far we have gone as a people in 24 years,” Adebayo said, recalling how making an international phone call once required hours of waiting at public call centres in Lagos.

He described the divide between urban and rural areas as “a major departure,” pointing out that in many villages, residents still climb hills or trek to mountaintops just to get mobile network signals. For him, the question at the centre of the rural connectivity challenge is fundamental: “Who should own the local network?”

Adebayo argued that just as communities once came together to build schools, churches, and mosques, they should also be empowered to build and own their local communication infrastructure. “If the communities own those networks, they will protect them. It will be difficult for anyone to vandalise what they built,” he stated.

He criticised the frequent vandalism of telecom sites, describing how solar panels are sometimes stolen and used for leisure activities. “Today, we are seeing cases of people vandalising sites and taking the solar cells to play table tennis in the village square. That will not happen if they own those networks,” he said.

Adebayo urged government and regulators to create incentives for rural operators, including tax waivers, free rights of way, and easier access to land. Pointing to Niger State as an example, he said large-scale solar farms could thrive there if policies encouraged investment. “If you want to deploy hundreds of kilometres of solar farms, go there. The land is free,” he said.

He also proposed that Nigeria’s data centre operators should consider relocating parts of their operations to rural states where land is cheaper and more available. “In the centres where we are concentrated, we are struggling for everything, from power to water. Maybe it’s time we begin to think of taking some of these data centres offsite,” he added.

The ALTON Chairman emphasised that rural connectivity shouldn’t be limited to infrastructure, ensuring new opportunities, security, and restoring dignity are highly important. “Rural connectivity is not just about expanding network coverage, but about expanding opportunities,” Adebayo said. 

“If people have the same value and opportunities in those tier two, three, and four cities, they will have a better quality of life than the daily struggles in the urban centres.”

“Together, we can be rural connected, not just as a policy aspiration, but as a living reality in every part of the country.”

ALTON says that multiple levies, bottlenecks in right-of-way approvals, and other unfriendly state policies are slowing expansion and could widen connectivity gaps between regions.

Speaking over the weekend, ALTON Chairman, Engineer Gbenga Adebayo, said the telecom industry is finally seeing strong investment flows after years of stagnation, but not every state may benefit.

“States that create hostile conditions for telecom operations risk being left behind. Where deployment is unwelcome, investments will move to more supportive neighbouring states, and citizens of unfriendly states will inevitably suffer limited connectivity,” Adebayo said.

He stressed that operators are already under enormous pressure, paying as many as 56 different taxes and charges. According to him, relief is expected from January 2026 when the Federal Government’s tax reform bills come into effect, cutting overlapping levies across federal, state, and local tiers. “We will not continue to solicit endlessly for cooperation,” Adebayo warned.

Fresh data from the Nigerian Communications Commission (NCC) shows over $1 billion in telecom infrastructure investments poured into the country this year alone. 

That confidence was restored after the regulator allowed mobile network operators to adjust tariffs by up to 50%, reversing almost a decade of frozen pricing.

This policy change has triggered aggressive expansion as operators are rolling out new base stations, extending fibre networks, upgrading existing sites, and introducing enhanced site security to counter vandalism. 

Adebayo described the current pace of deployment as the most ambitious since before the COVID-19 pandemic.

The reforms go beyond tariffs and taxation. The inauguration of the new NCC Board, chaired by Idris Olorunimbe, has been described as a stabilising factor for the industry. 

The rebranding of 9Mobile to T2 is also seen by stakeholders as a signal of renewed investor interest and strategic repositioning.

Industry players argue that these developments place Nigeria in a better position to close broadband gaps and expand access to digital services. But without cooperation at state level, experts warn, the benefits will remain unevenly distributed.

Behind the numbers, operators continue to burn through more than 40 million litres of diesel monthly, most of it imported, to keep networks running. This reality adds to operational costs and stresses why hostile state policies only worsen the financial strain.

The NCC is already working with the Office of the National Security Adviser to create region-specific rapid response systems to protect telecom infrastructure, but Adebayo urged the public to take responsibility as well. Cases of vandalism and stolen equipment, he warned, further undermine investments and slow deployment.

For ordinary Nigerians, unfriendly state policies could mean slower broadband rollout, fewer digital jobs, and reduced access to critical online services. On the other hand, states that actively support operators stand to benefit from expanded infrastructure, stronger investor confidence, and broader digital inclusion.

“The transformation we are witnessing in our sector has not been experienced in recent years… but for this to be sustainable, all stakeholders, especially state governments, must play their part. Telecoms is not just about calls and data, it is a driver of national economic stability and growth,” Adebayo concluded.

The disruption stems from an escalating conflict between two oil workers’ unions and a major telecom infrastructure provider.

Members of the Nigerian Union of Petroleum and Natural Gas Workers (NUPENG) and the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) have blocked access to key diesel loading depots. 

This is preventing fuel distribution to telecom sites operated by IHS Towers, one of the largest providers of telecommunications infrastructure in the country.

At the heart of the dispute is an allegation of diesel misappropriation levelled by IHS against two companies affiliated with NOGASA. The issue is under investigation, yet in response, union members have halted diesel supply operations in the affected states, effectively putting a critical portion of Nigeria’s digital infrastructure at risk.

Engr. Gbenga Adebayo, chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), did not downplay the seriousness of the situation. 

In his words: “This action, reportedly stemming from allegations by IHS of diesel misappropriation against 2 member companies of NOGASA and which is being investigated by the requisite authorities, has resulted in a critical threat to the operation of some of the 16,000 telecommunications sites nationwide, servicing Mobile Network Operators.”

The telecom base stations under threat are responsible for powering mobile phone and internet services, bank transaction networks, hospital communication systems, emergency response lines, and vital national security platforms.

A failure at this scale would compromise not only public access to connectivity but also the digital backbone of Nigeria’s economy and security architecture.

It’s important to note that Nigeria’s telecom infrastructure relies heavily on diesel-powered generators, as grid electricity remains unreliable and insufficient. Some affected sites are reportedly now operating on backup reserves with little time left before complete outages begin.

ALTON stressed that while it does not mediate disputes between private companies and third-party service providers, it has a duty to protect national infrastructure.

“These sites not only power mobile and internet services for millions of Nigerians, but also support essential services such as banking transactions, hospital communications, emergency response systems, and national security operations,” Adebayo stated.

More than just a commercial conflict, the issue now carries national security and legal implications. ALTON reminded the unions and all involved parties that telecommunications assets have been designated as Critical National Information Infrastructure under Nigerian law, a classification that makes any deliberate disruption a potential offence with serious consequences.

Calling for speedy intervention, ALTON urged the leadership of NUPENG and NOGASA to reverse the blockade and allow fuel distribution to resume. The association also appealed to the Office of the National Security Adviser (ONSA), the Nigerian Communications Commission (NCC), and other authorities to step in immediately.

“We urge all parties involved to embrace constructive dialogue to resolve the matter, without further disruption to essential services. Disputes must be resolved within the framework of lawful contracts and applicable legal processes,” Adebayo added.

As we face the real possibility of a digital blackout, experts warn that any delay in restoring fuel supply could result in cascading failures across multiple sectors. 

ALTON has reiterated its focus on keeping Nigerians connected but warned that continued interference with diesel access will derail network stability and increase the economic challenges already felt across the country.

That’s the price it demands from telecom companies for laying fibre-optic cables. And in this theatre of the absurd, the state has managed to rank fourth in Nigeria for fibre coverage, with over 4,100 kilometres of cables beneath its soil—but at what cost? Ogun State charges the highest right-of-way fee in the country. For context, Gombe charges ₦500 per metre. That’s 18 times less.

We usually say Nigeria is a federation, but never has the fragmentation of policy been more visible than in the digital space. A document compiled by industry stakeholders in March 2024 reveals how states choose to treat broadband infrastructure. From Lagos to Yobe, it’s a roulette of fees, politics, and misplaced priorities.

Let’s get specific. Lagos, with its over 7,800km of fibre and reputation as the nation’s digital nucleus, charges ₦6,264 per metre. Osun, with 64km laid, somehow believes ₦6,850 is appropriate. Apparently, having little doesn’t mean charging less.

States like Sokoto, Jigawa, Kano, and Borno charge moderately, from ₦1,000 to ₦3,000 per metre. They seem to have realised what many others haven’t: infrastructure attracts investment, not the other way round.

In 2013, the National Economic Council proposed a standard right-of-way fee of ₦145 per metre to boost national fibre deployment. It sounded like progress. But like many Nigerian policies, it died in infancy—good on paper, ignored in practice. Today, most states charge whatever they please. Why? Because they can. There’s no law to stop them.

“The ₦0 right-of-way fee is based on executive order, but the ₦145 is law,” said Suleiman Isah, commissioner for Communications and Digital Economy in Niger State. “If the investment we attract in the next year or two outweighs what we made from fees, we’ll amend the law permanently.”

What Niger and a few other states are beginning to understand is that digital investment is a long game. Niger went beyond adopting the ₦145 benchmark, it took a step further—zero fee by executive order. And unlike others, they’ve committed to reviewing their law if it proves beneficial. That’s governance with foresight.

Meanwhile in Ogun…

Ogun State clearly didn’t get the memo pertaining the right-of-way fee. Or worse—it read it, laughed, and shredded it. The state charges more than nine times the NEC recommendation. One wonders if the goal is to build digital infrastructure or to bleed telecom operators dry. 

Ironically, despite laying thousands of kilometres of fibre, broadband reach is still abysmally uneven. Only 39% of Nigerians live within five kilometres of fibre networks, according to recent data. The rest? Digitally stranded.

The problem is bigger than just fees. Gbenga Adebayo, President of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), said:

“The era of state governments charging Right-of-Way fees should be over. When states impose these fees, they lose out on the broader benefits of digital infrastructure. Instead of charging right-of-way fees, states should require telecom operators to deliver social impact projects.”

Some states, even after “waiving” fees, sneak in new levies—education taxes, highway fees, building permits. They give with one hand and snatch with the other. What Does Progress Look Like?

Progress isn’t only about kilometres of cable. It’s about who benefits, how far the access spreads, and whether the investment environment makes sense. Delta, Enugu, Ebonyi, and the FCT have embraced the ₦145 model. 

Other states like Anambra and Benue have gone fee-free altogether to stimulate investment beyond the major cities.

In Anambra, fibre isn’t just concentrated in Onitsha and Nnewi anymore. The goal, officials say, is statewide coverage.

“If telcos judged every investment strictly by profit, only commercial zones would get infrastructure,” said Chukwuemeka Fred Akpata, MD of Anambra ICT Agency. “By waiving right-of-way, we’re encouraging deployment in underserved areas.”

Now compare that to Ogun, where the right-of-way fee is mouth-opening. The State charges the highest and still hasn’t cracked equitable access. Maybe it’s time we stopped applauding infrastructure by kilometre count alone.

Numbers Don’t Lie, But They Do Mock

Nigeria’s broadband penetration stood at 45.61% as of January 2025. That’s promising—but it’s not enough. The GSM Association estimates that standardising right-of-way fees to ₦145 per metre across Nigeria could slash broadband rollout expenses by 15%. That’s not chump change. That’s money that could build infrastructure, hire engineers, reach the rural poor.

Instead, we’re stuck in a loop of states milking telecoms dry while claiming to support digital development. Some are waking up to the bigger picture. Others are doubling down on short-term revenue.

If we truly want to become a digital economy, we have to stop pretending that fees are policy. The path to progress isn’t paved with toll booths. It’s built on access, equity, and smart governance. And right now, only a few Nigerian states seem to understand that.

Until there’s a uniform, enforceable policy, Nigeria’s digital growth will remain a postcode lottery, fast in one state, frozen in the next.

The core reason is that Nigeria’s telecom sector, while heavily reliant on imported infrastructure, is not an exporter of goods but rather, an importer of equipment from countries like China, the U.S., and parts of Europe.

Tony Emoekpere, president of the Association of Telecommunication Companies of Nigeria (ATCON), said, “It won’t affect the industry much because the operators import everything they use directly. They don’t export.” 

There is actually more at play than just the tariff’s direct impact. Emoekpere pointed out that the sector’s vulnerability lies in the national economic dynamics, specifically those affecting foreign exchange and inflation.

The recent 50% increase in telecom service tariffs, a decision made to counteract the high costs of operations, directly connects to the overall economic climate. 

Inflation, alongside a weakened naira, has placed huge pressure on telecom operators, pushing them to make difficult pricing adjustments. 

This price hike aims to stabilise operations while promoting investments in infrastructure—something that could be compromised if the U.S. tariff negatively impacts the country’s larger economic space. 

Gbenga Adebayo, president of the Association of Licensed Telecommunication Operators of Nigeria (ALTON), stresses a particular issue: “There is no hardware that we export, but there might be issues with charging international calls by local operators. If the VAT on calls in the US increases, local operators will need to adjust to the rates.”

Even with the tariff not directly targeting the telecom sector, Nigeria’s non-oil exports, which include agricultural products and industrial raw materials, are now facing a more challenging global market. 

This, in turn, could shrink foreign exchange earnings, further depreciating the naira and fuelling inflation. The result could be a tougher environment for telecom operators who depend on the importation of equipment priced in foreign currencies.

The U.S. tariff’s impact on Nigeria’s exports could cost the country as much as $814.8 million annually, according to estimates. While Nigeria’s foreign exchange reserves have recently climbed to $23.11 billion, the highest in three years, these reserves remain vulnerable to external shocks. 

With telecom operators fighting with rising import costs, this buffer might not be enough to shield them from the compounded effects of inflation, energy costs, and currency depreciation.

Adding to the issue, many Nigerians are venting discontent over the 50% tariff hike. Labour unions, including the Nigeria Labour Congress (NLC), have threatened industrial action, accusing telecom operators of taking advantage of the economic crisis. 

The public’s annoyance comes not just from the high costs but also from ongoing issues with poor network quality despite operators’ claims of improved service.

The government’s response to these external pressures is important. Though the U.S. tariff appears to have little direct impact on the telecom sector, the cascading effects on foreign exchange and inflation may present a different story. 

There’s a sense of cautious positiveness within the industry, with some hoping the government will negotiate with the U.S. to ease the stress on Nigerian exporters and, by extension, telecom operators. This could involve forging new trade agreements or diversifying markets for Nigerian goods.

However, even as the industry walks through these external trade dynamics, the challenges within Nigeria’s telecom sector are a lot. Poor service delivery, limited infrastructure development, and an increasingly price-sensitive market all contribute to the difficulties operators face in balancing profitability with customer satisfaction. 

Gbenga Adebayo says, “If the VAT on calls in the US increases, local operators will need to adjust to the rates”—reiterating the challenges in global trade dynamics that could ultimately affect Nigerians on the ground.

In this environment, telecom operators will need to tread carefully, managing their costs while striving to meet customer expectations. With consumers already on edge due to the tariff hike, any further economic turbulence could push the sector closer to a tipping point.

They argued that before CNII can have a real impact, internal operational issues, standardisation challenges, and industry-wide inefficiencies must first be addressed by telecom operators.

Gbenga Adebayo, chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), noted the broad challenges such as infrastructure vandalism, unauthorised installations, and cable theft.

He pointed to poor maintenance as a key factor enabling theft and vandalism. “When properly installed, these components are difficult to remove. However, due to negligence, they are often left unsecured, making them easy targets for theft,” he said.

Beyond vandalism, Adebayo noted that community resistance to telecom projects has slowed progress. He recalled an incident where “A diesel supplier was blocked from entering an estate because a previous contractor had damaged their property and failed to make repairs. This lack of accountability breeds distrust and delays crucial projects.”

To prevent such conflicts, he urged stakeholders to promote better relationships with local communities.

Adebayo also identified the unauthorised installation of telecom infrastructure without government approval as a major issue. He explained, “Government agencies often damage unregistered infrastructure simply because they were not documented in official records. Proper approvals and collaboration with authorities will ensure accountability and protection of critical infrastructure.”

He called for improved coordination within the industry, stressing that operators must resolve internal challenges before relying on external protections promised by CNII provisions.

Tony Emoekpere, president of the Association of Telecommunications Companies of Nigeria (ATCON), emphasised that Nigeria’s infrastructure challenges go beyond technical issues, extending into environmental and moral concerns.

“We are dealing with a moral challenge. An engineer who switched from diesel to gas generators encountered a new problem—workers began stealing engine oil instead, as they could no longer siphon diesel. These issues require both technical and ethical solutions,” he said.

He stressed that the lack of proper standardisation weakens infrastructure sustainability. “If infrastructure is deployed in a suboptimal manner, failure is inevitable. We need to establish proper standards that all stakeholders—government, private sector, and the public—can align with,” he stated.

Emoekpere also noted that while Nigeria has strong policies, such as local content policies, implementation remains a major challenge. “We must move beyond discussions and focus on actionable steps, follow-ups, and policy enforcement,” he added.

Wale Owoeye, CEO of Cedarview Communications Limited, spoke about the frequent cable theft, which disrupts network operations and increases maintenance costs.

“Cable theft is a serious issue. Airtel representatives told me they experience a cable cut every six minutes. The assumption that all black cables contain valuable copper leads to reckless vandalism,” he explained.

To tackle this, Owoeye proposed three key approaches:

1. Community Reorientation – “We need to engage local communities in their native languages, educating them on the consequences of vandalism.”
2. Stricter Enforcement – “Strict legal penalties, including long-term imprisonment, should be enforced to deter offenders.”
3. Proactive Prevention – “Prevention is always more effective and cost-efficient than restoration.”

As a necessary measure, he suggested creating a dedicated fund to support advocacy and awareness campaigns across Nigeria.

In this regard, he pledged to contribute ₦500,000 quarterly as a seed fund and encouraged other industry players to follow suit. “This is like planting a seed. With collective effort, we can grow it into a sustainable solution for protecting Nigeria’s telecom infrastructure,” he said.

The speakers collectively emphasised that addressing these challenges requires collaboration among industry players, government agencies, and local communities.

They called for a concerted effort to enforce policies, engage stakeholders, and implement practical solutions that will ensure the long-term sustainability of Nigeria’s telecommunications infrastructure.

With Nigeria’s broadband penetration currently at 44%, the government is pushing to raise it to 70% by 2025, while also increasing investments in broadband infrastructure by up to 500% by 2027.

This initiative is expected to improve connectivity in key sectors, including education, healthcare, religious institutions, and markets. The NCC has selected eight states—Edo, Ogun, Kwara, Katsina, Imo, Abia, Borno, and Nasarawa—for the pilot phase, with plans to expand coverage nationwide.

At the launch event in Lagos, NCC Executive Vice Chairman Aminu Maida, representing Bosun Tijani, minister of Communications, Innovation and the Digital Economy, noted the importance of collaboration in achieving these goals. “Achieving these goals will require more than just the efforts of the private sector. It will require a holistic approach that includes strategic partnerships with donors, investors, and other key stakeholders in accelerating the rollout of critical infrastructure,” he said.

Regarding the NCC’s recent approval of a 50% tariff increase for telecom operators, provided they improve service quality within three months of implementation, operators are still challenged with multiple taxation, vandalism of infrastructure, and security issues. 

Gbenga Adebayo, president of the Association of Licenced Telecommunication Operators of Nigeria, said, “Tariff increase is not all the problem that the industry faces.” He explained that while the increase would help operators recover some revenue losses, it does not resolve the fundamental issues affecting the sector.

MTN and 9mobile Enter Roaming Partnership

The NCC has also approved a network-sharing agreement between MTN Nigeria and 9mobile. Under this arrangement, 9mobile will utilise MTN’s nationwide infrastructure to enhance its coverage, allowing its subscribers to access calls, messages, and data services in previously unreachable areas.

For MTN, the agreement offers financial benefits and additional spectrum access, particularly in the 900 MHz, 1800 MHz, and 2100 MHz frequency bands.

Nigeria’s Broadband Expansion Lags Behind Regional Peers

Even with these new initiatives, Nigeria still lags behind countries like South Africa and Egypt in broadband penetration. 

As of January 2025, South Africa reported 74.7% penetration, while Egypt stood at 72.2%. Additionally, Nigeria’s 4G coverage remains at 47%, and 5G adoption is still low at just 2.4%, two years after its rollout.

To accelerate progress, the NBAN initiative aims to simplify regulatory processes, incentivise private-sector investment, and promote broadband adoption nationwide. If successfully implemented, these measures could make Nigeria’s digital economy way better.

This decision concludes over a decade of appeals from telecom operators, including MTN Nigeria, Airtel, and 9Mobile, who have sought price adjustments to align with economic conditions.

For more than eleven years, these operators have faced high operational expenses due to inflation but were unable to adjust their pricing structures accordingly. 

The NCC has now acknowledged these challenges, with a representative stating that the forthcoming announcement will consider input from both stakeholders and the public, aiming to benefit subscribers and operators.

The proposed adjustments include a potential 40% increase in telecom tariffs. If implemented, the cost of a phone call may rise from ₦11 to ₦15.40 per minute, SMS charges from ₦4 to ₦5.60, and a 1GB data bundle from ₦1,000 to at least ₦1,400. 

The NCC, responsible for reviewing and approving tariff changes in the telecommunications sector, aims to balance the financial impact on consumers while addressing the operational challenges faced by service providers. 

In October 2024, the commission denied Starlink’s request to double its subscription fees to ₦75,000, ascertaining its focus on protecting consumer interests.

The anticipated tariff increase has brought up the issue of the possible effect on internet usage, especially given the country’s focus on digital inclusion. 

Rising food inflation, currently at 39.93%, adds to these apprehensions. Nonetheless, telecom companies have reported high financial losses attributed to the prolonged period without price adjustments. 

MTN Nigeria reported a ₦137 billion loss in 2023, which expanded to ₦514.9 billion in the first nine months of 2024. Similarly, Airtel Africa reported losses of $89 million in the 2024 fiscal year, primarily due to challenges in Nigeria.

Gbenga Adebayo, president of the Association of Licensed Telecommunication Operators of Nigeria (ALTON), argues that implementing cost-reflective pricing will encourage investment and enhance service quality over time. 

In addition to tariff adjustments, the NCC is introducing reforms to improve tariff transparency and combat fraud in the Application-to-Person (A2P) messaging sector, inviting collaboration to enhance Nigeria’s telecommunications sector. 

Again, the NCC plans to simplify mobile network operators’ tariff plans from the current 369 to seven, aiming to simplify choices for consumers and ensure better understanding and monitoring of services. 

These developments occur amid a decline in foreign investments in Nigeria’s telecommunications sector, which dropped by 87% in the third quarter of 2024. 

The Federal Government has announced plans to co-invest in expanding telecom infrastructure to reduce connectivity gaps nationwide, aiming to reverse this trend and address industry challenges. 

Dr Bosun Tijani, minister of Communications, Innovation and Digital Economy, supports these adjustments, acknowledging their necessity in a recent interview.

With the NCC approving the new telecom tariffs and the regime approaching, stakeholders and consumers are advised to stay informed about the forthcoming changes and their possible impacts on telecommunications services in Nigeria.

The satellite internet provider recently increased its monthly fees by 97%, raising costs from ₦38,000 to ₦75,000. This move has drawn objections from industry stakeholders, who argue that Starlink’s actions undermine regulatory authority.

Gbenga Adebayo, Chairman of ALTON, stressed the importance of compliance with regulatory standards. “Our telecommunications sector is highly regulated for a reason, and no operator should bypass these rules. Starlink’s price increase is not just a breach of the NCC’s regulatory framework but a clear disregard for the authority of the Commission,” Adebayo stated.

The NCC had earlier shown disapproval, noting that the price adjustment violated sections of the Nigerian Communications Act, 2003, which requires operators to seek regulatory approval for tariff changes. 

While the Commission initially threatened sanctions against Starlink, it later withdrew its statement, attributing the earlier announcement to an error, leaving the sector uncertain about further enforcement action.

Local operators, including MTN, Airtel, and Globacom, have also been seeking tariff reviews to cope with rising operational costs, but their requests have faced delays. ALTON Chairman pointed out the disparity in treatment, accusing the NCC of applying double standards by allowing Starlink to raise its prices while holding back local companies from making similar adjustments. 

As the third-largest internet service provider in Nigeria, Starlink’s price hike has led to arguments about the impact on affordability and access to internet services. The situation has drawn attention to the challenges facing the telecom industry, where inflation and rising costs continue to pressure both local and international operators.

Even with the regulatory confusion, industry groups like ALTON remain focused on finding solutions. “We will continue to engage stakeholders and push for a balanced resolution. The sustainability of the telecom sector depends on fair regulatory practices and the ability to adjust prices to reflect economic realities,” Adebayo said.

The need for clarity and consistency in regulatory oversight is of huge importance, as local and international operators scale through Nigeria’s challenging economic environment.