The operators, under the Association of Licensed Telecommunications Operators of Nigeria (ALTON), said much of the money currently funding network expansion and infrastructure development comes from domestic financing, reinvested earnings and other funding channels that are not fully captured by the National Bureau of Statistics’ capital importation framework.

The reaction follows the release of the NBS Capital Importation Report for the first quarter of 2026, which showed that foreign capital inflows into telecommunications dropped from $80.78 million a year earlier to $7.24 million.

According to the report, telecoms accounted for just 0.07% of the $10.37 billion that entered the Nigerian economy during the quarter.

ALTON said the figure presents only part of the investment picture.

“…this metric appears to capture only a portion of the total capital actively deployed within the sector.

“Our industry’s substantial Capital Expenditure (CAPEX) figures suggest that current investment derives from domestic capital sources, reinvested operational earnings – financial mechanisms that may not be fully reflected in conventional foreign capital importation metrics,” the association said.

The group noted that mobile network operators, tower companies and other telecom firms invested about N2.13 trillion in capital projects in 2025. It added that planned capital expenditure for 2026 currently stands at N1.86 trillion.

According to ALTON, the funds are being directed towards network expansion, infrastructure upgrades, technology improvements and measures aimed at strengthening operational resilience.

The association argued that the wide gap between reported foreign inflows and actual spending within the industry points to shortcomings in the current method used to track investments.

To address this, it called for collaboration between the Nigerian Communications Commission (NCC), the National Bureau of Statistics and the Central Bank of Nigeria to develop a comprehensive framework for measuring investment in the telecom sector.

“To ensure Nigeria’s telecommunications sector investment profile is accurately represented, ALTON respectfully proposes a collaborative engagement among the Nigerian Communications Commission, the National Bureau of Statistics, and the Central Bank of Nigeria to develop a more inclusive and comprehensive investment-tracking framework,” the association stated.

Despite pressure from inflation, high costs of operations and foreign exchange challenges, ALTON said operators have always invested heavily to maintain service quality and expand connectivity across the country.

The association also credited the Federal Government’s approval of a 50% tariff increase in 2025 with improving operators’ ability to reinvest in their networks.

“The timely intervention enabled operators to transition from financial distress to a sustainable, growth-focused model characterised by significant capital reinvestment,” it said.

While telecom operators questioned the reported investment figure, the NBS data showed that foreign investors significantly increased their exposure to Nigeria during the quarter.

Total capital importation rose to $10.37 billion in Q1 2026, representing an 83.8% increase from $5.64 billion recorded in the same period last year. Compared with the previous quarter, inflows climbed by nearly 61%.

However, most of the money flowed into short-term financial assets rather than long-term productive investments.

Portfolio investments accounted for $9.86 billion, or about 95% of total inflows, while foreign direct investment stood at just $135 million. Other investments, including loans and trade credits, contributed $374.5 million.

The banking sector attracted the largest share of foreign capital, receiving $7.55 billion, followed by the financing sector with $2.43 billion. Manufacturing drew $152.3 million, while telecommunications received $7.24 million.

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.

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.

By harnessing machine learning, natural language processing, and real-time data analytics, telecom companies are collaborating with cloud communication platforms, evolving from traditional service providers into tech-driven innovators—often referred to as “techcos.”

This shift opens up new revenue streams, positioning telecom operators as key players in the digital economy.

AI enhances customer experience

At the forefront of AI’s influence is the way it improves customer interactions. By analysing vast amounts of data, AI personalises engagements through tailored recommendations and promotions, predicts maintenance needs such as customer interactions and feedback to identify trends or potential issues, and proactively manages services.

AI-powered virtual assistants and chatbots offer customers quicker resolutions and a more reliable service, provide 24/7 support, and improve customer satisfaction and loyalty.

Optimising network operations

AI-driven network solutions are reducing congestion and enhancing operational efficiency. Advanced AI algorithms monitor large volumes of real-time network data, enabling telcos to identify potential issues, predict failures, and optimise traffic flow.

For example, AI can automatically adjust network settings to redirect traffic during periods of congestion or equipment failure, minimising disruptions. AI-driven network optimisation extends to energy management as well, where it adjusts power consumption based on predicted peak usage times, contributing to more sustainable operations.

Driving innovation

AI is also driving innovation within telecoms, fostering new services and business models. With the integration of AI and 5G networks, telcos are expanding into industries like healthcare, agriculture, and logistics, offering smart IoT applications that manage resources in sectors such as smart cities and energy grids.

This creates opportunities for telcos to venture into new markets and provide cutting-edge services, like smart home solutions and AI-based IoT integrations that meet the evolving demands of the digital economy.

Improving decision-making

AI’s ability to process and analyse customer data in real time enables telcos to make informed strategic decisions.

The data-driven insights from AI allow operators to anticipate customer needs and market trends.

With 65% of customers reporting higher satisfaction from AI-powered interactions, telcos can create more engaging and predictive CX journeys, resulting in increased Average Revenue Per User (ARPU) through smarter upselling and cross-selling initiatives.

Addressing key challenges

AI is also instrumental in solving some of the persistent challenges faced by Mobile Network Operators (MNOs):

• Network Congestion: AI predicts and manages traffic patterns, dynamically adjusting resources to prevent congestion and ensure efficient network performance.
• Competition: Predictive analytics help MNOs understand market trends and customer preferences, enabling them to offer personalised services that stay ahead of competitors.
• Churn: By analysing customer behaviour, AI identifies potential churn risks, allowing operators to implement targeted promotions and improve customer support, thereby retaining customers.
• Fraud: AI’s sophisticated algorithms detect and prevent fraudulent activities in real time, protecting the network and its users. AI’s fraud detection is already highly successful, with over 90% of companies reporting real-time fraud prevention.
• Sustainability: AI contributes to sustainable practices by optimising energy use in network operations, adjusting power consumption based on anticipated peak usage times.

Monetising AI in telecommunications

The integration of AI presents a wealth of monetisation opportunities for telecommunications companies.

AI-driven services such as advanced analytics, network management tools, and personalised customer experiences not only attract new customers but also enhance retention among existing users.

Internally, AI-powered tools streamline processes, reduce operational costs, boost efficiency, and drive profitability.

For instance, conversational AI chatbots automate routine enquiries, such as balance checks, top-ups, and FAQs, significantly lowering customer service costs.

These tools handle high volumes of interactions simultaneously, ensuring faster response times and freeing agents to address complex issues.

Predictive AI analytics further drive revenue by enabling precise upselling and cross-selling opportunities, such as recommending data plan upgrades to customers approaching their limits.

Telecom leaders around the world have harnessed AI through Communication Platforms as a Service (CPaaS) solutions.

These innovations allow customers to perform actions like bill payments, subscription management, and support queries via messaging platforms like WhatsApp and RCS, simplifying customer interactions and driving engagement.

Notably, McKinsey’s research highlights the financial advantages of AI adoption, with AI-leading companies achieving a five-year revenue CAGR 2.1 times higher than their peers and delivering a total return to shareholders 2.5 times greater.

This underscores the transformative potential of AI for telcos striving to remain competitive and profitable.

Preparing for AI integration

Before integrating AI, MNOs need to carefully consider several critical factors:

1. Data Privacy and Security: Compliance with data protection regulations is essential, ensuring customer data is handled securely.
2. Technical Expertise: Telecom companies need to either build or acquire expertise in AI and data science to manage AI integration effectively.
3. Infrastructure Compatibility: Assessing and upgrading existing infrastructure is crucial to support AI technologies.
4. Change Management: As AI becomes integral to operations, staff training, process adaptation, and alignment of business strategies with AI capabilities are necessary.

Overcoming barriers to AI adoption

Despite the benefits, several factors hold back some MNOs from adopting AI. The investment required for AI technology, including infrastructure upgrades and skilled personnel, can be prohibitive due to high initial costs.

Integrating AI into existing systems and processes presents complex implementation challenges. Managing the vast amounts of data generated by telecom networks, particularly with legacy systems, can be daunting.

Additionally, navigating the regulatory landscape concerning data privacy and AI ethics adds to the complexity.

Organisational inertia and resistance to change further slow-down the adoption of new technologies.

By addressing these challenges, telecom operators can effectively leverage AI to transform their operations, enhance customer experiences, and unlock new revenue opportunities while boosting efficiency and fostering customer loyalty.

The future of telecommunications is undeniably intertwined with AI, promising a more efficient, innovative, and customer-centric industry.

Threats facing mobile operator networks:

1. Voice fraud
2. SMS misuse and attacks
3. Signaling security risks (SS7)
4. 5G legacy and its vulnerabilities
5. Network slicing security flaws
6. 5G IoT security vulnerabilities

Mobile internet use has reached 55% of the world’s population, according to the Global System for Mobile Communications Association (GSMA), and by the end of 2021, 4.3 billion people were using mobile internet.

Across the world, mobile internet users are increasingly dependent on their mobile phones for a range of business and personal activities. Unfortunately, mobile network threats come with this territory.

Mobile usage has attracted unwanted attention from criminals who try to disrupt communication services or change, destroy, or steal data.

These cybercriminals usually exploit device or network vulnerabilities to penetrate networks. Subscribers and regulatory bodies demand high-quality service (QoS) from their mobile providers, including a stable and secure network connectivity service.  

In this fast-paced environment, it’s increasingly challenging for mobile network operators to provide the best protection to subscribers.

This article outlines some of the most common mobile network threats and what chief security officers and their teams can do to prevent them. 

1. Voice Threats

With the total number of voice-over-5G users predicted to grow to 2.5 billion by 2026, it is anticipated that voice fraud will also rise. Such fraud attacks could include vishing (voice phishing), number spoofing, Wangiri fraud, and SIM Box fraud.

The existence of the iSpoof website is a good indicator as to how voice fraud has been developing. Before its takedown in November 2022, the malicious website sold bad actors the tools to commit voice fraud.

The ‘products’ sold on the iSpoof platform included pre-built vishing scripts – phishing attacks-as-a-service, and the ability to manipulate Calling Line Identity (CLI), enabling attackers to spoof numbers. The availability of these ready-made tools at the convenience of attackers is a testament to how widespread voice fraud has become.

Operators also face threats to their revenues with flash calls being utilized for authentication services. As flash calls incur no call charge, and in many cases can replace methods like A2P SMS authentication, operators’ revenues may suffer. 

In light of these developments in voice fraud, operators should invest in a voice firewall to address the growing challenge of protecting subscribers. Proactively taking steps to tackle voice fraud attacks will be critical for operators going forward, to maintain brand reputation and protect revenues.   

2. SMS Misuse and Attacks

There is a huge range of SMS attacks and other forms of misuse on networks. Many misuses will continue to exist, because the protocols and interfaces that enable SMS in 5G remain the same. The following are some of the 5G SMS misuses mobile networks must deal with:

• Unsolicited SMS messaging
• SMS phishing (or smishing)
• Premium SMS fraud
• Mobile Malware Propogation via SMS
• Surveillance and information retrieval via SMS
• Denial of Service
• SMS interception
• Grey routes
• New 5G attack vectors

As explained in the Messaging for the Future: Securing SMS in 5G white paper, as SMS messages traverse different protocols and generations, a holistic security approach needs to start by mapping out potential entry points and security zones for individual networks.

Then, the vulnerabilities of these entry points should be validated to see if and how those entry points can be exploited. This will enable operators to evaluate ways of detecting attackers, filtering out malicious messages and stopping signaling attacks.  

3. Signaling Security Risks

Signaling networks using protocols such as SS7, Diameter, and GTP-C are under threat from adversaries and fraudsters, who exploit loopholes in the protocols across the global interconnect.

This enables attackers to breach subscriber privacy, deny access to key services, and defraud mobile operators. Since the war in Ukraine began, Enea has uncovered evidence of state-sponsored attacks on mobile networks. 

Mobile operators urgently need to implement an effective signaling firewall and employ threat intelligence to ensure ongoing trust in their networks. If steps aren’t taken to secure signaling infrastructure, attacker’s will find vulnerabilities to exploit, and operators risk their brand reputation, customers, partners, and revenues.  

MNOs must select the right signalling firewall vendor to secure their networks. Operators should look for a combination of a carrier-grade signaling firewall, advanced reporting, and global threat intelligence.

The solution must go well beyond just blocking current attacks on the network. It should have capabilities to react to emerging threats, which seek to bypass standard SS7, Diameter, and GTP-C firewalls.

4. 5G Network Legacy and New Vulnerabilities

The GSMA reported that 5G networks have been deployed in more than 70 countries by nearly 200 operators, covering almost one-third of the world’s population. It is predicted that by 2025, there will be 2 billion 5G connections globally. 5G network security is more complex than previous mobile technologies, as networks have become more virtualized, disaggregated, and cloudified, making them more vulnerable to intrusions. 

5G architecture comes with significant vulnerabilities, which, if left unaddressed, could be exploited by cybercriminals.

The fundamental vulnerability enables three main attack scenarios: user data extraction (e.g., location tracking), denial of service against another network function, and access to a network function and related services of another vertical partner from network slicing. 

When it comes to securing 5G networks, trust shouldn’t lead your security strategy. Operators have to be able to constantly and proactively monitor activity, discover and block threats, and most of all they need to react fast to any intrusion.

5. Network Slicing Security Flaws

Network slicing involves the virtual partitioning of the RAN and core to create ‘slices’ of the network that can be tailored to specific use cases. Our research shows that 5G network slicing contains some major security flaws that could enable attacks such as Denial of Service (DoS), location tracking, as well as fraud / data leakage. 

Notably, DoS attacks could be more damaging in a 5G environment, as we see more 5G use cases with enterprise partners. Many mobile network operators now count governments among their customers, and attacks could reach parts of critical national infrastructure, such as energy, health, transportation, public services, and manufacturing.  

To prevent potential DoS attacks within 5G network slicing, we recommend using an enhanced filtering and validation approach that combines information from different layers and protocols and integrates external threat information.

This filtering and validation approach divides the network into security zones and safeguards the 5G core network. Cross-correlation of attack information between those security network functions maximizes 5G network protection against sophisticated attackers and allows better mitigations and faster detection while minimizing false alarms.

Standardization is important, but waiting for standardization to improve security might not always be a timely solution, as we can see from the timeline of the 3GPP Release 17 Code freeze in 2022. 

6. IoT Security in 5G

Because of the Internet of Things (IoT), there will be a greater number of devices connecting to the 5G networks and high-value critical devices like cars. This means that security methods designed for mobile phone devices are no longer a suitable approach.

To deal with the IoT security risks and other risks that may arise for 5G networks; we make three recommendations:

• The first recommendation is that mobile operators correlate and pool all the security information they have from the old mobile networks and the new 5G mobile network. This will give mobile operators a complete picture and improve security on all levels.
• The second recommendation is that mobile operators focus on intelligence and analyze what is happening on their new networks to understand the nature of attacks, build defenses to stop them, and give users confidence that future attacks will be blocked
• The final recommendation is that mobile operators adopt a security mindset with the 5G network as this network will not only be a piece of national critical infrastructure but also connect other critical infrastructure like transport, water, and electricity.

To protect this infrastructure, it will not be sufficient for mobile operators to implement specifications. They will need to maintain, monitor, and update these systems to block network attacks. This may require a change in the network mindset for many operators.  

Conclusion

This is not an exhaustive list of all the risks that MNOs face. Other threats include vulnerabilities associated with open-source software development, supply chain vulnerabilities, third-party cloud services, or simply exposure to human error. 

As 5G networks are fully deployed in every aspect of our economies, we believe risks will increase at different layers, from vertical industry to the massive use of IoT and core network-related 5G security issues. Mobile networks are now part of the strategic infrastructure with ramifications for every economic sector. This is why regulators increasingly require mobile networks to be more proactive against threats. 

MNOs should be able to anticipate threats to their networks, so they can provide a safe and secure connectivity environment for their consumers, enterprise, and government customers. Competing on price and speed is a race to the bottom and a losing strategy, given that MNOs must continue investing in infrastructure, new technologies, and better customer service.

Thus, security is becoming a cornerstone of MNOs’ strategy and differentiation from other MNOs. 

By implementing the right defenses and keeping up to date with the global threat landscape through a threat intelligence system, chief security officers, directors of engineering, and their teams can ensure the network is always safe and reduce the potential for economic losses and reputation damage.

The result will be a boost in net promoter scores and a formidable marketing tool for the MNOs. Speak to one of Enea AdaptiveMobile Security’s specialists to learn how we can help you enhance your network security.

About the writer

Caitríona Grant is a recent graduate of the National University of Ireland, Galway, where she completed a bachelor’s degree in global commerce. As part of her degree, Caitriona studied abroad in Canada and worked as a marketing intern back in Ireland. Over the course of her studies, she developed a passion for both marketing and cybersecurity, specialising in marketing in her final year. Caitriona is now working as a marketing assistant at AdaptiveMobile Security, a role that marries both of her passions.

[NB: This post was first published on Enea‘s platform]