Held at Radisson Blu Hotel, Ikeja GRA, on Wednesday, October 22, the event convened leading voices from government, telecommunications, power, and technology sectors to discuss solutions for expanding digital access to unserved and underserved communities across Nigeria.

The Summit, themed “Bridging Nigeria’s Digital Divide: Accelerating Rural Connectivity Through Collaboration,” was organised by Business Metrics in partnership with stakeholders across the industry.

Delivering the keynote address, Dr Aminu Maida, executive vice chairman of the Nigerian Communications Commission (NCC), noted that the real measure of connectivity lies in its economic impact rather than technical metrics.

“The accurate measure of connectivity is not in megabits per second, but in economic value it creates or loses,” Maida said.

He noted that despite progress since 2001, millions of Nigerians are still digitally invisible, unable to access reliable broadband, mobile, or data services that now define inclusion in the modern economy.

In his address, Engr Gbenga Adebayo, chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), drew attention to the underlying infrastructure gaps that hinder connectivity.

“80 million Nigerians do not have access to reliable electricity,” he stated, warning that without addressing energy poverty, telecom expansion will continue to face obstacles.

Adebayo further stressed that connectivity must be pursued as a people-centred mission.

“48 million Nigerians do not have access to toilets,” he said. “When we talk about inclusion, it’s not just digital; it’s about dignity.”

The President of the Association of Telecommunications Companies of Nigeria (ATCON), Tony Emoekpere, called for urgent transition from dialogue to execution.

“We need to move away from talk shops into actions,” he stated. “This Summit should not end with resolutions; it must produce measurable results.”

Speakers from across the ecosystem, including the Rural Electrification Agency (REA), highlighted ongoing collaborations with NCC to power rural telecom sites using renewable energy mini-grids. 

This partnership aims to reduce costs and improve sustainability by pairing electricity access with digital connectivity.

Dr Tola Yusuf, chief executive officer of Infratel Africa, linked infrastructure to development outcomes.

“The backbone of rural prosperity is digital connectivity, but the backbone of connectivity is the right incentive structure,” he said, calling for fiscal incentives, public-private partnerships, and community-led models.

Dr Olusola Teniola, former ATCON President and executive director at ipNX, reiterated the urgency of implementation.

“It does remain a talk shop, and I’m tired of talk shops nowadays. We need action,” he said.

The Summit’s panel sessions explored multiple dimensions of the challenge and produced several key insights:

The first panel, focused on Mainstreaming Edge Infrastructure for Accelerated Inclusion.

Moderated by Chidi Ajuzie, group COO, Western Telecoms & Engineering (WTES) Limited, panellists included Dr. Ayotunde Coker, CEO, Open Access Data Centre (OADC); Wole Abu, MD, Equinix West Africa (MainOne); Dr. Krish Ranganath, regional executive (West Africa), Africa Data Centres and Goke Juba, associate director, Fibre Operations, IHS Nigeria.

Key insights included:

• Expansion of edge data infrastructure beyond Lagos and Abuja is essential to reduce latency and improve local content delivery.
• Power, security, and connectivity must be addressed together to ensure site viability.
• Collaboration between operators and data-centre providers will drive faster deployment in rural areas.

The second session,  focused on Infrastructure Sharing & Collaboration as Key Pillars of Bridging Digital Divide, was moderated by Louisa Olaniyi, the compere. 

The panellists included Tony Emoekpere, president, Association of Telecommunications Companies of Nigeria (ATCON); Dr Tola Yusuf, co-founder, Infratel Africa; Segun Okuneye, Divisional CEO, ipNX Nigeria Limited; Onemeguke Azubuike Lucky, senior analyst, Natcom Development and Investment Limited (ntel); Olumide Idowu, group chief technology & information officer, Alphabeta LLC; John Nwachukwu, chief strategy & executive officer, Zoracom; and Dr Isa Usman, associate director, Network Operations, GICL.

Key insights included:

• Shared infrastructure remains the most cost-effective path to rural expansion.
• Spectrum access, harmonised right-of-way policies, and targeted subsidies are needed to attract investors.
• Result-based financing and community-owned networks can complement traditional operator models.

Omobayo Azeez, convener and lead of the Rural Connectivity Initiative, emphasised the need for continued movement.

“Let this gathering be remembered as the moment we all come together to move from talk to action, from plans to progress, and from intent to real impact,” he said.

The Rural Connectivity Summit will become an annual platform for dialogue, accountability, and innovation, bringing together regulators, operators, development agencies, and community leaders to drive universal connectivity and digital inclusion across Nigeria.

The investment, facilitated by the Asset Management Corporation of Nigeria (AMCON), is expected to finance ntel’s planned relaunch in the first quarter of 2026.

This development comes as ntel continues its recovery from years of financial collapse and management changes. Though AMCON has not disclosed the size or source of the latest capital injection, the agency is working to rebuild the company before transferring ownership to private investors.

AMCON, which holds a 55% controlling stake, took full management control of ntel in 2024 following the operator’s bankruptcy. Since then, it has overseen a series of interventions aimed at reviving the brand once built to replace the defunct NITEL and MTel. 

In August 2025, AMCON was reported to have injected N30.72 billion into ntel’s revival, a figure that now appears to be part of a bigger, phased plan.

Despite President Bola Tinubu’s earlier directive that ntel should be sold “even for scrap” if necessary, AMCON insists the company must first achieve operational stability to attract credible investors. “We need to put the house in order before we hand it over,” a person close to the process told reporters.

To drive the turnaround, AMCON restructured ntel’s leadership in May, appointing Soji Maurice-Diya, former chief executive officer of American Tower Nigeria, to replace Adrian Wood, the ex-MTN Nigeria boss who had earlier championed a $550 million fundraising effort. 

Under the new management, ntel is expected to operate on a hybrid model, combining its own network assets with mobile virtual network operator (MVNO) capabilities.

The company retains significant national infrastructure, including more than 3,500 kilometres of fibre-optic cable and over 600 base stations across key cities, positioning it well for both retail and wholesale telecom services.

While full operations are yet to resume, ntel has begun rebuilding its workforce. Recruitment adverts for roles such as Regional Admin Coordinator, Financial Planning Assistant Manager, and Front Desk Officer have surfaced in recent weeks, signalling internal preparations for commercial relaunch.

In the meantime, AMCON is generating revenue by leasing parts of ntel’s spectrum to MTN Nigeria, an arrangement that allows MTN to use ntel’s frequencies in select states.

If the ongoing recovery stays on course, ntel could become the first state-rescued telecom operator in Nigeria to successfully return to the market.

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.

The company is prioritising core operations in Nigeria, South Africa, and Brazil, while exiting less profitable markets through major asset sales.

The group spent $89.9 million on new tower projects in H1, a 15.8% drop from the $106.8 million invested a year earlier. The slowdown was felt across both quarters: Q1 capital expenditure fell 17.8% to $43.6 million, and Q2 slipped 13.8% to $46.3 million. 

Cuts were most pronounced in Latin America, where new site builds and fibre rollouts were scaled back, while Nigeria saw investment fall by 5.5% in Q1 and 10.4% in Q2 due to reduced maintenance, fibre deployment, and site upgrades.

This reallocation is closely tied to a deliberate reshaping of IHS’s portfolio. In December 2024, the company sold 1,672 towers in Kuwait, and in May 2025 it announced the $274.5 million sale of its Rwanda operations—including 1,465 sites—to Paradigm Tower Ventures at a valuation multiple of 8.3x adjusted EBITDA, well above the group’s average. 

These divestments are intended to streamline operations and focus on markets offering long-term tenancy agreements and stronger co-location potential.

Debt reduction has become a clear priority. Proceeds from disposals have been channelled into paying down high-interest loans in Nigeria and Brazil, cutting the net leverage ratio from 3.9x in 2024 to 3.4x in Q1 2025. Full-year capex guidance has also been revised down to $240–$270 million from $260–$290 million. 

Nigeria’s “Project Green,” launched in 2022 to cut diesel dependence through solar deployment, battery storage integration, and improved grid connectivity, has reduced upgrade requirements and is projected to generate $77 million in annual free cash flow savings by year-end.

However, the biggest operational pressure has come from tenant churn in Nigeria. MTN Nigeria, the company’s largest client, renewed 13,500 tenancies through to 2032 but opted not to extend 1,050 sites, awarding those to American Tower Corporation. 

This resulted in a net loss of 420 tenants in Q1 and 688 by Q2 on a year-on-year basis. Despite the setback, IHS Towers maintained a colocation rate of 1.52x in Nigeria—on par with emerging market norms—and has sought to backfill churned sites with other customers.

MTN’s decision shows a push to diversify its infrastructure partners and manage cost and operational risk. Its contracts with both IHS and ATC include clauses linking pricing to inflation and diesel costs, alongside mixed naira-dollar payment structures to mitigate currency volatility.

Financially, the company’s performance has been resilient. H1 revenue reached $872.9 million, with Q1 rising 5.2% year-on-year to $439.6 million on the back of 25.6% organic growth, while Q2 slipped marginally by 0.5% to $433.3 million but still beat market expectations. 

Adjusted EBITDA stood at $252.6 million in Q1 and $248.5 million in Q2, while net income rose to $30.7 million and $32.3 million, reversing losses recorded last year. Operating cash flow jumped 68.1% to $254.8 million.

Commenting on the results, Sam Darwish, CEO of IHS Towers, said: “Our improved outlook reflects what we believe are the benefits of the solid commercial progress we have made as well as our strong focus on financial discipline, which is delivering sustained improvements in our profitability and cash flow generation.”

IHS expects 5G rollouts to drive further lease amendments, new site demand, and higher colocation rates across Africa. 

With the naira recording only a 0.3% devaluation in Q2, management is optimistic that foreign exchange conditions will support its full-year revenue guidance. The challenge for H2 will be balancing reduced investment with maintaining growth momentum in its largest and most competitive markets.

The policy, already signed into law by Governor Muhammed Umar Bago and gazetted on September 2, waives the recurring RoW fees entirely. Instead, telecom operators are expected to pay a one-off, non-refundable application fee of ₦500,000—full stop. The fee applies once, whether a company is laying fibre for the first time or expanding ten years later.

Suleiman Isah, the state’s commissioner for Communications Technology and Digital Economy, stated: “Even if a company received its permit ten years ago, they are not required to pay again for expansion—just notify the state.”

That level of regulatory clarity is rare in Nigeria, and it matters.

RoW fees, which are essentially tolls states charge telecom firms for digging up roads to lay fibre cables, have slowed broadband expansion in Nigeria for years. Since 2013, there’s been talk of harmonising the charges across states to ₦145 per metre. Most states ignored it. Niger just leapfrogged that conversation.

And it’s not alone. Ten other states—including Ekiti, Nasarawa, Kaduna, and Zamfara—have taken similar steps to eliminate or reduce the fees. But Niger’s twist lies in its structure: a flat ₦500,000 once, and you’re good. That makes it more transparent and predictable for investors than the shifting sands many companies are used to.

The government says it’s laying groundwork for an expansive fibre network. There’s already a 40-kilometre metro fibre ring on the books, along with plans to deploy free public Wi-Fi in strategic locations. Those are the kind of visible infrastructure moves that make private firms take notice.

Governor Bago is betting on this policy to bring real returns: “A no-fee RoW policy will attract substantial investments from telecommunication companies, leading to expanded network coverage, especially in rural and underserved areas, and creating a favourable business environment that supports job creation and economic growth.”

That kind of optimism is shared globally. Countries like Kenya and Rwanda have seen significant leaps in internet penetration and digital inclusion after slashing infrastructure-related red tape. India did the same—scrapped localised fees, and watched fibre networks surge across semi-urban regions. Niger State is apparently trying to plug into that same logic.

Now, with over 3,681 kilometres of fibre already in the ground—making it fifth in the country—Niger isn’t starting from scratch. But this move could finally connect remote parts of the state where internet remains a luxury.

Long term? If the policy holds, we could see a domino effect: more data centres, cheaper broadband, better access to online education, and a fresh push for e-governance.

But it’ll only work if the public-private handshake stays firm. Fibre needs funding, but it also needs freedom from needless government interference.

If nothing else, Niger has thrown down the gauntlet—both to other states dragging their feet and to telecoms who’ve been looking for reasons to scale rural deployment.

This is an 87% decrease compared to the $113.42 million recorded in the second quarter, according to the latest report from the National Bureau of Statistics (NBS). Year-on-year, the sector experienced a 77% decline from the $64.05 million recorded during the same period in 2023.

This steep decline results from continued challenges in the industry, despite earlier signs of recovery. In the first quarter of 2024, the sector recorded $191.5 million in capital inflow, representing a 769% increase from the $22.05 million received in the first quarter of 2023. However, this initial revenue was not sustained, as foreign investments dropped sharply in subsequent quarters.

Telecom Sector’s $191.57m Q1 2024 FDI Growth Excites Bosun Tijani

Long-standing Issues Affecting Investments

The telecommunications sector, essential to Nigeria’s economy, has been challenged with foreign exchange instability, high operating costs, and infrastructural deficits. Industry stakeholders, including the Association of Licensed Telecommunications Companies of Nigeria (ALTON) and the Association of Telecommunications Companies of Nigeria (ATCON), have repeatedly called for government intervention to address these issues.

ALTON’s Executive Secretary, Gbolahan Awonuga, has noted the adverse effects of multiple taxation, unstable forex rates, and Right of Way (RoW) charges on the sector. He noted, “Until these issues are resolved, we are unlikely to see consistent growth in investments.”

Similarly, Engr Ikechukwu Nnamani, CEO of Digital Reality and former ATCON President, stressed the need for a stable policy environment to attract foreign investors. “Policy consistency and economic stability are key to restoring investor confidence,” he stated, adding that the fluctuating exchange rate has discouraged potential investments.

Declining Telecommunications Investments Over the Years

In 2022, the NBS reported that the telecom sector attracted $399.9 million in investments, a 47% decrease from the $753 million recorded in 2021. While the 2021 figures were a recovery from the COVID-19-induced slump in 2020, they were still lower than the $942.8 million recorded in 2019.

This decline has led to reduced capital expenditure (CAPEX) by telecom operators. In 2022, the industry’s CAPEX fell by 30% to ₦785 billion from ₦1.1 trillion in 2021. Experts warn that without significant investment in network expansion and infrastructure optimisation, the sector’s growth could stagnate.

Nonetheless, the telecommunications sector remains a cornerstone of Nigeria’s economy, highly contributing to the country’s GDP and providing essential services to millions. However, the rising inflation and the lack of adequate investment threaten its sustainability.

Stakeholders are urging the government to create a more conducive environment for business. Measures such as stabilising the forex market, reducing operational bottlenecks, and incentivising infrastructure development are seen as critical to reversing the investment decline.

The drop to $14.4 million in Q3 reveals that without sufficient capital inflow, telecom operators face severe limitations in upgrading networks and expanding connectivity, leaving millions of Nigerians underserved. If urgent measures are not taken, the consequences could extend beyond the telecom sector, affecting the broader economy.

Reversing this trend doesn’t just require policy reforms but also collaboration to create a stable, investor-friendly environment. Failure to address these systemic challenges could result in a stagnated telecom industry, hampered innovation, and diminished service quality.