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.

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

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

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

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

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

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

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

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

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

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

Many users often interpret those issues as abnormal data depletion.

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

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

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

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

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

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

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

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

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

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

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

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

The 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.

• Driven by premium devices from OEMs such as Apple, Samsung, Google and Huawei, satellite connectivity will reach 46% of the smartphones shipped globally in 2030.
• Proprietary solutions will drive the market in the near term as 3GPP NTN faces challenges around ecosystem readiness.
• The lack of killer use cases is limiting the growth of the 3GPP Release 17-based satellite smartphone market. Release 19 will likely enable broader mid-tier adoption.
• North America leads in global adoption, driven by early investment from telecom operators, satellite operators and smartphone OEMs.
• Qualcomm leads among satellite Android chipset vendors, while MediaTek, Samsung, Google and HiSilicon are increasing competition and accelerating mass adoption.              

Satellite connectivity in smartphones is entering a critical growth phase, with NTN-capable devices projected to account for 46% of global smartphone shipments by 2030, according to Counterpoint Research’s latest Smartphone Satellite Connection Report. 

Proprietary solutions will drive the market in the near term as 3GPP NTN faces challenges around chipset readiness, operator certification and service maturity.

Apple was the first mainstream smartphone brand to offer satellite connectivity by partnering with Globalstar for the iPhone 14 in 2022.

The recent acquisition of Globalstar by Amazon provides immediate scale and opens up a new revenue stream for Amazon around connectivity-as-a-service.

Huawei was the second player to bring satellite connectivity to smartphones in 2023, and now more than 10 brands are offering it in smartphones.

Commenting on the smartphone OEM dynamics, Soumen Mandal, principal analyst said,

“Apple remains the leading smartphone OEM in terms of NTN-capable smartphone shipments, while Samsung leads the Android ecosystem. Similar to Apple, Huawei and Google follow the proprietary NTN approach. Other Android players, including Samsung, Xiaomi, OPPO, HONOR and vivo, have aligned with 3GPP NTN to enable broader scalability and interoperability.”

The satellite smartphone market is mostly driven by the premium segment, but the lack of killer use cases is limiting mass adoption. 3GPP Release 17-based use cases are limited to SOS and messaging. While 3GPP Release 18 will help further adoption across brands in the premium segment, mass adoption in the mid-price segment is expected only with Release 19.

Commenting on the satellite smartphone SoC market competitive landscape, Shivani Parashar, senior analyst said,

“Qualcomm has been at the forefront among Android chipset players in enabling satellite connectivity through its Snapdragon X80 and X85 modems, followed by Huawei, Google and Samsung. MediaTek is also advancing NTN integration through its MT6825 5G SoC. More participation from chipset players will increase competition while potentially helping scalability.”

The partnerships entered into by North American telecom players, such as T-Mobile with SpaceX, AT&T with AST Mobile and Rogers with SpaceX, along with Apple’s tie-up with Globalstar, have helped bring satellite connectivity to smartphones, making North America an early leader in the field. Though telecom operators in other regions, like Europe and China, are not rushing to offer satellite connectivity, satellite operators are increasing capacity to cater to the mass market.

Commenting on the satellite smartphone market outlook, Peter Richardson, research vice President said,

“Nearly one in two smartphones is expected to support satellite connectivity by 2030. Apple, Google and Samsung will lead in terms of overall penetration, but Android brands targeting the entry and mid-price segments will see less penetration. Satellite offerings by more Android players and telecom operators beyond developed markets will play a key role in accelerating global adoption.”

The satellite smartphone connectivity space is expected to create opportunities across the entire ecosystem, including smartphone OEMs, SoC vendors, component players, telecom operators and satellite operators.

Beyond this, it will also unlock new service models and bundled offerings, where companies like Amazon could integrate satellite connectivity into platforms such as Amazon Prime to enhance the overall consumer experience.

However, the pace of growth will depend on the collaboration of ecosystem players to solve issues such as design and cost constraints, limited use cases, regulatory complexities and network immaturity.

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.”

Themed “Bridging Digital Frontiers: African Solutions for Universal Connectivity”, the summit is set to be a turning point for addressing the continent’s persistent digital divide.

As a regional segment of the larger IEEE Connecting the Unconnected Europe, Middle East, and Africa (CTUS-EMEA) Summit, CTU Africa 25 will provide a unique platform for stakeholders to collaborate on scalable, inclusive, and context-sensitive connectivity solutions for underserved regions.

Strategic Focus: Eight Tracks for Deep Impact

The summit will cover eight essential thematic tracks, each designed to address core connectivity challenges in Africa:

1. Infrastructure and Technologies for Universal Connectivity
2.  Policy, Regulation, and Sustainable Financing
3. Rural and Community-Centric Connectivity Innovations
4. Digital Transformation: Smart Cities, Education, Health, Agriculture Smart cities enabling massive connectivity
5. Regional Cooperation: One Africa Network and Cross-Border Initiatives
6. Sustainable Power & Energy for Connected Communities
7. People, Policy, and Sustainability
8. Cybersecurity, Data Protection, and Critical Infrastructure

These tracks bring together engineers, policymakers, researchers, regulators, and business leaders to tackle connectivity from every possible angle.

Why CTU Africa 25 Matters to Nigeria’s Telecom Sector

With 2.9 billion people globally still unconnected, many of them in Africa, the summit is of enormous strategic importance to Nigerian Internet service providers (ISPs), telecom operators, ICT entrepreneurs, and policy leaders.

For ISPs and telecom operators, CTU Africa 25 offers:

• Business expansion insights into connecting rural and underserved areas
• Access to cutting-edge solutions to reduce infrastructure costs and improve coverage
• Policy dialogue opportunities with regulators and funding partners
• Networking with international and local innovators for collaborative ventures
• Showcasing of local innovations to a global audience
• Participation in regulatory and standards discussions shaping the next decade of connectivity

Empowering Communities Through Digital Access

Connectivity isn’t just about browsing the internet, it’s about livelihoods, education, health, and gender equality.

For instance:

• In many African countries, women are 30-50% less likely than men to access the internet.
• In Sub-Saharan Africa, 1GB of data can cost up to 40% of the average monthly income.
• Lack of internet hinders access to e-learning, telemedicine, online markets, and precision farming.

By increasing connectivity, Nigeria can unlock GDP growth, digital entrepreneurship, and social inclusion, especially in rural and underserved communities.

IEEE’s Global Mission Comes to Nigeria

Founded in 1884, IEEE is the world’s largest technical professional organization, advancing technology globally.

In Nigeria, IEEE has been active since 1976, with a strong local chapter comprising engineers, technologists, academics, and students.

CTU Africa 25 will host the final presentations of the IEEE Connecting the Unconnected Challenge, where innovative, practical solutions will be showcased.

The event will also feature thought leaders from regulatory bodies, NGOs, industry, and academia, all aligned around the shared mission to close the digital gap.

IEEE Connecting the Unconnected Africa Summit – Opening Doors for Nigeria’s Next-Gen Innovators

In addition to ICT professionals and business leaders, CTU Africa 25 will open its doors to students from tertiary institutions across Nigeria, offering them exposure to global trends and opportunities in digital innovation.

A Call to Action for Nigerian Stakeholders

As Nigeria prepares to host this landmark event, telecom operators, ISPs, policy makers, and technology innovators are encouraged to:

• Participate actively in the summit sessions
• Showcase Nigerian connectivity innovations
• Explore partnerships and investment opportunities
• Engage with regulatory and funding bodies on sustainable connectivity models

This is a once-in-a-generation opportunity to shape the future of Nigeria’s, and Africa’s, digital landscape.

A new proposal is on the table, telecom users whose lines go inactive will have a full year to retrieve their unspent airtime—so long as they can prove the line belongs to them.

At a recent forum of telecom stakeholders, the Commission dropped what could become a game-changer for millions of prepaid subscribers. This is about drawing a line between what’s fair and what’s convenient—for both customers and mobile operators.

Dr Aminu Maida, executive vice chairman of NCC, represented by Rimini Makama, Executive Commissioner for Stakeholder Management, laid it out, stating that the days of networks quietly reclaiming your unused balance may be coming to an end.

“As the telecommunications industry continues to evolve, we must address emerging issues, including the fate of prepaid balances on inactive lines,” Maida said.

If a line is inactive for 12 months, operators must deactivate it. But instead of swallowing the remaining airtime, they’ll be required to notify the user and offer a way to reclaim it. No refund in cash, but redemption through voice bundles, data, or value-added services. The key condition? Prove it’s your line.

The new draft framework doesn’t leave much wiggle room for the operators. NCC’s Head of Legal and Regulatory Services, Mrs Chizua Whyte, put it in clear terms: “It also prohibits monetisation of unclaimed airtime, instead mandates service-based redemptions such as data or voice bundles.”

She went further, spelling out expectations. Operators will be required to audit churned accounts, report unclaimed balances, and launch public awareness campaigns. They have 90 days to fall in line once the guidelines are formalised. For the Commission, audits won’t drag—10 days max.

Whyte added, “This draft seeks to ensure that subscribers maintain rightful access to their purchased credits while operators gain clarity in their responsibilities.”

From the tone of the forum, the NCC is serious about this. The time of ghost airtime balances vanishing into your revenue books may be over. The Commission wants user rights to be taken seriously and service, not profit, comes first.

Countries like the United States, India, and members of the European Union have already outlawed the silent vanishing act of prepaid balances. Now Nigeria is catching up—and pushing even further by demanding transparency, accountability, and user education.

This is a reset because for too long, the question of what happens to airtime on long-dead SIMs has always been unanswered. Now, at least, we’re closer to one. 

Hopefully, this new framework will see the light of day without objections from operators; but for once, the regulator seems ready to take the side of the ordinary Nigerian.

And about time, too.

The Nigerian Communications Commission (NCC) recently reported that Nigeria’s internet consumption reached 973,455 terabytes in December 2024, a 36.5% increase from the previous year. 

That’s 998.79 million gigabytes of data used in just one month. Despite this surge in demand, the country’s broadband penetration stood at 44.43%, far below the 70% target set in the National Broadband Plan (2020–2025). 

Even more concerning, Nigeria ended 2024 with 164.9 million active telecom subscribers—down from 224.7 million the year before.

Imagine streaming a movie now costing as much as a meal, and staying online feels like a privilege reserved for the wealthy. 

This sharp decline in active subscribers, even with the growing need for internet services, is leading to talks of Nigerians being unable to afford staying connected.

Inflation and currency devaluation have shot the industry’s costs of operations really high, leading to the Nigerian Communications Commission’s (NCC) recent approval of a 50% increase in telecommunications tariffs—the first such hike in over a decade—to help operators manage the high expenses. 

The Need for Inclusive Resilience in the Telecom Sector

This tariff increase has struck conversations across various bodies. The Nigeria Labour Congress (NLC) has labelled the hike as “insensitive” and “unjustifiable,” especially given the current cost-of-living issue. 

While telecom operators argue that the challenges leave them with no choice, consumers are wondering if affordable connectivity is becoming a thing of the past.

Inflation is wearing out disposable income, forcing consumers to prioritise essentials over data and call plans. Businesses, especially SMEs, rely heavily on telecom services, but higher costs threaten their ability to stay competitive.

The rural-urban gap in connectivity may expand, as rural consumers—who already struggle with access—may be priced out of the market.

In the midst of these challenges, the telecom sector must find ways to remain profitable without sidelining lower-income consumers. The key lies in resilient and inclusive strategies that balance affordability, sustainability, and growth.

Strategy 1: Tiered and Flexible Pricing Models

1. The Power of Segmentation in Telecom

To effectively serve a diverse customer base, telecom operators should segment their users into low-income, middle-income, and high-income categories. This segmentation allows for targeted services that meet the specific needs and financial capabilities of each group.

2. Implementing Flexible Pricing Structures

• Pay-as-you-go options: Ideal for price-sensitive users who prefer to control their spending without committing to fixed plans.
• Subscription models: Offer middle-income consumers affordable packages with predictable billing cycles.
• Premium services: Provide high-income users with enhanced features such as high-speed internet and exclusive customer support.

3. Strategy 2: Infrastructure Cost Optimisation Through Public-Private Partnerships (PPP)

1. The High Cost of Expanding Telecom Network Infrastructure

Building and maintaining telecom infrastructure, such as towers and broadband cables, require huge capital investment. Inflation further increases these costs, making it challenging for operators to expand and upgrade their networks.

2. Leveraging PPP to Reduce Financial Stress

Collaborating with government entities and development banks can help telecom operators share the financial risks associated with infrastructure projects. For example, partnerships can be formed to extend network coverage to underserved rural areas, with shared investment and benefits.

In Kenya, the government and private telecom operators have partnered to expand rural connectivity, resulting in increased access to communication services in previously underserved regions.

Initiatives like the National Optic Fibre Backbone Project and partnerships with telecom providers such as Safaricom, Telkom Kenya, and Airtel have helped boost this.

Strategy 3: Digital Transformation and AI-Driven Efficiency

1. How Digital Transformation Can Lower Costs

Leveraging digital tools and automation can simplify operations, reducing the need for manual intervention and lowering operational expenses. For instance, AI-powered network management systems can optimise bandwidth usage and predict maintenance needs, thereby reducing downtime and associated costs.

2. The Impact on End-Users

Customers benefit from faster and more efficient services, such as AI-driven customer support that can handle inquiries promptly. These efficiencies can lead to cost savings for operators, which can be passed on to consumers in the form of more affordable services.

Strategy 4: Expanding Alternative Revenue Streams

1. Moving Beyond Traditional Revenue Models

Relying solely on voice and data services is becoming more and more unsustainable. Diversifying into areas like financial technology (fintech), cloud services, and the Internet of Things (IoT) can open new revenue streams. This is seen in MTN’s transition to a Techco.

2. Monetising Digital Services

• Mobile money and payment solutions: Offer financial services to unbanked populations, generating transaction fees.
• Entertainment bundles: Partner with streaming services to provide bundled offerings, enhancing value for consumers.

MTN’s MoMo, Airtel Money and Safaricom’s M-Pesa are prime examples of telecom operators successfully launching into mobile financial services, greatly contributing to revenue growth.

Strategy 5: Strengthening Local Supply Chains to Mitigate FX Risks

1. The Problem of Foreign Exchange Dependency

Heavy reliance on imported equipment makes telecom operators vulnerable to currency fluctuations, increasing costs unpredictably.

2. Investing in Local Manufacturing and Partnerships

Developing local production capabilities for items like SIM cards and network components can reduce foreign exchange exposure. Partnering with local tech firms can also promote innovation and cost-effective solutions tailored to the local market.

Strategy 6: Data-Driven Decision Making for Telecom Customer Retention

1. The Cost of Customer Churn in an Economic Downturn

Losing customers can be more expensive than retaining existing ones, especially when inflation reduces consumers’ disposable income. High churn rates force telecom companies to spend more on marketing and customer acquisition, which can negatively impact already tight budgets.

2. Leveraging Big Data and Analytics for Personalised Offers

Telecom operators can use customer data analytics to identify usage patterns, predict churn risk, and design personalised retention strategies.

• Usage-based incentives: Offering discounts or data bonuses to customers who frequently recharge can encourage continued engagement.
• Loyalty rewards: Retaining long-term customers through perks such as discounted family plans or exclusive streaming deals.

MTN and Airtel have successfully used data analytics to provide dynamic pricing models, such as location-based discounts and time-sensitive data plans, reducing churn and boosting customer satisfaction.

Strategy 7: Strengthening Regulatory and Industry Collaboration in Telecom

1. The Impact of Government Policies on Telecom Viability

Government policies on taxation, spectrum licensing, and price regulations are important in determining telecom sector stability. The recent 50% tariff hike approved by the Nigerian Communications Commission (NCC) is an example of how policy decisions directly affect consumers and telecom operators.

2. Advocacy for Fair and Sustainable Policies in the Telecom Sector

Telecom companies must engage policymakers and industry regulators in constructive dialogue to ensure that tariff adjustments, tax structures, and regulatory frameworks balance profitability with affordability for consumers.

3. Encouraging Investment-Friendly Policies in the Telecom Sector

• Reducing multiple taxation: Telecom firms should advocate for streamlined tax policies to prevent excessive levies that inflate operational costs.
• Incentives for rural expansion: Government support, such as tax breaks for rural infrastructure projects, can make connectivity more accessible in underserved areas.

Regulatory frameworks can encourage competitive pricing while ensuring telecom operators remain profitable.

Summary of Key Points

Though there are economic pressures like inflation, telecom operators can thrive and ensure inclusive connectivity by implementing seven key strategies:

1. Tiered and flexible pricing models to serve all income groups.
2. Public-private partnerships (PPP) to reduce infrastructure costs.
3. Digital transformation and AI for cost efficiency.
4. Diversifying revenue streams beyond data and voice services.
5. Strengthening local supply chains to reduce foreign exchange risks.
6. Using data-driven strategies to retain customers.
7. Collaborating with regulators to ensure fair pricing policies.

The Lot of Resilient Connectivity

With smart, adaptive strategies, telecom operators can continue to deliver quality services across all economic segments while mitigating the impact of inflation.

The telecom sector must act assertively by adopting innovative pricing, infrastructure investment, and customer-centric solutions. 

Regulators, industry leaders, and consumers must collaborate to ensure that connectivity remains affordable, sustainable, and inclusive—regardless of economic conditions.

Phone calls will now cost N18.33 per minute, SMS rising to N6.67, and a 1GB data bundle now priced at N479.17. 

This increase will affect daily communication and data usage, especially for Nigerians already hit with inflation and high costs of living. 

Users could increase reliance on platforms like WhatsApp and others for calls and messages but what about those without smartphones?

Well, let’s break down the proposed tariffs and analyze their financial impact on consumers and businesses.

The Breakdown of New Tariffs

The proposed 60% tariff increase will apply across mobile services, with the following adjusted costs:

• Phone Calls: The cost of making phone calls will jump from N11 to N18.33 per minute, a rise of N7.33 (66.5% increase).
• SMS: The price for sending text messages will increase from N4 to N6.67, a jump of N2.67 (66.75% increase).
• 1GB Data Bundle: The cost for 1GB of mobile data will increase from N287.5 to N479.17, an increase of N191.67 (66.67% increase).

These increases already show a considerable burden on consumers, especially considering the price elasticity of demand for mobile services. With these hikes, consumers may need to adjust their usage patterns, reducing their reliance on mobile communication or exploring more affordable alternatives.

Mathematical Analysis of the Impact

To better understand the financial impact, let’s apply a few calculations to daily telecom expenses based on average usage:

• Phone Call Costs: If a user spends 30 minutes per day on calls:
• • • Current cost: 30 minutes × N11 = N330 per day
    • New cost: 30 minutes × N18.33 = N550 per day
    • Increase: N550 – N330 = N220 increase per day
    • Annual cost increase: N220 × 365 = N80,300 annually

• SMS Costs: If a user sends 10 SMS messages daily:

• • • Current cost: 10 messages × N4 = N40 per day
    • New cost: 10 messages × N6.67 = N66.70 per day
    • Increase: N66.70 – N40 = N26.70 increase per day
    • Annual cost increase: N26.70 × 365 = N9,745.50 annually

• Data Bundle Costs: If a user purchases one 1GB data bundle every 3 days:

• • Current cost: N287.5 × 122 = N35,075 annually
  • New cost: N479.17 × 122 = N58,472.74 annually
  • Increase: N58,472.74 – N35,075 = N23,397.74 increase annually

Cumulative Impact on the Consumer

Taking the average consumer who spends on calls, SMS, and data bundles:

• Total annual cost increase for calls, SMS, and data:

• • Calls: N80,300
  • SMS: N9,745.50
  • Data: N23,397.74
  • Total increase: N80,300 + N9,745.50 + N23,397.74 = N113,443.24 annually

For an average Nigerian, this could wildly stretch their monthly budget. With over 200 million mobile subscribers in Nigeria, this surge in prices could splash through the economy, affecting consumer spending, business operations, and digital accessibility for underserved communities.

How will this Affect the Economy?

This telecom tariff increase will likely hit low-income individuals and small businesses hardest, as they rely on affordable communication to maintain both personal and professional interactions. The costs could lead to:

• Reduced Digital Access: With higher data costs, individuals may limit their online presence, curtailing opportunities for education, remote work, and e-commerce, thereby deepening the digital divide.
• Business Strain: Small businesses, particularly those relying on mobile phones for customer interactions and mobile banking services, may face increased operational costs, prospectively slowing down economic growth.
• Increased Costs of Living: Since mobile communication is a key aspect of daily life in Nigeria, higher telecom charges could contribute to an overall rise in the cost of living, making it harder for Nigerians to cope with inflation.

Conclusion and Recommendations

The proposed telecom tariff increase of 60% will undoubtedly add really high financial stress on consumers. While the government and telecom operators argue that the increase is necessary to sustain the industry due to high costs of operations, the burden on Nigerians could have far-reaching effects.

To mitigate the impact, the government could consider implementing subsidies for low-income users, promoting digital literacy, and investing in infrastructure that reduces the cost of telecom services. 

Ultimately, it all boils down to the country’s economy and a balance from the government.

The Association of Licensed Telecommunications Operators of Nigeria (ALTON) noted that without a tariff review to align with high costs of operations, critical telecom services could be greatly affected. This could lead to limited or suspended services in certain regions across the country.

Engr. Gbenga Adebayo, chairman of ALTON, explained that the telecom sector’s survival is at risk due to high expenses, such as energy prices, inflation, and unstable exchange rates. 

Even with these financial limitations, telecommunications service providers have been unable to adjust their tariffs, as the Nigerian Communications Commission (NCC) regulates price changes.

Adebayo warned that if these issues are not addressed soon, Nigeria could experience adverse consequences. He referred to the possibility of “service shedding,” where telecom operators may be forced to limit services in certain areas or at specific times, disconnecting millions of Nigerians. 

This would lead to serious disruptions, especially in sectors like healthcare, education, and security, which heavily rely on telecommunications for their operations.

The ALTON Chairman stressed that while these challenges are not new, they have become severe over the past year. Operators are struggling to secure the financial resources needed to maintain and modernise telecom infrastructure, with unchanging tariffs compounding the problem.

Adebayo called on all stakeholders to immediately act to prevent the telecom sector from collapsing. He emphasised the urgency of the situation, noting that without reform, Nigeria’s telecommunications infrastructure could be at risk, which would have a negative impact on the economy and everyday life.

Nonetheless, Adebayo said that with the right reforms and collaborations, the telecom sector could recover in 2025. He urged the industry to work together to secure the sector and avoid the forthcoming disruptions.