Telecom
Investments in Telecom Hit $16Bn, Alton Warns of a Dive

Association of Licensed Telecommunications Operators of Nigeria (Alton) has flaunted its contributions to the economy by reporting a princely $16 billion from foreign direct investment in the last ten years but warned of stunted growth if barriers to further investments are not removed, Nigeria CommunicationsWeek can now report. The Nigeria telecom sector, easily the growth engine of the country’s economy from 2001 to date is now beset by myriad of problems including; multiple regulation and taxation, illegal access denials, site shut-outs, shortage of long term investment capital in-country, inadequate power supply, unrealistic Opex and Capex levels for a developing country, lack of incentives to drive service penetration to the remote and rural areas, rent seeking charges for permits and approvals necessary for deployment and security. Gbenga Adebayo, chairman, Alton, said the bottlenecks are a scare-force to further investment in the sector. Alton, an industry body for all telecommunications companies and others providing subsidiary services to telecommunications service providers in the country is at the forefront of promoting growth in the telecommunications sector and, enhancing efficient and affordable telecommunications services delivery to users of these services. But Adebayo said gains in the IT and telecom sector “have come through the mobile telephony industry.” He adds that “80 per cent of the country has been covered by GSM-based mobile operators and CDMA based wireless operators.” The implication is that the sector’s contribution to the overall national GDP growth now put at over 7 per cent has being significant. While investments stand at $16 billion at the end of 2010, the telecom sector’s contribution to the national GDP stood at 3.5 per cent, and is expected to grow to circa 5 per cent in 2015. “Investment in telecom generates a growth dividend, because the spread of telecommunications reduces cost of interaction, expands market boundaries, and enormously expands information flows. Hence, the development of telecommunications makes for the delivery of societal services which enhance education, health and agriculture,” said Adebayo. The Alton chairman noted that for Nigeria to remain competitive, “it must continue to strategize and issue policies, laws and regulatory instruments that will ensure the continued growth of the sector.” He warned however that Nigeria cannot attain global economic power status unless IT application is emphasized as a “driver of development.” Recognising IT as a critical social overhead capital, with an accompanying policy change that would herald a transformative agenda are essential in bringing about the much needed next phase development to the country, he stated. Among necessary changes needed to drive growth and further penetration in the sector, Adebayo, stated Nigeria should urgently look at its taxation policy as it affects critical investment in telecom and ICT in general. While the majority of telephone subscribers would want the regulatory authority to bring down the axe on the mobile operators for the general poor quality of service (QoS), not so for Adebayo’s Alton. He exonerated the mobile operators, but rather blamed government policies that stifle further investments in the sector that would drive growth and better quality. He noted that investment in critical infrastructure have stalled in recent years as a result of the governments’ multiple regulation and taxation regimes. “We note that there are currently about 20,000 base station sites in Nigeria serving a population of over 150 million people,” said Adebayo. In country evaluation, he contrasts that the United Kingdom with a total population of 60 million is served by 53, 300 base stations. “For Nigerian networks to provide best in class services compared to the UK, Europe and other countries, it is expected that the industry will need to roll out additional base station sites in excess of 50,000 nationwide,” said Adebayo. Several government agencies like the Nigerian Environmental Standards Regulatory Enforcement Agency, (NESREA) have sought to impose standards on mobile operators that are significantly different from prescribed NCC guidelines over tower and mast installations. Of recent, states and local governments have joined the fray in exacting influence over the telecom infrastructure investment by imposing regulatory fees to shore up their internally generated revenue (IGR) base. Recent studies indicate that companies and industries with expansive usage of “ICT grow faster, more productive and more profitable” than others who depend less on IT application.
Telecom
Tariff Adjustment Attracts Over $1 billion Investment in Telecom infrastructure

Dr. Aminu Maida, Executive Vice Chairman, the Nigerian Communications Commission (NCC) has said that the new pricing regime in the sector has already attracted over $1 billion in fresh infrastructure investments this year, few months after it took effect.
He stated this yesterday during an interactive session with journalists in Lagos. According to him, the policy introduced in February gave mobile network operators (MNOs) the green light to adjust tariffs by up to 50% after nearly a decade of stagnant pricing.
“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,” he said.
Maida explained that the new pricing regime has reversed years of under-investment that slowed network expansion and weakened service quality. He pointed out that before now, the value chain was lopsided—tower companies could adjust prices annually for inflation and FX rates, but MNOs were stuck with fixed tariffs.
“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 decision, he added, aligns with the guiding principles of the 2000 Telecom Policy and the 2003 Communications Act, which favour market-driven pricing while ensuring healthy competition and consumer protection.
According to Maida, the benefits of the policy are already visible. Equipment ordered by operators has been arriving since June, with network expansion and upgrade works in progress nationwide.
“We are closely tracking the rollout. We hold weekly calls with operators to monitor site builds, upgrades, and to step in when they face challenges with authorities,” he said.
The EVC of NCC believes these investments will help boost capacity, improve service quality, and keep Nigeria competitive in the global telecom arena.
While the investment news is positive, Maida didn’t shy away from highlighting the operational cost pressures confronting operators.
He said the sector burns through over 40 million litres of diesel monthly, most of it imported, to power base stations.
On top of that, the industry is heavily dependent on FX for all network hardware and software imports, as there’s no local manufacturing of major telecom equipment.
“There is nothing you need to build or upgrade a network today in Nigeria that you can buy locally,” Maida stated.
Telecom
ATU, AFRINIC Urge Governments, Regulators to Develop Internet Resilience Framework

As Africa continues to face internet disruptions, telecom leaders have urged governments and regulators to embrace and implement a Model Framework for Building Regional Internet Resilience.
The African Telecommunications Union (ATU), Internet Society, and African Network Information Centre (AFRINIC) have all endorsed the framework.
The framework organises Africa’s internet resilience challenge around three interdependent focus areas: networks and internet service providers (ISPs), critical infrastructure such as power grids and cables, and market conditions that influence affordability and demand, according to the organisations in a joint statement.
Once implemented, entities or operators responsible for an important part of a country’s internet ecosystem, such as electricity utilities, mobile network operators, ISPs, internet exchange points, or a country-code top-level domain registry, must develop a resilience plan within one year of the framework’s official adoption.
The statement also mentions several past disruptions that hampered communication, such as the West Africa Cable System failure in March 2024, which cut off 13 countries for days.
They went on to explain that the plan must be evaluated and updated on an annual basis and be compatible with the entity or operator’s continuity and reconstitution plans.
It (framework) should also specify how the organisation intends to incorporate the resilience features of redundancy, resourcefulness, rapid recovery—all of which are critical components of achieving overall robustness—into its operations.
ATU has warned that every blackout is a flashing red warning, and that the framework would act as an insurance policy against outages.
“Connectivity remains Africa’s nervous system and when it stutters, schools, hospitals and markets stutter too. This framework is our insurance policy against digital darkness”, said John Omo, secretary general of ATU.
Arthur Carindal, AFRINIC’s head of stakeholder engagement, commended the institutions for their coordinated efforts.
He said: “It is a great honour for AFRINIC to collaborate with ATU and ISOC in transformative initiative enabling all stakeholders to participate in developing Africa’s internet resilience model framework, which highlights key policy recommendations and best practices for strengthening internet infrastructure in Africa.”
Telecom
NCC Rallies Stakeholder Support to Protect Telecom Infrastructure

Nigerian Communications Commission (NCC) has reiterated its commitment to the full operationalisation of President Bola Ahmed Tinubu’s Executive Order on Critical National Information Infrastructure (CNII), which designates telecommunications facilities as critical national assets deserving optimal protection.
This comes on the heels of a successful mediation led by the Office of the National Security Adviser (ONSA), in collaboration with the Commission, which resulted in the suspension of a planned strike by the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA).
The strike, if carried out, would have disrupted the supply of diesel to telecommunications sites nationwide, severely affecting network operators’ ability to power their diesel-driven generators and maintain uninterrupted connectivity.
In the days leading up to the resolution, the ONSA, under the leadership of the National Security Adviser (NSA), Mallam Nuhu Ribadu, held strategic engagements with NOGASA’s leadership, with the Commission providing technical and regulatory guidance to highlight the potential implications of service disruptions on national security, the economy, and everyday life.
The discussions culminated in an agreement to call off the industrial action, averting what could have been a nationwide disruption of telecom services.
“Telecommunications infrastructure is the backbone of our connectivity and digital economy. Any disruption, whether through vandalism, accidental damage during construction work, theft of equipment, denial of access to maintenance teams, or interruptions in the supply of essential operational materials, has far-reaching implications for service delivery, economic stability, and national security,” the NSA said.
The Commission expressed appreciation to the ONSA for its leadership and dedication to protecting national assets and commended the maturity and understanding demonstrated by relevant stakeholders in recognising the national importance of telecommunications services.
Commenting on the development, the Executive Vice Chairman/Chief Executive Officer of the Commission, Dr. Aminu Maida, stated: “We will continue to enforce strict compliance by our licensees with technical standards for the deployment and maintenance of telecommunications infrastructure, while working closely with relevant stakeholders to strengthen awareness and cooperation on their protection.
“We also recognise mediation as an effective tool for building consensus among stakeholders. This resolution underscores the importance of dialogue in preventing avoidable service disruptions. Ultimately, we call on all Nigerians to regard telecom infrastructure as a shared national asset, one that underpins our ability to connect with loved ones, transact businesses, access healthcare, pursue education, and participate in the global digital economy.”
The Commission reaffirmed that it would continue to coordinate with security agencies, industry stakeholders, and the public to ensure that Nigeria’s telecommunications infrastructure remains protected, resilient, and reliable for all.
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