Telecom
The NCC, Telcos and the Tariff Discourse
By Dr. Falade Muritala Adesola
The telecoms sector in Nigeria is viewed by some as a model of regulatory excellence. Other African countries often visit Nigeria to study the sector, aiming to understand the regulatory framework established by the NCC. This regulatory excellence is evident in the growth and success of the telecoms industry, which currently contributes over 16% to Nigeria’s GDP.
Aminu Maida, executive vice chairman, NCC
The telecoms industry in Nigeria is a source of pride for everyone; it’s arguably the only sector that can be considered a successful model of liberalization in the country.
Amidst all the successes, the industry is still faced with multiple challenges, including multiple taxation, vandalisation, and changing macro realities. Noteworthy of mention is efforts by the NCC under the new Executive Vice Chairman, Dr Maida to further reposition the industry. Whilst the focus in the past has always been quality of service (QoS) the direction under the new EVC has shifted to quality of experience (QoE) which is more customer-centric and places more demands on the telecoms operators.
The EVC has continued to emphasize this at various engagements with stakeholders in the industry. Beyond advocacy, the visible steps taken so far by NCC under Dr Maida aimed at safeguarding telecom infrastructure deserve commendation. The recent incident of multiple fibre cut, which resulted in widespread network disruptions for one of the major telecoms operators, prompted swift action from the EVC. His advocacy for stricter penalties against perpetrators led to moves by the government to criminalize cable damages and vandalisation of telecoms infrastructure. This proactive stance not only deters future recklessness but also instils confidence among telecoms operators regarding the safety of their investments. However, the long-term viability of the industry hinges on a multifaceted approach that will include protection of telecoms infrastructure, which the NCC is currently spearheading, and sustainable pricing mechanism.
The Nigerian economy is currently grappling with new economic realities that continue to threaten its stability. These realities are not unique to Nigeria but rather a global phenomenon affecting countries around the world. A complex set of factors are exerting considerable pressure on the global economy and causing a slowdown in global growth. This is occurring alongside a marked increase in inflation. As a result, businesses are confronted with a range of challenges including rising costs of capital, a tight labour market, and geopolitical risks. These challenges have been worsened by disruptions due to the COVID-19 pandemic, the war in Ukraine, Israel, and the tensions between the US and China. Many countries are revisiting their policies and implementing new strategies to navigate the turbulent waters.
In Nigeria, the struggle to strengthen the value of the naira to the dollar has continued to gallop as the Central Bank of Nigeria (CBN) continues to pursue new approaches to address the situation. However, challenges such as infrastructural deficit and security concerns continue to persist, further exacerbating the issue. Yet, Nigeria continues to face a significant rise in food prices over the past few years, worsened by the removal of subsidies on petrol, amongst other things. This has resulted in a weakened purchasing power for many citizens with attendant effects on businesses.
In recent times, Nigeria’s naira has tumbled across both official and unofficial markets due to increased forex demand, causing a significant spike in prices of goods and services across the country. The National Bureau of Statistics (NBS) reported that items contributing to the inflation’s headline index on a year-on-year basis are food and non-alcoholic beverages (16.42%), housing, water, electricity, gas and other fuel (5.30%), clothing and footwear (2.24%), and transport (2.06%). The NBS explained that the rise in food inflation on a month-on-month basis is due to an increase in the average prices of bread and cereals, potatoes, yams, and other tubers, fish, coffee, tea, and cocoa.
These developments paint a bleak picture of the current economic situation in Nigeria and amid all these, discourse around telecoms tariff review is beginning to take centre stage, drawing attention to the need for a delicate balance between economic realities, quality of experience, which impacts directly on customer satisfaction, and telecommunications industry sustainability. For over a decade, major telecom operators like Airtel, MTN, and GLO have maintained their pricing structures, despite mounting challenges such as currency devaluation and inflation while other sectors have adjusted prices to cope with economic fluctuations.
For instance, entertainment giant, DStv, has increased its prices more than two times in the past year. Netflix has also reviewed its prices. Nigerian Breweries have also adjusted their prices to reflect the current realities, but telecom operators have maintained their pricing despite economic fluctuations, grappling with a devalued currency and rising operational costs.
In Nigeria’s telecommunications sector, diesel consumption is a critical factor influencing service reliability and progression. With numerous sites dispersed across the nation, a substantial portion operates on generators 24/7, necessitating continuous fuel supply. This escalating cost of diesel not only directly impacts operational expenses but also cascades into broader challenges such as site accessibility and infrastructural maintenance. As prices soar across various sectors, the telecom industry continues to grapple with the dilemma of maintaining quality services while operating within constrained pricing frameworks.
The prevailing reality suggests that the long-term viability of the telecoms sector now hinges on striking a delicate balance between affordability and quality of experience for consumers on the one hand, and profitability and survival for operators on the other hand.
Quality of experience stands at the forefront of consumer expectations in the telecom sector. However, the telecoms operators must continue to invest to maintain superior quality of experience. In the same vein, continuous and increased investment is a function of profitability. The telcos can only invest from their profits. There can be no investment without profitability. One way to gurantee profitability and sustainability of the industry is a review of the existing pricing structure.
Pricing autonomy is a linchpin for industry sustainability. The ability to set cost-reflective tariffs is indispensable for ensuring adequate returns on investment and fostering long-term viability. Telecom operators require a more transparent and collaborative approach to tariff adjustments, emphasizing the importance of a pricing framework aligned with operational realities. The current pricing window, sanctioned by regulators, is a foundation, but the industry needs greater flexibility to navigate cost fluctuations while ensuring service quality and accessibility remain uncompromised.
The clamour for cost-reflective tariffs is not merely about short-term gains but a strategic imperative to sustain the sector’s growth trajectory. The transition from 2G to 5G and with 6G on the way symbolizes the industry’s evolution, made possible by substantial investments that fuel innovation and expand service capabilities. However, without conducive regulatory frameworks that incentivize investment, the industry risks stagnation, jeopardizing future advancements and undermining service availability.
The telecommunications industry in Nigeria is currently at a crossroads where infrastructural challenges, pricing dynamics, and regulatory frameworks intersect, offering a unique opportunity for swift and collective action. A thriving and resilient telecommunications ecosystem has the potential to empower individuals, drive economic growth and enrich lives across the nation of Nigeria. Whilst the industry regulator has delivered commendably, prevailing realities demand a new approach to ensure continued viability of the sector.
Dr. Falade Muritala Adesola is a Senior Lecturer and former HOD, Computer and Information Sciences Department, Trinity University.
MTN Nigeria has marked 25 years of commercial operations, with Karl Toriola, chief executive officer, saying the company began operating in the country at a time when telecommunications access was severely limited.
Toriola said that a quarter of a century ago, making a phone call was a privilege few Nigerians could afford.
People queued at public telephone booths and centres, travelled long distances to deliver messages, and sometimes waited weeks for letters to arrive, he said, noting that a mobile phone was then beyond the reach of most.
Today, the company connects more than 90 million people across Nigeria, a figure MTN says reflects its role in building the infrastructure behind the country’s shift to a data-driven economy.
MTN entered Nigeria in 2001 following the GSM liberalisation carried out by the Nigerian Communications Commission (NCC), at a time when mobile telephony was still a luxury reserved for a privileged few.
Toriola said the milestone was about more than subscriber numbers.
Businesses have been built, families have stayed connected across distances, students have gained access to knowledge, and creators have found audiences beyond Nigeria’s borders, he said, crediting the wider telecommunications ecosystem for enabling entire new industries to emerge.
The company also pointed to its role beyond direct connectivity.
MTN has helped build a wider value chain of SIM registration agents, tower contractors, retail distributors, fintech partners and digital developers that now supports millions of livelihoods in Nigeria.
Toriola thanked MTN Nigeria’s customers, saying their trust had allowed the company to expand its community investments through the MTN Foundation, which has supported health, education, youth development and economic empowerment programmes.
Looking ahead, the CEO acknowledged that significant connectivity gaps remain, with millions of Nigerians still needing access to reliable, affordable and inclusive digital services.
He said greater digital inclusion would be a central priority for the company’s next chapter, adding that the anniversary marks both a celebration of the past 25 years and a renewed push to expand digital access for the country’s young and growing population.
“We’ve come a long way. And we are only getting started,” Toriola said.
The anniversary comes as MTN Nigeria continues to navigate rising operating costs tied to Nigeria’s unreliable power supply.
Where the national grid is unreliable, the company and its infrastructure partners have had to rely on diesel generators, batteries, solar systems and other backup power solutions, making network operating costs highly sensitive to fluctuations in diesel prices.
Telecommunications subscribers under the umbrella of the National Association of Telecoms Subscribers (NATCOMS), has handed telecommunications operators in the country September deadline to improve network quality or face legal action.
Deolu Ogunbanjo, president, NATCOMS, said that subscribers have endured deteriorating network services despite repeated interventions, warnings, and sanctions by the Nigerian Communications Commission (NCC).
As reported by BusinessDay, Ogunbanjo, noted that if the situation fails to improve through regulatory intervention, NATCOMS will seek justice through the courts by the end of the third quarter.
The ultimatum comes as rising data consumption, subscriber migration, and growing demand for mobile services place severe pressure on network infrastructure across parts of the country.
The NCC stated that mobile operators have offered compensation to more than 75 million subscribers for poor network quality following a regulatory directive requiring restitution in locations where performance fell below required standards.
The regulator is conducting an independent review to determine whether all eligible subscribers received proper compensation.
The compensation scheme, provided through automatic airtime credits for verified service failures dating back to November 2025, requires no individual claims from consumers.
For many subscribers, however, airtime credits do little to offset the broader economic and personal toll of unreliable connectivity.
Emeka Douglas, a subscriber, recounted how poor network quality nearly turned a medical emergency into a tragedy when he was unable to transfer funds to a hospital during his wife’s surgery.
Douglas noted that his brother in the United States eventually sent funds directly to the hospital’s account after local banking channels failed.
Janet Okoye, a small business owner, said unreliable connectivity severely affected her business after service disruptions on her Airtel and Globacom lines led clients to cancel orders.
Teniola Adeyemi, a university student, highlighted dropped calls as a major concern, stressing that recent tariff increases ought to reflect in better service quality.
Grace Eze, an Abuja-based media professional, explained that fluctuating network connectivity once delayed a lead news story intended for her editor in Lagos, resulting in an official query over late submission.
Pressure on national networks is driven by both expanding subscriber numbers and rising usage intensity.
Active telephony subscriptions in Nigeria rose from 182.2 million in January 2026 to over 187 million by April, according to NCC data. MTN leads the market with 96.4 million subscriptions, followed by Airtel with 64.7 million and Globacom with 23.2 million.
Telecom
ipNX Collaborates with ICT Stakeholders on the Future of Fibre-to-the-Home in Nigeria @ ATCON Forum
ipNX Nigeria joined other stakeholders across the telecommunications ecosystem as they convened at the Association of Telecommunications Companies of Nigeria (ATCON) Critical Conversation Forum on Fibre-to-the-Home (FTTH) to deliberate on practical solutions to the challenges affecting broadband infrastructure deployment and the future of fibre connectivity in the country.
The forum, themed “Fibre to the Home in Nigeria: Addressing Challenges, Strengthening Standards and Ensuring Sustainable Deployment,” was held at the Radisson Blu Hotel, Lagos, and brought together representatives from government agencies, telecommunications operators, regulators, infrastructure providers, industry associations, and the media to foster dialogue around policies and collaborative actions needed to accelerate Nigeria’s broadband ambition.
Delivering the keynote address virtually, the Executive Vice Chairman of the Nigerian Communications Commission (NCC), Dr. Aminu Maida, described Fibre-to-the-Home as a critical enabler of Nigeria’s digital future.
“FTTH is uniquely positioned to meet Nigerians’ next phase of data demand. The quality of our broadband will increasingly shape the competitiveness of our businesses, the growth of our digital industry and the opportunities available to our citizens,” he said.
Dr. Maida also stressed the importance of protecting telecommunications infrastructure, noting that damage to fibre networks carries significant economic consequences.
“We must uphold deployment standards. Nigeria needs fibre that is properly installed, properly documented, and properly protected.”
Speaking during the opening session, ATCON President, Mr. Tony Emoekpere, underscored the strategic importance of FTTH in achieving Nigeria’s broadband penetration targets while calling for greater public awareness around protecting communications infrastructure.
“This forum is critical because Fibre-to-the-Home is the technology that will enable the country to achieve full broadband penetration. We all depend on communication infrastructure, and it must be protected.”
Drawing a comparison with power infrastructure in the country, he added:
“If somebody comes to your neighbourhood to tamper with your transformer or power cables, everybody will come out. The same thing needs to apply for communications infrastructure. When we see people damaging fibre cables, we should raise an alarm.”
The forum also highlighted successful collaborative initiatives at the state level. Speaking on infrastructure management, Director-General of the Oyo State Infrastructure Management and Control Agency (OYSIMCA), Mr. Adebayo Akande, shared how the agency is addressing fibre theft, vandalism, and promoting shared infrastructure among operators.
He explained that encouraging operators to utilise common pole infrastructure along shared routes would reduce unnecessary duplication, minimise infrastructure damage, improve urban aesthetics, and optimise investment across the sector.
Similarly, Managing Director of the Edo State Information and Communication Technology Agency (ICTA), Mr. Eghosa Urhoghide, advocated stronger collaboration among operators, regulators, government institutions, road maintenance agencies, and host communities.
He emphasised that strict adherence to NCC deployment standards remains essential to ensuring the long-term sustainability and resilience of Nigeria’s telecommunications infrastructure.
Representing ipNX on the panel discussion titled “Policy, Governance and Regulatory Alignment,” Mr. Segun Okuneye, Deputy Director, Strategic Business Initiatives, highlighted the need for stronger collaboration across the telecommunications ecosystem to unlock the full potential of fibre broadband in Nigeria.
According to him, sustainable fibre deployment extends beyond technology and investment to include policy consistency, stakeholder alignment, infrastructure protection, and shared responsibility.
“Achieving universal fibre connectivity requires more than deploying infrastructure, it requires sustained collaboration between operators, regulators, government agencies and host communities.
“When policies are aligned, deployment standards are consistently enforced, and critical infrastructure is protected, we create an environment where investment thrives and more Nigerians can enjoy reliable, high-speed broadband.
“At ipNX, we remain committed to working with all stakeholders to build resilient digital infrastructure that will support Nigeria’s economic growth for generations to come.”
Throughout the discussions, participants agreed that while Nigeria has made considerable progress in broadband expansion, addressing recurring issues such as fibre vandalism, right-of-way challenges, inconsistent deployment practices, infrastructure duplication, and limited public awareness will require stronger partnerships and coordinated industry action.
The forum concluded with a shared commitment among stakeholders to strengthen industry standards, encourage infrastructure sharing, improve policy implementation, and promote greater public appreciation of telecommunications infrastructure as critical national assets deserving of protection.
For ipNX, participation in the ATCON Critical Conversation Forum reinforces our company’s ongoing commitment to supporting industry-wide initiatives that advance broadband penetration, strengthen digital infrastructure, and accelerate Nigeria’s journey towards a more connected and digitally inclusive future.
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