Telecom
Why Nigeria’s Telecoms Sector Needs Government, New Regulatory Interventions

The Nigerian Telecommunications industry is currently considered a key sector that contributes to economic growth and one that can help lift Nigeria out of recession.
Obviously, the impact started at the point of liberalisation of sector almost two decades ago, catalysed and opened up the sector to local and foreign direct investment (FDI) estimated at over $68 billion as at November 2016.
It has created approximately over 2.5 million jobs over the past 10 years, its impact reaches across all industries and holds the potential to modernize multinationals, SMEs and their supply chains.
The sector continues to provide mobile banking services to help bank the unbanked, provides access to e-learning platforms to help facilitate training and development, and brings healthcare services to rural regions, via telemedicine and text message counselling, amongst many other services.
Until June 2016, the telecoms sector was growing rapidly and comprised 9.8% of Nigeria’s GDP but this growth has now stalled, with the sector at a strategic crossroads. Several factors have converged simultaneously, which could materially impact the industry and undermine its potential to drive economic growth and stimulate the Nigerian economy as a whole.
For starters, from a systemic standpoint, the current weakness in the local economy has resulted in relatively low consumer purchasing power and continues to place pressure on the industry and its operators.
The weak Naira has made the importation of much needed telecom equipment into the country difficult, and the upgrading of towers and service capacity expansion too expensive to conduct on a large scale.
Operators are now either deferring or delaying upgrades or expansion of their networks and customers are starting to feel the impact. Signal quality has been affected, incidences of dropped calls have increased, and overall customer service quality has declined. Nigerian consumers have every right to demand more and should never have to settle for poor network quality or services.
To further compound matters, consumers continue to move away from legacy voice services and are switching to data bundle packs, which allows them use over the top (OTT) service providers such as WhatsApp, Skype and Facebook to make phone calls inexpensively over broadband connectivity not minding the often poor quality of these services.
While it’s clear that the simple solution to addressing this trend is massive investment into telecom tower network densification, as new 3G and 4G technologies are rolled out, these network upgrades can only be done if there is adequate financing and a suitable business case.
Moreover, there is an ongoing data bundle “price war” between incumbent telecom operators and internet service providers; with a frantic race to deliver cheap gigabytes of data, for rock bottom prices.
On the surface, these prices appear good for the consumer in the short term, but in the long run, this price war will put many operators out of business, as these current bundled offerings are priced well below their actual costs to network operators.
According to Research ICT Africa, the price of data has decreased by over 65% over the past two years, squeezing margins and pushing smaller mobile network operators to the brink of collapse.
Short Term versus Long Term Gains
Artificially low data prices are designed to drive out competition. This type of practice is called “predatory pricing” in respect of which there are restrictions in many parts of the world. These pricing wars never work out well for consumers, as they typically result in initial temporary low service prices, just long enough to force out the competition.
Then, all of a sudden, the few remaining players monopolize the market and suddenly double, or even quadruple prices, as they are the surviving and dominant game in town. It’s easy to identify anti competitive pricing, as we know what it costs the telecom industry to secure internet bandwidth.
A good example of healthy competition which has led to improved quality and product service offerings is mobile phones. The competition between Apple and Samsung and others has forced all parties to constantly launch new and improved products.
Competition leads to fair market pricing which has enabled mobile phones to be purchased by the masses. The current problem in the telecoms sector is that we don’t have fair market pricing -the price of data bundles in Nigeria is presently amongst the lowest in Sub Saharan Africa.
While market forces drive the industry, governments and regulators must shape the mobile economy by setting the policies and regulations that will deliver a healthy, competitive and sustainable mobile sector alongside consumer protection for all citizens.
Feasible Solution
Given the tremendous potential that telecommunications has to jump start and stimulate the Nigerian economy at all levels, we need the help of government and regulators to play the role of referee and establish a level playing field.
Fatai Folarin, Tax & Regulatory Services Lead Partner at Deloitte noted that, “The telecommunications industry in Nigeria is one that can currently be described as self-aware and steadily adapting to the stark realities of business – changing trends, intense rivalry, regulatory uncertainties etc. There is a general understanding that to remain sustainable, there is a need to recreate existing products, diversify into new areas for which the capabilities and resources are near, improve on general business processes and navigate through the regulatory landscape.”
We recognize the free market principles of business and competition, but we also note the artificially low prices that are having a negative effect on investment and growth within the sector.
Both large and small mobile network operators are currently working to try and mitigate the current challenges related to squeezed margins, and in other cases generating losses, and lack of direct access to foreign currencies, with the smaller firms struggling the most to compete. Reduced competition will be a lose-lose situation for all operators, and the public as a whole.
The recent default status of Etisalat Nigeria, is a prime example of how it can all go wrong. Etisalat is the fourth largest telecom operator in the country, but as a direct result of the company’s razor thin margins on its current service offerings, and against the backdrop of the devaluation of the Naira, the company has failed to meet its obligations to its lenders.
Concerted regulatory efforts need to be made to ensure that all sides survive and the quality of service levels continue to be enhanced, by having the regulatory bodies insist the mobile network operators focus on additional customer metrics such as, measuring their signal reach, network uptime and improved quality of a data services.
A regulated price minimum price level will help stop the downward spiral of the telecoms industry and allow all telecom players, big and small, to compete on network service and customer service quality. Policy makers must therefore ensure that all current players survive.
The Nigerian Communications Commission (NCC) can issue more spectrum licenses and make up revenues when additional spectrum is auctioned and mobile network operators roll out into new rural areas.
We also need to consider the telecoms sectors as critical to our nation’s economic development and, as such, place the sector on the critical national infrastructure list
This important designation will give operators priority access to much needed foreign exchange and the procurement and purchase of telecom upgrade equipment for the networks.
In conclusion, mobile network operators serve millions of SMEs and multinationals that are dependent on internet access and other enterprise solutions – a half day service disruption results in large revenue losses for various businesses throughout the country.
It is therefore very important that the government, regulators and international institutions continue to define and refine strategies to increase growth and ensure the long-term sustainability of the Nigerian telecommunications sector, thereby also boosting investors’ confidence and signalling to the international community that we truly remain open for business.
Telecom
Airtel Becomes World’s Second Largest Telco as Global Customer Base Surpasses 650 Million

Bharti Airtel has announced a major milestone in its global operations, crossing 650 million mobile subscribers worldwide, a scale that now positions the company as the second-largest telecommunications operator on the planet by customer base.

Crossing this threshold reflects a network of immense scale, the capacity to reach customers across diverse markets with consistent quality, and the ability to deliver experiences shaped by sustained innovation.
In Nigeria, Airtel has continued to scale infrastructure at a pace unmatched in its recent history. Over the past three years, the company has increased its national site count from just above 13,000 to nearly 17,200 sites, including more than 1,560 added in the last twelve months. This expansion deepens capacity in high-demand corridors and extends high-speed coverage to previously underserved regions.
The latest industry data from the Nigerian Communications Commission (NCC) underscores the significance of this growth. As of December 2025, Nigeria recorded 145,141 base stations across 2G, 3G, 4G and 5G layers. Of this national infrastructure, Airtel accounts for 46,918 base-station layers, reflecting its substantial contribution to the country’s radio access network and its push to absorb rising data consumption.
Nearly 99 percent of Airtel Nigeria’s sites are now 4G-enabled, positioning the operator as one of the few with a near-ubiquitous high-speed broadband footprint. Thousands of sites have been upgraded for capacity in the past year alone, enabling improved speeds and more stable performance during peak usage.
That expansion underpins Nigeria’s rising internet adoption. According to the latest regulator figures, Nigeria’s internet penetration recently climbed above 50%, with Airtel recording among the largest monthly increases in new internet subscribers, driven by network upgrades across states and rural corridors.
Strategic Connectivity and Redundancy
Airtel is also tackling a critical infrastructure challenge for the Nigerian digital economy: reliance on a single international internet gateway. The company is advancing plans for its second submarine cable internet breakout point at Kwa Ibo in Akwa Ibom State, early in the 2Africa cable system rollout, to provide faster and more resilient national connectivity across regions. This significant investment aligns with global best practices in network diversity and redundancy, ensuring a more stable digital experience for consumers and enterprises alike.
Digital Finance at Scale: SmartCash
Airtel’s digital finance arm, SmartCash, has gained traction in Nigeria’s competitive mobile money ecosystem, now serving over 3 million active users. The platform is supported by an expansive agent network and digital services that lower barriers for everyday financial transactions and savings.
Outstanding Human Touch: Retail Reach
Across Nigeria, Airtel’s retail distribution network stands as one of the sector’s most extensive, with approximately 4,000 exclusive outlets bringing services, support, and products closer to customers in small towns, communities, and high-traffic urban hubs. That footprint drives both access and engagement in a market where localized presence remains a competitive differentiator.
As Nigeria’s digital economy continues to evolve, Airtel is committed to sustained innovation — from expanded fibre backbones and advanced mobile broadband to future-ready services that include satellite-enabled solutions and enterprise-grade digital platforms. These efforts help ensure that connectivity, commerce, and creativity thrive across Nigeria and beyond.
Telecom
Compensation for Poor Service Quality is Automatic- NCC

Nigerian Communications Commission (NCC) has said that compensation of subscribers for poor service quality, such as persistent network outages or failed calls is automatic.

This initiative aims to ensure fairness by mandating that operators provide automatic compensation, such as airtime credits, for failing to meet regulatory Quality of Service Key Performance Indicators (KPIs).
According to the NCC, operators are required and mandated to identify affected subscribers and provide compensation directly.
In a framework for compensation of consumers published on its website, NCC said that it has directed Mobile Network Operators (MNOs) to compensate subscribers affected by prolonged or repeated poor quality of service experience within specific Local Government Areas where operators fail to meet regulatory Quality of Service Key Performance Indicators (KPIs).
The NCC also stated that the directive does not replace existing consumer protection mechanisms.
The NCC, said the directive adds a direct compensation mechanism for affected subscribers and aligns with measures set in existing legislations such as the Consumer Code of Practice Regulations 2024 and the Quality of Service Regulations 2024.
This directive applies to only Mobile Network Operators licensed and operating in Nigeria that have failed to meet their Key Performance Indicators on Quality of Service. For Internet Service Providers (ISPs) operating in Nigeria, a compensation framework is already in place.
To be eligible to receive compensation
. You experienced poor network service in an affected Local Government Area; and
- You made at least one outgoing revenue generating event (billed call, SMS, or data session) during the relevant period.
The compensation covers service failures affecting voice, data, or SMS services.
Operators are required and mandated by existing regulations to monitor their network performance across locations and service disruptions against Quality of Service KPIs.
This enables them to identify affected subscribers without the need for individual complaints.
Only service failures that fall below the defined thresholds set by the Quality of Service Regulations issued by the NCC will qualify for compensation.
Short, isolated interruptions and immediately remedied interruptions may not qualify
Compensation will be provided in the form of airtime credits.
This airtime credit will not have utilisation restrictions, and subscribers will be able to use it for voice calls, USSD sessions, data subscriptions, etc on the operators’ network.
Telecom
FG Moves to Strengthen Cybersecurity Coordination as NDPC Probes Alleged Data Breach

Federal Government has announced plans to deepen collaboration with private sector players and other stakeholders in a bid to strengthen Nigeria’s cybersecurity architecture and response systems.

NDPC
Minister of Communications, Innovation and Digital Economy, Bosun Tijani, disclosed this in a recent press statement, noting that the government is considering the establishment of a Cybersecurity Coordination Council.
According to the minister, the proposed council is aimed at enhancing national cyber resilience and ensuring a more coordinated response to emerging cyber threats across public and private institutions.
Tijani emphasised that cybersecurity must be treated as a collective responsibility involving government, industry, and civil society.
“Cybersecurity is a shared national responsibility. Protecting Nigeria’s digital economy requires strong partnerships, trusted collaboration, and collective vigilance across government, industry, and civil society,” he said.
He added that through sustained collaboration, Nigeria would strengthen its capacity to detect cyber threats early, respond effectively, and build a resilient and trusted digital ecosystem.
The minister also called for increased stakeholder participation in shaping a sustainable, partnership-driven cybersecurity framework capable of deterring cybercriminal activities and safeguarding citizens, businesses, and critical digital infrastructure.
Meanwhile, the Nigeria Data Protection Commission (NDPC) has commenced an investigation into an alleged data breach involving Remita Payment Services Ltd., Sterling Bank, and other entities.
In a statement signed by its Head of Legal, Enforcement and Regulations, Babatunde Bamigboye, the commission said notices of investigation were issued to relevant parties on April 1, 2026.
The NDPC noted that affected organisations and individuals are currently providing information to aid its inquiry into the incident.
“The aim of the investigation is to ensure that data subjects are protected with appropriate technical and organisational measures,” the statement read.
It added that the probe would examine the types of personal data involved, the scope and nature of the alleged breach, potential risks to data subjects, and mitigation steps taken where breaches are confirmed.
The commission further disclosed that its National Commissioner and Chief Executive Officer, Vincent Olatunji, has directed a broader review of organisations operating digital payment systems.
According to the NDPC, entities found to be non-compliant with provisions of the Nigeria Data Protection Act, 2023, particularly regarding technical and organisational safeguards, would be scrutinised as part of efforts to maintain the integrity of the nation’s data protection ecosystem.
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