Nigerian Telecoms to Invest $1.38bn in Network Upgrades

Nigerian telecom operators are set to invest $1.38 billion in network upgrades by 2026, as announced during a stakeholders' forum organized by the Nigerian Communications Commission (NCC) in Lagos. This investment follows a 50% tariff hike aimed at increasing revenue for operators to further invest in their networks.

Mr. Chidi Ibisi, a member of the National Executive Council of the Association of Telecom Companies of Nigeria (ATCON), highlighted that despite significant growth since the sector's liberalization in 2001, operators face numerous challenges, including high interest rates at 33%, a high foreign exchange rate, inflation, and the costs associated with importing network equipment and maintaining infrastructure.

The telecom sector is projected to contribute 8.12% to Nigeria's GDP by Q4 2025, with 185.7 million mobile subscribers and 153.15 million internet subscribers anticipated by March 2026. Gbenga Adebayo, chairman of the Association of Licensed Telecom Operators of Nigeria (ALTON), emphasized the need for government support to attract further investments in the sector.