Under President Bola Tinubu’s first two years in office, Nigeria’s telecoms sector underwent a revolution characterised by developments, progress, criticism, and challenges, reports

President Bola Tinubu’s administration inherited ambitious broadband goals and has maintained rhetorical support for the digital economy.

Regulatory efforts on consumer protection and spectrum management continue. However, the devastating impact of forex crisis and macroeconomic instability has been the defining feature.

It has severely damaged operator viability, hampered network investment and maintenance, forced significant price hikes, and threatens service quality and future growth.

This economic context has largely stalled or reversed potential progress. Despite notable progress in expanding access and services, challenges persist, impacting the sector’s ability to achieve its full potential.

The government reaffirmed commitment to the NNBP’s targets of 70 per cent broadband penetration by 2025, 90 per cent population coverage.

To accelerate the National Broadband Plan (NNBP 2020-2025), the Nigerian Communications Commission (NCC) auctioned crucial 5G spectrum (3.5GHz) to new entrants like MTN, Mafab, and Airtel, facilitating network expansion.

The planned auction of additional spectrum (e.g., 600MHz, 700MHz) aimed to deepen coverage, especially in rural areas. The NCC continued (though slow) emphasis on promoting infrastructure sharing to reduce costs and accelerate rollout.

To uphold the consumer protection, the agency implemented a revised Consumer Code of Practice, strengthening consumer rights regarding billing, service quality, and dispute resolution.

It also released a draft framework for AI use in telecoms, showing awareness of emerging tech impacts. Efforts to engage states on reducing multiple taxation and Right of Way (RoW) fees continued, though significant challenges remain.

The government’s pronouncements emphasized the digital economy’s importance, attracting foreign investment. Initiatives like the Renewed Hope agenda mention digital infrastructure.

Issuance of licenses for services like Starlink (satellite internet) expanded consumer choice, despite later controversies. One of the progresses recorded in the sector was an increased Broadband Penetration.

The Nigerian Communications Commission (NCC) continued to push for increased broadband penetration under the National Broadband Plan (2021–2025).

As of 2024, broadband coverage had reached 60%, driven by investments in 4G and the gradual rollout of 5G networks. Improved internet access enhanced e-commerce, education, and financial inclusion, particularly in underserved rural areas.

As of 2024, the Nigerian telecom sector boasted a subscriber base exceeding 200 million, making it one of the largest in Africa. The entry of new players and the expansion of existing networks have contributed to this growth.

Major telecommunications companies like MTN Nigeria, Airtel Nigeria, Glo, and 9mobile continued to compete fiercely, driving innovation in service delivery and customer experience.

The introduction of 4G and 5G networks revolutionised the telecommunications landscape. The deployment of 5G technology is still in its early stages in Nigeria, but it promises to enhance mobile broadband speeds, support Internet of Things (IoT) applications, and enable smart city initiatives, all of which are crucial for the country’s digital transformation.

Following the initial launch of 5G in 2022, network providers like MTN, Airtel, and Globacom have expanded coverage to more cities in 2024. With speeds up to 100 times faster than 4G, 5G enables innovations in telemedicine, smart cities, and the Internet of Things (IoT).

This expansion aligns with Nigeria’s goal to become a digital economy powerhouse. The telecom industry played a pivotal role in advancing financial inclusion through mobile money services.

Platforms such as MTN’s MoMo, Airtel’s SmartCash and 9mobile’s 9PSB have expanded their user bases, providing millions with access to financial services like payments, savings, and microloans.

The Nigerian Communications Commission (NCC) played a pivotal role in regulating the telecommunications industry. In 2024, the NCC continued to focus on improving infrastructure, promoting competition, and ensuring consumer protection.

Recent regulatory changes sought to streamline the licensing processes and encourage investments in rural areas, addressing the urban-rural divide in telecom services.

The NCC introduced new policies in 2024 to address issues like data privacy, cybersecurity, and spectrum management. These policies aimed to foster a competitive, secure, and investor-friendly environment.

However, the sector still faced challenges such as frequent policy shifts, which led to uncertainty for investors. The NCC was tasked with maintaining a balance between fostering a competitive market and ensuring that new entrants do not compromise service quality. Apart from that, tech startups contin

The years ahead will be crucial in determining whether the sector can weather the storm or face deeper crisis

ued to leverage telecom infrastructure to innovate in areas like health, education, and agriculture.

The rise of digital platforms has contributed to job creation and economic diversification, underscoring the telecoms sector’s role as an enabler of progress.

The adoption of emerging technologies such as artificial intelligence (AI), machine learning, and blockchain is gaining traction in the Nigerian telecom sector.

Telecoms companies are leveraging AI for customer service automation, network optimisation, and predictive maintenance. Additionally, blockchain technology held promise for secure transactions and improved data management.

Despite the positive trajectory, the Nigeria’s telecoms sector faced several challenges. Severe economic headwinds abd forex crisis remained the biggest challenge facing the sector.

The devaluation of the Naira and acute forex scarcity crippled operators leading to massive CAPEX cuts. Operators struggled to import critical network equipment (hardware, software, spare parts) due to inability to access USD.

Network expansion and maintenance were severely hampered. Costs denominated in USD (like leased lines, cloud services, vendor contracts) skyrocketed in naira terms.

Operators held billions in outstanding forex obligations for essential imports. Network degradation and service disruptions were becoming increasingly common due to lack of spares and delayed upgrades.

Major players (MTN Nigeria, Airtel Africa) reported significant losses, putting sustainability and future investment at risk.

While RoW reforms were a highlight of the previous administration, implementation by state governments remained inconsistent and often costly, hindering fiber deployment.

Persistent theft of fiber optic cables, generator batteries, and site vandalism disrupted services and increased costs. Reliance on expensive diesel for site power remains a major cost burden.

Operators, crushed by forex losses and rising costs, significantly increased tariffs (voice, data). While necessary for survival, this placed a heavy burden on consumers amid high inflation.

Deaoite that, network congestion and service disruptions were rising, partly linked to forex constraints limiting maintenance and upgrades. The NCC’s QOS reports showed declining performance in some areas.

Winners of the 5G spectrum auctions (especially Mafab) have faced delays in launching nationwide services, partly due to economic conditions.

The sudden massive price hike for Starlink kits (linked to forex) highlighted the vulnerability of imported solutions and caused significant consumer backlash, raising questions about sustainable pricing models. Digital inclusion gap persisted.

Bridging the urban-rural digital divide remained a significant challenge, requiring more targeted interventions and funding. On the issue of multiple taxation, engagement has continued, but tangible nationwide reduction remained elusive.

Operators still grappled with numerous levies and charges from different government tiers. Progress on national roaming/active infrastructure sharing has been slow and complex.

Criticism and counter criticism rocked 2024 sliding to the new year 2025. Despite the rejection by subscribers, NCC was forces to approve 50% increase for the telcos on voice data, and sms services.

Cybersecurity remained a significant concern as digitization accelerates. Telecom providers were ramping up their efforts to secure networks and protect user data, ensuring compliance with global best practices for security and privacy.

l adoption increases, so do cybersecurity threats. Telecom operators faced growing challenges in safeguarding consumer data and preventing cyberattacks. Strengthening cybersecurity frameworks remained a priority.

Although broadband penetration improved, many rural areas still lacked reliable internet access. This digital divide exacerbated inequalities in education, healthcare, and economic opportunities.

To overcome these challenges and sustain progress, experts said Nigeria’s telecom industry must focus on infrastructure Investment, policy stability, digital literacy, strengthening cybersecurity, and renewable energy adoption.

They said: “Public-private partnerships can accelerate infrastructure deployment, particularly in underserved areas. The government should ensure consistent and transparent policies to attract foreign and local investments.

Promoting digital skills among the population will maximise the benefits of telecom services.

Enhanced regulations and collaborations with global cybersecurity firms can mitigate risks, while leveraging solar and other renewable energy sources can address the power challenges affecting telecom infrastructure.”

Looking ahead, the Nigerian telecommunications sector is poised for continued growth and transformation. The expansion of 5G networks is expected to unlock new opportunities in various sectors, including healthcare, education, and agriculture.

Additionally, increased collaboration between telecom companies and technology firms could lead to innovative solutions that enhance connectivity and service delivery.

Furthermore, the rise of fintech services, driven by telecom operators, is likely to continue as digital financial inclusion becomes a priority for the Nigerian government and the Central Bank of Nigeria.

As mobile payment solutions gain popularity, telecom providers are well-positioned to capitalize on this trend.

The sector’s health is critical to Nigeria’s overall economy and social development. Without urgent government intervention to address forex access for critical telecoms imports and stabilise the macroeconomic environment, the gains of previous years risk significant erosion. The years ahead will be crucial in determining whether the sector can weather the storm or face deeper crisis.