NCC plans spectrum incentives to push telecom operators into more network investment

Nigeria’s telecommunications regulator, the Nigerian Communications Commission (NCC), is considering a new spectrum management framework that will require telecom operators to make additional investments in network infrastructure in exchange for spectrum-related incentives.

The proposed Incentive-Based Spectrum Investment Framework (IBSIF) is designed to link incentives associated with spectrum allocation to measurable and enforceable commitments by operators to expand coverage, improve network capacity and enhance service quality.

The Special Assistant – Technical to the Executive Vice Chairman and Chief Executive Officer of the NCC, Dr. Umar Abdullahi, disclosed this on Thursday in Abuja during a briefing on the proposed framework.

Abdullahi said the initiative was aimed at ensuring that Nigeria derives broader economic and developmental benefits from its spectrum resources by encouraging telecommunications companies to channel more funds into infrastructure expansion.

The move comes amid a sharp increase in data consumption, which is putting growing pressure on existing telecommunications infrastructure.

According to NCC figures, monthly data consumption increased from approximately 517,670 terabytes in January 2023 to 1.73 million terabytes in September 2026, representing more than a threefold rise.

The regulator expects demand to increase further as artificial intelligence, cloud computing and other data-intensive digital services gain wider adoption.

Although Nigeria’s 4G population coverage has exceeded 80 per cent, the reach of 5G technology remains limited. The commission put 5G population coverage at approximately 13 per cent as of April 2026.

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The NCC believes accelerating 5G deployment, alongside fibre expansion, network optimisation and infrastructure sharing, will be critical to meeting the country’s growing connectivity needs.

Under IBSIF, spectrum-related incentives will be tied to additional investments assessed against specific commitments covering network deployment, geographical coverage, capacity and service quality.

Abdullahi explained that operators would be subjected to monitoring and accountability mechanisms to determine whether they had fulfilled their investment obligations.

Independent technical and financial verification, supported by objective network performance measurements, would be deployed to assess compliance. Crowdsourced quality-of-experience data could also be used to evaluate service performance from consumers’ perspectives.

The commission said the framework had undergone technical, economic, fiscal and legal assessments, including independent expert studies, international benchmarking and Nigeria-specific economic modelling.

Brazil’s experience with incorporating investment and coverage obligations into its 5G spectrum assignment arrangements was cited as an example of how spectrum licensing could encourage faster infrastructure development.

However, the NCC said Nigeria’s model would be adapted to local market conditions and national development priorities rather than directly replicating foreign approaches.

The proposed initiative is also expected to complement other government measures aimed at improving the operating environment for telecommunications companies. These include tariff adjustments, fiscal reforms, improvements in foreign exchange conditions, Right-of-Way concessions by some state governments and the designation of telecommunications infrastructure as Critical National Information Infrastructure.

The commission is currently engaging industry stakeholders to refine the framework, validate its implementation arrangements and establish appropriate safeguards. A consultation paper has also been published on its website to obtain industry feedback.

Implementation is expected to be phased and evidence-based, subject to applicable regulatory processes.

The proposal comes amid mounting concerns over poor telecommunications service quality in the country.

Recently, the House of Representatives summoned chief executives of telecommunications companies to explain the persistent deterioration in network services, warning that non-compliance with the directive could attract arrest.

Despite reported investments of more than N2.5 trillion by telecom operators in network infrastructure in 2025, subscribers continue to experience service challenges.

Persistent fibre-optic cable cuts and equipment vandalism have also remained major obstacles to improved network performance.

Through IBSIF, the NCC hopes to make spectrum management a stronger instrument for driving infrastructure investment, expanding digital access and improving the quality of telecommunications services across Nigeria.