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ATCON predicts telecoms expansion in 2026 as Nigeria exits consolidation phase

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The Association of Telecommunication Companies of Nigeria (ATCON) has projected that Nigeria’s telecommunications industry will move from a phase of consolidation in 2025 into a period of expansion in 2026, driven by improving investor confidence, rising digital demand, and stronger policy coordination.

The projection was disclosed by ATCON President, Mr. Tony Emoekpere, during an interview with the News Agency of Nigeria (NAN) in Lagos, where he outlined his outlook for the sector and reflected on developments over the past year.

According to Emoekpere, the industry is entering 2026 on stronger footing, supported by closer collaboration among telecom operators, regulators, and the Federal Government aimed at deepening digital inclusion and sustaining network growth.

He said the outlook underscores the sector’s resilience despite the economic and operational pressures experienced in 2025.

Reflecting on the outgoing year, Emoekpere described 2025 as a year of stabilisation and capital discipline, noting that telecom operators, tower companies, and internet service providers remained committed to network investment despite headwinds such as rising energy costs, foreign exchange volatility, high equipment import costs, and persistent Right-of-Way (RoW) challenges.

“Rather than pull back, industry players focused on network densification in high-demand corridors and accelerated the transition to solar and hybrid energy solutions to reduce dependence on diesel,” he said.

Emoekpere noted that data from the Nigerian Communications Commission (NCC) showed that Nigeria’s broadband penetration crossed the 50 per cent mark in 2025, a milestone he attributed to surging data consumption as digital payments, streaming services, cloud computing, and other online platforms became increasingly embedded in daily life.

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He also credited the NCC with helping to preserve investor confidence through transparent industry reporting, enforcement of Quality of Service (QoS) standards, and effective spectrum management. “These actions have helped maintain confidence in the sector at a time of significant economic uncertainty,” he said.

Looking ahead, the ATCON President said growth momentum in 2026 would be driven by rising demand from fintech, artificial intelligence, cloud services, and other data-intensive sectors.

“If 2025 was about endurance, 2026 must be about execution, speed, and scale,” Emoekpere said.

Industry data show that while Nigeria achieved a historic milestone by surpassing 50 per cent broadband penetration, it is still expected to fall short of the 70 per cent target set under the National Broadband Plan (NNBP 2020–2025).

According to NCC statistics, Nigeria recorded 109.6 million broadband subscriptions as of November, translating to a broadband penetration rate of 50.58 per cent, up from 49.89 per cent in October.

The figures indicate that broadband penetration has grown by 6.15 percentage points so far in 2025, from 44.43 per cent at the end of 2024.

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