New telecom pricing policy attracts over $1bn in investments — NCC

In a major boost for Nigeria’s telecom sector, the Nigerian Communications Commission (NCC) has announced that its recent return to a market-driven pricing regime has already spurred over $1 billion in fresh infrastructure investments within the first half of 2025 alone.

The disclosure was made by the Executive Vice Chairman of the NCC, Dr. Aminu Maida, during an interactive session with journalists held on Friday in Lagos.

Maida described the development as a significant milestone for a sector that had been struggling under outdated pricing models and chronic underinvestment.

According to Maida, the pricing policy — which came into effect between January and February 2025 — granted mobile network operators (MNOs) the regulatory freedom to adjust service tariffs by as much as 50%, after nearly a decade of tariff stagnation.

“This act alone has allowed investments to flow in. We are still verifying exact figures, but we are already seeing over a billion dollars of investment in 2025 alone,” Maida confirmed.

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“More detailed disclosures will follow in the coming weeks.”

The EVC explained that the previous pricing framework had created distortions across the telecom value chain.

While tower companies were allowed to adjust prices annually based on inflation and forex fluctuations, MNOs had been locked into fixed tariffs — choking revenue and discouraging capital expenditure.

“This is an industry that requires continuous investment. The world is moving ahead, and if we do not create the right conditions, we will be left behind,” Maida warned.

He emphasized that the new policy aligns with both the 2000 National Telecom Policy and the 2003 Nigerian Communications Act, which prioritize market-led pricing mechanisms while preserving competition and consumer protection.

Maida revealed that since June, telecom operators have begun receiving new equipment shipments tied to their expansion plans. Network buildouts and upgrades are already in progress nationwide.

“We’re closely tracking every phase of the rollout,” he said. “We hold weekly calls with operators to monitor site construction, equipment installation, and to resolve issues — particularly those involving local authorities.”

The NCC expects these infrastructure upgrades to dramatically improve network capacity, enhance service quality, and position Nigeria as a serious player in the global telecom ecosystem.

Despite the positive outlook, Maida acknowledged that telecom operators continue to face intense cost pressures. Chief among these are the high costs of energy and foreign exchange dependency.

“The sector consumes over 40 million litres of diesel each month, most of which is imported, just to keep base stations running,” he said. “Add to that the fact that all major network components and software are imported — there’s currently no local manufacturing base.”

“There is nothing you need to build or upgrade a network today in Nigeria that you can buy locally,” he added, highlighting the urgent need for a more self-reliant telecom ecosystem.

On the issue of infrastructure protection, Maida disclosed that the NCC is working in collaboration with the Office of the National Security Adviser (ONSA) to develop region-specific rapid response strategies aimed at safeguarding telecom installations.

Different approaches are being designed for coastal areas and high-risk zones. While some areas may benefit more from community engagement, others require stronger civil defence and enforcement presence.

“The protection plan goes beyond deploying force,” Maida clarified. “It addresses root causes like poor physical security, rampant generator theft, and unresolved community disputes that leave infrastructure exposed.”

As Nigeria’s telecom landscape enters a new era, the NCC’s market-driven reforms appear to be catalyzing the kind of investment the sector has long needed — even as it continues to grapple with the complexities of a volatile operating environment.