Leading Nigerian telecom providers have started network upgrades, investing $1 billion in Chinese-made equipment to address problems with service quality.
Shipments of equipment have begun to arrive, according to the Nigerian Communications Commission, and mobile network operators are striving to meet a year-end deadline for major service enhancements.
“The ordered equipment have started arriving since early June, and deployment has already started in earnest by the Mobile Network Operators,” NCC Executive Vice Chairman Aminu Maida told The PUNCH in an email. “They are on course to meet the Q4 deadline for significant Quality of Experience enhancements.”
Significant milestones
This significant investment represents a sea change for Nigeria’s telecom sector, which has recently faced financial difficulties and underinvestment in infrastructure.
The $1 billion investment significantly doubles the capital expenditure from the previous year and provides fresh momentum following the NCC’s approval of a long-awaited 50% tariff increase in early 2025.
The tariff review, the first in more than a decade, was implemented to assist operators in managing their escalating operating expenses, which have increased by over 300 per cent in the last decade as a result of foreign exchange constraints, inflation, and energy prices.
Operators are now reinvesting in crucial network upgrades, such as extending 4G coverage and setting the stage for a wider rollout of 5G, thanks to increased financial flexibility. The EVC has received deployment strategies from all major operators and is closely monitoring their progress.
“As the regulator, we collaborate closely with operators to streamline deployment plans and navigate complex dependencies. All operators have submitted their network improvement and deployment strategies, which we are rigorously monitoring,” he stated.
Assurance of service improvement
In addition, he acknowledged the magnitude and complexity of the nationwide upgrade project while assuring Nigerians that service improvements would be apparent by the end of the year.
“Nigerians can expect clear improvements in service quality by year-end, given the country’s vast size and complex network deployment challenges. Telcos are committed to their Q4 2025 network enhancement plans, backed by significant investments in cutting-edge technology to meet rising digital service demands,” the regulator noted.
Due to the need to import the necessary equipment and deploy it throughout the nation—a major task considering the size of Nigeria’s landmass—network upgrades and service enhancements require time.
“As the regulator, we are steadfast in holding them accountable for consistent progress,” the EVC assured.
Advantages of the network upgrades
It is anticipated that the improvements will greatly lessen network congestion, enhance call quality, and increase internet speeds for Nigeria’s 160 million telecom users. As part of the larger network improvement plan, rural areas—which have long experienced inconsistent or nonexistent coverage—should also gain.
The NCC emphasised that by promoting greater broadband penetration and enhanced user experience, the infrastructure investment will also significantly contribute to the advancement of Nigeria’s digital economy, which is currently valued at over $75 billion.
“The commission will maintain oversight and engage with stakeholders as needed to ensure success,” Maida added.
Addressing stakeholders concern with network upgrades
Nigeria’s telecoms industry had been in severe financial distress prior to the infusion of funds and policy support, with operators warning that service delivery was being jeopardised by ageing infrastructure and growing expenses.
Telcos have frequently noted the declining condition of their networks over the years, attributing the issue to severe macroeconomic circumstances that left little opportunity for significant maintenance or investment.
To deal with the inability to keep all sites operational simultaneously, Gbenga Adebayo, the chairman of the Association of Licensed Telecom Operators of Nigeria, even suggested service “load-shedding” at the height of the crisis. This approach is similar to limiting connectivity.
Adeolu Ogunbanjo, president of the National Association of Telecommunications Subscribers, said the network upgrade is a positive step that meets the needs of the nation’s millions of telecom users.
“Quality of service is what subscribers and indeed Nigerians at large truly need,” Ogunbanjo told The PUNCH. “It is encouraging to see the NCC taking the lead on this. This is a major boost for one of the biggest sectors contributing to the country’s economy.”
Network upgrade is timely
He noted that the upgrade is timely, especially considering the sector’s heightened financial liquidity. He claims that the federal government’s approval of a 50 per cent tariff increase and the recent bank clearance of long-standing USSD debts have put telecom operators in a position to make significant investments in infrastructure and service delivery.
“Now that the banks have settled their debts to the telcos for USSD services, the operators have some breathing room. Combined with the government-approved tariff adjustment, there are now funds to make things happen,” he said.
Ogunbanjo asked operators to keep the upgrade process transparent and make sure that the advantages result in an improved user experience, especially in underprivileged areas.
Industry experts express concerns
However, industry experts warn that such large-scale infrastructure rollouts require lengthy lead times.
Tony Emoekpere, the president of the Association of Telecommunications Companies of Nigeria, emphasised the timeline complexity of such projects in an interview with The PUNCH.
“Manufacturing alone can take between 60 and 90 days, depending on the nature of the equipment and the supplier’s backlog,” Emoekpere stated. “Shipping from the manufacturing country to Nigeria typically adds another 30 to 40 days.”
According to him, customs clearance, regulatory inspections, and logistical issues at deployment sites throughout Nigeria could cause additional delays. Two of the biggest OEMs in Africa, Huawei and ZTE, are thought to be the main suppliers for the 2025 network upgrade, despite the fact that no specific vendors were mentioned.
“The sense of urgency was missed when the issue of tariff was raised,” Emoekpere added. “People didn’t quite grasp how complex and time-sensitive these infrastructure projects were. Expanding a telecom network at this scale is not easy. These are not shelf-ready products you pick off a warehouse; manufacturing alone can take months.”
He pointed out that before customers start to experience the advantages, the full process from production to deployment could take up to six months or more. In light of this, he advised the public to control expectations while operators concentrate on preserving the current infrastructure.
“Be it as it may, operators must prioritise protection of existing assets, improve power resilience, and ensure critical maintenance,” he said.