The Nigerian Communications Commission (NCC) has announced that its new market-driven pricing policy has attracted over $1 billion in new infrastructure investment in 2025. This significant influx of capital comes just months after the policy took effect, reversing a long period of under-investment in the sector.
Why the Policy Was Changed
According to Aminu Maida, NCC’s Executive Vice Chairman, the policy, which allowed mobile network operators (MNOs) to adjust tariffs by up to 50% per cent was essential for restoring investor confidence. For nearly a decade, MNOs were unable to adjust prices to account for inflation and foreign exchange rate changes, while other parts of the telecom value chain could.
Maida explained that this created a lopsided industry and slowed network expansion and service quality. The new pricing regime is designed to encourage continuous investment, which is critical for keeping Nigeria competitive in the global digital economy.
Visible Results and Ongoing Challenges
The NCC has already started to see the positive effects of the new policy, with operators receiving new equipment since June. The commission is working closely with operators to monitor the expansion and upgrades.
Despite this progress, significant challenges remain:
- High Operational Costs: The sector burns through over 40 million liters of diesel monthly to power base stations, and virtually all major network equipment is imported.
- Security Threats: The NCC is also working with the Office of the National Security Adviser (ONSA) to develop region-specific strategies to protect telecom infrastructure from vandalism, theft, and other security risks.
Maida emphasized that these investments will ultimately lead to improved service quality, better network capacity, and a more resilient telecom sector for Nigeria.
