The Nigerian Communications Commission (NCC) has announced that its decision to adopt market-driven pricing in the telecom sector has attracted over $1 billion in investments in 2025.
In an interactive forum with the media in Lagos, the , Executive Vice-Chairman of the NCC Dr Aminu Maida said the policy shift, introduced in January and February 2025, allowed mobile network operators to adjust tariffs by up to 50% after nearly a decade of stagnant pricing, pointing out that NCC’s decision to adopt market-driven pricing has sent a strong signal to investors that the sector is open for business and that the regulatory environment is conducive to investment.
The policy shift was designed to allow mobile network operators to adjust their tariffs to reflect the true cost of providing services, thereby attracting investment and improving the quality of service .
Dr Maida said the move has restored investor confidence in the sector, reversing a trend of underinvestment that slowed network growth and service quality improvements.
He further noted that new equipment has started arriving in the country since June, with network expansion and upgrade already underway nationwide.
The investment according Dr Maida is expected to improve network coverage and quality, particularly in rural areas where access to reliable internet and mobile services is limited.
It is also expected to address capacity challenges, and ensure Nigeria remains competitive in the global telecom landscape, With the increasing demand for data and internet services, the investment is expected to help mobile network operators meet the growing needs of their customers.
On the improvement on the quality of services which the network operators promised to achieve within three months of price hike, Dr Maida explained that it is a process which required a period of nine months to attain.
Dr Maida further listed some of the challenges Facing the Industry including operational costs pointing out that the sector consumes over 40 million liters of diesel monthly, This according to the EVC highlights the need for alternative energy sources, such as solar power to reduce operational costs and improve sustainability, Similarly Over Dependence on Foreign Exchange as the industry relies heavily on foreign exchange for importing network hardware and software, as no major telecom equipment is manufactured locally.
This makes the industry vulnerable to fluctuations in the foreign exchange market and highlights the need for local manufacturing capacity.
On Security Measures, Dr Maida said the NCC is working with the Office of the National Security Adviser to develop a framework for rapid response forces tailored to regional security realities. This is aimed at improving the security of telecom infrastructure and reducing the risk of vandalism and theft.
The NCC’s decision to adopt market-driven pricing has sparked a significant investment in the telecom sector, which is expected to improve network coverage and quality, address capacity challenges, and ensure Nigeria remains competitive in the global telecom landscape.
Reporting by Chioma Ezike