Nigeria’s Telecom Sector Poised for $1 Billion Infrastructure Overhaul

Nigeria’s telecommunications industry is on the brink of a major transformation, as operators have committed over $1 billion toward new network infrastructure—the largest investment of its kind in the sector’s recent history.

According to the Minister of Communications and Digital Economy, Bosun Tijani, equipment deliveries will commence in July 2025, with significant improvements in broadband access, 4G and 5G expansion, and overall service quality expected by the third quarter of 2025.

“We have confirmation that our telcos have placed equipment orders exceeding $1 billion. That scale of investment hasn’t been seen in a long time,” Tijani revealed in an interview on Thursday.

Tariff Adjustment Sparks Reinvestment Wave

This massive investment follows the government’s approval of a 50% tariff hike in February 2025—the first such adjustment in over a decade. While the move stirred debate over affordability, it has provided operators with the financial room to reinvest after grappling with more than 300% increases in operational costs over the past ten years.

“We’re closely monitoring these orders. We know the original equipment manufacturers (OEMs), and deliveries are scheduled to begin between June and July,” Tijani added.

Network Quality Set to Improve by Q3

With new equipment entering the country, Nigerians can expect noticeable improvements in telecom services by Q3. The upgrades aim to reduce call drops, increase internet speeds, and expand access in both urban and underserved rural areas.

This builds on remarks by Nigerian Communications Commission (NCC) Executive Vice Chairman, Aminu Maida, who confirmed in April that operators had placed over $1 billion in orders with Chinese vendors as part of a sweeping overhaul.

Bridging the Urban-Rural Connectivity Gap

While telecom operators are spearheading the upgrades, the government remains focused on expanding network access in commercially unviable regions.

“Connecting rural communities isn’t just about inclusion—it’s about economic growth and national security,” Tijani said. “President Tinubu has made rural coverage a priority because without government intervention, private telcos won’t invest in those areas.”

Tijani also noted that as voice traffic increasingly shifts to broadband-powered platforms like WhatsApp, the need to upgrade aging infrastructure has become more urgent.

“The sector was stagnating, but consumer demand kept rising. We needed to act.”

A Pivotal Moment for Nigeria’s Digital Future

With massive reinvestment from telecom providers and ongoing support from the federal government, Nigeria’s telecom sector is entering a new era of growth and modernization.

“We must push beyond the limits of private capital,” Tijani concluded. “This is not just a digital strategy—it’s a national necessity.”