According to the Nigerian Communications Commission (NCC), major telecom operators such as MTN, Airtel, and Globacom have invested over $1 billion in Nigeria as a result of the country’s recent 50% telecom pricing hike.
The decision, according to NCC executive vice chairman Aminu Maida, allowed operators to reinvest in long-delayed projects by restoring the market principles that once drove the sector’s rise.
“The mere act of approving the increase has unlocked investment,” Maida said at a media parley on Friday, August 10.
“Cumulatively, this year, we’re already seeing over a billion dollars going into core infrastructure. This wasn’t happening in 2022, 2023, or 2024,” he noted.
“This is a deregulated sector, but over the last decade we drifted back into price control, almost like the old NITEL era,” Maida said.
“Operators were locked into stagnant tariffs while other players across the value chain—tower companies, fiber providers; adjusted their contracts annually for inflation and forex. Investments dried up. By allowing tariffs to rise, we’ve restored balance and unlocked the capital the industry desperately needs”
MTN spearheaded the effort in H1 2025, investing ₦565.7 billion ($377m) in fiber expansion, 4G rollouts, and a new Tier 3 data center.
Airtel then announced plans to build a $120 million hyperscale data center at Eko Atlantic, along with $39 million in Q2 renovations. After a lull of years, even smaller operators have started buying new equipment.
Even though the tariff increase was unpopular, it relieved pressure from years of price controls that had discouraged investment. During 2020-2024, operators faced challenges related to declining capital expenditures, rising expenses, and FX shortages.
Heavy reliance on imports, excessive diesel usage, and site acquisition obstacles are still problems. However, the NCC views the change in policy as a long-term indication of stability to draw in foreign investment and maintain network expansion.
Maida concluded, “The bottom line is simple, for service to improve, investment has to happen. And for investment to happen, operators need a fair chance to recover costs. That’s what this tariff adjustment has delivered”
