Nigerian Telcos Commit Over $1 Billion to Chinese Network Gear in Major Infrastructure Push

Telecommunication operators in Nigeria have placed orders exceeding $1 billion for network equipment from Chinese manufacturers, marking a significant investment shift aimed at revitalizing the country’s digital infrastructure. According to the Nigerian Communications Commission (NCC), this large-scale acquisition is part of a broader effort to improve service quality and support the country’s expanding digital needs. The equipment, which has yet to arrive or be deployed, represents a fresh wave of capital expenditure after years of financial challenges in the sector.

Speaking at an industry event in Lagos, NCC Executive Vice Chairman Aminu Maida confirmed that the telecom sector—serving over 160 million subscribers—is doubling its investment compared to the previous year. The move aligns with a broader regulatory update aimed at modernizing the Nigerian Communications Act 2023. Maida emphasized that manufacturers in China have acknowledged the substantial equipment orders, reinforcing telcos’ commitment to infrastructure upgrades.

Valued at over $75 billion, Nigeria’s telecom sector is poised for another growth phase. Regulators believe this fresh investment will be pivotal in managing increasing data demand and enabling emerging digital services across the economy. The development follows the NCC’s recent approval of a 50 percent tariff hike—the first in over a decade. to help operators cope with surging operational costs, which have reportedly risen by over 300 percent.

Before the tariff adjustment, telecom companies had repeatedly flagged issues like forex scarcity, multiple taxation, and stagnant pricing as major barriers to capital investment. The resulting underinvestment had led to deteriorating service quality and limited network expansion. The new pricing structure, approved earlier this year, was contingent on telcos reinvesting in infrastructure within three months—something they are now fulfilling.

Industry leaders, including MTN Nigeria’s Chief Corporate Services Officer Tobe Okigbo, reiterated their commitment to improving customer experience. Okigbo acknowledged that dropped calls result in revenue loss for operators and said the sector is focused on enhancing service reliability. This infrastructure push is expected to address long-standing consumer complaints and solidify Nigeria’s position in the digital economy.

Source: Punch