Tariff Hike Drives N4 Trillion Telecom Investment Inflow in Nigeria as NCC Reviews Mobile Termination Rates
Nigeria’s telecommunications sector is witnessing a massive investment surge, with operators revealing that the 50 per cent tariff hike approved last year has attracted about N4 trillion into infrastructure expansion and network upgrades. Industry players say the policy shift has strengthened investor confidence and accelerated capital spending across the sector.
According to the Association of Licensed Telecom Operators of Nigeria (ALTON), chaired by Gbenga Adebayo, the inflow of funds is already visible in ongoing network improvements and infrastructure deployment. He noted that telecom companies and tower operators have significantly expanded capacity since the tariff adjustment, describing the development as a direct response to rising operational pressures in the industry.
Adebayo disclosed that capital expenditure reached about N2.13 trillion in 2025, with an additional N1.86 trillion projected for 2026, bringing total planned investment close to N4 trillion within less than two years. He attributed this growth largely to the tariff increase, which he said provided relief to operators struggling with inflation, currency depreciation, and rising energy costs.
Meanwhile, the Nigerian Communications Commission (NCC) has launched a major review of the Mobile Termination Rate (MTR), marking the first reassessment of the pricing structure in eight years. The regulator says the outdated rate system no longer reflects Nigeria’s current economic realities or rapid technological changes, including 5G expansion, AI-driven services, and the rise of Internet-based communication platforms like WhatsApp and Telegram.
Stakeholders across the industry, including ATCON representatives, have welcomed the review but stressed the need for fairness and balance. They argue that a cost-reflective and transparent pricing system will ensure sustainability, protect smaller operators, and encourage further investment—positioning Nigeria’s telecom sector as a stronger hub for digital growth in Africa.
source: The Guardian