Telecom Investment In Nigeria Dips To $81 Million As Broadband Growth Slows.
Investment in Nigeria’s telecommunications sector plummeted to $81 million in the first half of 2025, a sharp decline from previous years, as broadband penetration growth slowed, according to the Nigerian Communications Commission (NCC). The drop, reported in the NCC’s latest industry statistics, underscores challenges in achieving the National Broadband Plan (NBP) 2020-2025 target of 70% penetration by the end of the year.
The NCC data revealed that broadband penetration reached 48.15% in April 2025, up marginally from 47.73% in March, but far below the ambitious 70% goal. Industry experts attribute the sluggish growth to high infrastructure costs, regulatory hurdles, and inconsistent state policies, particularly exorbitant Right of Way (RoW) charges. Tony Emoekpere, President of the Association of Telecommunications Companies of Nigeria (ATCON), highlighted that poor call quality and unreliable data services reflect deeper systemic issues, urging greater investment in fibre optic networks and upgrades to legacy cell sites.
Despite the downturn, the Federal Government has secured a $2 billion investment to deploy 90,000km of fibre optic cables nationwide, aiming to boost connectivity in rural and underserved areas. This initiative, supported by the Universal Service Provision Fund (USPF), seeks to address the $461 million investment gap identified by the GSMA for achieving 96% mobile broadband coverage by 2030. The NCC also reported progress in 5G adoption, with 4.39 million subscribers by January 2025, driven by MTN Nigeria and Airtel’s limited commercial rollouts.
Gbenga Adebayo, Chairman of the Association of Licensed Telecom Operators of Nigeria (ALTON), stressed the need for investor-friendly policies to sustain momentum. He noted that state-imposed RoW charges and multiple taxation regimes deter infrastructure expansion, particularly outside urban centres. Seven states have waived RoW fees, setting a positive example, but broader reforms are needed to attract foreign capital and reverse the investment decline.
The telecom sector remains a cornerstone of Nigeria’s digital economy, contributing 9.88% to GDP in 2021, with 219 million mobile subscribers and a teledensity of 101.16% as of March 2024. The rise of satellite connectivity, including Starlink’s entry and NigComSat’s 5G backhaul services, offers hope for bridging the digital divide. Industry leaders are calling for urgent collaboration between government, regulators, and operators to streamline policies, reduce costs, and accelerate infrastructure deployment to meet the NBP’s goals.
As the 2025 deadline looms, stakeholders remain cautiously optimistic. Dr Aminu Maida, NCC’s Executive Vice Chairman, described broadband as a catalyst for economic growth, job creation, and entrepreneurship, urging state governments to align policies with federal objectives. With strategic reforms and sustained investment, Nigeria’s telecom sector could still unlock its potential to drive inclusive digital transformation.
