Nigeria’s telecoms industry, and the digital economy that has flourished alongside it, stand at a pivotal moment. Decisions made now will dictate whether the sector continues its upward trajectory or faces challenges that threaten its sustainability.

The growth of Nigeria’s telecoms sector is a testament to the synergy of sound policies, a robust regulatory framework, and a fertile market environment. Since the first mobile call in 2001, the sector has evolved into one of the most advanced globally, catering to the needs of millions and providing significant employment opportunities. As of today, the Nigerian Communications Commission (NCC) reports over 157 million active connections, with numbers climbing steadily.

Telecoms: The Bedrock of the Digital Economy

The telecom industry’s expansion has been instrumental in powering Nigeria’s digital economy. In 2024, the ICT sector contributed nearly 20% to the national GDP—more than double the contribution of oil and gas. This shift underscores the increasing importance of connectivity in building a sustainable, non-oil economy.

From digital banking to telemedicine, e-government services to edtech, and mobile-based agricultural extensions, the impact of enhanced connectivity spans every sector. As Nigeria forges ahead, ensuring a sustainable infrastructure for connectivity is critical.

The NCC and the Federal Government have shown commitment to improving service delivery while addressing systemic challenges. Under President Bola Ahmed Tinubu’s administration, the Ministry of Digital Economy and Communications, led by Dr. Bosun Tijani, has introduced forward-looking initiatives such as the Critical National Infrastructure Bill. This legislation and other interventions have addressed key industry challenges like systemic debt and infrastructure maintenance, laying a strong foundation for the future.

Transformative Initiatives for a Digital Future

The government’s strategic initiatives, such as the ‘Three Million Technical Talents’ (3MTT) program, align with the Renewed Hope Agenda, aiming to build a technical workforce to sustain the digital economy and position Nigeria as a global talent hub. Complementing this effort is the planned rollout of a 90,000km terrestrial fiber network, which will expand the nation’s capacity from 35,000km to 125,000km, making it one of Africa’s most extensive networks.

These initiatives demonstrate a commitment to ensuring that service quality, reliability, and innovation remain central to the sector. However, achieving these goals requires balancing costs and investments in maintaining and upgrading infrastructure.

Economic Realities and the Need for Balance

Over the past decade, telecom service tariffs have remained static, even as operating expenses have surged by over 300%. This imbalance is unsustainable in a capital-intensive sector where continuous investment is essential for growth. Without adequate funding, service quality and technological advancement could stagnate, jeopardizing the broader digital economy.

The telecom sector’s financial health is a national issue. A decline in service quality could hinder millions of jobs and reverse decades of economic progress. Yet, the industry and government recognize the financial pressures faced by Nigerian consumers. Collaborative efforts have aimed to strike a balance between necessary tariff adjustments and affordability.

Competitive Pricing and Consumer Protection

Nigeria’s telecom tariffs are among the lowest globally, with 1GB of data costing an average of $0.38 compared to $0.59 in Kenya and $1.77 in South Africa. Proposed tariff adjustments will remain capped and competitive, ensuring affordability while mandating reinvestment into network enhancements. The NCC will oversee these improvements to ensure compliance and quality assurance.

This balanced approach ensures the telecom industry’s sustainability and enhances customer experience, driving the digital economy forward.

A Call to Action for Sustainable Growth

Nigeria’s digital economy has demonstrated immense potential over the past decade, yet the journey is far from complete. The government’s bold decision to adopt a sustainable tariff regime is a necessary step towards maintaining growth and stability in the sector.

At MTN Nigeria, we reaffirm our unwavering commitment to Nigeria’s growth. Our belief in the country’s potential has driven our investments and partnerships. We stand ready to continue collaborating with the government and Nigerians to ensure the digital economy remains a cornerstone of national development.

The path ahead is clear: by fostering a balanced, sustainable framework, Nigeria can solidify its position as a digital powerhouse, driving inclusive economic growth for years to come.