Nigeria’s $76 Billion Telecom Investment Still Leaves Millions Without Connectivity
Story: written by Daniel september 9,2025
Nigeria’s telecommunications sector has attracted nearly $76 billion in investment since its 2001 privatisation, but millions of citizens remain without access to reliable connectivity.
Despite significant expansion, the industry continues to face persistent challenges, including coverage gaps, poor service quality, high operating costs, and affordability barriers.
The liberalisation of the telecom sector in 2001 marked a turning point, shifting control from the state-owned NITEL to private operators. At the time, fewer than 500,000 phone lines served a population of over 120 million. The introduction of GSM licenses drove explosive growth, with operators such as MTN, Airtel, and Glo rapidly expanding their networks.
Over the past 24 years, investments totaling $75.6 billion, according to the Nigerian Communications Commission (NCC), have powered the shift from 2G to 5G, enabled Internet Service Providers (ISPs), and created global infrastructure players like IHS Towers. Submarine cables landing on Nigeria’s shores also laid the foundation for the country’s digital economy.
Today, telecoms contribute 14.4% to Nigeria’s GDP, with more than 169 million active phone lines. The sector has also enabled financial inclusion through mobile wallets, improved aviation safety with real-time data sharing, and boosted e-commerce by powering logistics networks.
Yet, significant gaps remain. By the end of 2022, around 27 million Nigerians still lived in areas without network coverage. Beyond this, nearly 120 million people remained offline due to affordability issues, lack of digital literacy, or absence of internet-enabled devices.
Service quality also continues to frustrate consumers. Frequent call drops, unexplained data depletion, and slow internet speeds are common complaints. Fibre cuts—over 1,100 reported daily—alongside equipment theft, access denials, and vandalism worsen the problem. Operators also face 54 different taxes across states, right-of-way charges, and mounting foreign exchange costs.
The sector is further strained by the naira’s sharp depreciation, which has driven up operating expenses, while tariffs remain frozen. Internet shutdowns have also taken a toll, with Nigeria recording more than 220 cumulative days of social media restrictions since 2015.
To address these issues, regulators and operators are pursuing reforms. The NCC is working with ministries and state governments to harmonise taxes, curb fibre cuts, and improve service delivery. Operators like MTN are investing heavily in infrastructure upgrades, with plans to expand fibre networks and data centres.
Industry leaders stress that pricing flexibility, regulatory certainty, and stronger policy support are essential if telecoms are to deliver inclusive connectivity for all Nigerians.
