ABUJA — Nigeria’s telecommunications sector is set for a transformative leap as operators have collectively committed over $1 billion toward the purchase of new network equipment — a bold investment aimed at revitalising infrastructure and improving service delivery nationwide.
The announcement was made Thursday by Dr Bosun Tijani, Minister of Communications and Digital Economy, during an interview with TVC. The minister described the procurement as the most significant industry investment in recent memory, with deliveries from Original Equipment Manufacturers (OEMs) expected to begin between June and July 2025.
“We have evidence that our telcos have placed orders of equipment worth over $1 billion. That hasn’t been done in a long time in this country,” Tijani stated.
Tariff Adjustment Unlocks Investment
This large-scale investment follows the controversial 50% tariff increase approved in February — the first adjustment in over a decade. Designed to balance affordability with sustainability, the tariff review has enabled telecom firms to recover from surging operating costs, which have climbed by over 300% in the last ten years.
The additional revenue has provided operators with much-needed financial headroom to upgrade aging infrastructure, expand coverage, and respond to growing consumer demands.
Broadband Expansion and Quality of Service
The new equipment orders — much of which, according to NCC Executive Vice Chairman Dr Aminu Maida, are from Chinese vendors — are expected to boost 4G and 5G expansion, enhance broadband penetration, and resolve persistent challenges such as dropped calls, slow internet speeds, and rural connectivity gaps.
“We expect that by Q3, Nigerians will start to experience better, significant quality of service,” Tijani said.
Network congestion, driven by a surge in data consumption and a shift from traditional voice calls to WhatsApp and other VoIP services, has strained legacy systems. This upgrade is positioned to alleviate data traffic bottlenecks, particularly in urban and underserved areas.
Focus on Rural Connectivity and National Security
Tijani emphasised that rural network expansion remains a critical priority, both for digital inclusion and national security. He acknowledged that many remote areas remain commercially unattractive to private telecoms, requiring government intervention.
“Rural connectivity isn’t just about access; it’s about strengthening our economy and ensuring national security,” he noted.
“We must go beyond where private capital stops.”
The initiative aligns with President Bola Tinubu’s policy push to extend telecom services to Nigeria’s most remote communities, ensuring that no region is left behind in the digital transformation agenda.
Industry Outlook
With over $1 billion in new hardware entering the Nigerian telecoms ecosystem, and coordinated efforts between the government and private sector, the coming months are expected to mark a turning point in Nigeria’s digital journey.
Tijani concluded by reaffirming the administration’s commitment to fostering a resilient, inclusive, and modern digital economy capable of powering innovation, commerce, and national development.