Twenty-five years after GSM changed communication in Nigeria, the telecommunications industry is entering a more difficult phase.
The sector’s main challenge is no longer bringing mobile services to more people. It is protecting the infrastructure that supports Nigeria’s growing digital economy.
Nigeria had fewer than 400,000 connected telephone lines in 2001. Today, the country has more than 170 million active mobile subscriptions.
This growth has made Nigeria Africa’s largest telecommunications market. However, vandalism, fibre cuts, multiple taxes, poor electricity, insecurity and inconsistent Right-of-Way policies are putting pressure on the networks millions of Nigerians depend on.
These networks now support banking, healthcare, education, e-commerce, remote work and artificial intelligence.
Industry leaders believe the sector has reached a stage where keeping networks reliable is becoming more important than simply expanding coverage.
The Industry’s New Challenge
Gbenga Adebayo, chairman of the Association of Licensed Telecommunications Operators of Nigeria, said the industry must now focus on reliable and resilient connectivity.
Speaking at the Nigeria Information Technology Reporters Association conference in Lagos, Adebayo said extending network coverage is no longer enough.
Telecom companies spent much of the past 25 years building networks across Nigeria. Their present challenge is keeping those networks active despite rising operating costs and repeated damage to infrastructure.
Nigeria’s telecom industry is widely considered one of the country’s most successful economic reforms.
The government’s decision to liberalise the sector in 2001 opened the market to private investors. This led to billions of dollars being invested in mobile base stations, fibre-optic cables, international connections, data centres and 5G infrastructure.
These investments helped create the foundation for digital banking, electronic payments, online education, telemedicine and remote work.
Telecom as Nigeria’s Digital Highway
Adebayo warned that the infrastructure supporting these services remains vulnerable.
He compared telecom networks to major transport infrastructure such as Lagos’ Third Mainland Bridge and urban rail systems.
Just as the closure of a major bridge or railway can disrupt movement across a city, damage to telecom infrastructure can affect businesses, public institutions and essential services.
Telecommunications now operates as the highway through which Nigeria’s digital economy moves.
A damaged fibre cable can interrupt bank transfers, internet access and business operations. An attack on a base station can disconnect communities and affect access to digital services.
This is why Adebayo said telecom assets must remain secure, accessible and protected from vandalism.
Why Fines Cannot Solve Poor Service
Nigerians regularly complain about slow internet, dropped calls and weak network coverage.
Regulators sometimes respond by warning or sanctioning telecom operators. But Adebayo argued that penalties alone cannot improve the quality of service.
Operators face several problems that are not always within their control.
These include unstable electricity, damaged fibre cables, vandalism, insecurity and delays in receiving Right-of-Way approval from government authorities.
Poor electricity also forces operators to depend on generators, fuel and private power systems to keep base stations running.
When cables are damaged during construction work or telecom equipment is stolen, network quality can decline even when operators have invested in improving their services.
Adebayo called for cooperation among the government, regulators, security agencies, infrastructure companies, communities and consumers.
Improving service quality, he argued, requires a wider national effort rather than relying only on fines against telecom companies.
Rising Demand for Faster Internet
Pressure on Nigeria’s telecom networks is expected to grow.
Artificial intelligence, cloud computing, the Internet of Things and other new technologies require faster and more reliable internet connections.
These technologies process and transfer large amounts of data. They cannot work properly without strong broadband infrastructure.
Adebayo said Nigeria must continue investing in networks that can support the next stage of its digital growth.
Without reliable infrastructure, the country may struggle to take full advantage of artificial intelligence, cloud services and other data-driven technologies.
The industry must therefore improve network quality while also protecting existing infrastructure from damage and disruption.
Protecting Telecom Infrastructure
Adebayo welcomed the Federal Government’s decision to classify telecommunications infrastructure as critical national information infrastructure.
He described the decision as one of the industry’s most important policy developments since the telecom market was liberalised.
The classification is expected to provide stronger legal protection for telecom towers, fibre cables and other important facilities.
It could also improve cooperation between operators, regulators and security agencies in tackling vandalism and deliberate damage to telecom assets.
However, the policy will depend on proper enforcement.
Legal protection will have limited impact if vandals are not prosecuted or if public and private construction projects continue damaging fibre cables.
Telecom companies, security agencies and government authorities must work together to ensure that important infrastructure is protected.
Changes at the NCC
Adebayo also praised the Nigerian Communications Commission under its executive vice chairman, Aminu Maida.
He said the regulator had adopted a more transparent approach based on evidence and consultation.
Adebayo pointed to the recent telecom tariff review, the settlement of the long-running USSD debt dispute between banks and telecom operators, and the implementation of the critical infrastructure framework.
He said these decisions were helping to rebuild confidence in the telecommunications industry.
The USSD dispute had continued for years as banks and telecom companies disagreed over unpaid charges connected to banking services provided through mobile networks.
Resolving the dispute removed one of the industry’s long-running commercial disagreements.
The Mobile Termination Rate Review
The NCC is also reviewing Mobile Termination Rates.
These are the charges one telecom operator pays another when a call ends on a different network.
Adebayo urged stakeholders to allow the NCC to complete its study without political interference.
He said any new pricing system should protect consumers, encourage competition and allow telecom companies to continue investing in infrastructure.
Setting the rates too high could affect the cost of calls. Setting them too low could reduce the revenue operators need to maintain and expand their networks.
The regulator must therefore find a balance between affordable services and the financial health of the industry.
Cybersecurity Becomes a Boardroom Issue
The challenges facing Nigeria’s digital economy are not limited to physical infrastructure.
Technology executives at the conference also warned about the growing threat of cyberattacks.
Olufunke Tonye-Preghafi, chief financial officer and head of operations at Quomodo Systems Africa, said internet access alone would not close Nigeria’s digital divide if organisations failed to secure their networks.
As businesses adopt artificial intelligence and cloud technology, cyber threats are becoming more advanced.
She said cybersecurity should no longer be treated as an issue for information technology departments alone.
Company boards and senior executives must also take responsibility for protecting business data, networks and digital operations.
Organisations need secure infrastructure, reliable cloud systems and proper governance structures to ensure that digital transformation creates lasting value.
The Next Phase of Nigeria’s Telecom Industry
Nigeria’s first telecom challenge was connecting millions of people.
The next challenge may be harder.
The industry must protect its towers, cables and data systems while continuing to improve service quality and support new technologies.
This will require stronger security, reliable electricity, clearer Right-of-Way policies and better cooperation between operators and government authorities.
It will also require greater attention to cybersecurity as more businesses depend on artificial intelligence and cloud services.
Nigeria has built one of Africa’s largest telecommunications markets.
The next test is whether it can keep the infrastructure behind that success secure, reliable and strong enough to support an AI-driven economy.
