Telcos Roll Out $1bn Network Upgrade As New Equipment Lands
Nigeria’s leading telecommunications companies have begun network upgrades, deploying $1bn in equipment from Chinese manufacturers to tackle service quality issues.
The Nigerian Communications Commission confirmed that equipment shipments have started arriving, with mobile network operators working to meet a year-end deadline for significant service improvements.
“The ordered equipment have started arriving since early June, and deployment has already started in earnest by the Mobile Network Operators,” NCC Executive Vice Chairman Aminu Maida said in an email to media source. “They are on course to meet the Q4 deadline for significant Quality of Experience enhancements.”
This large-scale investment marks a turning point for Nigeria’s telecom industry, which has faced financial headwinds and underinvestment in infrastructure in recent years. The $1bn spend more than doubles the previous year’s capital expenditure and signals renewed momentum following the approval of a long-awaited 50 per cent tariff increase by the NCC in early 2025.
The tariff review, the first in over a decade, was introduced to help operators cope with mounting operating costs, which have surged by more than 300 per cent over the past ten years due to inflation, energy prices, and foreign exchange constraints.
With improved financial flexibility, operators are now reinvesting in critical network upgrades, including expansion of 4G coverage and laying the groundwork for broader 5G deployment. The EVC said it has received deployment strategies from all major operators and is closely monitoring progress.
“As the regulator, we collaborate closely with operators to streamline deployment plans and navigate complex dependencies. All operators have submitted their network improvement and deployment strategies, which we are rigorously monitoring,” he stated.
He also assured Nigerians that service improvements would become visible before the end of the year, even as he acknowledged the scale and complexity of the national upgrade effort.
“Nigerians can expect clear improvements in service quality by year-end, given the country’s vast size and complex network deployment challenges. Telcos are committed to their Q4 2025 network enhancement plans, backed by significant investments in cutting-edge technology to meet rising digital service demands,” the regulator noted.
Network upgrades and service improvements take time because the right equipment has to be imported, and they have to be deployed across the country, which is a significant undertaking given the vastness of Nigeria’s landmass.
“As the regulator, we are steadfast in holding them accountable for consistent progress,” the EVC assured.
The upgrades are expected to significantly reduce network congestion, improve call quality, and boost internet speeds for Nigeria’s 160 million telecom subscribers. Rural areas, which have long suffered from patchy or non-existent coverage, are also expected to benefit as part of the broader network improvement strategy.
The NCC enthused that the infrastructure investment will also play a key role in advancing Nigeria’s digital economy, currently valued at over $75bn, by supporting increased broadband penetration and improved user experience.
“The commission will maintain oversight and engage with stakeholders as needed to ensure success,” Maida added.
Before the injection of capital and policy support, Nigeria’s telecom sector had been under immense financial strain, with operators warning that outdated infrastructure and rising costs were undermining service delivery.
Over the years, telcos repeatedly flagged the deteriorating state of their networks, attributing the problem to harsh macroeconomic conditions that left little room for meaningful investment or maintenance.
At the height of the crisis, Chairman of the Association of Licensed Telecom Operators of Nigeria, Gbenga Adebayo, had even proposed service “load-shedding”, a measure akin to rationing connectivity to cope with the inability to keep all sites operational at once.
President of the National Association of Telecommunications Subscribers, Adeolu Ogunbanjo, described the network upgrade as a welcome move that aligns with the expectations of millions of telecom users across the country.
“Quality of service is what subscribers and indeed Nigerians at large, truly need,” Ogunbanjo told media. “It is encouraging to see the NCC taking the lead on this. This is a major boost for one of the biggest sectors contributing to the country’s economy.”
He noted that the timing of the upgrade is ideal, especially with improved financial liquidity in the sector. According to him, the recent clearance of long-standing USSD debts by banks, coupled with the federal government’s approval of a 50 per cent tariff increase, has positioned telecom operators to reinvest meaningfully in infrastructure and service delivery.
“Now that the banks have settled their debts to the telcos for USSD services, the operators have some breathing room. Combined with the government-approved tariff adjustment, there are now funds to make things happen,” he said.
Ogunbanjo urged operators to maintain transparency in the upgrade process and ensure that the benefits translate directly into a better user experience, particularly in underserved areas.
Industry experts, however, caution that infrastructure rollouts of this scale involve long lead times. Speaking to The PUNCH, the President of the Association of Telecommunications Companies of Nigeria, Tony Emoekpere, highlighted the timeline complexities behind such projects.
“Manufacturing alone can take between 60 and 90 days, depending on the nature of the equipment and the supplier’s backlog,” Emoekpere stated. “Shipping from the manufacturing country to Nigeria typically adds another 30 to 40 days.”
He said that further delays could result from customs clearance, regulatory inspections, and logistics challenges at deployment sites across Nigeria. Although no specific vendors were named, Huawei and ZTE, two of the largest OEMs operating in Africa are believed to be the principal suppliers for the 2025 network upgrade.
“The sense of urgency was missed when the issue of tariff was raised,” Emoekpere added. “People didn’t quite grasp how complex and time-sensitive these infrastructure projects were. Expanding a telecom network at this scale is not easy. These are not shelf-ready products you pick off a warehouse, manufacturing alone can take months.”
He noted that the entire process from production to deployment could take up to six months or longer before consumers begin to feel the benefits. As such, he urged the public to manage expectations while operators focus on maintaining existing infrastructure.
“Be it as it may, operators must prioritise protection of existing assets, improve power resilience, and ensure critical maintenance,” he said.