Nigeria’s telecommunications industry has undergone one of the most significant transformations in Africa over the last 25 years, growing from fewer than 500,000 telephone lines to more than 200 million active mobile subscriptions. The Association of Licensed Telecommunications Operators of Nigeria (ALTON) says the sector has become the backbone of the country’s digital economy, driving growth across banking, education, healthcare, agriculture, commerce, governance and entertainment.

Speaking in a paper presented at the Nigeria Information Technology Reporters Association (NITRA) Innovative Conference 2026, themed “Bridging Nigeria’s Digital Divide with Scientific Innovation,” ALTON Chairman, Engr. Gbenga Adebayo, highlighted the remarkable journey of Nigeria’s telecom industry and the challenges that still threaten its future.

From Limited Access to a Digital Revolution

According to Adebayo, Nigeria’s telecom landscape has changed dramatically since the liberalisation of the sector in 2001, when the Federal Government introduced the Global System for Mobile Communications (GSM) licensing regime.

Before liberalisation, telephone services were largely controlled by the government through the Nigerian Telecommunications Limited (NITEL), and access was limited to fewer than half a million fixed telephone lines serving a population of over 120 million people at the time.

Today, the country boasts over 200 million active mobile subscriptions, making Nigeria one of Africa’s largest telecommunications markets. The sector has become a major contributor to the nation’s economy, accounting for a significant share of the country’s Gross Domestic Product (GDP) and supporting millions of jobs directly and indirectly.

Billions Invested in Digital Infrastructure

Adebayo said telecom operators have invested billions of dollars over the years in expanding network infrastructure across the country.

According to him, these investments include:

• Nationwide GSM network expansion
• Fibre-optic cable deployment
• Mobile broadband infrastructure
• Data centers
• Cloud computing platforms
• Renewable energy solutions for telecom sites
• Fourth Generation (4G) and Fifth Generation (5G) networks

He explained that the industry evolved through several technological stages, beginning with GSM voice services before expanding to GPRS, EDGE, 3G, 4G, fibre-to-the-home broadband and now 5G technology.

These investments, he noted, have transformed the way Nigerians communicate, conduct business, access education, receive healthcare and carry out financial transactions.

Expanding Connectivity to Rural Communities

Adebayo said telecom operators have made deliberate efforts to extend digital connectivity to rural and underserved communities.

He explained that infrastructure sharing among operators, renewable energy solutions and partnerships with government have helped improve network coverage in areas previously considered commercially unattractive.

According to him, improved connectivity has boosted financial inclusion, digital entrepreneurship, online education, e-commerce and access to government services.

ALTON’s Role in Industry Growth

The ALTON chairman said the association has continued to advocate policies that support sustainable industry growth.

He identified several major areas where ALTON has engaged government and regulators, including:

• Right-of-Way reforms
• Protection of telecom infrastructure
• Reduction of multiple taxation
• Consumer protection
• Improved quality of service
• Better investment policies

These efforts, he said, have helped create a more favourable environment for network expansion.

Major Challenges Still Threaten Investments

Despite the sector’s impressive achievements, Adebayo warned that several long-standing challenges continue to slow investment and affect service delivery.

He listed some of the biggest obstacles as:

• Multiple taxation by different levels of government
• High Right-of-Way charges in some states
• Frequent vandalism of telecom infrastructure
• Rising energy costs
• Foreign exchange volatility
• High cost of importing telecom equipment
• Affordability challenges for consumers

He noted that frequent fibre cable cuts—often caused during road construction—and deliberate destruction of telecom facilities continue to disrupt essential services across the country.

According to him, these disruptions affect banking operations, healthcare services, education, security agencies and businesses that rely heavily on digital connectivity.

Emerging Technologies Offer New Opportunities

Looking ahead, Adebayo said Nigeria stands to benefit significantly from emerging technologies.

He identified several innovations expected to shape the next phase of digital transformation, including:

• Artificial Intelligence (AI)
• Internet of Things (IoT)
• Cloud computing
• Satellite broadband
• 5G technology

He stressed that achieving universal digital access would require continuous investment, stronger infrastructure, improved digital literacy and closer collaboration between government, regulators and the private sector.

Commends Tinubu Administration and NCC

The ALTON chairman commended President Bola Ahmed Tinubu‘s administration for recognising digital infrastructure as a key driver of economic growth.

He also praised the Nigerian Communications Commission (NCC), led by Executive Vice Chairman Dr. Aminu Maida, for maintaining what he described as a transparent and consultative regulatory environment that balances consumer interests with industry sustainability.

According to him, one of the major recent achievements was the resolution of the long-running USSD debt dispute between telecom operators and commercial banks, an issue that had threatened mobile financial services for years.

He also welcomed the implementation of the Critical National Information Infrastructure (CNII) framework, describing it as an important step towards recognising telecom infrastructure as strategic national assets deserving stronger legal protection.

Quality of Service Requires Collective Responsibility

Responding to concerns over network quality, Adebayo said improving customer experience requires more than imposing sanctions on operators.

He explained that poor electricity supply, vandalism, insecurity, fibre cuts during road construction and delays in obtaining Right-of-Way approvals all contribute significantly to network outages and poor service quality.

He therefore called for a “whole-of-society” approach involving government agencies, security organizations, utility companies, construction firms, host communities and telecom operators to protect telecommunications infrastructure.

He also appealed to Nigerians to report cases of vandalism, saying safeguarding telecom facilities is a shared national responsibility.

No New Telecom Tariff Increase Planned

Addressing recent reports suggesting another increase in telecom tariffs, Adebayo clarified that the NCC’s ongoing Mobile Termination Rate (MTR) cost study is only a review of wholesale interconnection charges between telecom operators.

He stressed that the exercise is not intended to lead to another increase in consumer tariffs.

According to him, there is currently no proposal before the NCC seeking approval for higher retail telecom prices.

Instead, he said the commission has challenged operators to focus on improving customer experience, expanding network coverage and strengthening network resilience across the country.

Adebayo reaffirmed ALTON’s commitment to working closely with the Federal Government, the NCC, industry stakeholders and consumers to build a stronger and more resilient telecommunications sector.