Nigeria telecom investment rebounds in 2025 but service gaps persist

…As regulator pledges tougher consumer protection in 2026

Nigeria’s telecommunications sector saw a return of investment momentum in 2025, with operators expanding network infrastructure and broadband penetration crossing the 50 percent mark, even as consumers continue to grapple with inconsistent service quality, congestion and outages, the country’s telecoms regulator said.

In a New Year address outlining the sector’s performance and priorities, the Nigerian Communications Commission (NCC) said operators deployed more than 2,800 new and upgraded sites in 2025, helping to lift broadband subscriptions to about 109.6 million by December, up from 96.3 million a year earlier. Broadband penetration rose to 50.58 percent, compared with 44.43 percent at the end of 2024.

The rebound marks a turning point after years of strained investment amid foreign exchange shortages, rising operating costs and infrastructure challenges. Still, the regulator acknowledged that service improvements have yet to be felt consistently by consumers across the country.

“While network performance is not yet where we want it to be in all locations, measurable improvements were recorded over the year,” Aminu Maida, NCC executive vice chairman and chief executive officer said.

Median 4G download speeds rose about 24 percent to roughly 20 megabits per second, while average speeds increased 18 percent to around 33 Mbps between December 2024 and December 2025, according to the regulator. Fourth-generation networks now account for about 52 percent of mobile connections nationwide, overtaking 2G, which still represents about 38 percent.

The NCC highlighted 4G performance as the clearest indicator of everyday user experience, given that it remains the dominant broadband access technology in Nigeria.

Rising demand, persistent pressure

Despite the gains, explosive growth in data usage is putting increasing strain on networks. Monthly mobile data consumption surged from about 518,000 terabytes in early 2023 to more than 1.23 million terabytes by November 2025, an increase of roughly 140 percent in less than three years.

The surge has intensified congestion in busy urban areas and underscored the need for sustained investment in network capacity, fibre backhaul and resilience, even as coverage expands.

Consumers, the regulator said, continue to experience inconsistent data speeds in some locations, service disruptions linked to power failures and infrastructure damage, as well as slow complaint resolution.

Operators, meanwhile, face mounting pressures of their own, including high energy and logistics costs, right-of-way challenges, vandalism and theft of telecom infrastructure, factors that affect both the pace of expansion and quality of service delivery.

Tougher stance on consumer protection

Against that backdrop, the NCC signalled a tougher regulatory posture in 2026, with consumer protection and service quality at the centre of its agenda.

“If consumers do not experience reliable and affordable service, the sector loses trust, and if operators cannot invest sustainably, the sector cannot grow,” Maida said, adding that restoring balance between the two is essential for long-term
stability.

The regulator said it would deepen quality-of-service monitoring, strengthen incident reporting requirements and push faster escalation and resolution of major network failures, particularly in high-traffic areas and persistent coverage black spots.

It also pledged tighter oversight of tariffs, billing accuracy and customer care standards, alongside clearer public communication during major service disruptions.

One area where enforcement is already showing results is transaction reversals. Through collaboration with the Central Bank of Nigeria, consumers are now receiving refunds for failed airtime and data purchases within enforceable service-level timelines, the NCC said — a move aimed at restoring confidence and ensuring users receive fair value.

Internet safety and trust

Beyond connectivity, the regulator said its responsibilities now extend to protecting Nigerians from online risks as internet use becomes more central to daily life.

The NCC said it is strengthening regulatory tools such as the Internet Code of Practice to address fraud, impersonation, cyberbullying, harmful content and cyberattacks, while building a broader cybersecurity and trust framework for the industry.

Today’s networks, the regulator noted, increasingly connect not just people but also devices, machines and critical services, raising the stakes for security and resilience.

Infrastructure push and policy alignment

The NCC’s outlook aligns with President Bola Tinubu’s ambition to build a $1 trillion digital economy by 2030 under the government’s Renewed Hope Agenda, with telecoms positioned as a key enabler of productivity, innovation and job creation.

National infrastructure efforts, including Project BRIDGE, which targets up to 90,000 kilometres of fibre deployment, are expected to strengthen Nigeria’s digital backbone, improve resilience and support faster broadband services.

The regulator said it will also rely on data to identify underserved areas and apply a mix of incentives, partnerships and policy tools to extend connectivity, recognising that market forces alone cannot deliver universal access.

“No Nigerian should be excluded from the digital era because of where they live or their socio-economic circumstances,” Maida said.

Market discipline and governance

To reinforce accountability, the NCC said it will operationalise a revised Corporate Governance Code for the communications sector in 2026, making board and management oversight a key driver of operator performance.

The commission also pledged fair but firm enforcement against persistent non-compliance on service quality, consumer protection and governance, while maintaining a predictable regulatory environment to support investment.

For operators, expectations are clear: reduce avoidable outages, communicate transparently during disruptions, simplify tariffs, upgrade customer care and comply fully with regulatory obligations.

“The gains recorded in 2025 show what is possible. The task ahead is to deepen those gains, close remaining gaps, and raise service standards across the board,” the regulator said.