Nigeria’s telecommunications sector has evolved into one of the country’s strongest economic pillars, but experts warn that outdated regulations are increasingly becoming a barrier to sustaining its momentum in a rapidly expanding digital economy.
Recent figures highlight the scale of the industry’s growth.
In the first quarter of 2026, Nigerians spent N3.33tn on internet data, while telecommunications contributed 9.19 per cent to the nation’s real Gross Domestic Product, marking its second highest quarterly contribution in two years.
By the end of 2025, the sector had generated N18.5tn for the economy and recorded an impressive 26.34 per cent year-on-year growth in the fourth quarter.
Today, telecommunications ranks as Nigeria’s fourth-largest contributor to GDP, trailing only crop production, trade and real estate.
Despite these achievements, industry stakeholders say the regulatory framework governing the sector remains largely outdated. Many of the existing policies were originally designed for an era dominated by voice calls and basic internet services rather than today’s digital-first economy powered by data consumption, fintech, cloud services and emerging technologies.
The Nigerian Communications Commission’s ongoing review of the National Telecommunications Policy 2026 is therefore being seen as a critical opportunity to modernize the industry and tackle long standing structural challenges.
One of the biggest concerns is Nigeria’s inability to meet its broadband expansion targets. Under the National Broadband Plan 2020-2025, the country aimed to achieve 70 per cent broadband penetration by December 2025. However, broadband penetration reached only 50.58 per cent, leaving millions of Nigerians without the expected access to high speed internet.
Experts argue that technology is no longer the limiting factor. Fibre optic infrastructure, fixed wireless access and satellite broadband solutions are already available. Instead, regulatory bottlenecks and governance challenges continue to slow progress.
Among these challenges is the Right of Way issue. Although the NCC and the Nigerian Governors’ Forum agreed in 2020 to standardise Right of Way charges at N145 per metre, only 11 states have fully adopted the arrangement.
Several states still impose higher charges, making network expansion more expensive for operators and slowing broadband deployment in many communities.
As a result, telecom companies either pass the additional costs to consumers through higher data prices or reduce their infrastructure investments, leaving underserved areas disconnected.
Infrastructure vandalism has also emerged as a growing threat to Nigeria’s digital ambitions.
Between January and August 2025, the country recorded 19,384 fibre optic cable cuts, 3,241 incidents of equipment theft and more than 19,000 cases of denied access to telecom sites. In the first quarter of 2026 alone, another 5,934 fibre cuts were reported.
Operators now deal with an estimated 30 to 43 fibre cuts daily across the country. MTN Nigeria alone recorded 9,218 fibre cuts throughout 2025, triggering approximately 1.6 million customer complaints.
These incidents not only disrupt services but also increase operational costs and discourage further investments in digital infrastructure.
Industry data indicates that about 70 per cent of fibre cuts are linked to road construction projects and public works activities, often because contractors either lack access to infrastructure maps or fail to coordinate with telecom operators before commencing projects.
While the Federal Government designated telecommunications infrastructure as Critical National Information Infrastructure in 2024, stakeholders believe enforcement measures alone may not be enough.
They are advocating for a centralised national utility mapping system that would require contractors, government agencies and civil works operators to verify underground infrastructure locations before excavation begins.
Another major issue affecting the sector is multiple taxation.
Telecom operators currently contend with more than 50 different taxes, levies and fees imposed by various federal, state and local government authorities.
Beyond increasing business costs, this fragmented tax structure also creates administrative burdens that ultimately affect consumers through higher internet costs.
Affordability is becoming a growing concern, particularly for remote workers, entrepreneurs and digital professionals who depend heavily on internet access for their daily activities.
Stakeholders say the National Telecommunications Policy 2026 must move beyond broad recommendations and introduce practical, enforceable reforms.
Among the proposals being championed are the creation of a mandatory national utility mapping database, stronger enforcement mechanisms for Right of Way compliance and a unified telecommunications tax framework that simplifies the current system.
Industry analysts believe voluntary agreements have delivered limited results and that future reforms must include clear timelines, accountability measures and measurable outcomes.
With telecommunications now serving as one of the strongest drivers of Nigeria’s economy, experts insist that regulation must evolve alongside the industry.
