Nigeria has more than 200 million mobile subscriptions, according to industry data, meaning the compensation exercise potentially affects a significant share of active users across Africa’s largest telecom market. The board also reviewed compliance by infrastructure providers, particularly tower companies (TowerCos), which were directed to reinvest regulatory fines into network upgrades through escrow arrangements designed to improve service resilience.
“While noting the progress made to date, the board emphasised the importance of full compliance to ensure that the intended infrastructure improvements are realised sustainably,” the communiqué stated. The regulator’s intervention comes as Nigeria’s telecom sector continues to face structural challenges, including rising data demand, uneven fibre deployment, and heavy reliance on mobile broadband, which has strained network capacity.
Telecom operators in Nigeria have continued to invest heavily in network infrastructure and service improvements. In 2025, mobile network operators, tower companies, and other industry players spent about N2.13tn on capital expenditure. Looking ahead, operators say they plan to invest about N1.86tn in 2026, with spending targeted at network expansion, technology upgrades, and broader operational improvements aimed at strengthening service delivery for mobile and data users across the country.
The NCC also noted that efforts to expand fibre-to-the-home connections are beginning to gain traction, although penetration remains low relative to national demand. It said broader fibre rollout and wholesale backbone expansion would be critical to easing pressure on mobile networks and reducing the cost of data services over time.
Beyond infrastructure gaps, the commission flagged persistent vandalism of telecom facilities as a major constraint on service reliability, despite the designation of telecom assets as critical national information infrastructure. “The board noted the prevailing sectoral challenges affecting the operations of licensees of the commission, including infrastructure vandalism, which has continued to hamper industry growth,” it said.
The NCC said it is exploring additional protective mechanisms, including a proposed Communications Industry Security Trust Fund, to strengthen the security of telecom infrastructure nationwide. The compensation programme, combined with ongoing regulatory enforcement, signals a more assertive stance by the NCC as it seeks to improve service quality in a market where consumer frustration over network performance has remained high despite years of investment by operators.
It said compliance had been partial, warning that full adherence was necessary to achieve the intended infrastructure upgrades. “While noting the progress made to date, the board emphasised the importance of full compliance to ensure that the intended infrastructure improvements are realised sustainably,” the communiqué stated.
The regulator’s intervention comes as Nigeria’s telecom sector continues to face structural challenges, including rising data demand, uneven fibre deployment, and heavy reliance on mobile broadband, which has strained network capacity. Telecom operators in Nigeria have continued to invest heavily in network infrastructure and service improvements.
In 2025, mobile network operators, tower companies, and other industry players spent about N2.13tn on capital expenditure. Looking ahead, operators say they plan to invest about N1.86tn in 2026, with spending targeted at network expansion, technology upgrades, and broader operational improvements aimed at strengthening service delivery for mobile and data users across the country.