Telecommunication companies in Nigeria are increasing efforts to improve network quality amidst growing consumer frustration over poor connectivity and rising data costs. According to industry insiders, key operators including MTN, Airtel, and Glo have begun taking delivery of new network infrastructure equipment, with additional shipments expected in the coming weeks.
A senior industry executive confirmed that these network investments—valued in millions of dollars—are aimed at reversing the decline in service quality. “We have received some of the latest equipment and are committed to improving connectivity. While improvements will be noticeable in select areas soon, nationwide upgrades will take longer,” the source said.
The renewed investment drive follows the Nigerian Communications Commission’s (NCC) recent approval of a 50% increase in the prices of calls, data, and SMS services. This marks the first major tariff adjustment in over a decade, driven by rising operational costs and foreign exchange constraints.
The NCC explained that existing tariff structures had remained unchanged since 2013, despite escalating input costs. “These revised rates are necessary to bridge the widening gap between operating costs and existing tariffs. The adjustment will enable operators to invest in infrastructure and innovation, ultimately leading to better service delivery,” the Commission noted.
However, for many consumers, the impact has been immediate. The average price for 1GB of data has increase by 104.35%, rising from ₦287.5 to ₦587.5.
MTN, Airtel, and Glo have all revised their pricing structures, with Airtel’s 1GB plan now costing ₦800—up from ₦350—while Glo’s equivalent plan jumped from ₦300 to ₦750. 9mobile remains the only major operator to maintain its previous pricing.
The sharp increase in data costs has left users confused and concerned. A regular user, lamented the removal of affordable bundles. “My ₦2,000 weekly plan for 15GB was discontinued, then replaced with a 13GB plan. Now, even that is gone.”
Despite the backlash, telecom leaders argue that the price adjustments are essential for the sustainability of the sector. MTN Nigeria posted a post-tax loss of ₦400.44 billion in 2024, while Airtel Africa’s revenue dropped by 5.78% year-on-year to $3.64 billion. Both companies had also cut back on network investments in 2024, with MTN reducing its core investment by 1.30% to ₦443.48 billion, and Airtel’s falling by 7.8% to $456 million.
Rather than expanding their infrastructure footprint, telcos focused on reducing their foreign debt exposure, collectively repaying $1.2 billion in loans.
Karl Toriola, CEO of MTN Nigeria, warned last year that continued underinvestment could cripple the industry. “No investor wants to keep putting in a dollar and getting back 66 cents. We are in a serious crisis,” he cautioned.
Operators are optimistic; MTN projects that the tariff hike could generate an additional ₦1.34 trillion in revenue, which would be reinvested in enhancing network coverage and service reliability.
“This will lead to better cash flow, allowing us to invest in service quality, expand our reach, and enhance customer experience,” Toriola said.
Airtel Nigeria’s CEO, Dinesh Balsingh, echoed this sentiment, emphasizing that the revised tariffs would help fund ongoing infrastructure upgrades and improve overall service delivery.
