Telcos Order $1bn Network Upgrades from China – NCC

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Nigeria’s telecom operators have ordered over $1 billion of equipment from Chinese original equipment manufacturers to upgrade network infrastructure and improve service quality. 

This was revealed by the Executive Vice Chairman of the Nigerian Communications Commission (NCC), Dr Aminu Maida, in Lagos, at a colloquium themed, ‘The Nigeria Communications Act 2003, 22 years After: Challenges, Opportunities and Future Directions for a Digital Nigeria’ organized by the House of Representatives Committee on Communications.

Maida stated that, “Our operators have committed to investing over a billion dollars in telecom infrastructure this year. This is more than double the investment from last year. But this equipment needs to be manufactured. We went to China, and the original manufacturers have confirmed the orders.”

While the telecom equipment is still in transit, pending clearance and deployment, the development marks a renewed capital investment in the sector following a prolonged financial strain.

The regulator stated that as the sector, valued at over $75bn, prepares for its next phase of growth, strong infrastructure will be essential to handle surging data demand and power emerging digital services across the economy.

This comes just months after the NCC approved a 50 per cent tariff increase, the first in 11 years, designed to ease pressure on operators grappling with operating costs that have soared by over 300 per cent in  the last decade.

The telecom regulator has also kicked off plans to review the Nigerian Communications Act (NCA) of 2003, citing the need to align it with evolving technological realities and Nigeria’s digital aspirations.

NCC EVC described the over 20-year-old telecommunications law as ‘increasingly misaligned with 2025 and future realities.’ He pointed to the Act’s transformational legacy, including the rise of mobile subscriptions from less than 300,000 in 2001 to over 150 million today, and the telecom sector’s contribution of approximately 14 per cent to Nigeria’s GDP as of Q3 2024.

However, he warned that emerging technologies and widening connectivity gaps have rendered key aspects of the Act outdated. Maida stated, “Progress is not a destination, but a journey. The industry is experiencing a seismic shift driven by AI, 5G, quantum computing, IoT, and blockchain. Our regulatory framework must evolve just as quickly if we are to maintain momentum and close the digital divide.”

Maida also lamented ongoing structural barriers, including unreliable power supply, the high cost of right-of-way approvals, and rising operational expenses, which continue to hinder the expansion of digital infrastructure, particularly in underserved rural communities. He further flagged cybersecurity threats and escalating capital requirements as urgent challenges, noting that the current law falls short in addressing the complexities of Nigeria’s fast-evolving digital economy.”

The EVC commended the National Assembly for initiating the dialogue and affirmed the Commission’s continued collaboration with lawmakers, industry stakeholders, and international partners to develop a future-proof legal framework. His remarks hinted at a possible legislative review on the horizon, as Nigeria positions itself to play a more prominent role in the global digital economy

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