The development was disclosed by the Nigerian Communications Commission (NCC) following its 109th board meeting, as the regulator outlined ongoing investments and infrastructure expansion efforts across the country’s telecom ecosystem.
The upgrades form part of a broader industry-wide push to meet rising data demand, improve coverage reliability, and address persistent quality-of-service concerns affecting mobile users across Nigeria.
Multi-Trillion Naira Investment Cycle Underway
According to the NCC communiqué, the telecom sector is expected to attract approximately N1.86 trillion in capital expenditure this year, following an even higher investment level of N2.13 trillion recorded in 2025 by mobile network operators, tower companies, and other infrastructure players.
The regulator noted that these sustained investments reflect continued efforts to expand capacity and modernise network infrastructure in Africa’s largest mobile market.
“The board acknowledged the significant investments being undertaken by the Mobile Network Operators to enhance network coverage, capacity and overall Quality of Experience,” the NCC said.
Tower Companies Drive Shared Infrastructure Expansion
The infrastructure upgrades were largely driven by colocation and infrastructure-sharing companies—commonly referred to as tower companies or Infracos—which play a central role in Nigeria’s telecom value chain.
These firms own and manage base station towers and related infrastructure, which mobile operators such as MTN, Airtel, Globacom, and T2 lease rather than independently construct. The model reduces duplication, lowers operating costs, and accelerates nationwide network rollout.
Key players in this segment include IHS Towers, American Tower Corporation, and Pan African Towers, which collectively support thousands of shared telecom sites across the country.
Explaining the scope of recent activity, the NCC stated:
“Colocation and infrastructure-sharing licensees have sustained their investment in infrastructure upgrades, deploying new equipment across over 2,000 Base Transceiver Stations to support operators’ network expansion efforts and improve compliance with QoS obligations.”
These companies typically handle the construction, maintenance, and operation of tower sites, while mobile network operators focus on spectrum use, service delivery, and customer experience.
Expanding Coverage Amid Rising Data Demand
Nigeria’s telecom industry continues to face mounting pressure from surging data consumption, frequent fibre cuts, vandalism, and consumer complaints about service quality. These challenges have made infrastructure resilience a central focus for regulators and operators alike.
In addition to base station upgrades, the NCC noted that operators are planning large-scale expansion efforts to further strengthen network capacity.
“Operators have planned the deployment of over 12,000 additional coverage and capacity sites towards improving the Quality of Experience, with over 5,000 already completed, representing over 40 per cent completion,” the commission said.
The rollout is expected to significantly expand coverage, particularly in underserved and high-demand urban corridors.
Strengthening Backhaul and Fibre Connectivity
Beyond mobile site expansion, the sector is also investing in transmission infrastructure to improve network stability and reduce congestion.
According to the NCC, fibre deployment has already been extended to more than 700 sites, improving backhaul capacity and overall service reliability.
“The board further noted the continued strengthening of transmission infrastructure, with fibre connectivity extended to more than 700 sites, improving network resilience, backhaul capacity and service reliability,” it added.
Cost Pressures and Long-Term Infrastructure Needs
Industry estimates highlight the high cost of telecom infrastructure development. A full base station for 5G deployment can cost around $450,000, while individual site installations typically range between $100,000 and $200,000 depending on location and complexity.
In Nigeria, earlier-generation base stations were estimated at around N40 million per site, with more complex deployments reaching up to N50 million.
These figures underscore the scale of investment required to sustain Nigeria’s growing digital economy, where mobile networks remain the primary gateway to internet access despite ongoing efforts to expand fibre broadband penetration.
Building Toward a More Resilient Digital Economy
The NCC emphasised that infrastructure sharing remains central to improving efficiency and expanding nationwide coverage, particularly as operators work to meet rising expectations for faster and more reliable connectivity.
Continued investment in both mobile and fixed infrastructure, the regulator noted, will be essential to achieving Nigeria’s long-term digital economy objectives.
As network operators and infrastructure firms scale up deployments, the focus is increasingly shifting toward improving service quality, reducing downtime, and ensuring that capacity growth keeps pace with the country’s rapidly expanding digital demand.