Telecom sector recovery will enhance GDP — NCC
Aminu Maida NCC Vice Chairman
Telecom sector recovery will enhance GDP — NCC
The telecom industry of Nigeria is making a strong recovery, contributing significantly to the country’s Gross Domestic Product, following a foreign exchange crisis that impacted the sector about two years ago.
The Executive Vice Chairman of the Nigerian Communications Commission, Dr Aminu Maida, highlighted the industry’s resilience during an interactive session with newsmen in Abuja on Thursday.
Represented by the acting Head of Public Affairs, Mrs Nnenna Ukoha, the NCC boss said the sector has overcome massive forex-related losses experienced by key operators and is now back on track towards profitability, aided by the recent tariff adjustment.
Maida noted that despite the challenges posed by forex-related obligations and poor quality of service in the past, telecom operators are now reinvesting in their networks, which is expected to improve service quality.
“About two years ago, we noticed a situation where some of our key operators were recording massive losses. Despite increasing revenues, they were struggling with heavy forex-related obligations that ate into their revenue. This led to poor quality of service.
“However, with the recent tariff adjustment exercise, these operators are now back on the path to profitability. As a result, they’re able to reinvest in their networks, which will lead to better quality of service and experience.
“We expect investments in the industry to increase significantly this year, more than what was seen in the last two years. The Nigerian telecom industry has great promise, evident in its revenue growth and service delivery, despite the recent challenges,” he said.
He assured Nigerians that soon they would begin to experience improved quality of telecom services. He also emphasised that the industry is poised for even greater growth this year, with investments projected to surpass those of the last two years.
The NCC boss outlined several challenges the sector has faced, including fibre cuts, infrastructure vandalism, and issues with the Rights of Way. He particularly pointed to the disruptive impact of fibre cuts, which have been a major issue for telecom providers, with 147 incidents recorded in just one week in May 2025.
To address these challenges, the NCC is working with the Nigerian Governors Forum and the Federal Ministry of Works to address RoW issues, and a Memorandum of Understanding will soon be signed to prevent road construction from damaging fibre networks.
Maida also stressed that the NCC would begin naming and shaming individuals responsible for fibre theft, collaborating with the Attorney General’s office and the NSCDC to prosecute those responsible for vandalising telecom infrastructure.
In addition to addressing infrastructure issues, Maida highlighted the telecom sector’s vital role in national security, social welfare, and economic growth. He emphasised that a robust telecommunications infrastructure is critical for achieving national security goals and fostering a digital society.
He assured Nigerians that the NCC would continue to work with stakeholders to improve the sector, ensuring that decisions taken are in the best interests of consumers.
Maida also addressed the issue of telecom service rates, explaining that the NCC uses a comprehensive cost study to determine the fairness of rates, including charges for services such as USSD.
He clarified that the N6.98 USSD charge per airtime recharge was based on a detailed analysis of the costs involved in providing the service. The NCC is committed to ensuring that telecom rates are cost-oriented and justifiable, protecting consumers from arbitrary charges, he noted.
