Telecoms industry faces hardest test 25 years after GSM launch

Twenty-five years after the introduction of GSM services, Nigeria's telecommunications sector is shifting its focus from rapid network expansion to infrastructure resilience and survival. Despite growing from 400,000 to over 170 million active subscriptions since 2001, the industry now faces severe operational headwinds including rampant vandalism, soaring energy costs, and inconsistent regulatory policies. This transition is critical as the sector underpins the nation's digital economy, supporting essential services from electronic banking to emerging artificial intelligence applications.

The Nigerian telecommunications market, Africa's largest, has reached a pivotal juncture where the preservation of existing assets has become more urgent than simple coverage growth. Gbenga Adebayo, chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), highlighted at the NITRA conference that operators are battling a digital superhighway under siege from frequent fiber cuts, equipment theft, and unstable electricity. While the sector has attracted billions of dollars in private investment since liberalization in 2001, the current environment of multiple taxation and conflicting Right-of-Way policies across various states is straining the financial viability of these networks.

To address these systemic vulnerabilities, the federal government recently designated telecommunications infrastructure as Critical National Information Infrastructure (CNII). This policy milestone is intended to provide stronger legal protections against sabotage and foster better cooperation between security agencies and service providers. Adebayo noted that the industry's health is further supported by the Nigerian Communications Commission (NCC) under Aminu Maida, which has moved toward evidence-based regulation. Recent successes include the resolution of long-standing USSD debt disputes between telcos and banks, as well as ongoing reviews of Mobile Termination Rates (MTR) and tariff frameworks to balance consumer protection with investment needs.

Beyond physical security, the sector is also grappling with the demands of a data-intensive future driven by AI, cloud computing, and the Internet of Things. Olufunke Tonye-Preghafi of Quomodo Systems Africa emphasized that connectivity alone is insufficient without robust cybersecurity and governance frameworks to protect the networks. As the industry moves into this more complex phase, the focus remains on ensuring that the infrastructure—which Adebayo compared to vital transport links like the Third Mainland Bridge—remains secure and capable of supporting Nigeria's digital transformation without the constant threat of disruption.