Twenty-five years after GSM, Nigeria’s telecom industry faces its hardest infrastructure test
Twenty-five years ago, the arrival of GSM completely transformed Nigeria.
Twenty-five years ago, the arrival of GSM completely transformed Nigeria. It turned a country where people waited in line for hours just to make a phone call into Africa’s largest telecommunications market. Active subscriptions have jumped from fewer than 400,000 connected telephone lines in 2001 to over 170 million today. But the industry is now facing a different kind of battle: protecting the infrastructure that keeps the nation’s digital economy running.
The networks that power everything from banking and e-commerce to healthcare and artificial intelligence are currently under strain. Industry leaders point to a growing list of daily obstacles, including rampant vandalism, frequent fibre cuts, soaring energy costs, and widespread insecurity. Operators are also struggling with multiple taxation and inconsistent Right-of-Way policies across different states.
Because of these mounting threats, the telecom sector has entered a new phase where survival and resilience matter more than simple expansion.
Gbenga Adebayo, chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), at the Nigeria Information Technology Reporters Association (NITRA) conference in Lagos, said the challenge is no longer simply extending coverage, but ensuring resilient, reliable and high-quality connectivity for all Nigerians.
Adebayo’s comments reflect a shift in the industry’s priorities. For much of the past two decades, operators focused on building mobile coverage across the country. Today, the biggest concern is keeping existing infrastructure running amid increasing pressure from high operating costs and frequent damage to telecom assets.
Nigeria’s telecom sector is widely regarded as one of the country’s most successful economic reforms. Liberalisation in 2001 opened the market to private investment, triggering billions of dollars in spending on mobile base stations, fibre-optic networks, international connectivity, data centres and, more recently, 5G infrastructure.
Those investments have enabled digital banking, online learning, telemedicine, electronic payments and remote work, making telecommunications one of the foundations of Nigeria’s digital economy.
Yet Adebayo warned that the infrastructure supporting those services remains vulnerable.
He compared telecommunications infrastructure to major transport networks such as the Third Mainland Bridge and urban rail systems, saying disruption to telecom facilities could cripple businesses and public services in the same way a shutdown of key transport links would paralyse Lagos.
“Telecommunications infrastructure is the digital superhighway that keeps our economy moving. It must remain secure, accessible and protected from vandalism,” he said.
The ALTON chairman argued that improving network quality requires more than regulatory sanctions.
“Quality of service cannot be improved simply through fines and penalties,” he said, noting that operators face challenges beyond their control, including unstable electricity supply, fibre cuts, vandalism, Right-of-Way delays and insecurity.
Instead, he called for what he described as a whole-of-society approach, involving government, regulators, security agencies, infrastructure providers, communities and consumers.
His remarks come as demand for high-speed connectivity continues to rise with the growth of artificial intelligence, cloud computing, the Internet of Things and other data-intensive technologies.
Adebayo said these technologies will only succeed if Nigeria continues investing in resilient broadband infrastructure capable of supporting the country’s next phase of digital growth.
He welcomed the federal government’s decision to designate telecommunications infrastructure as Critical National Information Infrastructure (CNII), describing it as one of the sector’s most important policy milestones since liberalisation.
The designation is expected to strengthen legal protection for telecom facilities and improve collaboration between operators, regulators and security agencies in tackling vandalism and infrastructure sabotage.
Adebayo also praised the Nigerian Communications Commission (NCC) under Aminu Maida, the executive vice chairman, for adopting what he described as a transparent and evidence-based regulatory approach.
He cited the recent telecommunications tariff review, the resolution of the long-running USSD debt dispute between telecom operators and banks, and the implementation of the CNII framework as measures helping to restore confidence in the sector.
On the ongoing review of Mobile Termination Rates (MTR), Adebayo urged stakeholders to allow the NCC to complete its study without political pressure, saying any future pricing framework should balance competition, consumer protection and continued investment.
Beyond telecommunications, technology executives said resilient digital infrastructure must also be backed by stronger cybersecurity.
Olufunke Tonye-Preghafi, chief financial officer and head of operations at Quomodo Systems Africa, said connectivity alone would not bridge Nigeria’s digital divide if organisations fail to secure the networks behind digital services.
She said cyber threats are becoming more sophisticated as businesses adopt artificial intelligence and cloud technologies, making cybersecurity a boardroom issue rather than just an IT concern.
According to her, organisations increasingly need secure infrastructure, cloud resilience and governance frameworks to ensure digital transformation delivers long-term value.
The industry leader affirmed that Nigeria’s telecommunications industry’s first challenge was connecting millions of Nigerians, adding that its next and perhaps most difficult task is ensuring the infrastructure behind that connectivity remains secure, resilient and capable of supporting an AI-driven digital economy.
