Nigerian telecom operators have placed orders exceeding $1 billion for network infrastructure from Chinese original equipment manufacturers, signaling a significant push to enhance service quality, the Nigerian Communications Commission announced Tuesday.

The investment marks a revival of capital expenditure in Nigeria’s telecom sector, which serves over 160 million subscribers but has faced financial challenges in recent years.

The equipment, yet to be delivered or deployed, is expected to drive a major overhaul of the country’s network capabilities.

This was disclosed by NCC’s Executive Vice Chairman, Aminu Maida, during discussions to update the Nigerian Communications Act 2023 to reflect current technological advancements in Lagos.

“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,” the EVC said.

As Nigeria’s $75 billion telecommunications sector enters a new phase of growth, the regulator has stressed the importance of strong infrastructure to meet rising data demands and enable emerging digital services across the economy.

This follows the Nigerian Communications Commission’s recent approval of a 50% tariff increase—the first in over a decade—aimed at helping operators cope with operating costs that have surged by more than 300% in the last ten years.

Before the tariff approval earlier this year, telecom operators had consistently raised concerns that stagnant pricing, multiple taxes, and foreign exchange challenges were severely limiting their capacity to invest. This led to deteriorating service quality and stalled network expansion, with the resulting capital expenditure shortfall posing a serious threat to Nigeria’s rapidly growing digital economy.

The Chief Corporate Services Officer at MTN Nigeria, Tobe Okigbo, highlighted the industry’s renewed commitment to improving customer experience.

He pointed out that telecom operators incur losses with every dropped call, reinforcing the sector’s determination to enhance service quality.

“We’re committed to improving the quality of service. Every time a call drops, we lose money. This is a critical issue, and we are focused on addressing it,” Okigbo said during a panel session.