Relief may be on the way for millions of Nigerians left frustrated by worsening network connectivity as telecom operators embark on comprehensive network infrastructure upgrades.
According to multiple sources, telecom operators have been taking delivery of new equipment, with more expected to arrive soon.
An industry source confirmed that major telecom companies are making significant investments. “Glo has cleared new equipment at customs, and Airtel and MTN are placing large orders for network upgrades. These investments are worth millions of dollars,” the source revealed.
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Another industry executive assured that improvements are imminent. “We have ordered the latest equipment to enhance our network. Some of it has already arrived in the country. While quality will improve in some areas soon, achieving nationwide improvement will take time. We are affected by poor network quality, too, because we rely on users staying online to generate revenue.”
The ongoing network overhaul follows the Nigerian Communications Commission (NCC) approval of a 50 percent increase in calls, data, and SMS tariffs after a decade-long push by telecom operators for price adjustments because of harsh economic conditions.
Data Cost Surges
The tariff hike has pushed the average cost of 1 gigabyte (1GB) of data by 104.35 percent to N587.5 from N287.5. Increasing tariff costs was necessary to increase investments in declining network investments, according to the NCC.
The NCC stated, “Tariff rates have remained static since 2013, despite the increasing costs of operation faced by telecom operators. The approved adjustment is aimed at addressing the significant gap between operational costs and current tariffs…
“These adjustments will support the ability of operators to continue investing in infrastructure and innovation, ultimately benefiting consumers through improved services and connectivity, including better network quality, enhanced customer service, and greater coverage.”
Despite this rationale, customers are feeling the pinch. “I am paying over 60 percent more for data, and I have never been more frustrated with my internet connection,” said Percy Ani, a freelance writer.
A BusinessDay analysis of published rates on telecom websites shows that the average cost of 1GB of data across MTN Nigeria, Airtel Nigeria, Globacom, and 9mobile has risen to N587.5 from N287.5.
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Airtel’s 1GB plan now costs N800, up from N350, while MTN raised its price from N200 to N500. Glo increased its 1GB plan to N750 from N300, replacing its previous 1GB bundle with a 1.1GB bundle. Prices on 9mobile have remained the same at N300.
This is the second price increase to be implemented by Airtel and MTN. As of March 12, 2025, Airtel’s 1GB data plan was N500 from N350, while MTN’s 1GB was N350 from N200. The adjustments and data bundle removal have left some consumers confused.
“After the N2,000 for 15GB weekly plan stopped, a N2,000 for 13GB plan replaced it. But now it doesn’t exist again. The plan was my saving grace,” stated Victoria Babalola.
The price hike comes at a time when digital services are more crucial than ever. Nigeria’s monthly internet consumption soared to a record 1 million terabytes in January, driven by previously affordable data plans.
However, telecom operators argue that the increase is necessary for industry sustainability. In 2024, MTN reduced core network investments by 1.30 percent year-on-year to N443.48 billion, while Airtel’s investment fell by 7.8 percent y-o-y to $456 million between April and December 2024. Rather than expanding infrastructure, telcos prioritised reducing their forex burden, paying off $1.2 billion in foreign loans.
This financial strain led to MTN Nigeria posting a post-tax loss of N400.44 billion, while Airtel Africa’s revenue fell by 5.78 percent to $3.64 billion from $3.86 billion over the nine months ending December 2024.
“Investments will not continue to come. No one will put in a dollar and continue to get 66 cents… We are in a big crisis,” Karl Toriola, CEO of MTN Nigeria, warned last year.
The tide is expected to turn in 2025, with telcos upbeat about their growth potential. The tariff hike is expected to boost inflows, with MTN Nigeria projecting an additional N1.34 trillion in revenue from the adjustment.
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“Based on our projections, there would be more cash flow, meaning additional funding to expand and provide quality of service, redundancy, and better customer experience,” Toriola noted.
“The price increase will enable us to continue investing in network infrastructure, expanding coverage,” echoed Dinesh Balsingh, CEO of Airtel Nigeria.