Connectivity grows but broadband gaps, vandalism stall sector

Sixty-five years after independence, Nigeria’s telecommunications sector reflects both the nation’s remarkable progress and its unfinished struggles.

From colonial telegraphs in the late 19th century to a digital ecosystem with more than 220 million active lines today, telecoms have become a powerful driver of economic inclusion and innovation.

Yet stubborn gaps, including vandalism, broadband shortfalls, power deficits, multiple taxation, and regulatory hurdles, amongst others, continue to dim the gains.

From telegraphs to 172m lines

Nigeria’s telecoms journey began in 1886 when Cable & Wireless established the first telegraphic link. At independence in 1960, just 18,724 fixed telephone lines served a population of 40 million. The department of Posts and Telecommunications oversaw the network, which remained limited and unreliable.

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Ambitious targets under the First National Development Plan (1962–1968) sought to expand coverage, but the civil war stunted progress, leaving results at less than half of projections. The 1970s and 1980s brought incremental growth, but service was still costly and inefficient.

A turning point came in 1985 with the merger of the Posts and Telecommunications Department and Nigerian External Telecommunications into Nigerian Telecommunications Limited (NITEL), a state monopoly. NITEL struggled to deliver efficient service, and by the late 1980s, reforms were overdue.

The 1988 Privatization and Commercialization Decree signaled change, but meaningful liberalisation only arrived in the 1990s. The creation of the Nigerian Communications Commission (NCC) in 1992 opened the door to competition, while the 2000 National Telecommunications Policy under president Olusegun Obasanjo dismantled NITEL’s monopoly. GSM licensing in 2001 marked the dawn of a new era.

GSM era sparks growth

Operators like MTN and Globacom transformed Nigeria’s telecoms landscape almost overnight. In 2001, fewer than half a million lines existed. Today, subscriptions is about 172 million, according to NCC latest data. Telecoms now contribute roughly 14 percent of GDP, enabling e-commerce, fintech, and social connectivity on a scale unimaginable a generation ago.

Infrastructure milestones such as Glo-1, the first submarine cable fully owned by an African operator, showcased Nigeria’s ambition to connect globally.

The Nigerian Communications Act of 2003 cemented a strong regulatory framework, ensuring competition and attracting massive private investment.

Tinubu’s Renewed Hope Agenda

Since May 2023, telecommunications has taken on greater prominence under President Bola Tinubu’s Renewed Hope Agenda. Bosun Tijani, minister of Communications, Innovation and Digital Economy, has championed a 2023–2027 Strategic Blueprint anchored on five pillars: knowledge, policy, infrastructure, innovation, and trade.

The results are already visible. More than 117,000 Nigerians have been trained under the 3 Million Technical Talent (3MTT) program, exceeding early targets. Global partnerships have been struck with MTN, Airtel, the European Union, and UNDP, while Nigeria launched a National AI Strategy to position itself as a continental leader in emerging technologies.

Investor confidence has returned, buoyed by policy moves such as scrapping the controversial five percent telecom tax and approving tariff adjustments. Foreign direct investment in ICT surged nine-fold from $22 million to $191 million in the first quarter of 2024. Operators, too, are doubling down: MTN Nigeria has pledged N1 trillion in capital expenditure for 2025 alone.

“Stable policies and regulatory clarity are enabling us to reinvest in quality of service. It is a testament to how far the sector has come and how much more it can deliver,” said Karl Toriola, chief executive officer of MTN Nigeria.

Broadband, power gaps, vandalism persist

Despite progress, major gaps persist. Broadband penetration stood at 48.81 percent in August 2025, far short of the 70 percent target set in the National Broadband Plan. Rural communities remain underserved, hobbled by power shortages, multiple taxation, and right-of-way bottlenecks.

The World Bank estimates that Nigeria’s infrastructure gap costs the economy $29 billion annually. Power shortages alone erode quality of service, with telecom operators spending heavily on diesel to run approximately 40,000 sites nationwide.

Gbenga Adebayo, chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON), warned that systemic barriers remain. “Multiple taxation, vandalism and high cost of Right of Way are still major problems that need to be addressed to encourage more investments,” he said.

Read also: Nigeria’s telecom sector thrives with 171.6m subscribers in August 2025

Ambitious projects ahead

Government officials insist solutions are in the pipeline. Later this year, the administration plans to roll out Project BRIDGE, a $2 billion, 90,000-kilometre national fibre network, alongside 7,000 new towers, 80 percent of which will serve underserved areas.

Other initiatives include e-governance platforms, Talent City innovation hubs, and expansion of the 3MTT program to train more digital workers.

“We believe we should build and are building a resilient global system to ensure Nigeria is not just keeping pace with digital infrastructure but also strengthening it,” Tijani said.

NCC’s policy-to-law legacy

For the NCC, Nigeria’s telecoms story has always rested on strong policy foundations. Aminu Maida, the commission’s executive vice chairman, recalled that the National Telecommunications Policy (2000) paved the way for the Nigerian Communications Act (2003), which transformed connectivity.

“We moved from about 500,000 fixed lines to almost 80 million active lines in under a decade. Competition drove innovation and affordability; even with recent tariff adjustments, the average price per minute remains below the N50 per minute level at the dawn of GSM,” Maida said.

Newer policies, including the National Policy on 5G, the National Broadband Plan (2020–2025) and the National Cybersecurity Policy, are shaping today’s landscape. Meanwhile, indigenous content and online child protection frameworks are in early stages of implementation.

Looking ahead, Maida said the NCC’s focus will be on expanding fibre-to-buildings, ensuring affordable high-speed connectivity, and building resilience against vandalism and infrastructure disruptions. “Our goal is a robust, resilient, safe, and secure internet for all citizens, businesses, and government,” he stated.

As Nigeria reflects on its independence milestone, the telecoms sector stands as both a symbol of progress and a reminder of unfinished business. From 18,724 lines in 1960 to 172 million active subscriptions today, the sector’s trajectory underscores the transformative power of connectivity.

But broadband gaps, power shortages, and policy hurdles still hold back its full potential. Closing those gaps and ensuring equitable access may well define how completely telecoms can deliver on the promise of inclusion in Africa’s largest economy.