The Nigerian Communications Commission (NCC) has announced a new set of governance rules for telecom operators across the country, as the sector battles a sharp drop in foreign direct investment in early 2025.
According to the NCC, the new framework aims to strengthen board oversight, improve risk management, and boost transparency across Nigeria’s N105 trillion telecommunications industry. The sector currently serves more than 170 million active subscribers and remains a key part of the country’s digital economy.
The Executive Vice Chairman of the NCC, Dr. Aminu Maida, unveiled the new guidelines during a stakeholders’ meeting held in Lagos on Wednesday. He said the new rules were part of efforts to align Nigeria’s telecoms industry with international best practices.
Maida explained that the guidelines would be implemented in stages and would apply to all licensed telecom operators in the country. He added that the new rules build on earlier governance codes issued in 2014 and 2016, which he said were either voluntary or not strongly enforced.
The introduction of the new rules comes as the telecoms sector reported a significant decline in foreign direct investment in the first quarter of 2025. Data from the National Bureau of Statistics showed that FDI into the sector dropped to $80.78 million in Q1 2025, down by 58 per cent from the $191.57 million recorded in the same period of 2024.
On a quarter-on-quarter basis, the figure also declined by 41 per cent compared to the $136.86 million received in Q4 2024.
While the NCC did not directly link the drop in investment to governance issues, the timing of the new rules suggests a move to rebuild investor confidence through stronger oversight and accountability.
“This is about building resilient institutions and ensuring the sustainability of our networks,” Maida said. “Telecom is no longer just about connectivity. It’s about digital finance, national security, education, and public services. Strong governance is no longer optional.”
He said the new rules would help companies perform better, comply more efficiently with regulations, and offer more reliable services to Nigerians. He also cited NCC research showing that firms with good governance structures tend to be more stable, profitable, and trusted by customers and investors.
The new framework includes specific requirements on how telecom companies should structure their boards, handle internal controls, manage risk, and engage with stakeholders. Companies are now expected to appoint more independent directors with industry experience, publish more comprehensive compliance reports, and set up clear systems to deal with service outages, cyberattacks, and interconnection debts.
The guidelines also introduce requirements around environmental, social, and governance (ESG) standards. Telecom operators must now show how they are reducing carbon emissions, especially by using renewable energy to power their network sites. They are also expected to report on how they promote responsible business conduct in their supply chains and local communities.
According to the NCC, the rules will be enforced according to the category of licence held by each operator. While the regulator has pledged to provide support, including training and guidance, it warned that companies that fail to comply could face sanctions.
“This is not just about ticking boxes,” Maida stressed. “We want to move from governance as paperwork to governance as performance. Companies must train their directors, strengthen their internal audits, and tie executive bonuses to real results like better service quality and cybersecurity readiness.”
Maida said the NCC would follow a three-part enforcement strategy: “engage, enable, and enforce.” This means helping operators understand the rules, providing tools to support compliance, and holding defaulters accountable.
He urged the industry to see governance as a competitive advantage, not a burden. “When you run a transparent and well-governed operation, the investors will come,” he said.
The telecoms sector remains one of Nigeria’s most critical industries, contributing over 13 per cent to the country’s GDP. However, experts have long called for tighter oversight and reforms to address risks associated with weak governance, operational inefficiencies, and data privacy concerns.
With the new rules now in place, all eyes will be on how telecom firms adjust and how the reforms affect service delivery and investor confidence in the months ahead.
