Home Economy Telcos Invest Over $1bn in Chinese Equipment to Boost Service Quality

Telcos Invest Over $1bn in Chinese Equipment to Boost Service Quality

by Radarr Africa

Telecommunications operators in Nigeria have placed orders worth over $1 billion for new network infrastructure from original equipment manufacturers in China, as part of efforts to overhaul and improve the quality of service nationwide. The Nigerian Communications Commission (NCC) disclosed this on Tuesday, describing it as a major move to revive capital investment in the sector.

The Executive Vice Chairman of the NCC, Aminu Maida, announced the development while speaking to industry stakeholders in Lagos during a forum aimed at reviewing the Nigerian Communications Act 2023 to keep pace with modern technological realities. Maida said this fresh wave of investment represents more than double the capital expenditure of the previous year and is critical for the sector’s expansion.

“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,” Maida said.

While the telecom equipment has yet to arrive or be deployed within Nigeria, the order marks a clear commitment to reversing the decline in service quality and infrastructure investment, which had plagued the sector due to years of economic strain.

With over 160 million active telecom subscribers across the country, operators are under pressure to improve service delivery amid rising complaints of drop calls, slow data, and poor coverage. The NCC believes that the new equipment, once delivered and installed, will lay the foundation for Nigeria’s next phase of telecom growth.

The telecom sector, currently valued at over $75 billion, is a key pillar of the Nigerian economy. In recent years, telecom companies have battled skyrocketing operating costs, multiple taxes, forex volatility, and stagnant tariffs—challenges that significantly reduced their ability to invest in network expansion and upgrades.

Earlier this year, the NCC approved a 50 percent tariff increase, the first in 11 years. The move was intended to ease the burden on telecom operators, who reported that their operating costs had surged by more than 300 percent over the last decade. Operators had long warned that without a price adjustment, continued investment in infrastructure would be unsustainable.

Following the tariff adjustment, telecom firms promised to reinvest part of the additional revenue into improving service quality. The billion-dollar infrastructure order now appears to be a direct fulfilment of that commitment.

Tobe Okigbo, Chief Corporate Services Officer at MTN Nigeria, reaffirmed the industry’s renewed focus on improving customer satisfaction. Speaking during a panel session, he stated that service reliability is a business imperative for telecom companies.

“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.

The NCC reiterated that strong infrastructure will be essential to support the country’s growing digital economy, which relies heavily on reliable mobile and broadband services. As digital services such as fintech, e-commerce, and remote work continue to grow, the pressure on telecom infrastructure will only increase.

With the current round of investment and the expected delivery of equipment from China, operators are aiming to meet consumer expectations and regain trust in an industry often criticised for poor service despite high demand.

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