Since President Bola Tinubu took office in 2023, Nigeria’s ICT sector has seen encouraging growth through increased digital innovation, start-up support and youth-driven entrepreneurship. However, infrastructural challenges like unreliable power, operational cost, limited internet access, insecurity and regulatory barriers continue to slow progress. Balancing these advances with persistent obstacles will be crucial for Nigeria to fully harness its tech potential and drive inclusive economic transformation in the years ahead, reports Assistant Editor LUCAS AJANAKU
When President Bola Tinubu assumed office on May 29, 2023, expectations were high that his administration would bring transformative change to Nigeria’s ICT sector. These hopes were well-founded. As former governor of Lagos State, Tinubu had successfully leveraged technology to boost the state’s internally generated revenue (IGR) and eliminate payroll fraud, particularly the issue of “ghost workers.”
His commitment to technology-driven governance was evident when he received the Vice President of Oracle, Andress Arroyo, during a courtesy visit in Abuja. Tinubu spoke fondly of his experience with the tech company, saying: “I have tested Oracle, and it worked for our success. In Lagos State, what we did in effective collaboration with you has been copied across the states of the federation.”
Since taking office, President Tinubu has shown a clear resolve to prioritise digital innovation as a catalyst for economic growth. This vision was reflected in the renaming of the Federal Ministry of Communication and Digital Economy to the Ministry of Communication, Innovation and Digital Economy, followed by the appointment of a seasoned industry expert, Dr. Bosun Tijani, as minister.
“We can only build our institutions with accurate data and cutting-edge data management capabilities that are reliable and effective. We can only rely upon our human resources for excellent service delivery to Nigerians if they are well-trained and ready to learn,” he said, adding that the government is committed to a bottom-up approach and believes that a comprehensive solution for public administration can be created from a single sheet of paper, enhancing effectiveness and reliability.
“The transfer of knowledge is essential for our nation and the continent. In this government, we believe that the only way to build our country is a bottom-up approach and from one single sheet of paper, we can create an end-to-end solution for public administration that will rid our service of its worst tendencies in favour of effectiveness and reliability,” Tinubu said.
Coordinating Minister of the Economy and Minister of Finance, Wale Edun, highlighted the growing role of the ICT sector in Nigeria’s economy, revealing that the industry contributed 16per cent to the country’s GDP in 2024. “We are prioritising the ICT sector as a key driver of economic stability and job creation,” Edun said. He also referenced Tinubu’s recent engagement with Flutterwave’s CEO, where the company pledged to support Nigerian youth and small businesses through technology-driven solutions. “Flutterwave is considering listing on Nigeria’s Stock Exchange, and we expect this to strengthen the tech and payments ecosystem further,” he added.
In line with its commitment to develop the ICT sector, the Federal Government has rolled out a series of forward-thinking policies through the Ministry of Communications, Innovation and Digital Economy, the body responsible for shaping the direction of Nigeria’s tech industry. Among these is the ambitious 3,000,000 Technical Talent (3MTT) initiative, designed to build a vast pool of skilled tech professionals who can drive the country’s digital economy and position Nigeria as a global exporter of digital talent.
Another notable initiative is Project 774LG Connectivity, which aims to provide internet access to all 774 local government secretariats across the nation, thereby fostering inclusivity and digital access at the grassroots level. To further improve internet penetration nationwide, the government launched a special-purpose vehicle (SPV) tasked with deploying an additional 90,000 kilometres of fibre-optic cable. This bold infrastructure push has already drawn the attention and interest of the World Bank.
Furthermore, the National Digital Economy Policy and Strategy (2020–2030), initially introduced under the previous administration, has been revitalised with more ambitious targets and increased funding. Complementing this is the National Digital Innovation and Entrepreneurship Policy, which seeks to nurture the start-up ecosystem by creating a conducive environment for tech businesses to grow into unicorns. The policy includes tax incentives, streamlined regulatory procedures, and access to capital through government-backed venture funds—key enablers for start-up success in Nigeria’s evolving digital landscape.
To keep pace with the rapidly evolving digital landscape, the Federal Government updated the National Cybersecurity Policy and Strategy, ensuring it is better equipped to respond to emerging threats posed by new technologies. Recognising the vital role of cybersecurity in a digitising economy, the government has implemented several measures to protect Nigeria’s digital infrastructure. These efforts include strengthening cybersecurity frameworks, enhancing the capacity of law enforcement agencies to tackle cybercrime, and increasing public awareness around digital safety.
Among the flagship initiatives is the 3MTT Digital Skills Programme, which aims to train three million Nigerian youths in digital technology and essential soft skills. This programme is not only intended to boost digital literacy but also to create employment opportunities and support Nigeria’s transition to a more diversified, tech-driven economy by preparing the workforce for future demands. In the area of broadband expansion, the government has committed to delivering internet connectivity to all 774 local government secretariats within six months. This ambitious goal leverages existing national infrastructure, including NIGCOMSAT and Galaxy Backbone’s fibre-optic network, to deepen digital penetration and stimulate the digital economy.
Global development institutions have acknowledged the importance of such efforts. For instance, the World Bank notes that a 10 per cent increase in mobile broadband penetration can significantly boost economic growth in developing countries—estimating a potential 2.5 per cent rise in GDP per capita across Africa. The Bank underscores that expanding broadband access is critical for accelerating digital transformation and economic development, particularly in regions where connectivity still lags behind.
Support for the digital economy and e-governance under President Tinubu’s administration has been nothing short of remarkable. The government has prioritized the development of a thriving digital ecosystem, with plans to enact the Digital Economy and e-Governance Bill, 2024. As part of this drive, states are being encouraged to eliminate bottlenecks such as Right of Way (RoW) fees, which hinder the deployment of telecom infrastructure. There is also a strategic push to migrate all government ministries, departments, and agencies to the OneGov.ng portal, aimed at streamlining e-governance and improving service delivery.
On the global stage, the administration has advanced Nigeria’s digital infrastructure by facilitating the landing of a Meta-backed submarine cable, a move that is expected to double the country’s subsea internet capacity and significantly boost economic activities, particularly in the tech and creative sectors. The government is also actively fostering partnerships with leading global technology companies to support innovation, capacity building, and monetisation opportunities for Nigerian digital creators. Youth empowerment remains a central pillar of these digital initiatives. Through sustained funding for programs like the 3MTT initiative, the government is promoting widespread digital skills acquisition. Other efforts include supporting the establishment of digital health innovation hubs and encouraging technology adoption among small and medium-scale enterprises (SMEs) to increase productivity and competitiveness.
On the infrastructure front, the administration has made landmark strides with significant investments in broadband expansion. A Special Purpose Vehicle (SPV) has been approved to deliver an additional 90,000 km of fibre-optic cable, expanding Nigeria’s digital backbone to at least 125,000 km. This will make it the third-longest terrestrial fibre-optic network in Africa, after Egypt and South Africa—positioning the country as a leading digital hub on the continent.
“This project will result in the third-longest fibre-optic network in Africa, following only South Africa and Egypt,” said Dr. Bosun Tijani, Minister of Communications, Innovation, and Digital Economy. He noted that significant progress had already been made, bolstered by the support of the Ministry of Finance and a $500 million funding commitment secured from the World Bank.
In a further demonstration of Nigeria’s digital ambition, Tijani disclosed that the country is on track to become one of the first in Africa to fully transition from IPv4 to IPv6, a critical step toward achieving more robust internet connectivity, enhanced security, and future-ready digital infrastructure. On the contentious issue of Right of Way (RoW) fees, Tijani revealed that 11 states have so far complied with the Federal Government’s request to waive the charges—an important step aimed at lowering broadband deployment costs and accelerating internet penetration across the country.
To strengthen international linkages, President Tinubu approved the conversion of a federal property in San Francisco, USA, into a Nigerian Digital Technology Exchange Programme Hub, known as the Nigeria Startup House. This initiative is designed to connect Nigeria’s burgeoning start-up ecosystem to global tech markets and attract foreign direct investment (FDI). On the policy and regulatory front, the President directed that digital infrastructure investments be prioritised, accompanied by sweeping reforms to remove bureaucratic bottlenecks. Among these is a review of withholding tax policies for telecom companies, aimed at stimulating further private-sector investment in broadband and digital infrastructure.
The administration has also encouraged large-scale private sector participation. Notably, American Tower Corporation (ATC Nigeria) has sustained a major investment drive, with its cumulative investments in digital infrastructure surpassing $2.19 billion since 2015. Collectively, these efforts—ranging from fiscal policies and regulatory reforms to global partnerships and massive infrastructure investments—are strategically designed to expand digital access, reinforce Nigeria’s digital backbone, and position the country as a formidable player in the global digital economy.
To bridge Nigeria’s digital divide, the Universal Service Provision Fund (USPF), in collaboration with development partners, has announced plans to deploy an additional 1,000 base transceiver stations (BTS) in rural communities across the country. This effort is in addition to the 7,000 BTS recently unveiled by the Federal Government as part of its broader push to improve nationwide connectivity. According to a report by the Policy Competition and Economic Analysis Department of the Nigerian Communications Commission (NCC), the industry saw significant infrastructure development in 2022. Mobile Network Operators (MNOs) recorded: 34,862 towers; 127,294 base transceiver stations; 289,270.48 km of microwave coverage; 125 gateways; and 96,198 km of terrestrial and submarine fibre-optic cabling. The USPF also highlighted the considerable progress made in closing the country’s connectivity gap. Between 2013 and 2024, the gap narrowed by 57.97 per cent, with the number of unconnected clusters—areas with limited or no network services—dropping from 207 to 87. This improvement has directly impacted 13.8 million Nigerians, bringing them into the communication fold.
Moreover, the number of people living in unserved and underserved areas has decreased significantly, falling from 36.8 million in 2013 to 23 million today. These gains reflect the government’s sustained investment in telecom infrastructure and its commitment to ensuring that no part of the country is left behind in the digital age.
Challenges persist in a sector gasping for breath
Despite the renewed momentum in Nigeria’s digital transformation, the telecom sector continues to grapple with longstanding obstacles—many of which predate the Tinubu administration. Both the Association of Telecommunications Companies of Nigeria (ATCON), led by Tony Izuagbe Emoekpere, and the Association of Licensed Telecom Operators of Nigeria (ALTON), chaired by Gbenga Adebayo, have jointly raised alarm over several critical issues threatening the sustainability of the industry and its ability to deliver quality services. These include: Multiple taxation, High Right of Way (RoW) charges, infrastructure vandalism, foreign exchange constraints, and inconsistent power supply.
On the tax burden, Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, revealed that Nigeria officially has over 60 types of taxes, while unofficial estimates put the figure at over 200. He added that some states impose between 100 to 117 different levies, further complicating the business climate.
Adebayo, who leads ALTON—a body representing major carriers such as MTN, Airtel, Globacom, and 9mobile—noted that the telecom sector alone contends with over 50 different taxes, levies, and regulatory charges, making it one of the most overburdened sectors in the economy. Another compounding challenge is the removal of petrol subsidies, which triggered inflation rates nearing 30 per cent. Telecom operators say they have not been spared from the effects. Operating costs have surged, largely driven by the rising cost of powering infrastructure.
When the telecom sector was liberalised nearly 25 years ago, the Federal Government reportedly promised operators a minimum of 18 hours daily electricity supply from the national grid. That commitment was never fulfilled. Nigeria’s ageing and inefficient transmission infrastructure has made consistent power supply elusive—even if 10 megawatts of electricity were generated nationally. As a result, telecom operators have been forced to rely heavily on diesel generators, inverter batteries, and solar power systems to keep their base stations running. Unfortunately, these power sources are frequently vandalized or stolen, adding further strain to already overstretched operational budgets. These persistent challenges, if not urgently addressed, risk undermining the substantial progress made in Nigeria’s digital economy and could hinder future growth, innovation, and job creation within the sector.
Despite government reforms and recent tariff adjustments, the telecoms sector continues to face severe headwinds. Karl Toriola, CEO of MTN Nigeria, painted a stark picture of the industry’s condition, likening it to “a sick patient in an intensive care unit (ICU), gasping for breath.” Gbenga Adebayo, Chairman of ALTON, echoed similar sentiments, warning that without tariff adjustments, the sector might be forced to adopt load shedding, similar to what happens in the power sector—rationing services due to the unsustainable cost of operations.
In a bid to avert such a scenario, the Federal Government recently approved a 50 per cent adjustment in telecom end-user tariffs. The move, announced by Dr. Aminu Maida, Executive Vice Chairman/CEO of the Nigerian Communications Commission (NCC), was aimed at stabilizing the industry and enabling operators to invest in service quality improvement. The decision was widely welcomed by industry stakeholders. Obafemi Banigbe (CEO of 9mobile), Dinesh Balsingh, Karl Toriola, Gbenga Adebayo, Tony Emoekpere, and even consumer watchdogs such as the Association of Telephone, Cable TV and Internet Subscribers of Nigeria (ATCIS-Nigeria), led by Sina Bilesanmi, hailed the measure as a much-needed breather for an industry teetering on the brink.
However, consumer groups and subscribers remain sceptical about the impact of the tariff hike. ATCIS-Nigeria and the Association of Telecom Subscribers of Nigeria (NATCOMS) have noted that the price adjustment has not immediately translated into better service delivery. “We are appalled by the poor service quality. The worst is data. When you buy data for N2,000—without streaming videos—just checking emails or chatting on social media, it vanishes like soap bubbles. You keep paying for services that don’t match your hard-earned cash,” lamented a subscriber, Agnes.
In response to these concerns, Dr. Maida has assured the public that service improvements will take time. According to him, telecom operators have collectively committed over $1 billion towards equipment upgrades and nationwide network expansion. He noted that this information was gathered during his engagement with original equipment manufacturers (OEMs), reinforcing the NCC’s stance that the industry needs a grace period—three months post-adjustment—to deliver visible results. Still, subscribers remain watchful, hoping that the financial lifeline extended to operators translates into meaningful change in their everyday digital experiences.
In a decisive step to fortify Nigeria’s digital infrastructure, President Tinubu signed the Designation and Protection of Critical National Information Infrastructure Order, 2024, into law. This landmark order establishes a legal framework for the protection of vital ICT assets—including telecom towers, data centres, and fibre optic cables—against sabotage, vandalism, and other forms of malicious interference. The regulation prescribes strict penalties for wilful damage or disruption, signalling the government’s resolve to protect what many now consider Nigeria’s digital lifeline.
The order is a much-needed intervention in a sector often described as “the chicken that lays the golden egg”—a reference to the telecom industry’s consistent and growing contribution to Nigeria’s Gross Domestic Product (GDP). According to official data, the ICT sector contributed 17.68% to real GDP in Q4 2024, with the telecommunications sub-sector alone driving 14.40% of that growth. Since Q1 2020, telecom’s quarterly contribution has remained above 10%, affirming its role as a key engine of the national economy.
Yet, challenges persist—especially in the area of national security. Despite the mandatory linkage of the National Identity Number (NIN) with every SIM card, criminal elements still exploit mobile infrastructure to carry out nefarious activities. A glaring example is the continued use of mobile phones by kidnappers to negotiate ransoms, often under the radar of law enforcement. At a recent forum in Lagos, lawmakers expressed deep frustration over the situation, directing criticism at the Nigerian Communications Commission (NCC). One of the most vocal was Chinedu Ogah, who decried what he described as the Commission’s long-standing inaction. “Every crime committed in the country rides on infrastructure operated by MNOs—and both the NCC and the operators are aware of this,” Ogah fumed.
He further questioned the Commission’s timing in highlighting the limitations of the Nigerian Communications Act of 2003, asking why it had taken 22 years—or even just five years after enactment—to flag its inadequacies. These concerns underscore the tension between digital advancement and national security and highlight the urgent need for more responsive regulatory oversight, updated legislation, and better collaboration between telecom operators, security agencies, and regulators.
Etanabene Benedict accused the Nigerian Communications Commission (NCC) and Mobile Network Operators (MNOs) of aiding and abetting criminal activities within the country. As a lawyer, he insisted that they should be prosecuted and made to answer criminal charges. Eletu Moshood Olawale raised concerns about the collaboration between the NCC and MNOs, arguing that the partnership was driven solely by profit motives. He questioned whether Nigerians were truly benefiting from these arrangements, asking rhetorically, “Are Nigerians getting value for their money?” He also condemned the abuse of social media platforms for personal attacks, highlighting how the Commission appeared to turn a blind eye to such issues.
On the other hand, Maida stated that certain regulatory decisions have begun to stabilize the telecommunications sector. He highlighted that, at the insistence of the NCC, about 60 million SIM cards were deactivated last year, ensuring that every active line is now linked to a National Identification Number (NIN). He also asserted that no MNO obstructs lawful intercept requests from law enforcement agencies. Adebayo challenged any security agency to publicly confirm if telcos have ever refused requests for geo-location data, implying full cooperation between telcos and security agencies.
These initiatives collectively mark significant progress in Nigeria’s ICT sector under President Tinubu’s administration. The focus has been on securing infrastructure, expanding access, empowering youths, and positioning Nigeria as a leading digital economy in Africa.
However, telecom subscribers may soon face a five per cent increase in data and voice service charges if the Nigeria Tax Bill 2024, passed by the Senate on May 8, 2025, is signed into law. The bill reintroduces a controversial five per cent excise tax on telecom services. Industry operators warn that this tax could burden consumers and impede efforts toward digital inclusion. This excise duty was first introduced under the Finance Act of 2020 during former President Muhammadu Buhari’s administration. Implementation faced resistance from the then Minister of Communications and Digital Economy, Prof. Ali Pantami, who claimed he was unaware of the tax when the Nigerian Customs Service sought to begin enforcement.
The five per cent excise tax on telecom services faced strong opposition not only from telecom operators but also from subscriber groups, leading to its earlier suspension. Its recent passage by the Senate has reignited widespread criticism across Nigeria, especially given the fragile state of the economy. The tax threatens to increase the cost of essential telecom services, which many Nigerians rely on daily.
President Tinubu had previously suspended the tax in July 2023, citing concerns that it could exacerbate inflation and restrict access to digital services for the populace. “We’ve had no clarity on how the five per cent tax would be implemented, but the burden will fall on the consumer. Telecoms should be treated as a social good, not taxed like luxury items. No one taxes telecoms like this in countries where infrastructure is taken seriously,” warned Adebayo.
Industry experts argue that excise taxes are typically applied to luxury or harmful goods — such as designer watches, luxury cars, alcohol, or tobacco — where governments seek to discourage consumption. Internet access and voice calls, which are increasingly considered fundamental human rights in more advanced economies, should not be classified as luxury items. “There’s no wiggle room for operators to absorb this cost. Operators are already working with a tariff increase that fell short of what they need. The new tax will squeeze margins and hit consumers the hardest,” noted Emoekpere.
Adebayo added, “The government should not be so extractive of the average Nigerian. Someone recharging N1,000 will feel this five per cent tax the most. It also places an additional compliance burden on operators to collect and remit the tax.”
Bolaji Balogun, CEO of Chapel Hill Denham, emphasized the critical role of ICT in Nigeria’s security and development. He urged the ecosystem to increase localization efforts to reduce foreign exchange dependency, leverage the capital markets, and develop a steady pool of skilled human capital. Balogun warned that only investments — not taxation — will lift Nigerians out of poverty.
Despite ambitious policies, many require long gestation periods, and unresolved challenges threaten to undermine expected progress. Key hurdles include insecurity — with the Critical National Infrastructure Executive Order still not operationalized — persistent multiple taxation, and restricted access to foreign exchange for telcos to procure essential equipment. These obstacles remain major roadblocks to meaningful growth and development in Nigeria’s ICT sector.
