As Nigeria entered 2026, the telecoms sector remained at the centre of national economic and social discourse, following key developments in 2025 that tested the balance between industry sustainability and consumer protection.
One of the most consequential of these developments was the approval by the Nigerian Communications Commission (NCC) of a 50 per cent tariff adjustment for telecom operators — a decision that sparked widespread reactions from consumer advocacy groups, labour unions, and industry players.
Subscribers across the country raised concerns, with the National Association of Telecommunications Subscribers (NATCOMS) emerging as a leading voice opposing the magnitude of the increase.
The association formally appealed to the NCC in January 2025, proposing a 10 per cent tariff adjustment as a more moderate option that would support operators while cushioning subscribers.
The President of NATCOMS, Mr Deolu Ogunbanjo, warned that a steep increase in telecoms costs could negatively affect households, small businesses, students, and senior citizens who increasingly depend on digital services for education, commerce, and social connection, among others.
The association argued that operators could explore alternative funding options, including improved debt management, access to financing, and reinvestment of past profits, rather than passing rising operational costs directly to consumers.
With its appeal not upheld, NATCOMS indicated it would seek legal redress, underscoring the growing importance of telecommunications as an essential service rather than a discretionary expense.
Telecom operators, under the umbrella of the Association of Licensed Telecoms Operators of Nigeria (ALTON), maintained that the tariff adjustment was critical to sustaining the industry.
The President of ALTON, Mr Gbenga Adebayo, said at a forum with telecoms chief executives in Lagos in February 2025 that the review was driven by escalating costs, including energy prices, foreign exchange pressures, equipment importation, and infrastructure maintenance.
Industry leaders emphasised that the adjustment was not profit-driven but aimed at ensuring continued investment in network expansion, service quality, and innovation.
They also cautioned against rigid price controls, noting that market-responsive pricing had historically driven competition, efficiency, and lower costs in the sector.
Operators assured subscribers that the new tariff regime would support improved network quality, clearer pricing structures, and broader coverage over time.
The NCC, exercising its mandate under the Nigerian Communications Act, 2003, explained that the approved adjustment followed extensive consultations with stakeholders across the public and private sectors.
The Commission noted that while it recognised the financial pressures faced by Nigerian households and businesses, sustaining operator investment was essential for maintaining service quality and meeting rising demand for data-driven services.
It added that the approved increase was lower than what operators had requested, reflecting its effort to balance affordability with industry viability.
However, 12 months after the tariff hike and operators’ many assurances, subscribers are still facing — and lamenting — consistently worsening Quality of Service (QoS).
Poor connectivity has remained the norm across all networks.
To address these challenges, tech stakeholders project that 2026 will build on the lessons of 2025 to improve connectivity and infrastructure, including a shift to green energy to reduce the cost of diesel used to power telecom facilities.
The tariff debate of 2025 has highlighted the need for policies that protect consumers while ensuring the financial health of an industry widely regarded as critical national infrastructure.
Beyond the tariff issue, industry stakeholders see 2026 as a pivotal year for Nigeria’s telecom sector.
The Association of Telecommunication Companies of Nigeria (ATCON) said that 2026 would herald a transition among major operators from consolidation in 2025 to expansion in 2026.
The President of ATCON, Mr Tony Emoekpere, said the sector would be driven by growing broadband penetration, rising data consumption, and increased reliance on digital services such as fintech, e-commerce, and cloud computing.
Emoekpere credited the NCC for ensuring regulatory stability and government-led digital initiatives for preserving investor confidence, while calling for stronger protection of telecom infrastructure, harmonised Right-of-Way charges, and reduced multiple taxation to unlock faster growth.
Industry players are expected to scale investments in fibre networks, data centres, last-mile broadband access, and renewable energy solutions, in line with national digital inclusion goals.
As Nigeria advances toward a more digitally driven economy, stakeholders agree that collaboration will be critical.
How effectively regulators, operators, and consumer groups align their interests in 2026 may well determine the pace and inclusiveness of Nigeria’s digital transformation.
Leaders must find a fair balance between the cost of high-quality service and what people can realistically afford.
New taxes on drivers and rising phone bills highlight the urgency of collaboration. Success will depend on all parties working together to ensure that modern technology remains affordable, accessible, and efficient.
NANFeatures
