The Nigerian telecommunications business confronted important {financial} headwinds in 2024, with complete working prices (OPEX) hovering to a report N5.85 trillion within the 12 months.
This represents an 85% improve in contrast with N3.16 trillion recorded in 2023, in accordance with the newest business information launched by the Nigerian Communications Fee (NCC).
The surge, NCC mentioned, was primarily attributed to excessive Proper of Manner (RoW) charges, coupled with persistent inflation, international change pressures, and rising vitality prices which have strained operators’ stability sheets.
“Most Licensees complained of excessive Proper of Manner (ROW) charges, harsh micro {economic} working employment and rising Inflation. Nevertheless, the NCC has been capable of safe zero Proper of Manner (ROW) charges in some States in Yr 2024,” the Fee acknowledged within the report.
Proper-of-Manner (RoW) charges, that are fees paid by telecom operators to deploy fiber-optic cables throughout roads and public areas, have lengthy been a supply of competition in Nigeria’s digital infrastructure ecosystem.
Regardless of the NCC’s ongoing engagement with state governments to harmonize or eradicate these charges, operators proceed to face important disparities throughout states, with some charging as excessive as N9,000 per linear meter, far above the federal guideline fee of N145 per meter set in 2020.
Whereas the operators are spending extra on operations, the impression of a number of states nonetheless charging excessive charges for infrastructure rollout can be being felt on Nigeria’s plan to attain 70% broadband penetration by the tip of this 12 months, which has now develop into a mission not possible.
As of September 2025, NCC’s information reveals that broadband penetration within the nation stood at 49.3%, a sign that Nigeria won’t meet its goal as set within the Nationwide Broadband Plan (NBP 2020-2025).
“One of the important obstacles to broadband deployment in Nigeria has been the excessive RoW charges charged by state governments, regardless of a decision by the Nigerian Governors Discussion board fixing the speed at N145 per linear metre,” the NCC boss, Maida, acknowledged at a latest assembly.
The 2024 information displays how these elevated charges have amplified the price of community enlargement. Many operators reported delays or scaled-down broadband deployment plans as RoW negotiations with a number of state businesses dragged on.
Chairman of the Affiliation of Licensed Telecommunications Operators of Nigeria (ALTON), Engr. Gbenga Adebayo famous that the implementation of the broadband Plan has not been capable of progress because it ought to as a result of a number of challenges recognized within the Plan haven’t been addressed.
In the meantime, the NCC report additionally revealed a dramatic rise in home capital expenditure (CAPEX) for the operators in 2024, reaching an unprecedented N2.9 trillion, representing a 159.03% year-on-year improve in contrast with N1.12 trillion in 2023.
The NCC report attributes the sharp rise in CAPEX partly to the unification of change charges, which merged the Central Bank of Nigeria (CBN) and parallel market charges, and the impression of rising inflation on the worth of the naira.
These components considerably elevated the price of community enlargement and infrastructure upgrades, most of which rely on imported gear.
In 2024, telecom operators invested closely in community modernization, fiber enlargement, and 5G rollout initiatives, even because the weakening naira inflated the naira worth of foreign-denominated transactions. The NCC famous that the business’s CAPEX figures not solely mirror new infrastructure builds but additionally the fee implications of sustaining aggressive service high quality amid {economic} headwinds.
Regardless of the surge in bills, the telecom sector maintained sturdy income development in 2024, with complete earnings rising by 44.7% to N7.67 trillion, in comparison with N5.30 trillion in 2023.
Frightened by the rising value of operations and the report losses being recorded by the telecom operators, the NCC in January this 12 months authorized a 50% tariff improve for the telecom operators.
This implies the operators can move a part of the prices to the shoppers, who at the moment are paying extra for information, voice and SMS providers.
With the tariff adjustment, a number of the loss-reporting massive telcos, particularly MTN, have now returned to profitability, judging by their 2025 9-month {financial} outcomes.
