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FG Approves $1bn Telecom Overhaul to Boost Digital Economy

by Adams Oma
May 23, 2025
in Business News
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FG Approves $1bn Telecom Overhaul to Boost Digital Economy
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Nigeria’s telecommunications industry is on track for a significant transformation by the third quarter of 2025, following a landmark $1 billion investment in new network infrastructure.

Minister of Communications and Digital Economy, Dr. Bosun Tijani, announced the development on Thursday, describing it as a game-changer for service delivery across the country.

According to Tijani, the telecom operators have placed orders for equipment valued at over $1 billion, one of the largest such procurements in Nigeria’s telecom history. The deliveries are scheduled to begin in June and continue through July, marking the start of an ambitious modernisation plan.

“This is the first time in years we’re seeing telcos commit to such a large-scale infrastructure upgrade,” Tijani told TVC. “The equipment orders placed with Original Equipment Manufacturers (OEMs) will pave the way for a major improvement in service quality by the third quarter of this year.”

ALSO READ: FG to Build 7,000 Telecom Towers to Enhance Rural Network Coverage

The funding for this initiative became viable after the federal government approved a 50% tariff adjustment in February 2025 — the first in more than a decade. This move has eased the financial strain on operators, who have grappled with a more than 300% increase in operational costs over the last ten years. The adjustment has now enabled reinvestment into critical areas, including expanding and upgrading network infrastructure.

The upgrade aims to resolve persistent issues such as call drops, sluggish internet speeds, and limited broadband access. It will also drive the accelerated rollout of 4G and 5G technologies, particularly in densely populated urban centres and under-connected rural communities.

“Nigerians can expect a noticeable improvement in connectivity and overall network reliability by Q3,” Tijani affirmed.

Tags: Digital EconomyFGTelecom Overhaul
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