NCC faults tower companies over infrastructure reinvestment

Business Pointers

..Says compliance remains partial

By Wale Afolabi

The Nigerian Communications Commission (NCC) has expressed concern over the failure of telecommunications tower companies (TowerCos) to fully comply with a regulatory directive requiring them to reinvest fines imposed on them into critical telecommunications infrastructure upgrades.

The concern was raised following the Commission’s 109th Board Meeting, where members reviewed developments across the telecommunications sector, including network expansion, consumer protection, infrastructure deployment, and security challenges.

In a communiqué issued after the meeting, the NCC noted that while telecom operators have made significant progress in expanding network coverage and capacity nationwide, tower companies have only partially fulfilled their obligations regarding the funding of escrow accounts designated for infrastructure reinvestment.

“The Board observed that TowerCos have only partially complied with the directive requiring the funding of escrow accounts with the full amount of the regulatory fines for infrastructure reinvestment,” the communiqué stated.

The Commission disclosed that mobile network operators are currently implementing extensive network expansion projects across the country, with commitments to deploy more than 12,000 additional coverage and capacity sites nationwide.

According to the NCC, over 5,000 of the planned sites have already been completed, representing more than 40 per cent progress toward achieving the target.

The Board also highlighted ongoing improvements in fibre infrastructure, noting that connectivity has been extended to more than 700 additional locations across the country.

Similarly, infrastructure-sharing companies have expanded network capabilities through the deployment of equipment across more than 2,000 Base Transceiver Stations (BTS), further strengthening the telecommunications ecosystem.

On consumer protection, the Commission reported substantial progress in implementing its compensation directive aimed at addressing service-related concerns experienced by subscribers.

“The Board noted substantial progress in the implementation of the Commission’s directive which has resulted in compensation being offered to over 75 million affected subscribers,” the communiqué stated.

The NCC, however, noted that verification exercises are still ongoing to ensure that all eligible subscribers receive the appropriate compensation and that operators’ claims are fully validated.

The Commission also identified rising data consumption as a growing challenge for the sector, warning that increasing demand continues to exert pressure on existing telecommunications infrastructure.

According to the Board, factors such as limited network capacity, heavy dependence on mobile broadband services and duplication of network assets are contributing to congestion and service quality concerns.

To address these challenges, the NCC pointed to increasing adoption of fibre connectivity solutions, particularly Fibre-to-the-Home (FTTH) services.

The Commission revealed that FTTH subscriptions increased significantly from 84,141 in the fourth quarter of 2025 to 210,065 in the first quarter of 2026, reflecting growing demand for high-speed broadband services.

The Board noted that broader fibre deployment would improve service quality, reduce pressure on mobile networks and lower connectivity costs over time.

As part of ongoing sector reforms, the NCC reaffirmed its review of the telecommunications market structure with the objective of strengthening wholesale and retail market operations while expanding access to backbone fibre infrastructure nationwide.

The Commission also expressed concern over the persistent vandalism of telecommunications infrastructure across the country, describing the trend as a major threat to network reliability and service delivery.

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While acknowledging the interventions of the Office of the National Security Adviser and the Nigeria Security and Civil Defence Corps in protecting telecom assets, the Board called for stronger collaboration among stakeholders to safeguard critical national infrastructure.

To further strengthen infrastructure protection, the NCC disclosed plans to explore the establishment of a Communications Industry Security Trust Fund aimed at supporting the security and resilience of telecommunications facilities nationwide.

The Commission reiterated its commitment to promoting investment, improving service quality, expanding digital connectivity and ensuring sustainable growth across Nigeria’s telecommunications sector.

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