Nigeria’s telecom industry faces rising costs and infrastructure challenges

Nigeria’s telecommunications industry is facing significant operational challenges due to unreliable electricity, frequent fibre cuts, vandalism, and security threats. These issues are driving up costs and impacting profitability despite a surge in demand for connectivity. MTN Nigeria CEO Karl Toriola noted that unlike operators in Europe who rely on stable national grids, Nigerian operators must invest heavily in generators, diesel, and battery backups to prevent site outages.

Despite these hurdles, the sector remains a critical driver of the digital economy. As of March 2026, active mobile subscriptions reached 185.5 million. The industry is seeing a shift in competition toward data services and network quality, with MTN Nigeria and Airtel Nigeria generating over N3.6 trillion from data in 2025. Additionally, women are increasingly occupying leadership roles across various sectors of the industry, including technology, finance, and corporate governance.