NCC EVC, Maida’s Reform Drive Confronts Mounting Pressure In Nigeria’s Telecom Sector
The Nigerian telecommunications sector is once again at a pivotal moment. Two decades after Ernest Ndukwe’s landmark tenure as Executive Vice Chairman (EVC) of the Nigerian Communications Commission (NCC) ushered in sweeping reforms that liberalised the industry and attracted record investment, current EVC Aminu Maida is navigating a vastly different terrain—one marked by economic strain, institutional resistance, and urgent calls for legislative overhaul.
Since assuming office in October 2023, Maida has launched a reform agenda focused on restoring regulatory discipline, improving internal governance, and pushing for data-driven oversight. While these efforts have won support from many in the industry, including operators and stakeholders in the digital economy, they have also triggered friction within the Commission itself. Reports of internal pushback suggest that some long-serving staff are uneasy with the changes, especially those perceived to threaten established interests or informal networks. Nonetheless, with presidential backing, Maida appears determined to press on.
Speaking at the ICTEL Expo 2024 in Lagos, Maida reaffirmed his commitment to transparency and efficiency:
“We are focused on driving broadband penetration through efficient spectrum management and by removing unnecessary regulatory bottlenecks. These reforms are necessary to reposition the industry and restore stakeholder confidence.”
His tenure comes at a time of extraordinary challenges. For over a decade, telecom operators have grappled with rising operational costs and a volatile macroeconomic environment. Chief among their concerns is the scarcity of foreign exchange. With over 70% of telecom infrastructure and equipment imported, the depreciation of the naira has made upgrades and maintenance prohibitively expensive. Compounding the crisis is the cost of diesel, which powers most of Nigeria’s 40,000-plus base stations due to the country’s unreliable electricity grid. Prices for diesel have risen from under ₦300 per litre to over ₦1,200, and inflation hit 33.88% in October 2024, escalating input costs by more than 300%.
This cost pressure has rendered past pricing models unsustainable. For more than ten years, operators maintained stable tariffs despite mounting expenses, but the current climate forced a shift. In February 2025, a 50% tariff hike took effect, following approval in January.
MTN Nigeria CEO, Karl Toriola, speaking during the company’s Q4 2024 investor call, said the increase was not a matter of profit but survival:
“We had to take a difficult decision. The tariff adjustment was essential to sustain operations. Our costs are rising faster than revenues, and it’s not business as usual.”
While operators saw an average 30% rise in revenue in 2024, operational costs surged by 96%, leading to difficult decisions across the board.
The consequences for consumers have been immediate. Nigerians are now paying more for voice and data services in a period already marked by economic hardship, rising food prices, and high fuel costs. For small businesses and digital entrepreneurs, increased telecom costs risk eroding already narrow margins, raising concerns about the broader impact on the digital economy.
Against this backdrop, Maida’s reforms are viewed by many as an attempt to rescue the sector from deeper decline. Internally, he has prioritised merit-based appointments, compliance enforcement, and cost-efficiency. His leadership marks a shift from a reactive to a more proactive regulatory posture. While the reforms are still unfolding, there is a growing recognition that the Commission cannot function effectively without first resolving its own institutional contradictions.
Reuben Muoka, the NCC’s Director of Public Affairs, speaking during a media parley in Abuja in January 2024, said:
“The Commission is fully committed to reforming the sector through transparency, licensing streamlining, and better collaboration with industry stakeholders. We are aware of the challenges, but the vision remains clear.”
Externally, Maida is working alongside lawmakers and other stakeholders to modernise the Nigerian Communications Act (NCA) 2003. The law, which was instrumental in shaping the telecom landscape after its passage more than two decades ago, is widely seen as outdated. It does not account for the convergence of technologies, nor does it adequately address emerging trends such as 5G, Artificial Intelligence, the Internet of Things, or blockchain technologies.
The House of Representatives Committee on Communications, in collaboration with the NCC, is currently leading the process to amend the Act. The proposed amendments aim to strengthen the NCC’s independence and enforcement powers, close regulatory overlaps with other agencies such as the National Information Technology Development Agency (NITDA) and the National Broadcasting Commission (NBC), and improve coordination across levels of government. Provisions for better consumer protection, cybersecurity, data privacy, infrastructure sharing, and investment incentives are expected to be central to the revised law.
One of the most pressing issues the revised Act is expected to address is the burden of multiple taxation and high Right of Way (RoW) charges, which continue to stifle infrastructure rollout. Telecom operators face over 41 different taxes imposed by federal, state, and local governments. Additionally, persistent vandalism and fibre optic cable cuts—more than 2,500 of which were recorded in Lagos alone in 2024—pose a threat to service continuity and network expansion.
Gbenga Adebayo, Chairman of the Association of Licensed Telecom Operators of Nigeria (ALTON), speaking to BusinessDay in March 2024, warned:
“Our members are spending over four times more on energy than they did two years ago. This is not sustainable, and we need urgent reforms in regulatory and fiscal policy. The multiple tax regime is killing deployment.”
Despite the sector’s current challenges, it remains a major contributor to the national economy. Data from the National Bureau of Statistics (NBS) shows that the ICT sector contributed 17.68% to Nigeria’s GDP in Q4 2024, with telecommunications alone accounting for 14.4%. In 2024, the telecom industry generated $7.6 billion in revenue, with growth projections suggesting an 8% compound annual growth rate through 2028. The sector also posted its strongest growth in a decade in Q1 2021, at 15.90%.
This performance underscores the strategic importance of the sector to Nigeria’s digital future. It also highlights why many view the current reform moment not simply as a regulatory exercise, but as a national imperative. Maida’s efforts, though not without obstacles, suggest a recognition that reform is not only necessary, but unavoidable. Whether the momentum can be sustained amid resistance and economic uncertainty remains to be seen. However, for a sector long considered one of Nigeria’s greatest post-liberalisation success stories, the stakes could hardly be higher. Read More
