Fibre sabotage, policy strain test Nigeria’s telecom recovery

Association of Licensed Telecommunications Operators of Nigeria (ALTON) on Thursday warned that persistent fibre vandalism, regulatory overlaps and sub-national tax pressures could undermine Nigeria’s fragile telecom recovery, even as investor confidence begins to return to the sector.

Gbenga Adebayo, ALTON chairman, at a high-level stakeholders’ engagement in Lagos with Idris Olorunnimbe, the new chairman of the Nigerian Communications Commission (NCC) Board, said the industry has moved from the brink of financial distress but remains exposed to structural vulnerabilities.

“Two years ago, industry sustainability was under serious strain. If decisive actions had not been taken at the time, some of us might not even be here today. What we are seeing now is stabilization, but that stabilization must be protected,” Adebayo told journalists after the meeting.

Read also: Nigeria’s telcos shift to fibre sharing as rising costs reshape expansion plans

Fibre cuts: “Accountability must be immediate”

Adebayo described fibre vandalism and accidental damage by road contractors as one of the most urgent threats to network reliability.

“The 540-kilometre fibre backbone we talk about is not just cable in the ground, it is a communications superhighway. When it is cut, it is like destroying a bridge that connects entire regions. Banking systems are affected. Schools are affected. Hospitals are affected,” he said.

He argued that the absence of consequence management has emboldened repeat infractions.

“For too long, there have been little or no consequences. When there are no consequences, the tendency to repeat the offence increases. The principle must be simple: if you destroy it, you must fix it,” Adebayo affirmed.

According to him, contractors often begin federal or state road projects without notifying operators, despite telecom companies having paid Right-of-Way fees. “The irony is that government grants us Right-of-Way, collects the fees, but when construction contracts are awarded on those same roads, we are not informed. Damage occurs and it is treated as business as usual,” he added.

Olorunnimbe echoed the concern, describing telecom infrastructure as no longer optional infrastructure.

“If networks go down, everything stops. Commerce pauses. Communication halts. Education suffers. Healthcare systems struggle. That is why accountability must be non-negotiable. If a contractor damages telecom infrastructure, work must stop and repairs must be made before proceeding,” he said.

The new board chairman disclosed that the Commission would escalate enforcement discussions with sub-national governments and the lresidency to ensure that Critical National Infrastructure (CNI) protections translate into practical safeguards.

“Critical National Infrastructure must not remain a title on paper, it must translate into protection, into enforcement, and into consequences. Where infrastructure is damaged negligently or deliberately, responsibility must be fixed clearly and swiftly,” he added.

Read also: NCC, NSCDC to prosecute contractors over fibre optic cable damage

Recovery built on policy intervention

The sector’s stabilization follows a series of interventions, including tariff adjustments and resolution of legacy debt disputes.

Adebayo noted that after 13 years of static pricing amid rising inflation, currency volatility and escalating diesel costs, operators were approaching a point where service rationing was becoming a real possibility.

“Our tariffs had fallen significantly below cost. Investment slowed. Networks became strained. The industry was approaching a stage where service rationing was becoming inevitable,” Adebayo stated.

He affirmed that the eventual approval of cost-reflective tariff adjustments was not merely administrative, it saved the industry from collapse.

The ALTON chairman also cited the resolution of the long-running USSD debt impasse, which had ballooned to nearly N300 billion and posed systemic risks to both telecom operators and the financial services ecosystem.

“Through structured engagement and decisive coordination, that crisis was resolved. Today, there is no outstanding USSD debt, and the ecosystem has migrated to end-user billing. That removed a major overhang,” Adebayo said.

Forex reforms and investor confidence

Telecom operators who earn revenue in naira but pay for bandwidth, software, satellite capacity and equipment in foreign currency were heavily impacted by previous foreign exchange shortages.

“Under the old regime, forex scarcity created severe strain. Operators accumulated foreign obligations and struggled to meet global commitments. Today, forex stability has improved, foreign debt exposure has reduced, and investor confidence is strengthening,” Adebayo said.

He pointed to MTN-IHS Towers infrastructure transactions in the tower segment as signals that global investors once again see Nigeria as viable.

“Transactions of that magnitude do not happen in distressed markets. They signal regulatory certainty and policy consistency,” he said.

Read also: Mobile operators to exceed $1bn network investment in 2026 – NCC

Regulatory independence and overlap

Beyond physical infrastructure, ALTON raised concerns about policy and regulatory overlaps that could reintroduce uncertainty.

“The independence of the regulator is foundational. Independence must not only exist in law, it must be visible in practice. Investor confidence depends on that,” Adebayo said.

He warned that overlapping interventions from multiple agencies create duplicative investigations, conflicting directives and higher compliance costs.

“When everyone wants to regulate telecoms, it creates friction. Telecommunications sits at the centre of the digital economy. That centrality sometimes attracts overlapping oversight,” he said.

Olorunnimbe responded firmly to concerns about Board autonomy. “Nobody can trample on the independence of this Commission. Our decisions are guided solely by national interest. Nigerians come first in every deliberation,” he assured

The board chairman described the NCC as like the central nervous system of the economy. “When networks fail, it feels like lights out. So we take this responsibility very seriously,” he added.

Universal access: “Connectivity is a right”

In a notable policy appeal, Olorunnimbe urged operators to consider zero-rated access for educational platforms, arguing that digital inclusion should not be constrained by short-term commercial logic.

“Please do not view it as revenue loss. View it as deferred profit. When young Nigerians gain access to digital learning, their earning capacity increases. The economy benefits. Revenue returns in broader form,” he said.

Olorunnimbe clarified that service expansion to underserved areas should be seen as a national obligation.

“Connectivity is not just corporate social responsibility. Every Nigerian has the right to access. Commercial considerations matter, but they should not always be the first filter,” the board chairman appealed.

He also appealed that telcos should give priority to the creative industry, to tackle youth unemployment in the country.

While acknowledging the regulator’s enforcement authority, Olorunnimbe emphasised collaboration.

“Yes, we are regulator and regulated, but more importantly, we are partners in building a resilient digital economy,” he said.

He pledged open lines of communication with operators. “My door will remain open for structured engagement. Disagreements may arise, but they must be resolved through dialogue, data and mutual respect.

“This sector has come through a difficult phase. Stabilisation has begun. Confidence is returning. Our task now is to protect the gains, deepen investment and ensure that Nigeria’s telecom ecosystem becomes a benchmark for the continent,” he stated.

As Nigeria pushes to deepen broadband penetration and expand its digital economy, the telecom sector, once again, finds itself balancing recovery against risk.