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How Telecom Operators Invested Billions to Drive Nigeria’s Digital Economy, Says ALTON

The Association of Licensed Telecommunications Operators of Nigeria (ALTON) has reaffirmed that the telecommunications industry remains the foundation of Nigeria’s digital economy, revealing that operators have invested billions of dollars over the past 25 years to expand connectivity and narrow the country’s digital divide.

ALTON Chairman, Engr. Gbenga Adebayo, disclosed this while delivering the keynote address at the 2026 Nigeria Information Technology Reporters Association (NITRA) Innovative Conference held in Lagos.

His presentation, titled A Chronicle of Telecom Operators’ Efforts in Bridging Nigeria’s Digital Divide Through Innovation: Achievements, Challenges and Future Prospects, was delivered under the conference theme, Bridging Nigeria’s Digital Divide with Scientific Innovation.

Adebayo said Nigeria’s telecommunications sector has become one of Africa’s most remarkable success stories in economic liberalization and digital transformation since the introduction of GSM services in 2001.

He recalled that before the liberalization of the telecom industry, Nigeria had fewer than 500,000 active telephone lines. Today, the country has more than 200 million active mobile subscriptions, reflecting decades of sustained investment and technological advancement.

According to him, telecommunications has evolved from being a luxury enjoyed by a privileged few into a critical national infrastructure that powers virtually every aspect of the country’s economy.

He explained that digital banking transactions, online learning, telemedicine, emergency communication and government digital services all rely on stable and efficient telecommunications networks.

“The telecommunications industry now supports banking, healthcare, education, agriculture, commerce, governance, security and entertainment, making it one of the most strategic sectors of Nigeria’s economy,” he said.

Adebayo revealed that operators have committed billions of dollars to expanding mobile network coverage, fibre-optic infrastructure, international internet connectivity, data centres, cloud computing facilities, renewable energy solutions and next-generation technologies, including Fifth Generation (5G) networks.

He noted that these investments have improved broadband penetration across the country, expanded financial inclusion and created opportunities for innovation, digital entrepreneurship and technology-driven businesses.

Tracing the industry’s technological evolution, the ALTON chairman said Nigeria has progressed from basic GSM voice services to General Packet Radio Service (GPRS), Enhanced Data Rates for GSM Evolution (EDGE), Third Generation (3G), Fourth Generation (4G), Fibre-to-the-Home (FTTH) broadband services and, more recently, the rollout of 5G technology.

He added that telecom operators have continued to expand services into rural and underserved communities through network expansion, infrastructure sharing, renewable energy deployment and partnerships with government agencies.

According to him, these initiatives have significantly improved access to digital education, healthcare services, financial inclusion and economic opportunities for millions of Nigerians living in previously underserved areas.

Despite the industry’s impressive achievements, Adebayo cautioned that several challenges continue to threaten future investment and the pace of digital expansion.

He identified multiple taxation, inconsistent Right-of-Way (RoW) policies across states, vandalism and theft of telecommunications infrastructure, escalating energy costs, foreign exchange volatility, regulatory uncertainty and affordability constraints as major issues affecting telecom operators.

He stressed that resolving these challenges is essential to attracting fresh investment, expanding broadband access and accelerating Nigeria’s digital transformation agenda.

The ALTON chairman called for stronger collaboration among government, regulators and industry stakeholders to create a stable policy environment capable of sustaining investment and encouraging innovation.

He expressed confidence that with supportive government policies and continued private-sector investment, the telecommunications industry would remain a key driver of economic diversification, digital inclusion and national competitiveness.

Adebayo concluded that continued investment in telecommunications infrastructure will not only strengthen Nigeria’s digital economy but also position the country as one of Africa’s leading technology and innovation hubs in the years ahead.

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