By Chinenye Anuforo
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Experts around the world are anticipating 2025 to be a defining year for the Information and Communications Technology (ICT) sector, as disruptive trends and innovations prepare to reshape the landscape.
World’s richest man, Elon Musk, already predicted deeper advancement in robotics and Artificial Intelligence generally.
However, in Nigeria, the ICT sector stands at a critical juncture in 2025, grappling with a confluence of challenges and opportunities.
According to industry watchers, addressing critical challenges in the sector will be essential to unlocking its full growth potential.
From infrastructure gaps to policy reforms, they insist that the path to progress demands strategic focus and decisive actions that are not sauced in politics.
A major issue on the front burner is the persistent clamour for upward tariff adjustments. It is a conversation that has gone on for several years.
An action on it is expected to be taken this year and the consequences will reverberate across all sectors of the economy.
Close to that is sustaining healthy competition, fostering collaborative efforts and the critical need for strategic investments in infrastructure and human capital. These, undoubtedly, will redesign the sector’s trajectory.
Without fears of contradiction, the telecommunications industry has been a cornerstone of Nigeria’s economic growth, significantly contributing to the nation’s Gross Domestic Product (GDP).
However, this growth is stunted by mounting headwinds, soaring operational costs, driven by inflation, exchange rate volatility and exorbitant energy expenses (particularly the reliance on diesel generators). These are squeezing operators’ margins.
Already, the Association of Licensed Telecommunications Operators of Nigeria (ALTON) has issued a disturbing warning: “Without immediate tariff adjustments in 2025, the sector risks severe service disruptions,”.
This scathing statement came from its Chairman, Gbenga Adebayo, who emphasised that the current tariff structure, stagnant for over a decade, fails to reflect the true cost of service delivery and jeopardises the sustainability of network expansion and maintenance.
“The current economic realities demand that tariffs reflect the true cost of delivering telecom services. “Without this adjustment, maintaining and expanding infrastructure may become unsustainable.
“Without intervention in 2025, operators might resort to service shedding, selectively limiting connectivity based on geography or time, which could have devastating consequences for essential sectors like healthcare, education, and commerce.”
While acknowledging the need for tariff adjustments, the Minister of Digital Communications, Innovation, and Digital Economy, Dr. Bosun Tijani, emphasised the importance of broader structural reforms.
He highlighted the government’s ongoing assessment of the sector’s sustainability, emphasising the need for targeted investments in digital infrastructure and innovation to enhance long-term competitiveness.
“The study will help us see results in the next one or two weeks on the sustainability of our telecommunication sectors.
“What are the things we need to do to ensure that we can support them to be a lot more sustainable? Beyond just the conversation that has been out there about increasing tariffs, which is what everybody is talking about. We think, yes, there may be a need for it, but there’s so many other things that we need to do as a country to ensure that that sector is competitive and beyond just supporting them to be competitive, that governments must also invest in digital infrastructure as well.”
The National Association of Telecommunications Subscribers (NATCOMS) advocates for a balanced approach, proposing a modest tariff increase capped at five percent to ensure affordability while enabling operators to improve service quality. “Telecom services have resisted price hikes for over a decade, despite inflationary pressures affecting every other sector,” noted NATCOMS President, Adeolu Ogunbanjo.
The competitive landscape is also undergoing a significant shift. The 2024 SIM card-NIN linkage mandate led to the disconnection of over 64 million lines, impacting operator revenues and necessitating a re-evaluation of subscriber acquisition and retention strategies.
“As competition intensifies in 2025, operators are expected to ramp up innovation and infrastructure investments to retain and expand their subscriber base,” predicted IT specialist, Jide Awe. “I predict that operators will increasingly focus on data-driven services, bundling offerings like video streaming, e-learning, and e-commerce platforms to differentiate themselves in the market.”
Collaboration emerges as a crucial strategy for navigating these challenges. Infrastructure sharing, such as the “dig once” policy, offers a cost-effective solution to the exorbitant expenses associated with fiber optic cable deployment. “For instance, in Tanzania, telecom operators have successfully pooled resources to build shared fiber networks, significantly reducing costs and improving efficiency,” Awe explains. “Adopting similar practices in Nigeria could enhance sustainability and competitiveness. Policies such as the proposed “dig once” initiative, which minimizes the costs of laying fiber infrastructure by coordinating excavation efforts, could further boost efficiency and lower operational expenses.”
Global partnerships, exemplified by collaborations with tech giants like Microsoft and Google, are crucial for bridging the digital divide and extending connectivity to underserved regions.
“The government’s initiative to deploy 90,000 kilometers of digital backbone infrastructure is a testament to this collaborative approach,” Tijani stated. “While private companies focus on profitable urban areas, the government is stepping in to address connectivity gaps in rural and underserved regions. Satellite-based solutions and the expansion of base stations are central to this effort, ensuring that even the most remote areas gain access to reliable internet services. We should expect to see more collaboration in 2025.”
Human capital development remains a critical pillar. The 3 Million Tech Talent (3MTT) initiative, with its focus on upskilling and reskilling the workforce, is poised to play a pivotal role in positioning Nigeria as a global leader in the digital economy.
“In 2025, the government plans to transition from strategy to execution, showcasing practical applications of AI in sectors like agriculture, health, and education,” Tijani disclosed. “Startups funded through government initiatives are expected to deliver groundbreaking solutions that address local challenges and contribute to the national GDP. Additionally, hosting events like the AI Safety Summit could further solidify Nigeria’s position as a global leader in this transformative field.”
The anticipated Digital Economy Bill, with its focus on fostering innovation, attracting investment, and ensuring inclusivity, will further shape the regulatory landscape.
As 2025 unfolds, the Nigerian ICT sector faces a crossroads. Navigating this complex terrain requires a collaborative effort between the government, the private sector, and international stakeholders. By addressing the challenges and capitalizing on the opportunities, Nigeria can solidify its position as a leader in Africa’s digital economy.
