Maida’s Telecom Reforms Face Resistance, But Aim To Deliver Inclusive Growth

Nigeria’s telecommunications industry is once again at a defining crossroads. Nearly two decades after Ernest Ndukwe’s transformative tenure as Executive Vice Chairman (EVC) of the Nigerian Communications Commission (NCC) opened the floodgates to private investment and industry liberalisation, current EVC, Dr. Aminu Maida, is leading a fresh wave of reforms — albeit in a far more turbulent climate.

Assuming office in October 2023, Maida inherited an industry groaning under economic strain, outdated legislation, and operational inefficiencies. Yet, with strong presidential support and a clear reform vision, he has wasted no time rolling out a bold agenda.

Maida’s reform blueprint targets three key areas: restoring regulatory discipline, strengthening internal governance, and embracing data-driven oversight. While these efforts have earned the backing of key stakeholders — including telecom operators and digital economy players — they have also triggered pockets of resistance within the Commission itself.

Insiders report growing discomfort among some long-serving NCC staff, particularly those whose interests are threatened by the shake-up. Despite the internal resistance, Maida remains undeterred. He has repeatedly reiterated his commitment to transparency and institutional efficiency.

“We are focused on driving broadband penetration through efficient spectrum management and by removing unnecessary regulatory bottlenecks,” Maida stated during the 2024 ICTEL Expo in Lagos. “These reforms are necessary to reposition the industry and restore stakeholder confidence.”

But Maida’s reforms are not unfolding in a vacuum. He is battling headwinds from a crippling economic environment that has placed unprecedented pressure on the telecommunications sector. For over a decade, operators have contended with skyrocketing costs, foreign exchange scarcity, and inflationary pressures.

A key concern has been the steep depreciation of the naira, which has made it increasingly expensive to import telecom infrastructure — over 70% of which is sourced from abroad. The situation is worsened by Nigeria’s epileptic power supply, forcing operators to depend on diesel to run over 40,000 base stations across the country.

The cost of diesel has jumped from under ₦300 per litre to over ₦1,200, sending operating costs through the roof. Inflation, which stood at 33.88% in October 2024, has compounded matters further. In response, the NCC approved a 50% tariff increase in January 2025, which took effect in February.

Commenting on the development, MTN Nigeria CEO Karl Toriola explained the necessity of the move.

“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,” he said during the company’s Q4 2024 investor call.

While telcos saw revenue climb by 30% in 2024, their operational costs surged by a staggering 96%, making the industry’s traditional pricing model untenable.

However, the ripple effects of these adjustments have not spared consumers. Nigerians are now paying more for voice and data services, even as they grapple with rising food prices, high transportation costs, and general economic hardship. For small businesses and digital entrepreneurs who rely heavily on telecom infrastructure, the cost hike has eaten into already thinning profit margins.

Despite these challenges, Maida’s resolve appears unshaken. Inside the NCC, he has initiated reforms aimed at merit-based appointments, cost optimisation, and enhanced compliance monitoring — all geared towards improving institutional credibility.

According to Reuben Muoka, Director of Public Affairs at the NCC, the Commission is fully aligned with the EVC’s reform vision.

“The Commission is committed to reforming the sector through transparency, licensing streamlining, and better collaboration with industry stakeholders,” Muoka said during a January 2024 media parley in Abuja. “We are aware of the challenges, but the vision remains clear.”

On the legislative front, Maida is also pushing for a major overhaul of the Nigerian Communications Act (NCA) 2003. The Act, widely credited with stabilising the post-liberalisation telecom environment, has grown obsolete in the face of fast-moving technological advancements.

The ongoing amendment process, spearheaded by the House Committee on Communications in collaboration with the NCC, seeks to modernise the legal framework. The proposed changes aim to strengthen the NCC’s enforcement powers, eliminate overlapping roles with sister agencies like the National Information Technology Development Agency (NITDA) and the National Broadcasting Commission (NBC), and streamline regulatory activities.

Key issues expected to be addressed in the revised Act include consumer protection, cybersecurity, data privacy, infrastructure sharing, and investment incentives.

Perhaps one of the most pressing matters the amended Act will tackle is the burden of multiple taxation and prohibitive Right of Way (RoW) charges. Telecom operators currently contend with over 41 different levies imposed by various levels of government. Vandalism and fibre optic cable cuts — with Lagos alone recording over 2,500 incidents in 2024 — further threaten service delivery and infrastructure expansion.

Chairman of the Association of Licensed Telecom Operators of Nigeria (ALTON), Gbenga Adebayo, did not mince words in expressing concern.

“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,” he warned.

Yet, despite all odds, the telecom sector remains a cornerstone of Nigeria’s economy. The National Bureau of Statistics (NBS) reports that the ICT sector contributed 17.68% to the nation’s GDP in Q4 2024, with telecommunications alone accounting for 14.4%.

In 2024, the industry raked in $7.6 billion in revenue, with analysts projecting an 8% compound annual growth rate through 2028. The sector’s best quarterly performance in a decade was recorded in Q1 2021, growing at 15.90%.

These figures highlight the strategic importance of the telecom sector in Nigeria’s digital transformation agenda. For many, Maida’s reform push is not just about fixing regulatory inefficiencies — it’s about securing the future of a sector too vital to fail.

While the road ahead remains steep and resistance lingers, one thing is clear: the current moment presents a rare opportunity. Whether Maida can sustain the momentum amid competing interests and economic headwinds remains to be seen. But his bold steps suggest that, for the Nigerian telecom sector, business as usual is no longer an option.