Nigeria’s two biggest telecom operators, MTN Nigeria and Airtel Nigeria, spent the last five years pouring billions into 4G, 5G, fibre networks and spectrum licences.
The two giant telecoms companies also generated record revenues, driven increasingly by data consumption rather than traditional voice calls.
However, across the same period, Nigerians continued to complain about dropped calls, slow internet speeds, unstable data services, unexplained data depletion and patchy network coverage.
With recent developments, Pinnacle Daily can report that the contradiction now sits at the centre of regulatory scrutiny.
On May 13, 2026, the Nigerian Communications Commission (NCC), the regulatory empire, disclosed that mobile network operators and tower companies invested about N2.5 trillion in network infrastructure and upgrades in 2025 alone, even as consumer frustration intensified over service quality.
The regulator said mobile operators spent more than N2.13 trillion, while tower companies added N373.8 billion to sector investments. The spending supported more than 2,800 site additions and upgrades nationwide. Still, the NCC acknowledged the reality facing subscribers.
“In 2025 alone, Mobile Network Operators invested over N2.13 trillion in network infrastructure and upgrades, while Tower Companies invested an additional N373.8bn across the sector,” the regulator stated.
“The Commission recognises the frustration experienced by consumers when calls drop, internet speeds slow down, data services become unstable, or service disruptions affect daily activities.”
MTN and Airtel’s five-year investment race
An analysis of both companies’ annual reports from 2021 to 2025 by Pinnacle Daily revealed that both operators aggressively prioritised network expansion, though with different strategies.
Airtel concentrated on network resilience, fibre deployment, spectrum acquisition and energy efficiency. In 2021, it expanded capacity by adding over 1,400 infrastructure sites and paid $182 million to renew spectrum licences in the 900MHz and 1800MHz bands.
By 2022, it had expanded its 4G footprint by 34.2 per cent, reaching nearly 99 per cent 4G delivery across sites while accepting a $127 million 2100MHz spectrum renewal.
The company deepened fibre deployment in 2023, adding more than 1,000 kilometres in major cities and spending roughly $317 million on 3.5GHz and 2.6GHz spectrum to support future 5G demand.
In 2024 and 2025, investment shifted toward video quality improvement, northern connectivity expansion, solar-powered infrastructure, data centres and fibre businesses.
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MTN pursued spectrum dominance, 5G leadership and infrastructure financing. In 2021, it acquired a 3.5GHz licence for N119.28 billion to launch 5G services.
The following year, it commercially launched 5G and renewed its 3G spectrum licence for N58.7 billion.
By 2023, MTN invested N321.9 billion in network additions, acquired Opensky’s 2.6GHz spectrum band for N25.7 billion and channelled N17.42 billion into road infrastructure under the federal tax credit scheme.
Cost management dominated 2024, with renegotiated tower leases to reduce dollar exposure. In 2025, the operator renewed its 800MHz band, leased additional spectrum and committed N7.9 billion to solar installations for base stations.
Data became king — and revenue exploded
Over the past five years, both companies have transformed from voice-led telecom businesses into data-driven companies. For MTN, the shift happened early and dramatically.
Its voice revenue grew from N818.1 billion in 2021 to N1.65 trillion in 2025. But data revenue expanded much faster, jumping from N518.2 billion to N2.78 trillion in the same period. Data officially overtook voice as MTN’s biggest revenue source in 2023.
The operator’s total revenue climbed from N1.65 trillion in 2021 to N5.2 trillion in 2025 — an increase of more than 214 per cent. The 2025 leap reflected strong data demand and the 50 per cent tariff adjustment approved by the NCC in January 2025.
Airtel’s trajectory told a different story because of foreign exchange pressures; in usage terms, the business boomed.
Average customer data consumption tripled from 2.8GB monthly in 2021 to 8.4GB in 2025, while Nigeria became the main driver of voice usage growth across the Airtel Africa group.
But because Airtel reports in dollars, the naira devaluation reshaped its financial picture.
Voice revenue rose from $896 million in 2021 to $1.05 billion in 2023 before dropping to $448 million by 2025. Data revenue climbed from $549 million to $884 million in 2023, then declined to $483 million in 2025.
Still, 2025 marked a turning point: data revenue overtook voice revenue for the first time.
Overall, Airtel Nigeria’s reported revenue peaked at $2.13 billion in 2023 before falling to $1.05 billion by 2025, largely reflecting the naira’s depreciation from around N461/$ in March 2023 to over N1,530/$ by March 2025.
Poor service, dropped calls and mounting customer anger
Despite surging revenue and network spending, customer complaints remained stubbornly consistent.
Subscribers repeatedly complained about dropped calls, uncompleted calls, unstable coverage, slow internet speeds, unreliable data services, incorrect billing, unsolicited messages and disappearing data balances.
The economic impact stretched beyond inconvenience, disrupting remote work, online learning and digital payments. Both companies tracked quality through network availability and operational metrics.
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Airtel reported network availability of 98.8 per cent in 2025 after achieving pan-African radio network availability above 99.5 per cent in previous years. To tackle disruptions from fibre cuts, it introduced SRv6 automation, cutting recovery time from 30 minutes to 30 seconds.
MTN focused on infrastructure modernisation, recording N2.44 billion in network impairments in 2023 as it replaced ageing equipment to sustain 4G and 5G demand. Yet disruptions continued.
Both companies faced major customer “drop-offs” linked not only to technical problems but also to regulations. The NIN-SIM linkage exercise disrupted subscriber activity across the sector. Airtel reported losing 2.5 million active users through churn in late 2021 and estimated a $110 million revenue hit in 2023 from customer barring linked to NIN compliance.
Fines, glitches, disputes and compensation payouts
Neither operator discloses a single five-year figure for penalties or Rights-of-Way payments to state governments, but both faced substantial financial liabilities.
MTN battled a VAT dispute involving a revised FIRS assessment of $135.7 million in 2023. While the Tax Appeal Tribunal upheld a principal liability of $47.8 million, it removed $87.9 million in penalties and interest, with appeals continuing.
The operator also absorbed a N9.5 billion loss after a MoMo Payment Service Bank glitch triggered N22 billion in unauthorised transfers.
Airtel disclosed a $20 million historical spectrum fee settlement in 2022, a $12 million contractual dispute provision and growing legal and regulatory provisions across its African operations.
Rights-of-Way costs remained an industry pain point, although several states moved toward zero RoW fees by 2024 to support fibre rollout. Regulators have also shifted toward direct consumer redress.
Under the Quality of Service Regulations 2024, operators must provide compensation through airtime credits when they fail to meet service benchmarks. Compensation targets affected subscribers, with SMS notifications explaining the value and reason for credits.
The rules also impose fines ranging from N5 million to N15 million per reporting area or contravention, plus daily penalties for persistent failures.
MTN and Airtel have already begun issuing direct airtime compensation tied to service disruptions and quality failures.
Government: excuses are over
The Federal Government now says the sector has the resources to fix its network problems.
In a May 10 directive, the Minister of Communications, Innovation & Digital Economy, ‘Bosun Tijani, said reforms, tariff adjustments and critical infrastructure protection had stabilised the industry and restored operator profitability.
He directly placed responsibility on MTN Nigeria, Airtel Nigeria, Globacom and T2.
“The conditions required for improved service delivery have now been established,” he stated.
According to Tijani, operators now have both the “capacity and the resources to fix outstanding issues” and must “take all necessary steps to resolve network challenges and deliver the level of service Nigerians expect”.
His closing warning was blunt: “Nigerians should begin to see improvements in Quality of Service and get value that they paid for now, and in the future… We will ensure that the sector delivers.”
Alex is a business journalist cum data enthusiast with the Pinnacle Daily. He can be reached via ealex@thepinnacleng.com, @ehime_alex on X