Why Nigerians Are Experiencing Poor Network Service – MTN Chief

Why It Matters

Persistent poor service threatens consumer confidence and could trigger tighter regulation, while high tariffs risk accelerating subscriber churn in a price‑sensitive market.

Key Takeaways

• Rainfall and congestion directly degrade mobile network performance
• 27‑45 daily fibre cuts cause costly repairs and signal loss
• 50% tariff rise hasn't translated into immediate network upgrades
• MTN spent ~ $1.7 billion in 2023 maintaining existing infrastructure

Pulse Analysis

Nigeria’s telecom landscape is uniquely fragile because mobile networks serve as the primary conduit for voice, data, and even landline services. Seasonal rain can attenuate radio signals, while the sheer volume of users creates congestion that overwhelms existing cell sites. When multiple users crowd a tower, the operator must add radios or build new base stations—a process hampered by long lead times for equipment from manufacturers like ZTE and Huawei. These technical constraints are compounded by physical vulnerabilities: MTN reports 27 to 45 fibre‑optic cuts each day, each requiring splice repairs or full cable replacement, driving up operational expenses.

The 50% tariff hike announced for 2025 was intended to fund network upgrades, yet MTN’s 2023 expenditure of over 800 billion naira (about $1.7 billion) was largely spent on keeping the current infrastructure alive. High land‑lease fees, unpredictable landlord demands, and the need to secure critical sites further inflate costs. Even when capital is allocated, the supply chain bottleneck—customs clearance, manufacturing queues, and site acquisition—creates a lag between investment and visible service improvement. Consequently, customers experience intermittent quality drops despite paying higher prices, fueling dissatisfaction and legal actions such as the recent class‑action suit.

For investors and policymakers, the situation underscores a broader risk: without accelerated infrastructure investment and streamlined regulatory support, Nigeria’s mobile ecosystem may lag behind regional peers. Strengthening the designation of telecom assets as critical national infrastructure, improving anti‑vandalism measures, and fostering local equipment sourcing could shorten deployment cycles. As the market grows, operators that can translate tariff revenues into tangible network capacity will gain a competitive edge, while those stuck in a maintenance‑only mode may see subscriber loss and heightened regulatory pressure.