The Nigerian Communications Commission (NCC) has rolled out a new corporate governance framework for telecom operators. This move comes as Nigeria’s telecom sector grapples with a 58% decline in foreign direct investment (FDI) in the first quarter of 2025.
The new guidelines aim to restore investor confidence, enhance transparency, and ensure long-term sustainability in the $9.52 billion industry. With the sector projected to reach $11.97 billion, the NCC’s reforms signal a critical step toward addressing challenges like infrastructure vandalism, forex scarcity, and declining investment.
The telecom sector has been a cornerstone of Nigeria’s digital economy. It contributes significantly to the country’s Gross Domestic Product (GDP). However, FDI in the sector plummeted by 58% in Q1 2025.
According to industry reports, this decline follows a trend observed in 2022, when FDI fell by 46.89% to $399.91 million from $753.05 million in 2021. The scarcity of foreign exchange and inconsistent government policies have been cited as major culprits. The sector also faces an estimated $2.6 billion in annual foreign outflows, further straining its financial health.
The NCC attributes this drop to macroeconomic challenges. These include currency devaluation and rising operational costs. For instance, MTN Nigeria, the country’s largest operator, reported a N514.9 billion loss after tax in the first nine months of 2024, largely due to forex losses. These economic pressures have deterred foreign investors, prompting the NCC to act swiftly.
The NCC’s new governance framework
On Wednesday, August 6, 2025, the NCC introduced the 2025 Guidelines on Corporate Governance. The framework focuses on enhancing transparency, audit integrity, and risk management.
It mandates stricter internal controls for telecom operators. The goal is to rebuild trust among investors and stakeholders.
Dr Aminu Maida, the NCC’s Executive Vice Chairman, emphasised that the guidelines mark the start of a tougher enforcement era. “This framework ensures long-term sustainability while fostering innovation,” Maida explained.
The new rules require operators to strengthen their corporate governance structures. This includes regular audits and improved risk management practices. The NCC aims to create an environment where operators can thrive while delivering value to consumers. The framework also aligns with the Nigerian Communications Act of 2003, which mandates fair competition and consumer protection.
Meanwhile, beyond declining FDI, the telecom sector faces multiple hurdles. Infrastructure vandalism and fibre cuts have caused widespread network disruptions. In May 2025, the NCC reported 147 fibre cut incidents in a single week. These incidents lead to dropped calls, slow internet speeds, and service outages.
To combat this, the NCC plans to collaborate with the Attorney General’s office and the Nigeria Security and Civil Defence Corps (NSCDC) to prosecute offenders. The commission also intends to name and shame individuals responsible for vandalism.
Additionally, the NCC is working with the Nigerian Governors Forum and the Federal Ministry of Works. They aim to address Right of Way (RoW) issues that disrupt fibre networks during road construction. A Memorandum of Understanding is in the works to prevent such damages. These efforts are part of a broader strategy to protect Nigeria’s telecom infrastructure, which the NCC seeks to designate as critical national infrastructure.
Despite the challenges, the NCC is pushing for innovation and digital inclusion. In July 2025, the commission introduced a new licensing framework to support startups and tech-driven enterprises. This includes proof-of-concept pilots, regulatory sandboxes, and interim authorisations for emerging services. These initiatives aim to foster innovation while safeguarding consumer rights.
The NCC’s new governance framework is a bold attempt to reverse the telecom sector’s decline. The commission aims to restore investor confidence by addressing governance, infrastructure, and consumer concerns.
The sector’s recovery is already showing signs of progress, with the likes of MTN Nigeria and Airtel announcing a positive financial turnaround in the last quarters.
As Nigeria pushes for digital inclusion and economic growth, the success of these reforms will determine the industry’s trajectory and its ability to attract foreign investors.
Also read: MTN Nigeria may resume dividend payments after 2 years- Report
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