FEC okays 7,000 new telecom towers as Airtel pledges $500m to Nigeria’s digital future

The Federal Executive Council (FEC) has approved the construction of 7,000 new telecom towers in rural Nigeria, aiming to bridge the nation’s connectivity gap. 

The decision was revealed on Thursday by Bosun Tijani, Minister of Communications and Digital Economy, following a high-level meeting with President Bola Tinubu at the Presidential Villa in Abuja. Tijani accompanied a delegation from Airtel, led by Founder and Chairman Sunil Bharti Mittal, who announced a $500 million investment to bolster Nigeria’s telecom infrastructure.

Tijani defended a recent 50% telecom tariff hike, calling it a critical measure to sustain the industry amid rising costs and prevent widespread job losses. 

“Quality connectivity requires significant investment, which we must encourage the private sector to make,” he said. 

Bosun Tijani, Nigeria’s Minister of Communications, Innovation and Digital Economy

With the sector employing nearly 500,000 Nigerians, the minister warned that without the adjustment, financial strain could have shuttered companies.

“If we refused the increase, we risked losing jobs. It was a tough but necessary call,” he added, citing a KPMG study that calibrated the hike to balance operator viability and consumer burden.

The minister emphasised the government’s dual focus on accessibility and quality. 

“We want Nigerians to have meaningful access, not just service,” Tijani said, noting the Nigerian Communications Commission’s shift toward “quality of experience” metrics. 

Alongside the towers, the government is deploying 90,000 kilometres of fibre-optic cables to expand coverage. “This is a journey requiring public-private collaboration,” he stressed, assuring that President Tinubu remains attuned to economic pressures impacting citizens.

Mittal, addressing the tariff increase, attributed it to inflation, currency devaluation, and surging operational costs. 

“Diesel, electricity, salaries, everything is up. Our entire network is imported, adding to the challenge,” he said. 

Despite this, Airtel remains committed to Nigeria, its linchpin in Africa. “We’ve invested $200 million last year and plan another $200 million by year-end,” Mittal revealed. 

Airtel to boost Nigeria’s telecom infrastructure with an additional $500m

Future investments include $250 million for radio networks, $140 million for a new data centre, and further funds for spectrum expansion, totalling over $500 million. He acknowledged the tariff hike’s necessity but promised a measured approach to future adjustments as the economy stabilises.

“Nigeria is the heart of our African strategy,” Mittal declared, expressing a personal stake in its success. “I oversee one country besides India, Nigeria. We aim to replicate India’s digital innovation and financial inclusion here.”

He hailed Tinubu’s reforms, like subsidy cuts and forex unification, as investment magnets. Airtel’s 15-year tenure in Nigeria, undeterred by recent economic woes, underscores its resolve. “We come as a force for good, a responsible corporate citizen,” Mittal affirmed.

In a bid to boost social impact, Mittal unveiled scholarships for 10 Nigerian students annually to pursue engineering degrees in India, building on the Satya Bharti School Programme’s 15-year legacy supporting 100,000 Indian children.

“We started with free education for girls, meals, uniforms, and computers. Now, we’re scaling up with university scholarships,” he said. 

The Nigerian government will select recipients, aligning with Tinubu’s 3 Million Technical Talent initiative. “Skilling and education can transform society,” Mittal noted, pledging Airtel’s support.

The FEC’s tower approval and Airtel’s investment signal a robust push to modernise Nigeria’s telecom sector, vital to its digital economy ambitions. The towers aim to connect rural areas, where coverage lags, while Airtel’s funds will enhance urban and suburban networks. Yet, the tariff hike has stirred unease among consumers grappling with inflation, even as stakeholders insist it is a lifeline for survival.

With this continuous investment from the telecom giant, Nigeria’s telecom landscape is poised for transformation, balancing ambitious infrastructure goals with economic realities. Tijani and Mittal’s assurances reflect optimism, but the success of these initiatives hinges on execution and public acceptance of higher costs for better service.