…Tasks TowerCos On Escrow Accounts Funding Directive Compliance
The Governing Board of the Nigerian Communications Commission (NCC) is considering the establishment of a Communications Industry Security Trust Fund (CISTF) as part of its efforts, in collaboration with other stakeholders, aimed at frontally tackling the menace of damages to critical national infrastructure in the rapidly growing telecommunications sector of the country.
The idea of creating the CISTF was one of the major issues discussed at the commission Governing Board’s 109th meeting held on May 25 this year in Abuja.
In a communique issued by the Office of the Commission Secretary on 29th May, which reflected major decisions taken at the meeting, the Board noted the prevailing sectoral challenges affecting the operations of licensees of the commission, including infrastructure vandalism, which has continued to hamper industry growth.
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It also acknowledged the ongoing efforts by the Office of the National Security Adviser and the Nigeria Security and Civil Defence Corps to protect telecommunications infrastructure following its designation as Critical National Information Infrastructure (CNII). However, it harped on the need for greater collaboration among industry stakeholders to strengthen the protection and security of network facilities and related infrastructure.
To achieve this, the “Board reaffirmed its commitment to fast-tracking initiatives aimed at enhancing infrastructure security, including exploring the feasibility of establishing a Communications Industry Security Trust Fund.”
Similarly, on the need to expand fibre infrastructure to support data demand and quality services in the telecoms sector, the Board accepted the report on data consumption trends in Nigeria and noted that, while demand continues to accelerate, growth had been constrained by limited infrastructure capacity, a heavy dependence on mobile internet connectivity and the duplication of assets, factors that have invariably compromised quality of service.
This is even as it noted the encouraging growth in Fibre-to-the-Home (FTTH) connections, which increased from 84,141 subscribers in Q4 2025 to 210,065 subscribers as at Q5 2025. The Board maintained that while the number of connections remains modest relative to the scale of national demand, the upward trend reflected growing adoption of fixed broadband services.
The NCC’s Board expressed optimism that continued expansion of FTTH and other fixed-fibre connections would help to ease pressure on mobile networks, improve service quality and provide consumers with more connectivity options.
Noting that the Commission’s ongoing review of the telecommunications market structure to reflect current market realities, including the distinct roles of the wholesale and retail segments and the application of appropriate regulatory measures where necessary remains desirable, the Board further strongly believes that broader access to wholesale backbone fibre, supported by expanded metropolitan fibre networks, would enable more homes, buildings and businesses to connect to fixed broadband services.
It projected that over time, this should help to reduce underlying connectivity costs, create the conditions for more affordable retail data services and improve network resilience, and re-affirmed that this structured approach represented the most sustainable pathway to meeting Nigeria’s data needs over the next decade, consistent with the Federal Government’s digital transformation agenda and the target of a $1 trillion economy.
Earlier, the Board acknowledged the significant investments being undertaken by the Mobile Network Operators (MNOs) to enhance network coverage, capacity and overall Quality of Experience, noting that as part of their commitment that operators have planned the deployment of over 12,000 additional coverage and capacity sites towards improving the Quality of Experience, with over 5,000 already completed representing over 40% completion rate.
The Board further noted the continued strengthening of transmission infrastructure, with fiber connectivity extended to more than 700 sites, improving network resilience, backhaul capacity and service reliability, and that colocation and infrastructure sharing licensees had sustained their investment in infrastructure upgrades, deploying new equipment across over 2,000 Base Transceiver Stations (BTS) to support operators’ network expansion efforts and improve compliance with QoS obligations.
On Quality of Service Consumer Compensation and Tower Investment Obligation, the Board reviewed the outcomes of the consumer-focused directive to MNOs to compensate subscribers for poor Quality of Service experiences in areas where prescribed service standards were not met, and the directive to Co-location and Infrastructure Sharing Licensees (TowerCos) to reinvest regulatory fines into infrastructure upgrades with measurable outcomes with a view to improving network resilience and service delivery.
The Board also reflected on the progress being made in the implementation of the NCC’s directive, particularly, the full compliance of which has resulted in compensation being offered to over 75million affected subscribers, acknowledging that ongoing efforts to independently validate operators’ claims and ensure all eligible subscribers receive compensation due to them while encouraging consumers to continue their engagement with the Commission.
With respect to the infrastructure providers, the Board observed that TowerCos had only partially complied with the directive requiring the funding of escrow accounts with the full amount of the regulatory fines for infrastructure reinvestment with progress being made thus far, it, however, emphasized the importance of full compliance to ensure that the intended infrastructure improvements are sustainably achieved for national development.
