..27m Nigerians lack entry to connectivity
Nigeria’s telecommunications sector has attracted $75.6 billion in funding for the reason that 2001 privatisation, but thousands and thousands of residents lack entry to connectivity.
Persistent challenges equivalent to protection gaps, poor service high quality and rising prices proceed to frustrate shoppers, threatening the sector’s potential to drive the digital economic system.
The liberalisation of Nigeria’s telecom sector in 2001 marked a turning level, remodeling a panorama dominated by the state-owned NITEL into considered one of Africa’s most dynamic markets.
Previous to privatisation, Nigeria had fewer than 500,000 cellphone traces for a inhabitants exceeding 120 million. However the introduction of GSM licenses sparked explosive progress, with operators like MTN, Airtel, and Glo quickly increasing connectivity.
“Again in 2001, we projected the main operator may attain 10 milllon to fifteen million subscribers. We have now far exceeded that, however the unutilised NITEL license stays a missed alternative,” an trade chief, who spoke on the situation of anonymity resulting from ongoing regulatory engagements, instructed BusinessDay.
Over the previous 24 years, investments totalling roughly $75.6 billion, in response to the Nigerian Communications Fee (NCC), have pushed developments from 2G to 5G networks, the rise of Web Service Suppliers (ISPs), and the creation of tower and web site construct corporations (TowerCOs). Firms like IHS Towers, which emerged from vendor-financed site-building initiatives, have develop into world gamers, illustrating Nigeria’s capability to innovate in telecom infrastructure.
The touchdown of worldwide submarine cables, pioneered by figures like Funke Opeke, laid the inspiration for a digital economic system, enabling connectivity that has reshaped how Nigerians talk, work, and entry providers.
Development, function as financial enabler
Nigeria’s telecom sector is among the many largest in Africa and a big world participant, with over 169 million energetic cellphone traces and a contribution of 14.4 % in to the gross home product (GDP) in 2024.
The sector’s evolution from voice and textual content to digital providers mirrors world developments, with infrastructure and person interfaces now driving income.
“In 2010, connectivity was the majority of world telco revenues. A decade later, digital providers dominate, and Nigeria is following swimsuit. This shift positions the sector to draw important funding over the subsequent 10 years to 30 years,” Jide Awe, tech analyst, instructed BusinessDay.
Learn additionally: Telecoms overtakes finance: Nigeria’s new growth driver
Banking, aviation, NGX, others
The telecom trade has been a important enabler for different sectors.
Abubakar Suleiman, CEO of Sterling Financial institution, highlighted telecoms’ function in monetary inclusion, stating, “With out cell phones and USSD integration, our new platform permitting Nigerians to spend money on capital markets in two minutes wouldn’t be attainable.”
Telecoms have enabled cell wallets and mitigated money shortages at ATMs, with operators like MTN and Airtel venturing into monetary providers. Suleiman emphasised collaboration over competitors, with banks specializing in compliance, danger administration, and deposit-taking to help telecom-driven improvements.
Alexander Nwuba, president of the Plane Homeowners and Pilots Affiliation of Nigeria (AOPA-Nigeria), underscored telecoms’ significance in aviation, stating, “Fashionable plane transmit information through telecom networks for real-time upkeep.”
Telecom-enabled e-commerce drives demand for aviation logistics, addressing Nigeria’s lack of perishable farm produce by enabling same-day supply for exports like pineapples to Europe.
As for the Nigeria inventory market, the 2 main telecom operators are among the many 4 largest corporates on the alternate, making the sector important to market investability. Telecoms are key to digital transformation, enabling retail participation and SME capital formation.
Obehi Aire-Okafor, managing director of the Edo State Tourism Company, emphasised telecoms’ function in selling tourism via digital platforms, which improve entry to info and drive financial inclusion in rural areas.
The sector’s affect extends to schooling and safety. Digital infrastructure is crucial for scaling schooling to satisfy the wants of Nigeria’s projected half-billion inhabitants by 2055, as bodily school rooms can’t maintain tempo. Equally, fashionable safety techniques counting on cameras and sensors rely upon strong telecom networks, in contrast to Nigeria’s present reliance on manpower and weaponry.
Tens of millions lack connectivity
Regardless of spectacular funding and growth throughout the telecoms sector, a big variety of Nigerians stay unconnected.
By the tip of 2022, roughly 27 million Nigerians nonetheless lived in areas with no entry to telecommunications providers, a pointy however incomplete enchancment from 37 million in 2013.
Authorities and trade studies counsel that these gaps are concentrated in 97 recognized clusters, primarily positioned in rural and distant areas the place the economics of infrastructure deployment are tougher.
Compounding the protection difficulty is a broader utilization hole.
A latest GSMA report indicated that whereas Nigeria had important cell web protection, roughly 120 million Nigerians (about half the inhabitants) remained offline resulting from a utilization hole attributable to boundaries such because the affordability of internet-enabled units and information, an absence of digital abilities, and points with consciousness.
The GSMA information from early 2025 revealed that 60 % of Nigerians inside 4G protection didn’t use cell web; 18 % lacked entry to units, whereas 42 % owned telephones however weren’t utilizing them for web entry.
These figures underscore that connectivity challenges in Nigeria prolong past mere infrastructure and into affordability, digital literacy, and gadget accessibility points.
Nigeria’s telecom trade additionally faces important hurdles that undermine service high quality and client belief.
As an illustration, Nigerians report frequent name drops, speedy information depletion, and sluggish web speeds.
Amaka Uche, a pc centre proprietor in Lagos, mentioned, “We have been instructed larger tariffs would enhance providers, however the expertise is worse – a mismatch between guarantees and actuality.”
Jumoke Aliu, a scholar at Lagos State College, lamented, “I purchase 10GB of information, and it’s gone in three days with out streaming. Both the networks are dishonest us, or their techniques are damaged.”
Fibre cuts, different challenges
Aminu Maida, govt vice chairman of the NCC, revealed that the trade faces over 1,100 each day fibre cuts, 545 entry denials, and practically 100 theft incidents involving mills and batteries yearly. These disruptions instantly affect connectivity and repair high quality.
On the flip aspect, BusinessDay findings present that operators face 54 completely different taxes throughout states, alongside levies on masts and right-of-way prices.
Gbenga Adebayo, chairman of the Affiliation of Licensed Telecommunications Operators of Nigeria (ALTON) famous, “The sector is a sufferer of its personal success, focused for taxation and arbitrary levies.”
Karl Toriola, CEO of MTN Nigeria, cited the naira’s depreciation from N450/$ to over N1,600/$, which quadrupled working prices whereas tariffs remained frozen, resulting in losses. “With out pricing flexibility, no trade may be wholesome,” he mentioned.
Web shutdowns
As for web shutdowns, Nigeria ranks amongst Africa’s worst for web shutdowns, with 222 cumulative days of social media restrictions since 2015, together with the 2021–2022 X (Twitter) ban. These disruptions, usually tied to political unrest or elections, undermine digital rights and financial stability, in response to Gbenga Sesan of Paradigm Initiative.
Sustainability and expertise shortages are additionally main points. The trade’s reliance on diesel mills contributes to a big carbon footprint, whereas a scarcity of home software program and telecom engineers threatens long-term progress. “Failing to construct an area expertise pipeline impoverishes our future,” the nameless chief warned.
The best way ahead
Stakeholders have proposed a complete technique to maintain progress and handle challenges.
Maida emphasised ongoing efforts to harmonise taxes and cut back fibre cuts via MoUs with the Ministry of Works and state governments, alongside a digital platform to inform operators of building works.
He additionally highlighted a $1 billion in new gear to improve base stations and increase fibre networks within the North Central area.
“Nigerians deserve higher, and we’re working to ship that,” Maida assured, promising accountability for operators on service high quality and clear billing to deal with information depletion considerations.
Toriola, CEO of MTN Nigeria, burdened the necessity for regulatory certainty and pricing flexibility, citing superior markets just like the US and UK. He famous MTN’s N1 trillion 2025 capital expenditure for radio, fibre, and information centre upgrades, alongside infrastructure sharing with Airtel and 9mobile to scale back prices.
