Nigeria’s digital economy is approaching a capacity crunch as surging data use, rising subscriber numbers and weak electricity and fibre infrastructure expose the need for coordinated investment in telecommunications, data centres and power.
Key takeaways
- Monthly data use reached roughly 1.6 million terabytes in July 2026, up nearly 47% from a year earlier.
- Mobile broadband reaches about 90% of the population, but smartphone ownership is only 27% and broadband penetration is 57.4%.
- Telecommunications subscriptions could expand from approximately 195 million today to 350 million over the next 10 to 15 years.
- Participants want the government to speed up Project BRIDGE, a planned 90,000-kilometre national fibre backbone.
- Priority measures include renewable-powered rural networks, wholesale access rules, better broadband mapping and stronger financing for underserved communities.
Demand is outstripping network capacity
The Nigerian Communications Commission said the country’s appetite for digital connectivity is growing faster than the capacity of its existing networks. It presented the assessment in a communiqué issued after the Nigeria Digital Connectivity Investment Forum, held in Abuja on September 29 and 30, 2026.
The event was convened by the NCC with Swedfund and Ookla under the theme “Unlocking Infrastructure Investment through Data, Transparency and Partnerships.” The commission said data consumption had climbed to about 1.6 million terabytes in July 2026, an increase of almost 47% over 12 months.
Telecommunications subscriptions, now estimated at around 195 million, may reach 350 million over the coming decade to decade and a half. That expansion would add to the strain on communications networks, data centres and electricity systems. Cloud services and artificial intelligence are expected to push demand higher, making additional digital infrastructure and dependable power supplies essential.
The sector already made up 9.72% of Nigeria’s real gross domestic product in the second quarter of 2026. However, the NCC said the ability to use digital services was being held back by more than network availability. The cost of devices, limited digital capabilities and concerns about trust were also restricting adoption.
With mobile broadband available to approximately 90% of Nigerians, the commission said the principal shortfall had shifted from physical coverage to actual usage. Smartphone penetration is about 27%, while broadband adoption stands at 57.4%, below the national objective of 70%.
Electricity shortages and insufficient middle-mile links were identified as important obstacles to further deployment. Expensive inland connectivity is concentrating data-centre and internet-service investment in a small number of metropolitan markets. Tower operators, meanwhile, continue to face high costs when supplying power to telecommunications infrastructure.
The NCC said infrastructure and energy planning should therefore be carried out jointly. Clusters of telecommunications towers could serve as anchor customers for distributed power projects, helping support investment in local generation.
It also stressed the need for patient financing. Digital infrastructure generally operates for 20 to 30 years, meaning projects require capital with maturities longer than those typically available through short-term funding.
Government and industry investment agenda
Forum participants called on the Federal Government to accelerate Project BRIDGE, the proposed 90,000-kilometre fibre backbone, as a way to close Nigeria’s middle-mile connectivity deficit. They also requested more dependable electricity for digital facilities, stable policy and financing arrangements that could lower borrowing costs across the sector.
The NCC was encouraged to continue measures designed to improve the investment climate. These included realigning tariffs, formally classifying critical national information infrastructure and working with state governments on Right of Way charges.
Participants also asked the regulator to release the first national Nigeria Digital Connectivity Index, strengthen open-access and wholesale-market rules, and complete its direct-to-device framework.
State authorities were urged to cut and standardise Right of Way and site-permit fees while reducing the time required to approve telecommunications projects. Greater reliance on shared facilities and neutral-host arrangements was recommended to make rural and indoor connectivity less expensive.
The forum further called for affordable equipment to accompany network expansion, including phones and SIM cards produced domestically.
Agreed near-term priorities included securing financing within six months for community-owned rural networks using renewable energy in areas without connectivity. The action plan also covers the introduction of open-access and wholesale rules, the publication of a wholesale price schedule, completion of broadband mapping and reinforcement of the Universal Service Fund as the main funding channel for underserved locations.
Over an 18- to 24-month period, participants recommended creating a dedicated financing structure for telecommunications power. They also proposed building metropolitan and access fibre through concessions linked to Project BRIDGE.
The NCC said the forum had shown that high financing costs, Right of Way barriers, unreliable electricity and incomplete infrastructure data were closely connected. Addressing them will require coordinated efforts from the government, regulators, investors, lenders and industry participants.
The commission said it would maintain engagement with stakeholders as the agreed measures and investment routes are developed.
