The Nigerian Communications Commission (NCC) says Nigeria’s data consumption increased by nearly 47 percent to approximately 1.6 million terabytes in July 2026, as demand for connectivity continues to outpace network capacity.
Nnenna Ukoha, director of the NCC’s public affairs department, disclosed this in a communiqué issued after the Nigeria Digital Connectivity Investment Forum 2026, held in Abuja on September 29 and 30.
The NCC said participants projected that subscriptions could rise from about 195 million to 350 million over the next 10 to 15 years, with cloud computing and artificial intelligence expected to further drive demand for networks, data centres and electricity.
“Cloud computing and artificial intelligence will place further demand on networks, data centres and, above all, power,” the communiqué reads.
The commission said telecommunications and information services contributed 9.72 percent to Nigeria’s real GDP in the second quarter of 2026, while mobile technology contributed about $240 billion to Africa’s economy in 2025.
‘POWER, MIDDLE MILE CONSTRAIN DEPLOYMENT’
The NCC said participants at the forum identified electricity supply and middle-mile connectivity as significant obstacles to digital infrastructure deployment.
“For tower companies’ power is not a side business but the business, and the cost of inland connectivity confines datacentre and internet service investment to a few metropolitan centres,” the communiqué reads.
The commission said mobile broadband coverage currently reaches about 90 percent of Nigerians, while smartphone ownership is estimated at 27 percent and broadband penetration stands at 57.4 percent, below the 70 percent target.
It added that participants identified the affordability of devices, digital skills and trust as key barriers to broader digital adoption.
“Device affordability, digital skills and trust are the binding constraints, and coverage investment alone cannot close them,” the communiqué reads.
The NCC said digital infrastructure typically has an asset life of between 20 and 30 years, while infrastructure financing in Nigeria increased from less than N70 billion in 2004 to N19.4 trillion in 2025.
“Long-term financing is not, however, automatic bankability,” the communiqué reads.
‘NCC, STATES URGED TO CUT DEPLOYMENT COSTS’
The commission said participants recommended that the federal government fast-track Project BRIDGE, the proposed 90,000km national fibre backbone, to tackle the middle-mile connectivity shortfall.
The NCC also called for greater availability and reliability of electricity, consistent policies and financing structures capable of reducing the sector’s cost of capital.
Participants further urged state governments to reduce and harmonise right-of-way and site permit charges while shortening approval timelines.
The commission said a pilot of the Nigeria Digital Connectivity Index across 12 states found that right-of-way reforms were associated with fibre growth ranging from 22 percent to 95 percent in states implementing reforms.
The NCC added that 12 states now charge no right-of-way fees, compared with seven in December 2024.
‘INVESTORS SEEK LONG-TERM CAPITAL’
The NCC said participants called on investors and development finance institutions to align the long-term nature of digital infrastructure assets with long-tenor naira financing.
The commission said they also recommended independently verified network performance data, blended financing and credit enhancement mechanisms to support projects that are not yet commercially viable.
According to the NCC, participants agreed to secure funding within six months for community-owned renewable-powered rural networks in areas without connectivity.
The projects are expected to involve the Universal Service Provision Fund, state governments and the Rural Electrification Agency.
The commission said participants also established timelines of six to 18 months for open-access and wholesale regulation, broadband mapping and a wholesale rate card.
It added that a financing framework for telecommunications power is expected within 18 to 24 months.
The NCC said it would continue engaging stakeholders to advance the identified investment opportunities and investment pathways.