Nigeria’s data consumption rose by almost 47 percent to about 1.6 million terabytes in July 2026, as demand continues to outpace network capacity, the Nigerian Communications Commission (NCC) has said.
Nnenna Ukoha, Director of the Public Affairs Department at the NCC, disclosed this in a communiqué issued after the Nigeria Digital Connectivity Investment Forum 2026, held in Abuja on September 29 and 30.
The commission said participants at the forum projected that subscriptions could increase from about 195 million to 350 million within the next 10 to 15 years.
It added that the growth of cloud computing and artificial intelligence would further increase demand for networks, data centres and reliable electricity.
“Cloud computing and artificial intelligence will place further demand on networks, data centres and, above all, power,” the communiqué reads.
The NCC said telecommunications and information services accounted for 9.72 percent of Nigeria’s real GDP in the second quarter of 2026, while mobile contributed about $240 billion to Africa’s economy in 2025.
Power, middle-mile connectivity constrain deployment
The NCC said participants identified power supply and middle-mile connectivity as major constraints 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 currently covers about 90 percent of Nigerians, while smartphone ownership stands at about 27 percent and broadband penetration at 57.4 percent, below the 70 percent target.
It said participants identified device affordability, digital skills and trust as major barriers to wider 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 has an asset life of 20 to 30 years, while infrastructure financing in Nigeria grew from under 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 accelerate Project BRIDGE, the planned 90,000km national fibre backbone, to address the middle-mile connectivity gap.
The NCC also called for improved power availability and reliability, policy consistency and financing structures capable of reducing the cost of capital for the sector.
Participants urged state governments to cut 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 showed that right-of-way reforms translated into fibre growth of between 22 percent and 95 percent in states that implemented reforms.
The NCC added that 12 states now charge zero right-of-way fees, up from seven in December 2024.
Investors seek long-term capital
The commission said participants urged investors and development finance institutions to match long-life digital infrastructure assets with long-tenor naira capital.
They also recommended the use of independently verified network performance, blended financing and credit enhancement to support projects that are not yet commercially ready.
Participants agreed to secure funding within six months for community co-owned, renewable-powered rural networks in communities without connectivity.
The projects would involve the Universal Service Provision Fund, state governments and the Rural Electrification Agency.
The NCC said participants also set timelines of six to 18 months for open-access and wholesale regulation, broadband mapping and a wholesale rate card.
A financing framework for telecommunications power is expected within 18 to 24 months, the commission said.
The NCC said it would continue engaging stakeholders to advance the identified investment pathways.
