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NCC highlights urgent need for telecom investment as data demand surges in Nigeria

The Nigerian Communications Commission warns that data consumption is outpacing network capabilities, urging investment.

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NCC highlights urgent need for telecom investment as data demand surges in Nigeria
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The Nigerian Communications Commission (NCC) has raised alarms over the increasing demand for data in Nigeria, which is significantly outstripping the growth of the country's telecommunications infrastructure. During the Nigeria Digital Connectivity Investment Forum held in Abuja, the NCC revealed that data consumption reached approximately 1.6 million terabytes in July 2026, marking a staggering 47 percent increase over the past year.

The forum, which was co-hosted by Swedfund and Ookla, highlighted projections indicating that mobile subscriptions could soar from around 195 million to nearly 350 million within the next 10 to 15 years. This surge is expected to be fueled by advancements in cloud computing and artificial intelligence, which will further intensify the demand for robust networks and data centers.

Despite mobile broadband coverage reportedly reaching 90 percent of the Nigerian population, the NCC pointed out a significant disparity in smartphone ownership, which stands at only 27 percent. Furthermore, broadband penetration is currently at 57.4 percent, falling short of the 70 percent target set by the commission. The NCC emphasized that the challenge lies not just in coverage but in actual usage, which is hindered by factors such as device affordability, digital literacy, and user trust.

Participants at the forum urged telecommunications operators and infrastructure companies to complement coverage investments with initiatives aimed at making devices more affordable. This includes promoting locally manufactured devices and SIM cards to enhance accessibility for users.

On the financing front, the NCC stressed that digital infrastructure, which has an asset life of 20 to 30 years, requires long-term funding solutions. The communiqué issued at the forum called for development finance institutions to align their investments with the long-term nature of these assets, suggesting that infrastructure funding should be tied to independently verified network performance.

Moreover, the NCC identified power supply and inland connectivity as critical barriers to the expansion of telecommunications services. The forum participants advocated for integrated planning of energy and connectivity investments, proposing that tower clusters could serve as anchor off-takers for distributed generation.

The NCC also urged the Federal Government to expedite the implementation of Project BRIDGE, a proposed 90,000-kilometre national fibre backbone, to address the connectivity gap between major networks and local access points. Additionally, state governments were encouraged to streamline Right of Way and site permit charges, with recent reports indicating that 12 states have eliminated Right of Way fees, an increase from seven states in December 2024.

The NCC expressed its commitment to continue engaging with stakeholders to ensure the execution of the investment and deployment strategies discussed at the forum, emphasizing the urgent need for action to bridge the widening gap in Nigeria's digital landscape.

Sources

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