Nigeria’s ambition to deepen its digital economy may increasingly depend on a critical but often overlooked foundation, reliable broadband connectivity. With millions of citizens still outside the formal financial system and internet access remaining uneven across the country, policymakers and industry leaders are turning their attention to fibre-optic networks as a foundation for expanding digital services.
A renewed push toward broadband expansion gained momentum recently after the European Union committed €22 million to support Nigeria’s proposed 90,000-kilometre fibre-optic rollout. The project is expected to significantly strengthen the country’s internet backbone, extending connectivity beyond major urban centres into smaller cities and rural communities where digital access has historically been limited.
Connectivity and the financial inclusion gap
Nigeria has made steady progress in expanding access to financial services over the past decade, driven largely by mobile banking, fintech innovation and agency banking models. Nonetheless, a significant portion of the population remains excluded from formal financial systems, particularly in rural areas where access to banking infrastructure is limited.
Data from Enhancing Financial Innovation & Access (EFInA) highlights the scale of this challenge. According to the organisation’s 2023 Access to Financial Services survey, approximately 28.8 million Nigerian adults, representing about 26 percent of the adult population, remain financially excluded, underscoring the persistent barriers preventing millions from participating fully in the country’s formal financial system.
One of the underlying barriers is connectivity. Many communities outside major commercial hubs continue to experience slow internet speeds, unstable network coverage or limited broadband infrastructure. These gaps make it difficult for financial institutions to deploy reliable digital services or maintain consistent transaction systems.
Recent data from the Nigerian Communications Commission underscores both the progress and the gaps in the country’s digital infrastructure. According to the regulator, Nigeria’s broadband penetration crossed the 50 percent mark for the first time in November 2025, reaching 50.58 percent, reflecting gradual improvements in connectivity across the country.
However, the milestone also highlights how far the country still has to go. The figure fell short of the 70 percent broadband penetration target set under the National Broadband Plan 2020–2025, which expired at the end of December 2025.
The commission’s data further shows that broadband subscriptions, defined under the plan as internet connections delivering minimum speeds of 1.5 megabits per second, stood at 109.6 million in November 2025. Total internet subscriptions across 3G, 4G and emerging 5G networks reached 144.7 million, while active voice subscriptions climbed to 177.4 million, translating to a teledensity of 81.84 percent based on an estimated population of 216.7 million.
Despite these numbers, millions of Nigerians remain unable to fully participate in the digital economy due to limited broadband access, particularly in rural and underserved communities where infrastructure deployment has historically lagged behind urban areas.
Industry experts say expanding the fibre backbone could help address these challenges by improving internet reliability and enabling digital platforms to operate more effectively across a broader geographic footprint.
According to Akin Adegoke, chief digital officer at Lotus Bank, connectivity plays a fundamental role in enabling financial access. He notes that when broadband infrastructure improves, banks are able to deploy digital channels such as mobile banking platforms, agent networks and remote onboarding systems more effectively in communities that previously lacked reliable connectivity.
Stronger digital infrastructure, he explained, allows financial institutions to reduce their reliance on physical branches while still extending services to underserved populations.
Rethinking the traditional banking footprint
For many banks operating in Nigeria, maintaining physical branches in remote communities can be expensive. Operational costs ranging from staffing to infrastructure maintenance often make it difficult to sustain brick-and-mortar operations in low-density areas.
As a result, financial institutions have increasingly turned to digital platforms and agency banking models to reach customers in regions where traditional banking infrastructure is not economically viable.
Broadband expansion could accelerate this shift. With stronger connectivity, banks can rely more heavily on digital service delivery, reducing the need for costly physical footprints while maintaining accessibility for customers.
Agency banking networks, mobile financial services and digital identity verification tools are among the channels that could benefit most from improved connectivity. These systems depend on stable internet access to process transactions securely and efficiently.
By strengthening the digital backbone that supports these platforms, the planned fibre rollout may allow banks to operate more efficiently while broadening their reach.
The expansion of broadband infrastructure is also expected to stimulate growth in digital financial products, particularly in areas where digital payment systems remain underdeveloped.
Payments and digital wallets are widely considered the entry point for many individuals joining the formal financial system. As connectivity improves, these services could expand rapidly, enabling more Nigerians to conduct everyday transactions digitally.
Beyond payments, other financial products may also gain traction. Digital savings accounts, micro-investment platforms and alternative credit solutions are likely to benefit from stronger connectivity, especially as financial institutions develop more sophisticated digital offerings.
Improved broadband access could also enable more advanced financial technologies, including real-time lending platforms and digital identity-linked financial services. These innovations rely heavily on reliable data connectivity and secure transaction processing.
For fintech startups and digital service providers, expanded broadband coverage could unlock new markets that were previously difficult to serve due to infrastructure limitations.
Supporting the growth of ethical finance
Beyond conventional banking, stronger digital infrastructure could also support the growth of Nigeria’s non-interest banking segment. This sector, which operates on principles such as transparency, risk-sharing and asset-backed financing, has been gradually expanding in recent years.
Delivering these services at scale, however, requires robust digital systems capable of handling documentation, transaction monitoring and customer engagement efficiently.
Digital platforms make it easier for financial institutions to maintain transparent records, manage compliance processes and engage customers through remote channels. Improved connectivity could therefore play an important role in expanding access to ethical financial products in communities that may prefer alternative banking models.
Adegoke noted that technologies such as smart contracts could further strengthen transparency within financial systems by automating agreements once specific conditions are met. While these technologies are still emerging within Nigeria’s financial sector, improved digital infrastructure could make their adoption more practical over time.
Although financial services stand to benefit significantly from broadband expansion, the potential impact extends far beyond the banking sector.
Stronger connectivity could enable a wide range of digital platforms to expand into underserved regions. Fintech companies, e-commerce businesses, education technology providers and digital health platforms all depend on reliable internet infrastructure to reach customers effectively.
For startups in particular, improved broadband coverage could open access to new user bases outside major urban centres. Entrepreneurs building digital solutions may find it easier to scale their services once connectivity barriers are reduced.
Industry observers say this broader ecosystem effect could ultimately contribute to job creation and increased economic participation, particularly among young Nigerians who are already driving much of the country’s digital innovation.
Research by the World Bank also highlights the broader economic impact of improved broadband access. A study by the institution found that a 10-percentage-point increase in fixed broadband penetration can boost GDP growth by about 1.21 percent in developed economies and 1.38 percent in developing ones, underscoring the wider economic importance of investments in digital infrastructure.
The infrastructure challenge ahead
Despite the promise of broadband expansion, experts caution that infrastructure investment alone will not automatically resolve Nigeria’s digital divide. Other factors such as affordability, digital literacy and device access also play important roles in determining whether individuals can fully participate in the digital economy.
Nevertheless, building a stronger fibre backbone remains a critical starting point. Without reliable connectivity, many digital services simply cannot function at scale.
The planned fibre rollout therefore represents more than a telecommunications project. It is increasingly viewed as a strategic investment in Nigeria’s economic future, with the potential to reshape financial services, expand digital entrepreneurship and bring millions more citizens into the formal economy.
As Nigeria continues to pursue its digital transformation agenda, the success of initiatives such as the 90,000-kilometre fibre expansion may ultimately determine how inclusive and far-reaching that transformation becomes.
