Joy Agwunobi 

Nigeria has announced a $2 billion broadband infrastructure initiative that it says will accelerate digital inclusion, power economic diversification, and strengthen its ambition of becoming Africa’s next global technology hub.

Bosun Tijani, minister of communications,innovation and digital economy, disclosed this during a plenary session titled “Smart Growth, Digital Leap” hosted by IHS Towers at the 31st Nigerian Economic Summit in Abuja.

According to Tijani, the project structured on a hybrid financing model with 49 percent government contribution and 51 percent private sector funding aims to deliver universal broadband coverage across all 774 local government areas within the next three years.

“Connectivity is not optional. It’s the foundation of productivity,” the minister said, adding that expanded access to high-speed internet will unlock the country’s “long-anticipated digital wealth.”

Economic impact and growth potential

Nigeria’s ICT sector currently contributes around 15 percent to GDP, one of the highest in sub-Saharan Africa, according to the National Bureau of Statistics (NBS). However, broadband penetration hovers at about 50 percent, leaving millions without access.

Tijani cited World Bank data showing that a 10 percent increase in broadband penetration can boost GDP by up to 2 percent annually. He noted that improved rural access alone could add as much as $25 billion yearly to Nigeria’s agricultural output, supporting diversification away from oil dependency.

The $2 billion broadband plan is being supported by global development partners, including the World Bank, International Finance Corporation (IFC), and Africa Finance Corporation (AFC). As part of the reforms, broadband will be designated as national critical infrastructure to fast-track investment and reduce operational costs for telecom operators.

Public-private partnerships and talent development

Tijani highlighted the IHS Towers innovation hub as a model for partnerships capable of reshaping Nigeria’s digital landscape. The hub is expected to train thousands of young Nigerians, provide incubation spaces for startups, and connect local innovators with global investors.

He also linked the broadband rollout with the government’s 3 Million Technical Talent (3MTT) programme, which is training digital workers in fields such as artificial intelligence (AI), cloud computing, cybersecurity, and data analytics. About 4 percent of trainees are focusing exclusively on AI, positioning Nigeria for deeper participation in emerging technologies.

Industry perspectives

Mohamad Darwish, chief executive officer of IHS Nigeria, reinforced the urgency of expanding digital infrastructure. While acknowledging Nigeria’s vibrant startup ecosystem and thriving creative industries, he warned that infrastructure deficits, power supply challenges, and uneven digital literacy remain barriers to inclusive growth.

“Today, our country stands tall as Africa’s most vibrant startup ecosystem and one of the world’s leading creative communities,” Darwish said. “But we cannot build a prosperous and inclusive Nigeria by 2030 without digital technology at its core.”

Darwish stressed that bridging the divide will require continued government-private sector collaboration, alongside community-based digital skills programmes. Expanding broadband, he noted, will fuel e-commerce, agency banking, mobile payments, and entrepreneurship across Nigeria’s cities and rural areas.

Broadband gap and economic cost

The announcement also aligns with earlier warnings about Nigeria’s broadband deficit. In July, Yinka Isioye, chief experience officer at FibreOne, estimated that the country loses $15 billion annually due to inadequate broadband coverage, with high internet costs and slower speeds as symptoms of the gap.

Isioye warned that over 45 million students risk exclusion from digital learning, while rural communities face persistent limitations in telehealth services. He also highlighted the scale of the financial burden: the $15 billion broadband gap is nearly four times Nigeria’s combined health and education budgets.

He identified three major obstacles slowing broadband expansion in Nigeria. The first is the high cost of fiber deployment, which can reach as much as $50,000 per kilometer. Added to this is the persistent problem of energy instability, with telecom operators spending between 30 and 40 percent of their operational budgets on power. A further constraint is Nigeria’s low average revenue per user (ARPU), which stands at just $10–$20 compared to about $50 in more developed markets, making returns on investment less attractive for operators.

Despite these challenges, experts believe the new broadband project combined with targeted policies and global financing could redefine Nigeria’s digital economy, making connectivity the backbone of productivity and growth