The rising demand for internet data in Nigeria, coupled with inadequate fibre infrastructure, unreliable power supply and expensive financing, is increasing pressure on the country to attract long-term investment into its digital infrastructure.
The Nigerian Communications Commission (NCC) disclosed that the country consumed about 1.6 million terabytes of data in July 2026, representing an increase of almost 47 percent in 12 months, as growing digital activity places additional demands on telecommunications networks, data centres and energy infrastructure.
The figures were contained in a communiqué issued after the Nigeria Digital Connectivity Investment Forum 2026, organised by the NCC in partnership with Swedfund and Ookla in Abuja from September 29 to 30.
Participants at the forum warned that the expansion of cloud computing and artificial intelligence would further increase demand for reliable connectivity, data processing capacity and electricity, requiring coordinated investment in telecommunications infrastructure and energy supply.
The forum, which brought together government officials, regulators, investors, financial institutions, telecommunications operators and infrastructure providers, focused on identifying barriers to digital infrastructure investment and developing practical measures to expand connectivity across the country.
According to the communiqué, Nigeria’s telecommunications subscriptions are projected to increase from about 195 million towards 350 million over the next 10 to 15 years, reinforcing the need for infrastructure capable of supporting future demand.
However, participants noted that expanding network capacity alone would not guarantee broader digital participation, as the cost of internet-enabled devices, limited digital skills and concerns about trust continue to restrict access for many Nigerians.
Although mobile broadband networks cover about 90 percent of the population, smartphone ownership stands at approximately 27 percent, while broadband penetration is 57.4 percent, below the national target of 70 percent.
The forum therefore emphasised that investment strategies must address both network availability and the affordability of devices needed by consumers to access digital services.
The communiqué also highlighted the economic importance of connectivity, noting that telecommunications and information services contributed 9.72 percent to Nigeria’s real gross domestic product in the second quarter of 2026.
Participants said digital infrastructure would play an increasingly important role in trade, productivity and economic growth, particularly as Nigeria seeks to take advantage of opportunities under the African Continental Free Trade Area’s Protocol on Digital Trade.
Despite growing demand, participants identified inadequate middle-mile fibre infrastructure and the high cost of electricity as major constraints on the deployment of digital services beyond major urban centres.
According to the communiqué, the cost of inland connectivity has restricted data centre and internet service investments to a handful of metropolitan areas, limiting the spread of digital infrastructure to underserved locations.
The forum called for energy and connectivity projects to be planned together, with telecommunications tower clusters considered potential anchor customers for distributed power generation.
Participants also stressed the need to accelerate Project BRIDGE, the Federal Government’s planned 90,000-kilometre national fibre backbone, as part of efforts to address gaps in the country’s middle-mile infrastructure.
The communiqué further called on the Federal Government to maintain policy consistency and support financing arrangements capable of reducing the cost of capital for digital infrastructure projects.
Financing challenges threaten long-term projects
The forum also raised concerns about the mismatch between the long lifespan of digital infrastructure assets and the relatively short repayment periods associated with conventional bank financing.
Digital infrastructure assets typically have operational lives of 20 to 30 years, making long-term financing essential for projects that require substantial upfront investment and generate returns over extended periods.
Bolaji Balogun, chief executive officer of Chapel Hill Denham, who spoke on financing digital infrastructure on the first day of the forum, emphasised the need for investable projects, appropriate financing structures, capital market participation and conditions that attract long-term private and institutional investors.
Bismarck Rewane, chairman of the board of FCMB and managing director of Financial Derivatives Company, also highlighted the importance of the cost and availability of capital, investor confidence and policy predictability in supporting infrastructure investment.
The communiqué noted that infrastructure financing in Nigeria had grown from less than N70 billion in 2004 to N19.4 trillion in 2025. However, it cautioned that access to capital does not automatically make a project commercially viable, stressing the importance of sound governance and management capacity.
To address the financing gap, participants recommended that investors and development finance institutions match long-lived infrastructure assets with long-tenor naira financing.
They also called for blended financing structures and credit enhancement mechanisms to help bring projects that are not yet commercially ready to market.
The forum further recommended linking infrastructure funding to independently verified network performance to improve accountability and reduce uncertainty for investors.
States urged to reduce deployment costs
State-level regulations and permitting requirements were also identified as important factors determining the pace and cost of digital infrastructure deployment.
According to the communiqué, a pilot of the Nigeria Digital Connectivity Index across 12 states showed that right-of-way reforms were associated with fibre growth of between 22 percent and 95 percent in states implementing the reforms.
The number of states charging zero right-of-way fees had also increased to 12, compared with seven in December 2024.
Right-of-way charges are fees imposed on telecommunications operators for permission to install fibre cables along roads and other public infrastructure. High charges and lengthy approval processes can increase the cost of network expansion and delay projects.
Participants urged state governments to reduce and harmonise right-of-way and site permit charges, shorten approval timelines and adopt the Federal Government’s model requiring operators that lay fibre to reinstate affected roads.
The NCC was also urged to publish the first national Nigeria Digital Connectivity Index report to provide investors with more detailed information on connectivity conditions and infrastructure gaps across the country.
Participants said independently verified data could help investors identify locations where new infrastructure would deliver the greatest impact, rather than relying solely on national coverage figures.
The commission was further encouraged to advance open-access and wholesale regulation, publish wholesale rates and complete broadband mapping to improve infrastructure planning and access.
New models proposed for underserved communities
To expand connectivity in rural and underserved communities, the forum recommended shared infrastructure arrangements, neutral-host networks, satellite services and solar-powered rural sites to reduce deployment costs.
Participants also called for funding to be secured within six months for community co-owned rural networks powered by renewable energy in communities with no connectivity.
The proposed initiative would involve partnerships with the Universal Service Provision Fund, state governments and the Rural Electrification Agency.
Within six to 18 months, stakeholders also recommended strengthening the regulatory framework for open access and wholesale services, providing regulatory backing for the Universal Service Fund as the primary source of support for underserved-area projects, and developing financing models for indoor connectivity in commercial buildings.
The forum also called for data centre requirements to be incorporated into the National Broadband Plan, with off-grid and renewable energy solutions supported by blended financing.
Within 18 to 24 months, participants recommended establishing a financing framework for telecommunications power and developing metropolitan and access fibre networks through concession arrangements, mapped against existing infrastructure and integrated with Project BRIDGE.
The NCC, Swedfund and Ookla partnership provided a platform for stakeholders to examine connectivity data and assess how more transparent evidence could reduce investment uncertainty.
The commission pledged to continue engaging stakeholders to advance the agreed recommendations and investment pathways
