Nigeria’s $76bn Telecom Investment Still Leaves 27 Million Without Connectivity

Nigeria’s telecommunications industry has attracted nearly $76 billion in investment since privatisation in 2001, transforming the sector from fewer than 500,000 phone lines to one of Africa’s largest mobile markets. Yet, more than 27 million Nigerians remain without access to basic connectivity, raising concerns about the inclusivity of the nation’s digital economy.

The liberalisation of the sector ushered in global giants such as MTN, Airtel, and Glo, driving explosive growth and expanding coverage from 2G to 5G. Today, the industry contributes 14.4% to Nigeria’s GDP, supports financial inclusion, powers e-commerce, and even underpins aviation safety. Despite these gains, millions in rural areas remain cut off due to poor infrastructure economics, high costs of internet devices, and limited digital literacy.

Industry data reveals that while coverage has improved, usage remains a challenge. A 2025 GSMA report found that 60% of Nigerians living within 4G zones do not use mobile internet. Affordability, lack of smartphones, and low digital skills continue to lock out nearly half of the population, even as submarine cables and fibre optic investments deepen internet capacity.

Consumers also complain of dropped calls, fast-depleting data, and sluggish internet speeds, undermining trust in service providers. Operators face their own hurdles, including over 1,100 daily fibre cuts, 54 layers of taxation, vandalism, and power costs worsened by naira depreciation. Industry leaders warn that without pricing flexibility and regulatory reforms, service quality may continue to suffer despite heavy investment.

To bridge the gap, regulators and operators are pushing reforms. The Nigerian Communications Commission (NCC) has pledged new fibre deployments, harmonisation of taxes, and stricter oversight on billing transparency. Operators like MTN are investing over ₦1 trillion in 2025 to expand fibre networks and data centres. Still, experts argue that tackling affordability, digital literacy, and rural access will be crucial if Nigeria is to deliver on the promise of its $76bn telecom revolution.

Source: Business day