Nigeria’s Data Boom Powers Growth but Poor Infrastructure Threatens Digital Progress
Nigeria’s digital economy is expanding at record speed, with data consumption soaring to an all-time high of 1.15 million terabytes (TB) in August 2025, according to the latest report from the Nigerian Communications Commission (NCC). The surge reflects how internet usage has become the backbone of economic activity, fueling growth across fintech, e-commerce, and digital entertainment. Yet, despite the progress, experts warn that poor infrastructure and rising fibre cuts could slow the country’s digital momentum.
Between May and August 2025, national data usage jumped by 13 per cent, marking a 31 per cent rise since November 2024. Analysts link this rapid growth to increased smartphone adoption, booming online commerce, and a post-tariff rebound in digital services. “These robust data metrics show that consumer demand remains strong,” said Gbenga Adebayo, chairman of the Association of Licensed Telecommunications Operators of Nigeria (ALTON). “But we are only halfway to our potential—without deeper investment in fibre networks and protection from vandalism, growth will plateau.”
For Nigerian businesses, the data boom has been a catalyst for innovation and expansion. Average data use per subscriber climbed from 7GB in December 2024 to 8.2GB by August 2025, according to the NCC. E-commerce giants like Jumia and Konga saw higher order volumes, while fintech startups deepened their reach as digital payments became more embedded in everyday life. The Internet Exchange Point of Nigeria (IXPN) also played a pivotal role, achieving a 1Tbps throughput milestone that saved the country roughly $40 million annually in international bandwidth costs.
Despite the gains, network operators face mounting hurdles. The NCC recorded over 35,000 fibre cuts nationwide as of mid-2025—mostly due to vandalism, road works, and cable theft—disrupting broadband services and stalling network expansion. Aminu Maida, NCC’s Executive Vice Chairman, warned that inconsistent state policies and excessive Right-of-Way (RoW) charges are deterring investment. “This trajectory shows strong demand, but without collaboration on RoW policies, we risk stalling our digital revolution,” Maida said.
Experts agree that Nigeria’s overreliance on mobile networks—responsible for nearly 99 percent of internet access—is unsustainable for long-term growth. “Some states with millions of residents still lack a single network with an autonomous system number,” noted Muhammed Rudman, CEO of IXPN. “Even institutions with capacity remain unconnected, limiting our digital potential.” To sustain momentum, industry leaders are urging coordinated state policies, investment in fibre infrastructure, and local data exchange systems that can support Nigeria’s next phase of digital transformation.
source: Business day