Nigeria’s data usage hits 1.6m terabytes, up 47% amid rising network pressure

Nigeria’s data consumption surged by almost 47 percent to approximately 1.6 million terabytes in July 2026, highlighting growing pressure on the country’s telecommunications infrastructure as digital adoption accelerates.

The Nigerian Communications Commission (NCC) disclosed this in a communiqué issued at the end of the Nigeria Digital Connectivity Investment Forum 2026, held in Abuja on September 29 and 30.

The commission said the rapid increase in data usage was occurring against the backdrop of rising demand for connectivity, cloud computing, artificial intelligence (AI), data centres and digital services, raising concerns over whether existing network infrastructure can keep pace.

According to the NCC, industry participants at the forum projected that Nigeria’s telecommunications subscriptions could increase from about 195 million currently to as many as 350 million within the next 10 to 15 years.

The projected growth, it said, would significantly increase demand for network capacity, data centres and electricity.

“Cloud computing and artificial intelligence will place further demand on networks, data centres and, above all, power,” the commission quoted participants as saying.

The development underscores the growing importance of investment in Nigeria’s digital infrastructure as businesses, government agencies and consumers increasingly depend on broadband, cloud-based platforms, digital payments, streaming services and AI-powered applications.

The NCC said telecommunications and information services accounted for 9.72 percent of Nigeria’s real Gross Domestic Product (GDP) in the second quarter of 2026, underscoring the sector’s increasing contribution to economic activity.

It also noted that mobile technology contributed approximately $240 billion to Africa’s economy in 2025.

Despite the sector’s economic significance, participants at the investment forum identified inadequate electricity supply and insufficient middle-mile connectivity as major obstacles to further digital infrastructure deployment.

“For tower companies, power is not a side business but the business, and the cost of inland connectivity confines datacentre and internet service investment to a few metropolitan centres,” the communiqué stated.

The observation highlights the twin infrastructure challenges facing the sector: the high cost of powering telecommunications equipment and the limited availability of reliable fibre connectivity outside major urban centres.

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The commission said mobile broadband coverage currently reaches about 90 percent of Nigerians, while smartphone ownership is estimated at only 27 percent.

Broadband penetration stands at 57.4 percent, according to the NCC, below the Federal Government’s 70 percent target.

The gap, the commission said, means that extending network coverage alone would not be sufficient to achieve widespread digital inclusion.

“Device affordability, digital skills and trust are the binding constraints, and coverage investment alone cannot close them,” the communiqué quoted participants as saying.

The observation points to the affordability challenge confronting millions of Nigerians who may live within areas covered by broadband networks but cannot afford smartphones, data services or other digital tools.

Limited digital skills and concerns around trust and online security were also identified as barriers to deeper adoption.

The NCC said digital infrastructure typically has an asset life of between 20 and 30 years, making long-term financing critical to sustainable investment in the sector.

It disclosed that infrastructure financing in Nigeria had grown from less than N70 billion in 2004 to N19.4 trillion in 2025.

However, the commission cautioned that the growth in financing does not automatically mean that digital infrastructure projects are sufficiently bankable.

“Long-term financing is not, however, automatic bankability,” it stated.

Participants therefore called on investors and development finance institutions to better align the long lifespan of digital infrastructure assets with long-tenor naira financing.

They also recommended the use of independently verified network performance data, blended financing and credit-enhancement mechanisms to support projects that may not yet be commercially viable but have significant developmental value.

A major recommendation from the forum was for the Federal Government to accelerate Project BRIDGE, the proposed 90,000-kilometre national fibre backbone, to close the country’s middle-mile connectivity gap.

The middle-mile infrastructure is considered critical to extending high-capacity connectivity from major network hubs to underserved communities and locations outside Nigeria’s major metropolitan centres.

Participants also called for improvements in the availability and reliability of electricity, greater policy consistency and financing structures capable of reducing the cost of capital for telecommunications and digital infrastructure projects.

The forum further urged state governments to reduce and harmonise right-of-way charges and site permit fees while shortening the time required to obtain approvals for telecommunications infrastructure.

The NCC said evidence from a pilot of the Nigeria Digital Connectivity Index conducted across 12 states showed that right-of-way reforms could have a significant impact on fibre deployment.

According to the commission, states that implemented reforms recorded fibre growth ranging from 22 percent to 95 percent.

It added that the number of states charging zero right-of-way fees had increased from seven in December 2024 to 12.

The development suggests that reducing regulatory and deployment costs could encourage greater private-sector investment in broadband infrastructure, particularly where other conditions for investment are favourable.

Participants at the forum also agreed to secure funding within six months for community co-owned, renewable-powered rural networks in communities with little or no connectivity.

The projects are expected to involve the Universal Service Provision Fund, state governments and the Rural Electrification Agency.

The proposed model is aimed at addressing the commercial difficulties associated with deploying traditional telecommunications infrastructure in remote and low-income communities.

Using renewable energy could also reduce dependence on diesel-powered systems and lower the operating costs associated with powering rural telecommunications infrastructure.

The NCC said it would continue engagement with telecommunications operators, investors, development finance institutions, state governments and other stakeholders to advance the investment pathways identified at the forum.