NCC, investors, DFIs chart new path to close Nigeria’s digital infrastructure gap

The Nigerian Communications Commission (NCC), in partnership with Swedfund and Ookla, has identified financing, electricity supply, right-of-way charges and inadequate infrastructure data as major obstacles to the expansion of Nigeria’s digital economy.

The issues dominated discussions at the Nigeria Digital Connectivity Investment Forum 2026, held at the Onomo Allure Hotel, Abuja, from September 29 to 30, with the theme, “Unlocking Infrastructure Investment through Data, Transparency and Partnerships.”

The two-day forum brought together government officials, regulators, development finance institutions, investment banks, institutional investors, telecommunications operators, tower and fibre companies, satellite and fixed wireless providers, equipment manufacturers and industry associations.

Participants examined Nigeria’s digital infrastructure investment opportunities and agreed on measures aimed at attracting long-term capital while expanding meaningful connectivity across the country.

Speaking from an investor perspective on “Financing Digital Infrastructure,” Chief Executive Officer of Chapel Hill Denham, Bolaji Balogun, stressed the need for investable projects, appropriate financing structures and greater capital-market participation to attract private and institutional investors.

Chairman of FCMB and Managing Director of Financial Derivatives Company, Bismarck Rewane, also highlighted the importance of the cost and availability of capital, investor confidence and policy predictability in unlocking infrastructure investment.

According to the forum’s resolutions, Nigeria’s digital infrastructure is under growing pressure as data consumption continues to surge.

The participants noted that Nigeria consumed approximately 1.6 million terabytes of data in July 2026, representing an increase of almost 47 per cent in 12 months, while subscriptions could rise from about 195 million currently to 350 million over the next 10 to 15 years.

They warned that the expansion of cloud computing and artificial intelligence would further increase deand for telecommunications networks, data centres and reliable electricity.

The forum also established that although mobile broadband coverage now reaches about 90 per cent of Nigerians, smartphone ownership remains at roughly 27 per cent, while broadband penetration stands at 57.4 per cent against a 70 per cent target.

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Participants therefore identified device affordability, digital skills and consumer trust as increasingly important barriers to digital inclusion, beyond network coverage.

The forum further noted that telecommunications and information services contributed 9.72 per cent to Nigeria’s real GDP in the second quarter of 2026, underscoring the strategic importance of digital connectivity to economic growth.

The stakeholders identified electricity and middle-mile connectivity as major constraints on further investment, particularly outside major metropolitan centres.

They called for energy and connectivity projects to be planned together, with tower clusters considered as potential anchor customers for distributed power generation.

The forum also stressed the need to match the long lifespan of digital infrastructure assets with longer-term financing.

It noted that digital infrastructure typically has an asset life of 20 to 30 years, making five-year bank financing inadequate for many projects.

Participants said Nigeria’s infrastructure financing had grown from less than N70 billion in 2004 to N19.4 trillion in 2025, but stressed that access to long-term capital would depend on good governance, management capacity and policy predictability.

State-level policies also came under scrutiny, with the Nigeria Digital Connectivity Index pilot across 12 states showing that reforms to Right of Way charges had contributed to fibre growth of between 22 per cent and 95 per cent in reforming states.

The participants disclosed that 12 states now charge zero Right of Way fees, compared with seven in December 2024.

The forum called on the Federal Government to accelerate Project BRIDGE, the proposed 90,000-kilometre national fibre backbone, as part of efforts to address Nigeria’s middle-mile connectivity deficit.

It also urged government to improve the availability and reliability of electricity for digital infrastructure and maintain policy consistency while developing financing mechanisms capable of reducing the sector’s cost of capital.

The NCC was urged to continue reforms aimed at improving the investment environment, including tariff realignment, designation of critical national information infrastructure, Right of Way engagement with state governments and the development of open-access and wholesale regulations.

The Commission was also urged to publish the first national Nigeria Digital Connectivity Index report and finalise the framework for direct-to-device connectivity.

State governments, the forum said, should harmonise and reduce Right of Way and site permit charges, shorten approval timelines and adopt the federal model requiring fibre operators to reinstate roads after deployment.

Operators and technology companies were encouraged to expand shared infrastructure and neutral-host models, particularly for rural and indoor coverage, while supporting access to affordable locally manufactured devices and SIM cards.

Investors and development finance institutions were similarly urged to provide long-tenor naira financing for long-life digital infrastructure assets and deploy blended finance and credit-enhancement mechanisms for projects that are not yet commercially viable.

Among the immediate priorities agreed at the forum is the mobilisation of funding within six months for community-owned rural networks powered by renewable energy in areas with no connectivity.

Over the next six to 18 months, stakeholders are expected to advance open-access and wholesale regulation, publish a wholesale rate card, complete broadband mapping, strengthen the Universal Service Fund and develop business cases for indoor connectivity and renewable-powered data centres.

The NCC subsequently pledged to sustain engagement with stakeholders to advance the identified investment opportunities and priority actions.

The Commission expressed appreciation to the Federal Government, the relevant ministers, the Swedish Government, Swedfund and Ookla for their partnership in convening the forum.

The statement was signed by Nnenna Ukoha, Director, Public Affairs Department, Nigerian