May 23, 2024/FBNQuest Research

Nigeria’s broadband connections increased slightly by 1.0% m/m and 2.5% y/y to 94.4m in April 2024, according to the most recent data from the Nigerian Communications Commission (NCC). Broadband connections have maintained an upward trajectory since September 2023, except for a brief moderation in January 2024. NCC reports that mobile broadband accounts for a substantial portion (over 99%) of Nigeria’s broadband connections because of the convenience and relatively low cost of acquiring mobile lines. Consequently, the upward trend in broadband connections can be linked to the sustained growth in active mobile lines.

• Due to the modest monthly rise in broadband connections, the nation’s broadband penetration rate increased slightly to 43.5% in March from 43.1% the previous month. 
• The federal government (FG) seeks to address the country’s significant broadband penetration gap by implementing the National Broadband Plan (NBP 2020-2025).
• The NBP 2020-2025 programme aims to achieve a broadband penetration target of 70% and population coverage of 90% by 2025.

• To improve the nation’s low internet connectivity, the FG recently announced plans to expand the country’s existing infrastructure by an additional 90,000 kilometres (km) of fibre optic cables.
• The project, when completed, is expected to increase the country’s fibre optic cable from its current level of about 35,000 km to around 125,000 km.
• Furthermore, the significant expansion will place Nigeria as Africa’s third-largest terrestrial fibre optic backbone, behind South Africa and Egypt.
• However, among other challenges hindering broadband penetration in the country, damage and theft of broadband fibre cables remain a major concern to telecom regulators.
• The destruction of telecommunication facilities has interfered with the service delivery of GSM operators’ and impeded the expansion of telecom network infrastructure across the country.  
• In response, telecom operators have called the FG to criminalise the damage to telecommunication assets and impose harsh punishments on offenders.
• With just eighteen months remaining in the five-year plan and the slow progress of broadband growth, the NBP 2020–2025 plan appears unrealistic.