November 7, 2024/FBNQuest Research
Data from the Nigerian Communications Commission (NCC), showed that Nigeria’s broadband connections fell by -4% month-on-month (MoM) to 90.1 million in September 2024. The reduction in September marks the second consecutive month of decline. According to NCC, mobile broadband accounts for a substantial portion (over 99%) of Nigeria’s broadband connections due to the convenience and relatively low cost of acquiring mobile lines. Consequently, decreased active mobile lines can explain the MoM drop in broadband connections.
- In the previous note, FBNQuest Research noted that the reduction in mobile subscriptions was primarily due to the disconnection of active mobile lines from the NIN-SIM linkage.
- September’s broadband figures resulted in a broadband penetration rate of 41.6%, down from the 43.2% reported in the previous month.
- Notably, the federal government (FG), through the National Broadband Plan (NBP 2020-2025), aims to achieve a broadband penetration target of 70% and attain a population coverage of 90% by 2025.
- As a result, the FG launched several initiatives to expand the country’s fibre infrastructure and deepen broadband penetration nationwide.
- For instance, the government announced Project 774 LG connectivity, which seeks to deploy internet connections across all the 774 Local Governments in the country.
- In addition, the FG introduced the Special Purpose Vehicle (SPV), which aims to construct an extra 90,000km of fibre optic cable to address the nation’s huge broadband infrastructure deficit.
- Despite the considerable investment made in Nigeria’s digital system, concerns around insecurity, limited accessibility to FX, and high charges on Right of Way (RoW) licenses remain significant barriers to bridging the nation’s severe infrastructure deficit.
- Looking ahead, the FG is unlikely to meet its 70% broadband goal by 2025 due to the slow progress in expanding broadband access nationwide.
