Despite numerous efforts to accelerate broadband expansion, progress has been hampered by a litany of challenges. These include prohibitively high operational costs, stifling regulatory bottlenecks, limited existing infrastructure, and a widespread lack of digital literacy. A particularly striking setback is the fate of the proposed $2 billion Special Purpose Vehicle (SPV). Announced in August 2024, this initiative aimed to roll out an impressive 90,000 kilometers of fiber optic cables through a Public-Private Partnership (PPP), expanding broadband coverage from 35,000 km to 125,000 km. However, 10 months later, this project remains a mere proposal, with no physical rollout having commenced.
The path to widespread broadband in Nigeria is riddled with several key obstacles. Beyond the low current penetration rate, the high cost of Right-of-Way (RoW), coupled with soaring energy expenses and various taxes, continues to deter infrastructure development. Regulatory delays, often stemming from complex and uncoordinated processes, further complicate and slow down deployment timelines. On the consumer side, the issue of device affordability is critical; widespread poverty and currency devaluation have pushed even entry-level smartphone prices out of reach for many. Moreover, existing fiber networks are often underutilized, especially in underserved areas, while unstable power supply makes consistent internet usage a challenge. A significant portion of the population also suffers from low digital literacy, impeding the adoption of broadband services. Finally, the slow rate of 4G adoption, with less than half of mobile subscriptions on this faster network, reveals a lag in network modernization.
In an effort to overcome these hurdles, both the government and private stakeholders have launched several initiatives. The National Broadband Plan itself targets 70 per cent penetration and 90 per cent population coverage by 2025, with specific speed goals for urban and rural areas. The Nigerian Broadband Alliance for Nigeria (NBAN) aims to foster collaboration, while InfraCo Licensing seeks to empower companies to build and manage regional networks. Regulatory reforms are ongoing to streamline approvals, and pilot projects are being launched in selected states to test scalable models. Furthermore, stakeholder collaboration among federal agencies, state governments, telecom operators, schools, and hospitals is emphasized to bridge access gaps.
However, despite these concerted efforts, a consensus among industry observers suggests that reaching 70% broadband penetration by December 2025 is increasingly unrealistic. The failure to meet this critical target could have profound implications for Nigeria’s digital economy, adversely affecting vital sectors such as education, healthcare, e-governance, and financial inclusion.
Experts are urgently calling for the government to accelerate project implementation, secure the necessary funding, harmonize the efforts of all stakeholders, and prioritize last-mile connectivity. Without a significant shift in both policy execution and on-ground investment, Nigeria risks missing yet another crucial milestone in its digital transformation journey. As broadband remains a fundamental enabler of national development, confronting these challenges head-on is essential for cementing Nigeria’s position as a leading digital economy in Africa.
