Data from the Nigerian Communications Commission (NCC) shows that broadband internet subscriptions have increased for the third consecutive month in December 2024.
According to the data, total broadband connections grew by 2.8 million lines month-on-month (MoM) to reach 96.3 million.
This figure implies a penetration rate of 44.4%, slightly up from the previous rate of 43.2%. This marks the highest level of connections recorded by the industry regulator.
The rise in broadband connections during the month corresponds with a 5.1 million MoM increase in active mobile lines, bringing the total to 165.0 million over the same period.
The 2020-2025 Nigerian National Broadband Plan aims for a penetration rate of 70% by 2025. It also sets targets for coverage, download speeds of 25 megabits per second (Mbps) in urban areas, and a cost of N390 per gigabyte (GB).
However, with the current broadband penetration rate at 44.4%, Nigeria is unlikely to achieve the 70% target by the end of this year. There are also significant doubts about meeting other goals related to cost and coverage.
Like many sectors, telecommunications have been impacted by macroeconomic challenges, including inflationary pressures and costs tied to FX, primarily due to the sector’s reliance on imports.
In response to rising costs and to ensure the sector’s sustainability, the NCC has approved a 50% increase in telecom tariffs. This adjustment aims to maintain the sector’s viability and encourage ongoing investment in critical infrastructure.
Given the limited investments and the imminent tariff hike, the coverage and cost goals of 90% coverage and N390/GB will not be met this year.
In terms of usage, total data consumption increased by approximately 36% year-on-year (YoY) and 11% MoM to 973,455 terabytes (TB) in December 2024, implying an average data usage of around 4.5 GB compared with about 3.3 GB in the same month the previous year.
The benefits of broadband connectivity are well established. Research from the International Telecommunications Union (ITU) indicates that a 10% increase in broadband penetration could lead to GDP growth of 2.0% in low-income countries and 1.8% in middle-income nations.
The anticipated increase in data usage and broadband penetration underscores the critical role of improved connectivity in driving economic growth, particularly in low- and middle-income countries, where every percentage point gained can significantly contribute to GDP expansion.
