Nigeria’s appetite for data is accelerating at a pace that is putting new pressure on the country’s telecommunications infrastructure, power supply and investment capacity.
Data consumption climbed by almost 47% to roughly 1.6 million terabytes in July 2026, according to the Nigerian Communications Commission (NCC), highlighting the widening gap between demand for connectivity and the infrastructure needed to support it.
The surge comes as Nigerians increasingly rely on mobile internet and digital services, while emerging technologies such as artificial intelligence and cloud computing are expected to drive even greater demand in the years ahead.
The figures were disclosed by Nnenna Ukoha, director of the NCC’s public affairs department, in a communiqué issued following the Nigeria Digital Connectivity Investment Forum 2026 in Abuja on September 29 and 30.
The forum brought together industry stakeholders to examine the country’s digital infrastructure needs and identify ways to attract the long-term investment required to close connectivity gaps.
Nigeria could reach 350 million subscriptions
Participants at the forum expect Nigeria’s telecommunications market to expand substantially over the next decade.
The number of subscriptions is projected to rise from approximately 195 million today to as many as 350 million within the next 10 to 15 years.
That growth would place additional demands on mobile networks, fibre infrastructure, data centres and electricity supplies.
The NCC warned that the pressure will not come solely from a growing number of connected users. The expansion of cloud computing and artificial intelligence is also expected to dramatically increase the amount of data processed and transmitted across the country’s digital infrastructure.
“Cloud computing and artificial intelligence will place further demand on networks, data centres and, above all, power,” the commission said in its communiqué.
The warning underscores a challenge facing Nigeria’s digital economy: expanding network coverage alone will not be enough. Infrastructure must also have access to reliable electricity and sufficient backhaul capacity to handle rising traffic.
Telecoms already play a major role in Nigeria’s economy
The communications industry has become an increasingly important contributor to Nigeria’s broader economy.
According to the NCC, telecommunications and information services accounted for 9.72% of Nigeria’s real gross domestic product in the second quarter of 2026.
The commission also cited figures showing that mobile technologies contributed approximately $240 billion to Africa’s economy in 2025.
Those figures highlight why digital infrastructure has become an increasingly important investment priority across Nigeria and the wider continent.
As more economic activity moves online, limitations in connectivity can affect not only consumers but also businesses, financial services, government services and emerging technology companies.
Power remains one of the biggest barriers
Despite growing demand, stakeholders at the forum identified electricity and middle-mile connectivity as two of the most significant obstacles to expanding Nigeria’s digital infrastructure.
For telecommunications tower companies, power is a fundamental operating requirement rather than a secondary concern.
The NCC noted that the cost and availability of electricity can significantly affect the economics of network deployment. At the same time, expensive inland connectivity is limiting investment in data centres and internet services outside a small number of major metropolitan areas.
This creates a difficult infrastructure cycle. Areas without sufficient connectivity can struggle to attract investment, while the high cost of extending infrastructure makes it harder for providers to build networks in those locations.
Coverage is improving, but adoption still faces hurdles
Nigeria has made considerable progress in extending mobile broadband coverage, with approximately 90% of the population now covered.
However, coverage has not translated into universal digital adoption.
Smartphone ownership is estimated at only about 27%, while broadband penetration stands at 57.4%—still below the country’s 70% target.
The NCC said participants identified three major barriers to wider adoption: the affordability of devices, digital skills and trust.
That means building additional network infrastructure is only part of the challenge.
Consumers also need access to affordable smartphones and other devices, the skills required to use digital services effectively and confidence in the systems they are being asked to adopt.
“Device affordability, digital skills and trust are the binding constraints, and coverage investment alone cannot close them,” the commission said.
Digital infrastructure needs patient capital
Another issue highlighted at the forum was the mismatch between the long lifespan of digital infrastructure and the financing available to build it.
The NCC said digital infrastructure typically has an asset life of between 20 and 30 years. Yet securing financing with terms that match that lifespan remains a challenge.
Infrastructure financing in Nigeria has expanded dramatically, rising from less than N70 billion in 2004 to N19.4 trillion in 2025.
But the commission cautioned that the growth in financing does not automatically make digital infrastructure projects commercially bankable.
Long-term projects require financing structures capable of accommodating the extended period over which infrastructure generates returns.
NCC calls for faster fibre deployment
Participants recommended that the federal government accelerate Project BRIDGE, the planned 90,000-kilometre national fibre backbone, as part of efforts to address Nigeria’s middle-mile connectivity shortage.
Expanding the country’s fibre backbone could help connect more communities and create the capacity needed to support growing mobile, cloud and data-centre demand.
Stakeholders also called for more reliable electricity, greater consistency in government policies and financing mechanisms designed to lower the cost of capital for digital infrastructure projects.
The recommendations extend beyond federal policy.
State governments were urged to reduce and harmonise right-of-way charges and site permit fees while also shortening the time required to obtain approvals for network deployment.
Right-of-way reforms are already showing results
The NCC pointed to evidence that regulatory reforms at the state level can have a measurable effect on fibre deployment.
A pilot of the Nigeria Digital Connectivity Index covering 12 states found that right-of-way reforms were associated with fibre growth ranging from 22% to 95% in states that introduced reforms.
The number of states charging zero right-of-way fees has also increased.
According to the NCC, 12 states now charge no right-of-way fees, compared with seven in December 2024.
Lowering these costs could make it easier for telecommunications operators and infrastructure providers to expand networks into areas where deployment has previously been constrained by high costs.
Investors urged to provide longer-term funding
Forum participants also called on investors and development finance institutions to better match financing terms with the lifespan of digital infrastructure assets.
In particular, stakeholders recommended greater use of long-tenor naira financing for projects that require significant upfront investment but generate returns over many years.
They also proposed using independently verified network-performance data, blended finance and credit-enhancement mechanisms to help fund projects that may not yet be commercially viable on a standalone basis.
Such structures could allow more infrastructure projects to attract private capital while reducing some of the risks associated with deploying networks in underserved communities.
Rural connectivity projects get a six-month target
The forum also produced a specific commitment for communities that remain without connectivity.
Participants agreed to seek funding within six months for community-owned rural networks powered by renewable energy in areas with zero connectivity.
The proposed projects will involve the Universal Service Provision Fund, state governments and the Rural Electrification Agency.
The model is intended to address two problems simultaneously: the lack of telecommunications infrastructure in underserved communities and the challenge of providing reliable electricity to power that infrastructure.
More reforms planned over the next 18 months
The NCC said stakeholders also established timelines for several additional measures aimed at strengthening Nigeria’s digital infrastructure investment environment.
Open-access and wholesale regulation, broadband mapping and a wholesale rate card are expected to progress within six to 18 months.
A dedicated financing framework for telecommunications power is expected to take between 18 and 24 months.
The commission said it would continue working with stakeholders to advance the investment opportunities and policy measures identified during the forum.
Nigeria faces a race to keep up with data demand
The latest data-consumption figures illustrate the scale of the challenge facing Nigeria’s digital economy.
With consumption already approaching 1.6 million terabytes a month and subscriptions potentially reaching 350 million over the next 10 to 15 years, demand for reliable networks is unlikely to slow.
Artificial intelligence, cloud computing and expanding digital services could accelerate that growth even further.
For Nigeria, the challenge is therefore no longer simply getting more people online. It is building the fibre, mobile networks, data centres and power infrastructure capable of supporting a much more data-intensive economy.
The investment decisions made now could determine whether infrastructure keeps pace with that transformation—or becomes a constraint on Nigeria’s next phase of digital growth.
