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25-Feb-2025

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Nigeria Targets 70% Internet Penetration by 2025 with National Broadband Alliance 2 months ago

The Nigerian Communications Commission (NCC) has officially launched the National Broadband Alliance for Nigeria (NBAN), a groundbreaking initiative aimed at expanding internet access nationwide. This policy initiative is focused on key sectors such as schools, healthcare facilities, religious centers, and markets, with the goal of establishing a sustainable model for widespread broadband adoption across the country.

The NBAN aligns with Nigeria's National Broadband Plan (2020-2025) and the Strategic Blueprint from the Ministry of Communications, Innovation, and Digital Economy. Central to the initiative's objectives is the ambitious target of increasing broadband penetration from 44% in December 2024 to 70% by 2025. Additionally, NBAN aims to ensure minimum data speeds of 25 Mbps in urban areas and 10 Mbps in rural regions while boosting broadband investments by 300–500% by 2027.

Utilizing a collaborative approach, NBAN seeks to unite state governments, educational institutions, healthcare providers, telecom operators, and infrastructure companies to drive broadband expansion across Nigeria. The initiative will initially roll out a pilot program in eight states: Edo, Ogun, Kwara, Katsina, Imo, Abia, Borno, and Nasarawa.

"Achieving these goals will require more than just the efforts of the private sector. It will require a holistic approach that includes strategic partnerships with donors, investors, and other key stakeholders in accelerating the roll-out of critical infrastructure," said Aminu Maida, executive vice chairman of the NCC during the kick-off meeting in Lagos on Tuesday.

In a related development, on January 20, 2025, the NCC approved a 50% tariff increase for telecom operators, contingent upon improvements in service quality within three months of implementation. Although the new tariffs are not yet in effect, telecommunications operators are actively preparing to comply with the NCC's directives.

Additionally, the NCC has approved a roaming and spectrum-sharing agreement between MTN Nigeria and 9mobile. This agreement allows 9mobile, Nigeria's fourth-largest telecom operator, to utilize MTN's extensive infrastructure to enhance its network coverage. Consequently, 9mobile subscribers will have the ability to make calls, send messages, and utilize data services in areas where 9mobile's coverage is lacking. For MTN, this partnership offers profit-sharing opportunities and access to 9mobile's spectrum holdings, which include the 900 MHz, 1800 MHz, and 2100 MHz bands.

Airtel Nigeria has also announced plans to expand its network presence, upgrade existing infrastructure, and enhance service delivery, according to CEO Dinesh Balsingh. However, meeting the NCC's three-month deadline poses a significant challenge. Currently, Nigeria's internet penetration stands at 44%, notably lower than South Africa and Egypt, which reported internet penetration rates of 74.7% and 72.2% in 2024, respectively. Furthermore, the country faces difficulties with low-speed internet deployment, with 4G penetration at 47% and 5G adoption at a mere 2.4%, two years post-launch.

"Tariff increases are only part of the challenges faced by the industry," stated Gbenga Adebayo, President of the Association of Licensed Telecommunications Operators of Nigeria, during a recent telecom CEOs town hall. He noted that the 50% increase would allow operators to recoup some revenue losses and fund infrastructure deployment in underserved areas, yet it fails to address issues such as multiple taxation, vandalism of telecom infrastructure, and insecurity across the nation.

Aminu Maida of the NCC remains optimistic about the potential impact of the NBAN initiative. He believes it can tackle these challenges by streamlining regulatory processes to facilitate fiber deployment, creating incentives for private-sector investment in underserved areas, and launching public awareness campaigns to promote broadband adoption and usage.

As Nigeria embarks on this ambitious journey toward improved internet access, the success of the NBAN will be critical in propelling the nation toward greater connectivity, thus enhancing economic growth and societal development in the years to come.

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