NCC: Nigeria’s data consumption rises by 47% as demand outpaces network capacity

The Nigerian Communications Commission, NCC, has raised concerns over the rapid growth in data consumption, saying Nigeria’s demand for digital connectivity is outpacing the capacity of existing networks.

The commission disclosed this in a communiqué issued after the Nigeria Digital Connectivity Investment Forum 2026, held in Abuja from September 29 to 30.

According to the NCC, Nigeria consumed about 1.6 million terabytes of data in July 2026, representing an increase of almost 47 per cent within 12 months.

It added that telecommunications subscriptions, currently estimated at about 195 million, could rise to 350 million within the next 10 to 15 years, further increasing pressure on networks, data centres and electricity infrastructure.

The forum, organised by the NCC in partnership with Swedfund and Ookla, was themed, “Unlocking Infrastructure Investment through Data, Transparency and Partnerships.”

The commission said the growing demand would be further driven by cloud computing and artificial intelligence, stressing the need for increased investment in digital infrastructure and reliable power supply.

The NCC also noted that telecommunications and information services accounted for 9.72 per cent of Nigeria’s real Gross Domestic Product in the second quarter of 2026.

It, however, said access to digital services remained constrained by factors beyond network coverage, including device affordability, digital skills and trust.

“Usage, rather than coverage, is now the larger gap,” the commission said, noting that mobile broadband covers about 90 per cent of Nigerians, while smartphone ownership stands at about 27 per cent and broadband penetration at 57.4 per cent, below the national target of 70 per cent.

The commission further identified power supply and inadequate middle-mile connectivity as major constraints to further digital infrastructure deployment.

It said the high cost of inland connectivity was limiting data centre and internet service investment to only a few metropolitan areas, while the cost of powering telecommunications infrastructure remained a major challenge for tower companies.

The NCC said the challenges required digital infrastructure and energy investments to be planned together, with telecommunications tower clusters considered as potential anchor customers for distributed power generation.

The commission also highlighted the importance of long-term financing, noting that digital infrastructure assets typically have a lifespan of between 20 and 30 years and therefore require longer-tenor capital.

Participants at the forum consequently called on the Federal Government to accelerate the delivery of Project BRIDGE, the proposed 90,000-kilometre national fibre backbone, to address the country’s middle-mile connectivity gap.

They also urged the government to improve the availability and reliability of electricity for digital infrastructure, maintain policy consistency and support financing structures capable of reducing the cost of capital in the sector.

The NCC was urged to sustain reforms aimed at improving investment conditions, including tariff realignment, the designation of critical national information infrastructure and engagement with state governments on Right of Way charges.

The commission was also asked to publish the first national Nigeria Digital Connectivity Index report, advance open-access and wholesale regulation, and finalise its direct-to-device framework.

State governments were similarly urged to reduce and harmonise Right of Way and site permit charges and shorten approval timelines for telecommunications infrastructure deployment.

Participants further recommended increased use of shared infrastructure and neutral-host models to reduce the cost of rural and indoor connectivity.

They also called for affordable devices, including locally manufactured phones and SIM cards, to be made available to Nigerians alongside network expansion.

The forum agreed on several priority actions, including securing funding within six months for community-owned rural networks powered by renewable energy in communities with no connectivity.

Other actions include issuing open-access and wholesale regulations, publishing a wholesale rate card, completing broadband mapping and strengthening the Universal Service Fund as the primary financing source for underserved areas.

Within 18 to 24 months, participants recommended the establishment of a financing framework for telecommunications power, as well as the development of metro and access fibre through concessions integrated with Project BRIDGE.

The NCC said the challenges identified at the forum, including financing costs, Right of Way restrictions, unreliable power supply and gaps in infrastructure data, were interconnected and required coordinated action by government, regulators, investors, financiers and industry stakeholders.

The commission said it would continue engaging stakeholders to advance the agreed actions and investment pathways.